My thoughts. While GBG market capitalisation is so low, GBG is not in a very good position to issue more shares to acquire other small IO companies. The three options I'm thinking of are: 1. A largely cash purchase which would likely need China Dev't Bank support with Ansteel part ownership. 2. Wait for the GBG stock price to increase significantly and likely complete Phase 2 to unlock sufficient Karara potential before purchasing smaller IO companies. 3. Wait for smaller IO company business performance to deteriorate and purchase at rock bottom prices.
Growth via acquisition vs. Karara Phase 2 is a consideration for GBG/Ansteel. I think Phase 2 is more likely since its potential is very high unless an IO company is prepared to sell at a low price or Ansteel is desperate for more short term guaranteed IO supply.
Some thoughts.... sdo
GBG Price at posting:
12.0¢ Sentiment: LT Buy Disclosure: Held
