I guess the market knows that GBG has finally constructed a site and is weeks away from being fully commissioned. It's one thing to complete construction but a completely different thing to actually run the mine and make it profitable. The only risk I believe with Karara is will they be able to actually run the mine effectively enough to make a profit on it? New producers never start off smoothly as all the creases need to be ironed out which could take a few qtr's (if we are lucky). Long term I think this will be a great investment but GBG still need to prove to everyone they can actually PRODUCE the ore at a profit.
A great achievement none the less of where the company is. The boss brought some pics down and showed it to the crew. That processing plant is an incredible achievement being a kilometre long and has the largest sustaining wall in the Southern Hemisphere behind it.
'IF' they make their goal of being 4th largest ore producer in Australia I doubt it will stay at 18 cents
GBG Price at posting:
18.0¢ Sentiment: Buy Disclosure: Held
