im out

Goodluck all. Sold my last shares today at 11 cents. I had been a loyal long term shareholder since 2007.

I still have a small parcel of shares left in my smsf, but sold all personal holdings.

Realised a good 150k+ in losses, I'll calculate the proper figure at tax time.

Why did I sell?

Too many risks. Continually this company delays and delays, but each month is costing 50m or so. Gbg cannot fund this and has already sold a small stake in kml and done a prepayment all in the space of a month or so. That raised over 100m and they need more... No mention of the final capex figures which were previously said to be broadly in line with budgets... This means over budget in gbg language (my opinion). So who will fund this?

I modelled many different figures last night and today taking into account kml stakes being sold to further equity raisings in GBG. All looked horrible and suggest that we would struggle to realise a value above 30 cents. Especially when you consider that debt less peers are travelling at a PE of 5 such as MGX. Gbg is potentially expensive given the risks.

Also it appears nameplate production is now 8mtpa, not 10mtpa which included DSO. Infact it appears the DSO sold or being sold is nothing more than low grade waste being sold less than cost. Hence my values attributed to gbg was even less. I don't doubt Ansteel could come take us over. But I can't gamble what's left hoping for that.

I'm on my iPhone so it is hard to articulate all of my analysis but I wish you all the best. I'll still follow forum and stock announcements as I have some
Shares in my smsf.
Overall I lost about 80 percent of my money. I'd considered selling the lot since the day of the KML selling announcement. This was the final straw, and I think there is a grave risk of significant dilution from this point.

Cheers,

Gindaldan