towering inferno

After all the torture with this stock I have now become a non- believer not a true believer!

Good luck to all the long term suffering shareholders

Analysts divided on Gindalbie Metals
• $0.260
• $-0.04
• (-11.86%)
as at 16:10 Australia/Sydney 03 DEC 2012
Gindalbie Metals’ $62.5 million raising on Friday has covered a “potential near-term cash shortage,” according to Morgan Stanley’s Brendan Fitzpatrick.
“We have factored in the circa 20 per cent dilution but also unwound risk factors associated with cash flow and iron ore price,” Fitzpatrick wrote in a research note to clients on Monday, upgrading his recommendation to “overweight” from equal-weight.”
With earnings in the Karara joint venture being consumed internally for several years, Fitzpatrick does note expect to see distributions or “meaningful” metrics until financial year 2015. However, his price target of 40¢ offers 33 per cent upside.
Meanwhile, Credit Suisse’s Matthew Hope, who has been forecasting a $105 million raising since October 2, is not yet comfortable that all the funding risk has arrived and “we can move forward.”
Hope notes the budget scenario that Gindalbie is raising against would see Karara with $421 million, after another $100 million equity injection (Gindalbie’s share is $50 million), to fund an estimated $415 million completion and commissioning costs, net of iron ore sales.
“If Gindalbie’s working capital projections are correct, the funding would provide a miserly $6 million in headroom.”
With a $105 million raising already built into Credit Suisse’s numbers versus the $62 million that was raised, Hope reckons there are “lingering risks of more to come if the commissioning does not run