No, GBG is not trading below cash backing.
GBG now has 714 million shares on issue, fully diluted.
Cash backings as follows:
- A$43 million in Gindalbie (parent company)
- A$350 million in Karara Mining Limited (KML - Joint venture company). We now OWN 50% of KML as equity funding has been completed, hence A$175million entitlement to GBG (parent company) once consolidated.
That means GBG has A$218 million CASH backing.
Given we have 714 million shares on issue cash backing is as follows:
218m/714m
GBG cash backing = $0.3053
A$200m was spent on long lead items, we cannot include this as a "cash backing", not to mention we have a 50% entitlement to this, so A$100m. From an accounting historical perspective you could say its still worth A$100m, however in reality we couldn't sell these items @ cost.
Regardless of this GBG is in a prime position. GBG (parent company) will incur almost no expenses except administration. I doubt cash burn will exceed more than 8 million pa from here until expansions outside the JV occur. Karara will defiantly be producing before the above happens.
I sold all of my GFC purchased shares today except for GBG. I am getting ready to buy some more GBG if a cheap opportunity comes.
- Forums
- ASX - By Stock
- GBG
- gindalbie completes $162m share placement
gindalbie completes $162m share placement, page-6
-
- There are more pages in this discussion • 2 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)