GRR Qtrly report, page-56

I am not trying to calculate a profit as such. Just notice there is a lot of strain against their cash at the moment and I dont like the momentum as whilst they presently have a strong cash buffer I believe there could be a big impact on share price should the cash continue reducing. Six months to June they had lower cash and slightly higher borrowings even though they recorded the profit. I note borrowings also increased during this period. I can see their margins have reduced substantially based on their quarterlies and we are now at the worst margins ever. (based on last 3-4 years)

In the face of criticism via hotcopper I highlighted similar issues on MBN some 6 months ago when everyone was screaming cash cow and telling me i was 'trippin out'. Now MBN is in VA due to liquidity issues with most hotcopperites saying they never saw it coming even though the reports were showing all. GRR is clearly not in same position as MBN but my point is, no one wants to be critical of the reports when they should be.

I have been a huge fan of GRR for the last few years being in and out on many occassions but currently all out on the basis of that last quarterly. Might get back in on one of two things happening. 1. Realised prices improve, 2. Short term oversell looks like it has occurred.

Long term, who knows. Long mine life, nominal debt, appears to be good management most of the time so wish you well. If they can get the margins on pellet premium back up this should be great long term hold.

I note stocks can fluctuate for many reasons. Sometimes they go up when they shouldnt and sometimes they go down when they shouldnt. Lets just say I bought this when it was down when it shouldnt have been and have decided to sell whilst the going is good. Who really knows, it might go 15+ but I would put that down to being up when it shouldnt.