upbeat presentation from jones, page-48

Dhuy

strange comment "nothing has changed since May in regard the credit market" - you need more coffee

major

we bought into GBG at 0.83 - fortunately we can take a very long term hold view on them, but regardless, it still hurts to see an SP go south, and go south due to prevailing international uncertainty

what some people forget occurs when there is a severe enough recession - production simply stops in many sectors - workers are told to lay down tools and come back in a few years times "when conditions make the continuation of operations commercially viable again"

since it can be purely unprofitable to continue any stage of development or continued output production when economic conditions get bad enough - then a good CEO pulls-up stumps and returns another day - thereby preserving the asset and not running the company as whole into insolvency

right now every non-producing entity in early stage development faces this very real risk if the market starts blowing the wrong way - and small to mid-cap IO players can't sensibly suggest that China and India will insure that we in Aus won't be hit with the negatives from a global or even just a US downturn

at the end of the day i can and will sit long term if i can't get out closer to our buy-in price - but we will only be happy to do that if we go into recession IF GBG management really look at the possibility of halting all further progress until the ill-winds have left our shores - but if we go into recession and they push-on with development, i would want to know that very long forward contracts for supply are locked-in with sovereign backing

so many possibilities

so many variables to consider

so many things we just don't know about