Drilling started late last week - Thursday I believe...
With 180m shares at approximately $1 each and $80m in cash and investments - Enterprise Value is small(approx. $100m)
On a risk-weighted option (Eareheedy results) I would suggest (politely) that this is a tremendously undervalued company (along with a couple of others I suspect, BMN, NZO, among others - and no, I don't shares in those - wish I had some spare cash though).
Just looking at the company’s iron ore assets, I think Eareheedy is a relatively low risk 1Bt target. I think Western Creek will eventually be around 70Mt. Down on the Mid West, I don’t think it will be more than 30Mt DSO (largely a magnetite project I think – generally think that Mid West magnetite is too hard technically and financially). A dark horse are the tenements contiguous from AGO, which could easily be another 150 to 200Mt+ (although GIR don't appear to have made any announcement on those? I wonder why?). Despite my negativity on magneitite, I make an exception about the Yerecoin magnetite project, which could be very, very interesting.
They of course have a bunch of other stuff...
In summary, this could be a several Billion tonne iron ore resource company, and it could easily be a producer in 5 years. And they have plenty of cash to drill all they like for the next 5 or 6 years, at a significantly higher cash burn rate than that at the moment.
Trying hard, can’t really see a down side!!!
I am happy to wait... Watch this space…
GIR Price at posting:
98.5¢ Sentiment: LT Buy Disclosure: Held
