GBG - Gindalbie Metals

[golfmos123]

yahoo - like others I'm finally positive here as well having endured a number of weeks of anguish. Feeling somewhat sick I didn't top up during the bad times, but them's the breaks.

Much positive talk in this forum about long term holds and don't look back, but gee when we've got this much uncertainty around markets it's pretty hard not to take at least some of the profits and allow the rest to ride.

Now if only we could see some happy announcements on some other spec miners I'm holding which are also very very red .........

 

[YNKWRTNC]

Hey Alpahbet man,

Looks like everyone aboard now BOOYA! Lucky i didn't sell down on anything.
And trading halt as well.

This has been the best news i had so far since the correction. Lets see how things pan out. GOOD NEWS i hope. hehe.

Good luck Fella's.
It's been one hell of a rollercoaster ride hey.

Ezza,
You did well getting back in when you did.
Some big gains and more to come.
The forum has been quiet till today. Posts coming from everywhere.
The market can be phsychology driven at times!
Just believe in your stock choices through reasons of fact and ride out the market. Long term is best if your choices are well researched.
Short term, enjoy the next few months. There'll be downs no doubt (due to U.S) but BFS boom next week then Lodestone still to come and got a good feeling about it.
Good luck!
"The Alphabet Man"

 

[greenfs]

Can anyone shed any light on the reason for the trading halt today. So far, all we have as ann is annual results. Can we expect another before Monday or is there something price sensitive in the accounts that I have missed?

 

[the barry]

Can anyone shed any light on the reason for the trading halt today. So far, all we have as ann is annual results. Can we expect another before Monday or is there something price sensitive in the accounts that I have missed?

They are in a trading halt for what i would assume is the release of the bfs`s for the two projects. From the information from the company presentation I am very hopeful that they are going to be very positive. If that is the case and with the potential for a major upgrade on their total resource with the upcoming drill results things could be looking very good for this company when you consider that the demand from iron ore is meant to be kept strong with the demand from india and china.

 

[Frankhalo]

DOW up, FTSE up, Bush and the US fed to step in should things turn sour on the US front ( Goto CNN Money web for this story ), and a public holiday on Monday in the US = BIG DAY FOR GBG Monday. Below is an update for the Yilgarn project which is very important to GBG transportation plans, looks dam good and a great read. Its early but I'm calling it, $2.50 on close for GBG Monday, too many boxes are starting to be ticked off, and there all positive.

Regards

Frank

Friday Aug 31 16:48 AEST
Yilgarn Infrastructure Ltd's plans for new port and rail infrastructure to support iron ore mines in Western Australia's midwest region appear closer to becoming a reality.
The private company has drawn some heavyweight Chinese backers into the mix, including the firm behind what is arguably the largest port in the world, China Harbour Engineering Company Group.
China Harbour will meet with the WA government on Monday to show off its credentials with major infrastructure projects and presumably win more support for Yilgarn's ambitions.
Yilgarn executive chairman John Saunders said the Chinese partnerships were crucial to the viability of Yilgarn's $3 billion proposal, which includes the construction of a new deepwater port at Oakajee near the port of Geraldton and a 465 kilometre railway connecting the port with iron ore mines in the region via a branch network.

Dr Saunders acknowledged the sea and wind conditions at Oakajee were very difficult but there was "no question" China Harbour had the expertise to build a new large scale port there.
Yilgarn is considered by some industry observers to be the frontrunner in the long-standing push for new open access, multi-user infrastructure in the midwest, which is vital to bring iron ore from the mines to port and address capacity constraints at the currently congested Geraldton Port.
A rival bid by iron ore producer Murchison Metals Ltd received a setback in June, when an agreement with fellow iron ore miner Midwest Corporation dissolved and Midwest instead allied itself with Yilgarn.
Last week, Yilgarn secured debt finance with China's EXIM-Bank and China Development Bank, and the equity and balance sheet support of five major Chinese companies, including China Railway Materials Commercial Corporation, China Railway Engineering Corporation and China Communications Construction Corporation.
"The critical test of this project is getting financial close," Dr Saunders said.
"The Chinese banks, in funding the port and rail infrastructure, will turn to the balance sheets of AnSteel, Sinosteel and other Chinese buyers ... to secure the contracts.
"They will not look at the balance sheets of the mines, they will not ask for cost guarantees from the mines, they ... are confident that there are reserves there.
"They will not be looking at the balance sheet of the (WA) government in any way, or guarantees, cross guarantees or high level take or pay (contracts) from the mines.
"That security structure is critical to financial close."
The proposed timeline for the development includes WA government and Environmental Protection Authority approval by late 2008, and operation by late 2010 or early 2012.
Dr Saunders said most, if not all, of the iron ore from the region was China-bound.
Yilgarn proposes continuing its relationship with the Chinese companies for projects overseas, particularly in China and the Middle East.
It expects to list on the Australian stock exchange late this year or in early 2008.

 

[tonza]

Agreed, Monday is looking like an amazing day for GBG. How much of the announcement do you think was factored into the share price on thursday before the trading halt? Yilgarn Infrastructure is also looking like an interesting investment opportunity when it lists.

 

[juw177]

It is common knowledge that this PFS was coming up so it is definitely factored into the shareprice and no doubt will be a lot of selling off. If the announcement provides enough momentum to break through the all time high resistance of around $1.80, there will be no looking back (unless there is another correction).

 

[daggs]

It is common knowledge that this PFS was coming up so it is definitely factored into the shareprice and no doubt will be a lot of selling off. If the announcement provides enough momentum to break through the all time high resistance of around $1.80, there will be no looking back (unless there is another correction).

BFS is due, not PFS. Once a positive BFS is released and the Okajee port becomes more certain GBG will become a lot less speculative. This will attract a new group of investors into the stock and increase the confidence of existing holders. I only expect a sell off if there is a massive rise, then some profit taking is inevitable. I do think we will see support form somewhere well above past highs.

Provided the BFS IS positive, of which I am confident.

 

[YNKWRTNC]

BFS is due, not PFS. Once a positive BFS is released and the Okajee port becomes more certain GBG will become a lot less speculative. This will attract a new group of investors into the stock and increase the confidence of existing holders. I only expect a sell off if there is a massive rise, then some profit taking is inevitable. I do think we will see support form somewhere well above past highs.

Daggs in on the money.
The SP may go up in a big way after the Bankable Feasibility Study announcement but there will be traders who jump on for the ride then sell for a quick profit. It'll come down again from the huge highs but will settle above where it is now. How far is a guess.

GBG is poised to become a big player in the iron ore boom.
And again Daggs is correct; it's the infrastructure to be set up for such a massive project (even bigger when Lodestone comes out) that is the hurdle everyone will be watching out for. Each bit of news that confirms the company will be able to do it, will push the SP higher.
With George Jones at the helm it will stand GBG in good stead and the future of GBG looks brighter by the day.
With Ansteel on board and Yilgarn set to start work in area with backing from more Chinese investors we could be on the verge of something very big.
This stock looked very attractive a year ago and is improving more and more as time goes on.
That point where the infrastructure is set up and mining is in full swing we will see a new top 200 (or 100) company - Gindalbie Metals.
Patience and an eye on progress will be the key for us as investors.

Good luck to all and be glad if you've bought in below $1.80, you'll do well.

All this just my opinion. D.Y.O.R.
"The Alphabet Man"

 

[the barry]

Just a question on Bfs's, does anyone know how long it took them to do the last one? With the upcoming lodestone results which are said to have the same characteristics as the previous drill target and in close proximity, does the company have to do an entire bfs again or can they just more or less cut and paste from the bfs they have just completed?

 

[Fab]

Re: GBG - Ginalbie Gold

This got a mention in the Business section of The Sunday Age - and a pretty good one too. And it's written by James Kirby, editor of Eureka Report. (Btw, it's the first time I've heard of this stock.)


I did a quick Google on GBG and found this research report by Hartleys:
http://www.gindalbie.com.au/files/broker_reports-0055-GBG_20060728_Hartleys.pdf

Freeballinginawetsuit, I'd be interested in your thoughts, trading ideas on this stock.

I am just wondering if as I read in this forum if GBG goes well does that mean other iron stocks such as SDL are likely to do very well as well as I believe SDL and GBG are closely link because they have a tenant in Africa which is next to each other.

SDL being cheaper than GBG at the moment

 

[IOT]

SDL's ore is in Cameroon. GBG is based in the mid-west in Australia. The GBG/SDL link is George Jones who is on the board of both.

Interesting response to the ASX this morning..

 

[zt3000]

Response to ASX query this morning was interesting. Mentioned something about a 3rd party agreement.

What you reckon, maybe a rail line deal or something like that imo

 

[dj_420]

Just a question on Bfs's, does anyone know how long it took them to do the last one? With the upcoming lodestone results which are said to have the same characteristics as the previous drill target and in close proximity, does the company have to do an entire bfs again or can they just more or less cut and paste from the bfs they have just completed?

it will depend on size of deposit, depth, strike, grades etc, if lodestone is as good as karara it will prove up as similar resources (very close proximity)

IMO additional tonnage at lodestone would just mean that they will have extended mine life for both deposits. as it stands karara is shaping up as a massive world class resource, they havent even finished drilling it at depth!

 

[zt3000]

Does Resumes 10:50 mean that the trading will resume at 10:50am EST ??

Current Match prices is $2 with 200k surplus ask

 

[bigdog]

GBG is now trading
GBG 1.90 +0.230 +13.77% 1,217,547 shares $2,373,722 @ 03-Sep 10:50:00 AM

Two ASX ann today

03/09/2007 Hematite Resource and Reserve Update
http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00755485
FURTHER UPGRADE TO MUNGADA HEMATITE RESOURCE AND ORE RESERVE ESTIMATION
KEY POINTS
• Further 19% increase in indicated and Inferred Resources for Mungada Hematite Project to 27.1 million tonnes grading 61.7% Fe.
• Metallurgical testwork, geotechnical drilling and pit optimisation design all completed with favourable results.
• Production inventory contains Probable Reserve and Inferred Resources totaling 14.3mt grading 61.5% Fe.


03/09/2007 Magnetite BFS Media Release
http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00755484

GINDALBIE DELIVERS POSITIVE BANKABLE FEASIBILITY
STUDY FOR A$1.6 BILLION KARARA IRON ORE PROJECT
Western Australian iron ore group Gindalbie Metals Ltd (ASX: GBG) has laid the foundations for the development of a world-class iron ore business with its 50/50 Chinese Joint Venture partner, Anshan Iron & Steel Group Corporation (Ansteel), after today announcing the completion of a positive Bankable Feasibility Study (BFS) for a proposed A$1.6 billion development of the Karara Magnetite Project in WA’s Mid West region.

Gindalbie advised today (Monday) that it had completed the BFS on schedule, confirming the technical and financial viability of a long-life iron ore project which is expected to generate substantial returns for the joint venture partners and deliver significant benefits to the region and the State of Western Australia. The Karara Magnetite Project is located 225km east of the Port of Geraldton.

The BFS concluded that, based on a JORC compliant Ore Resource of 1.43 billion tonnes at 36.3% Fe and an initial Ore Reserve defined as part of the study of 497 million tonnes at 36.3% Fe, the Karara Magnetite Project
would generate an initial after tax free cash flow of A$9.3 billion from the first 25 years of operations and an indicative annual cash surplus after tax of A$360 million. The Project has a Net Present Value using a 9% discount rate of A$2.3 billion and an Internal Rate of Return (IRR) of 24.6%.

The BFS is based on a 20Mtpa mining operation producing on average 8Mtpa of magnetite concentrate grading 68.2% Fe and 4.7% SiO2, with the initial 497 Mt Ore Reserve sufficient to underpin 25 years of production at the
proposed ‘start up’ production rate. The substantial size of the resource (1.43 billion tonnes) – with 929 million tonnes at 36.3% Fe of Indicated and Inferred Resources outside of the initial pit design – and the scope for further
resource additions, reinforces the potential for production to be increased significantly above this level.

“Ansteel has expressed its desire to expand production from Karara to meet its own growth requirements at its new steel-making facilities in China, and we therefore view the BFS as very much a base case for what we envisage will in time become a much larger project,” said Gindalbie’s Managing Director, Mr Garret Dixon.
The decision to use rail as the product transport mode in the BFS has been made by the joint venture participants on the basis that they are likely to expand the production rate at Karara in the future, as this provides a fully
scalable option with only incremental transport capital required. However, concentrate transport using a slurry pipeline remains a viable option while final negotiations on rail transport are concluded.

Magnetite concentrate from Karara will be shipped to China via a process involving transportation on barges to a location off Geraldton for loading to a trans-shipper and ultimately onto Capesize vessels which will freight the
high-grade iron ore concentrate to the port of Yingkou in China, for use in the joint venture pellet plant and directly in Ansteel’s new steel mill.

 

[imaginator]

Hey the stuff is out. Price at 1.9 now.

DO u think it will go higher today???????????????????????/

 

[s3081402]

Alot of people selling to make quick cash. Drop down to $1.76 after open at $1.95. It should reach a all time high today.

 

[imaginator]

Well market a bit down after 10am today.

I hope this is gonna go above $2 soon. Today pre-open, some guy put $2.7 bid price.

 

[golfmos123]

I hope this is gonna go above $2 soon. Today pre-open, some guy put $2.7 bid price.

Probably only to try to mop up shares from people who had forgotten to update their sell price or who weren't expecting a jump today (??).

Expect to see it over $2 soon enough but I think it will settle back for a little while to let the people who want their quick money out. Hope to see some continued strength and probably some slow continuing gains in the next week to come.

>$2 by October or thereabouts perhaps????? Opinions anyone?????