Good chase up there Gindalden, fundamental mis-understanding on the debt/equity situation and most people are sprouting as a reason GBG is going south. GBG levels of debt are not vast and the infrastructure has been built to last 30 years. If you actually figure it based on 30 years of production the infrastructure has cost $2.5 bn which is $80 m per year to transport/mine to 16 mtpa per year.
Stockrock, as an equity percentage GBG should be worth $400m on paper but all of the doubt and shorters are driving it down, ((2.5-1.7)/2), this is the equity they have invested and is the general basis for valuing most companies, income plus assets minus costs and liabilities. No value being attributed to ore in the ground or income from current operations, although currently negative this will improve come nameplate. Then what do we do, suddenly say the infrastructure is worth more??? Also, let's face it, I am not worried about the ore price in the year, two years or even five years......this is a 30 year mine @ 30 mtpa with all of the infrastructure built for at least 16 mtpa. I see this as a great opportunity to invest in a company that can grow and produce passive income.
Eventually the shorters and bots will get burned, for now this is a plaything because genuine investors are afraid......I am guessing a few people may have heard of a guy saying something like....'be greedy when others are fearful'. As long as they can weather this storm then everyone will be better off for it. I am happy with my current stake and my improve it once again as funds become available because I never intend on selling, not in the near future unless capital appreciation offers too good an opportunity.
People just need to be patient, wait it out and trust in their own research. Otherwise sell and buy elsewhere.
GBG Price at posting:
20.2¢ Sentiment: Buy Disclosure: Held
