Yep - I also (continued) to totally underestimated just how bad the situation really is. They have had me hooked on the line (in and out), since around the 25-30 cent range. I was relatively bullish on iron ore even with the down-rampers, but I foolishly targeted GBG as my main exposure to it even though it was the highest risk.
Initially without the tailing issues it was the company continually and significantly underestimating the capital and time required to get the machine up and running, while now it seems they have continued to treat share-holders with total disregard - i.e. I cannot accept they have only just realised, the approximate 3 month fix will blow out to 15 months, precisely at the time the 3 months has expired. What were they being advised in the interim by the engineers? Is this management really this incompetent? I just don't understand what is going on with this project to be honest - a real circus act.
Anyway I dumped my stock on the announcement. I may look at it again once/if the finish line has legitimately been reached but the current cash burn is phenomenal and there is no apparent end in sight.
What did surprise me (and make me somewhat cynical) was how the SP held up - there were plenty of buyers lining up to grab the dumped stock. I guess this has already been factored in somewhat to the equation, as I'm sure the smart money had a fair sense of where they were at with the fix that us retailers did not have privy to.
All the best to those that hold - feeling your pain and hope this one eventually rallies. If your attending the AGM - give them the hell they deserve.
GBG Price at posting:
11.5¢ Sentiment: None Disclosure: Not Held
