The two announcements yesterday were very positive, we are moving forward even if the brokers have still not realised it.
The teething problems on upgrading tin production, not unusual, what is unusual, is that it has been detected "early" and remedies put in place. Tells me Starink is "hands on with this " a major point to consider.
Finance strategy. Again the announcement tells me Gandel is right on top of this & conscious of further dilution to long term shareholders, even more so is the level of communication & contacts he has achieved. I have long maintained in the past with JT whether we were talking to the right financiers or whether the potential financiers had no confidence in our management.I sense a deal is extremely close here.
As for my normally conservative bean counter, Petra put a target of 12c, herewith some light reading from my man with slide rule,
"Just had a look at latest presentation from GIP at latest Conference. It is not really going to be a joint venture they are just going to get project equity put in the Tantalum International subsidiary coy and that Coy owns 50% of Abu Dabbab. What will be interesting is what price that equity is put in to capitalise that company. If it is say $75m to $100m for 50% (NPV is supposed to be $259m)$75m would be a discount of 58% on $130m. So that would underpin GIP’s value. At 1.2cents its capped at $14.5m so if say $75m, shares have to be worth 6.2cents on Abu Dabbab only"
Our directors just stated : The Directors believe that the present market capitalisation of Gippsland, being approximately A$14.5 million at a share price of $0.012, does not reflect the potential value of the Company’s interest in Tantalum International and the Project"
Makes my target of 5c by end of month realistic.
GO GIP EXECUTIVE TEAM !!
AR1 Price at posting:
1.3¢ Sentiment: ST Buy Disclosure: Held
