I don't know, but the discount looks to be a bit overdone to me. Last reported assets of $1.40 per share, fully diluted, after tax. Take away 4c for the divi paid, and last updated NTA should be 1.36 p/s.
Mining stock have copped a bit of a sledging since 31st August. I don't have access to the HSBC global mining index, which tracks mining shares, so I'll just use RIO shares as a benchmark. They were at $73 on 31st August, and today they're $69.50. Down around 5%. Using this as a very crude tool to extrapolate the performance of the GMI portfolio since then, the worth should be around $1.29 per share.
Current share price is $1.18, around a 9% discount to roughly estimated NTA.
Considering the GMI manager is THE best at picking mining stocks in the whole world - he's picked up some award this year for best fund performance out of all mining share funds - AND you get access to seed capital type investments, I'm going to say this is undeserved. I was flipping through the annual report and noticed they had 1% of the GMI p/f in GEM diamonds, a consortium formed by former De Beers senior executives who've picked up prime South African diamond tenements. No doubt this is a fantastic opportunity, and being a privately held investment one which only the likes of GMI with established industry connections can get access to.
Then again I might be biased, I hold 5000 GMI shares.
GMI Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
