As we start 2012, the new executive committee's reputations, 15...

As we start 2012, the new executive committee's reputations, 15 months post the sacked CEO, are in the spot light. At what point do you say, gave it our best shot, time to move on, time for someone else to have a go at creating shareholder wealth ?

In my opinion, Gippsland this quarter has to either come up with a full finance package or face the reality the Abu Dabbab project is too large for a company of GIP's size to finance.

I say sell Abu Dabbab !!! - Start some marketing in China & Japan where the Central Bank is becoming concerned with China's global mineral acquisitions. Noah's Rule put a low point NPV to Gippsland of $94.6mio at 20% discount rate.
Put it on the market & see who comes to the table. Negotiate a cash sale.

The other possibly I see is for the Board to start courting Chalice who will soon have a significant cash balance. Their stated objective " enabling it to pursue other opportunities in Eritrea and around the world "
Subject to the sale of Heemskirk & acquiring approx. 26% of Stellar, Gippsland becomes an even more attractive undervalued merger target.

Abu Dabbab Tantalum & Tin BFS & contract in hand, 26% of highest grade undeveloped tin resource in Australia ( Heemskirk ), 300sq. klm exploration area in Eritrea, structural setting similar to Zara. Chalice Gold (CHN) has recently agreed to sell its 60% of the Zara Gold project for $US80mio.

Shareholders are long overdue for a return on the company's assets.

Sell Abu Dabbab or start talking Merger.