From the Bull today.Perth based Gindalbie Metals Limited (GBG) has a portfolio of exploratory iron ore assets in Western Australia but the company’s immediate future rests with the Karara iron ore project, a joint venture with Chinese steel and iron ore giant, AnSteel. With a market cap of only $386 million, the partnership with AnSteel gives Gindalbie a decided funding advantage. The company has no long term debt following successful capital raises in 2011 and 2012. The Karara mine is in production and the company expects to reach 5 million tonnes yearly production by FY 2014.
Major analyst opinion on the stock ranges from moderately skeptical to bullish, despite the dramatic 2 year growth forecast of 98.3%. On 16 January 2013 BA Merrill-Lynch upgraded GBG to a BUY recommendation based on better iron ore prices and production growth. UBS maintained a BUY rating and target price of $0.38 in the belief the Karara expansion is proceeding according to plan. JP Morgan is the major skeptic with an UNDERWEIGHT recommendation and a “wait and see attitude” regarding the successful ramp up at the Karara project.
Despite the strong balance sheet with zero debt and $40 million total cash, the share price of Gindalbie has continued its slide from 2012 into 2013. Here is the company’s one month chart:
Investors may be focusing on Gindalbie’s single commodity focus and dependence on increasing Chinese demand for steel.
- Forums
- ASX - By Stock
- GBG
- turn around stocks in 2013
turn around stocks in 2013
-
- There are more pages in this discussion • 21 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add GBG (ASX) to my watchlist
Currently unlisted public company.
The Watchlist
FHE
FRONTIER ENERGY LIMITED
Adam Kiley, CEO
Adam Kiley
CEO
SPONSORED BY The Market Online