I emphasize the word "if" and "when". This boom won't last forever, and that is why I invest in GBG as they will make it into production before this boom is over. Take into account the expansions of RIO, BHP and Vale and iron ore could easily be in oversupply from 2013/2014. That is well before SDL proposes production. This all depends on China of course.
GBG was never going to produce the same returns such as stocks like SDL, BRM, FRS, GIR etc. I knew this when I first invested. However the downside and risk was a lot less hence I was comfortable putting large sums of money in GBG. I would not be comfortable putting $100ks into a small cap or an iron ore company with no partner/finance.
I have no doubt that SDL has the potential to be a massive company with unprecedented reserves outside the majors. But I need to see a lot more besides drill results, MOUs and corporate presentations before committing any real dollars into it. None of us know how diluted the stock/project will become before production. Given we have the same chairman you should look at GBG's history on the path to production.
Investing is a risk/reward game and we all have different levels of risk tolerance.
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