on the verge..., page-6

Angry

Heaps of answers to your questions on this thread

In short: BHP sell project that are no longer in the “GIANT” status! And yes, the price is very fair! More than fair! It also means that GUJ can use all the infrastructure including the railway line that comes in the price, to service their existing Avondale mine.

As an example. check out RIV ... they where basically a shell that refloated at 20 cents & purchased a South African Coal project off BHP ... BHP had mined the reserves & it no longer fit their profile ... 12 months AFTER the purchase RIV was able to confirm a coal resource of only 20mt. RIV also then got involved in a large exploration coal play in Mozambique, where they have now confirmed 62mt coal deposit & drilling will increase that. Now look at them, over $3.50 and a MC of over $500m.

Compare that to GUJ ... amazingly similar in many ways ... purchases an old BHP coal project, with 26mt ready to mine, plus heaps of upside exploration potential. PLUS they have the Avondale project with 200mt (Never mind all their other metal projects) .... All this and a MC of only about $145m fully diluted!!!

Putting that into perspective, GUJ is projecting to earn about $300M per annum from the 2 mines by 2009 .... with a minelife for the next 20 years or so.

With TWO operating coal mines by the end of the year, the potential for GUJ is massive!!

I know RIV will keep going upwards too, I see a SP for them of about $5, but just based on the comparison, where will GUJ get to?? Short term $.50 cents is a given. It will come on the radar of Instos & when it gets into the All Ords will go further ... Then what about when they get to full production????

This is very tightly held & not one for traders ... patient holders will be rewarded

Cheers

(ps: Their MC is higher because the parent company owns a bag of shares)