GCY Fate and a likely outcome, page-16

Thanks Joelstar and Spec101 for these and all your posts on this and the other thread.

Like you Joelstar, my best investments have taken a while and have involved significant periods of share price pain.

I Understand many here are unhappy with the FFR deal (price and no termination clause for GCY). I tend to agree but I accept it because the deal was done with GCY on the back foot needing better grade ore to improve the mine plan years and production profile. That’s what they said clearly, like it or believe it or not.

I wasn’t that keen to sell to WGX at a discount to a fair valuation instead of a premium. Why do it? If the FFR deal doesn’t deliver the higher grade ore in a year, the plant will still be worth more than WGX were offering. Again, I understand some here are shorter term holders whose quick profit has been probably killed. I’m looking for a moderate chance at a gold-leveraged multibagger based on decent production and cashflow with the plant as a backstop to the value. I want the risk and return WGX are supposedly trying to save us from!

What I am focussed on now is:

- The realised value for GCY holders of the FFR deal is unknown. GCY’s management may strongly believe how it will go but it will take a year for us all to find out. I trust RH personally and I’m happy to give him a chance to play it out.

- GCY has had 2 poor quarters production-wise related to weather and other operational issues and still managed to add next cash of $7m. Based on the previous quarters, the next 2 could/should be better and the net cash position would be excellent by April next year.

- The news flow could/should be good over the same period which would make it clear to the market that GCY is back on track.

However, I suspect there will be more to come from WGX and the washup from the major SH.

GLAH
pb