SGW sons of gwalia limited

sons of gwalia on the move, page-3

  1. 7,611 Posts.
    re: gip threat Guys , be careful with SGW. As you know I hold GIP and have done alot of MR on Tantalum.
    SGW mined and sold 2.193m lbs to 30/06/03.
    Sales were A$205 vs PBIT $57m.
    Therefore cost of sales = A$148 = A67.50 per lb.

    Now GIP have announced a huge resource in Egypt which will make them #2 producer in the world behind SGW and are planning to mine it from 2005. The cost of sales is reported by GIP to be in the order of USD5/lb (A7.50/lb vs SGW A67.50/lb)
    Also note SGW reported their 'fixed contract' sales carry through to 2005 only (at this point).
    SGW noted increased costs due to lower grades of Tantalum in 02/03 and yet still boost about being the lowest cost producer of the stuff in the world.
    Further , SGW have recently announced their corporate stratergy which states (amongst others) "expanding their Tantalum reservres " and "maintaining market share". This may have to happen by aquisition imho.
    GIP must be on their radar screen , one way or the other.
    Not wanting to alarm anyone , but plse do yr homework , I can see positives for both GIP and SGW if they are to unite somehow , but huge threats to SGW if GIP's figures are to be believed.

    SALTY
 
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