GBG - Gindalbie Metals

[AussiePaul72]

I think that I remember reading somewhere that the chairman for GBG is also chairman for SDL. Does this create potential that the companies might be talking about a merger given the asset classes are very similar?

Were we not supposed to hear by now about the outcome of talks GBG was having with a third party?

You are right Greenfs, we were supposed to hear about the outcome of talks GBG was having with a third party.
I wonder whether talks have broken down and whether that is contributing to the GBG SP on a downtrend at present???? Or whether it is just taking longer to finalise the outcome of the talks????
I did also wonder whether there may be an announcement relating to both GBG & SDL in some form or another. George Jones is the executive chairman for GBG and non-executive chairman for SDL. Something is certainly going on with SDL. Its SP has more than doubled in just on a month from an intra-day low of 29.5c on Aug 16 (market correction low) to an intra-day high of 68.5c on Sept 14.
GBG has also more than doubled in less than a month from an intra-day low of 80.5c on Aug 16 (market correction low) to an intra-day high of $1.98 on Sept 3. GBG has settled since then on lower volumes to a close today of $1.54.
Anyway, DYOR .......it'll be interesting to see if an announcement comes and whether both GBG and SDL are even more closely related than just having a common chairman in the future!!! I hold both

 

[golfmos123]

Guys,

Feel free to correct me if I'm wrong, but surely the talks with a third party were those with the Chinese steel company who took on around 12% of the company. To me, that is old news.

As for a linkage between GBG and SDL, there has been plenty of speculation, but other than general trends, there isn't too much evidence of SPs moving together. I don't see it as anything other than speculation (for now)....

 

[mfunksta]

I suspect that the longer we wait for news, the more surprising it is likely to be. The downward trend in price was due - being overbought. Lodestone is will be here in a fortnight (ish). I'd be surprised if we saw low 1.40's before a turnaround. Perhaps GBG plugged the leaks?

 

[Miner]

Some times I am getting a stinct that we have a mole in GBG thread who are ramping the stock.

Some news are supported by a lot of data and I just adore of those guys / gals who can produce such quantitative information. At times I think they are better than those black coat and tie worn analysts at exchange who hardly have the base.

However some of us in the forum always bullish about GBG without any back up and those are the artificial ramper.

You know whom I talking about

Good luck

PS : I do have GBG and going to sell them tomorrw at $1.6 (hopefully the market will revive following Fed's decision tonight).

 

[greenfs]

Well GBG was not the catalysts for the recent stellar SDL rise. The Age this morning has reported that the Talbot Group has acquired 19.6% interest in the company and with it a seat at the board for Ken Talbot.

I agree with Miner and am also disappointed that some are still looking for more immediate gains in GBG. Surely, we need to be content with the recent gains and hope/prey that the sp will consolidate around present levels.

Havind said that, I have no intention of selling GBG until there are signs that the price of ore is set for a correction. From my fairly extensive readings, this will probably not occur until well into 2008 and possibly as late as 2009.

 

[s3081402]

Look like a good day with GBG. Well im in for the long hold so i rather see a steady increase rather than a spike and then drop back. Big buyers are coming today.

 

[juw177]

Look like a good day with GBG. Well im in for the long hold so i rather see a steady increase rather than a spike and then drop back. Big buyers are coming today.

Gee how can you say this when the market hasnt even opened? This is just what the poster 2 above me was talking about.

 

[daggs]

Gee how can you say this when the market hasnt even opened? This is just what the poster 2 above me was talking about.

The market depth pre-open does look pretty good.
Should open at $1.70+
This is a fact, not a ramp.

 

[wildmanchris]

I agree re the ramping of this stock - I mean I have heard calls up to $5.70 in the last few months which considering where it has come this year alone has been an amazing run and surely doesnt have too much more at the moment.

Surely this stock needs to get some more great results, or start to produce before it will run too much further. A great company - but also seems to a great stock that traders have got a hold of - and quite sucessfully at that.

I have held until recently, and sold out at what I thought was a potential double top in the chart. If it builds momentum I will get back in for sure.

For the record I love GBG.

 

[michael_selway]

I agree re the ramping of this stock - I mean I have heard calls up to $5.70 in the last few months which considering where it has come this year alone has been an amazing run and surely doesnt have too much more at the moment.

Surely this stock needs to get some more great results, or start to produce before it will run too much further. A great company - but also seems to a great stock that traders have got a hold of - and quite sucessfully at that.

I have held until recently, and sold out at what I thought was a potential double top in the chart. If it builds momentum I will get back in for sure.

For the record I love GBG.

Does anyoen know the mine life of this stock?

Earnings and Dividends Forecast (cents per share)
2007 2008 2009 2010
EPS -0.7 -0.5 7.2 9.4
DPS 0.0 0.0 0.0 0.0

thx

MS

 

[dj_420]

Does anyoen know the mine life of this stock?

Earnings and Dividends Forecast (cents per share)
2007 2008 2009 2010
EPS -0.7 -0.5 7.2 9.4
DPS 0.0 0.0 0.0 0.0

thx

MS

25 year mine life i believe, with huge potential to increase that on further resource upgrades under karara and with the potential from lodestone... eagerly awaiting those results!

 

[lusk]

I agree re the ramping of this stock - I mean I have heard calls up to $5.70 in the last few months which considering where it has come this year alone has been an amazing run and surely doesnt have too much more at the moment.

Surely this stock needs to get some more great results, or start to produce before it will run too much further. A great company - but also seems to a great stock that traders have got a hold of - and quite sucessfully at that.

I have held until recently, and sold out at what I thought was a potential double top in the chart. If it builds momentum I will get back in for sure.

For the record I love GBG.

Hi Chris,

Probably a bit early in GBG's life to see a double top form, either way you would always wait until the share price droped past the valley of the double top for confirmation, same applies for a head and shoulders. As for GBG, your seeing all the people that jumped on board for the good time possibly towards the end of the run slowly exiting to preserve their profits It has slowly pulled back to a resistance at about $1.52 and bounced off. If everything goes well it should take a breath and continue onwards, of course you wouldn't want it to drop through the $1.52 resistance.

 

[dj_420]

Hi Chris,

Probably a bit early in GBG's life to see a double top form, either way you would always wait until the share price droped past the valley of the double top for confirmation, same applies for a head and shoulders. As for GBG, your seeing all the people that jumped on board for the good time possibly towards the end of the run slowly exiting to preserve their profits It has slowly pulled back to a resistance at about $1.52 and bounced off. If everything goes well it should take a breath and continue onwards, of course you wouldn't want it to drop through the $1.52 resistance.

this one typically goes for big runs then pulls back consolidates and then runs again. it took 2 efforts to first break the $1 mark and actually hold.

good support at 1.55 area, has been tested twice now i believe, the more it gets tested and holds the stronger that support will be.

 

[greenfs]

GBG Management was doing a presentation at ACCA Conference in Kalgoorlie earlier this week. I have been searching the net, but could not find any reference to it - including on GBG's own website. Can anyone else find it?

I was lucky enough to find the attached report dated 01/08/2007 from Southern Equities on GBG

View attachment Gindalbie Report 20070801.pdf

 

[s3081402]

Some massive buys at the close of today trading. Anyone know what happen. Is this some sign for next week.

 

[AussiePaul72]

Some massive buys at the close of today trading. Anyone know what happen. Is this some sign for next week.

It wasn't just GBG alone that rallied close to the end of trading today. I noticed a similar pattern in a couple of other stocks that i hold that did the same thing including RAU and AZS.
Anyone know if there was any broad news for the market to go into a late buying surge on Friday afternoon in some key mining stocks?

 

[rustyheela]

Could be insto buying as it will be included in the S&P 300 from close of business 21/09/2007, as is EQN. Someone correct me if I'm wrong please.

 

[michael_selway]

25 year mine life i believe, with huge potential to increase that on further resource upgrades under karara and with the potential from lodestone... eagerly awaiting those results!

Hey how did you get that figure?

Large resources base. GBG has increased both its Karara magnetite and Mungada hematite resources. Karara is now 1.4Bt at 36.6 % Fe with the potential for further increases to at least 2.0Bt. Mungada has been increased to 22.3M at 61.9% Fe from 10 separate deposits. GBG has identified other deposits that we expect makes the company’s 40Mt target appear readily achievable. Production scalability. The large resource base allows for higher production rates to be considered. From the initial scale of 8Mt magnetite concentrate/pellet and 2Mt high grade hematite, plans are being made to reach 25Mt pa by 2013 with options for further expansion.

Some people say 1400/25 = 50 plus years?

thx

MS

Earnings Forecasts Year end June 2007f 2008f 2009f 2010f 2011f NPAT
EPS (adjusted) (cps) -0.6 -0.5 4.0 21 33 EPS growth

 

[serendip]

Michael, I think you are right, there are strong grounds for projecting a life of the order of 50 years. A shipment rate of 25 Mtpa of magnetite concentrate implies a mining rate of about 60 Mtpa of ore. Karara is currently estimated at 1.43 billion tonnes, and is open at depth. The 2.0 billion tonnes which has been mooted does not appear at all unrealistic. If Lodestone is half as large as Karara, then we get a total of 3.0 billion tonnes, which would allow mining at a rate of 60 Mtpa for 50 years.

There is a lot more drilling needed to prove up these resources, but the odds seem to favour GBG achieving that result.

And all this relatively close to the coast, and to existing and planned infrastructure ...

Cheers, Serendip

 

[hkvan]

In the West Australian of 22 Sept there is an article on the price of iron ore.
The estimate is that there will be an increase in the price of iron ore of 25% - 50%. How will that influence the share price of GBG if this is the case?