july: gbg turning point.

I am back writing here after a while and, probably, in the most decisive month for Gindalbie Metals. In the meanwhile, I have increased my GBG holding up to 360,000 at an average price of 0.14: I have basically played “ALL IN” on GBG stocks and I am just running out of cash. From my humble point of view, the current price for a GBG share is simply ridiculous, just considering the last financial deals with Ansteel which gave it a price of $0.47…more than 4 times the current SP. Are you telling me, Chinese businessmen have just become good sammaritans? Well, dear sidelines and shorters, I will not consider selling my GBG stocks at any price below that (0.47), just for your info…

As for the past equity raising risk, this stock has come through a period of speculative and shorters’ attacks. In one of my previous post here, I wrote, Gindalbie Metals is “indestructible” because of its strategic partnership with Ansteel. The adjective is probably too extreme in this context, but you all know now, how GBG’s cash shortage has been cleared up… I believe, the share-market has not yet fully understood two important aspects of Gindalbie so far: 1) the potential of its valuable product: magnetite/68% fe IO; 2) the financial/economic advantage of having a partner-client as Ansteel. I illustrated these points enough in my previous posts: I won’t repeat them here. From this perspective, I would even argue that, in the case of IO price falling and KML becoming unproductive, Ansteel’s magnetite/IO 68% hunger would make them paying even more than market prices to keep KML working full speed and deliver its product to China… that would be just the last step of a company whose “magnetite fever” has led them to give GBG incredible loan deals and pay more than rationality would suggest (I am kinda sure, they will go for the 16mt expansion project soon, as well…).

I am not writing here to convince others to buy GBG stocks. I actually understand who, after all these production delays and company’s long-lasting silences, prefers jumping on a running train rather than waiting nervously on a train still stuck at the train station (I guess, they also know, the tickets will be then more expensive). All I want is to prevent others (in this forum) to fell in desperation which will then make them selling in heavy loss like it happened a month ago. I believe, this stock is heavily undervalued compared to the current risk side; there are simply three targets to reach: 1) completing the polishing circuits 2) nameplate production; 3) positive cash flow. Despite negative speculations and fears around this forum (legal battles, ships, harbour capacity, etc), GBG is just about to achieve them: despite the sea weather issue in Geraldton (which should have a lesser impact in the coming months), a growing number of ships have been sent out and 65% fe IO is currently produced. The stocks just needs to regain its credibility, after missing nameplate production three times in row, which have caused an endless downtrend to the SP. Keep calm and you will be rewarded!