Hi Rythex and others. I am no bear on GRR i like the company but...

Hi Rythex and others.
I am no bear on GRR i like the company but i think your comments show you dont understand the industry so you need to be really careful with your investment.
The comment comparing GRR to FMG alone shows you dont understand mining. FMG is a low cost producer. GRR is a high cost producer. So they are fundamentally different companies and GRR is much higher risk because it cannot withstand the low cycles without a cash buffer because it moves into a lossmaking position. Thats why the board holds a big cash buffer. Contrary to what others here say critical of Shagang the cash buffer is because the GRR board understands the mining industry and you do not.
Similarly the discussion about the FMG PE ratio and GRR. They should not be compared. FMG continues to generate cash at the low point of the cycle whereas GRR will not.
I like GRR. When the share price gets low enough i will invest. One of the reasons i like them is the sensible cash buffer the board keeps it shows the board is prudent and understands the company.
But GRR has a specific risk profile because of its position on the cost curve. Its important as investors to understand that because it is fundamental to the investment risk you are taking.