GBG - Gindalbie Metals

[EZZA]

this doesn't really make much sense to me, gbg has had a positive announcement yesterday with finding high grade ore with more upside.
with such a large resource base and jv signed up, i don't understand why gbg is still getting hit so hard. imo i think this stock is undervalued, seems to be ranging between 1.50 to 1.60 at the moment.

 

[imaginator]

this doesn't really make much sense to me, gbg has had a positive announcement yesterday with finding high grade ore with more upside.
with such a large resource base and jv signed up, i don't understand why gbg is still getting hit so hard. imo i think this stock is undervalued, seems to be ranging between 1.50 to 1.60 at the moment.

You're telling me

Perhaps people don't know yet, because yesterday there were 2 announcements, 1 for the director exercising his options, another for the report...

 

[Sean K]

You're telling me

Gents, GBG has trippled in 6 months. Just a little better than in the bank! Looks like some nice consolidation to me. Anyone got a FA valuation on it?

 

[doctorj]

Gents, GBG has trippled in 6 months. Just a little better than in the bank! Looks like some nice consolidation to me. Anyone got a FA valuation on it?

I'll try to get the time to give it a crack this weekend. I probably have some models for other companies that can be tweaked pretty easily.

My BMN model is still looking pretty good

 

[Frankhalo]

EPA approvals pending, US markets up the you know what, not producing for a while yet, SDL merger rubbish.... we will be going sideways for sometime. I also believe Gindalbie doesnt promote itself well, their powerpoint year 10 presentations are a joke and there web site could use a bit of FMG flair IMO. Still great company with massive future, product and team, just need to ride the bumps for a while.

 

[greenfs]

The last couple of ann are + but it is not helping the sp much. Still, we all know that this is going to take time and in the long haul the only direction for the sp is up.

 

[EZZA]

seems to me all the focus is on the big players, particularly with all the volatility. bhp rio, fmg, zfx, and jms, all very active.

while the jnrs aren't getting much love. tempted to get more but this is my largest holding in portfolio, don't really need anymore

 

[Surly]

http://www.asx.com.au/asxpdf/20071120/pdf/315xs6zhfld0gx.pdf

I don't think it says much thats new but its a good summary of the present position.

cheers
Surly

 

[kevien]

I just don't understand the fundamentals look not bad, but why the price is so disappointing.....

 

[greenfs]

I just don't understand the fundamentals look not bad, but why the price is so disappointing.....

Probably nothing more than an over supply of sellers in a weakening market. You will have no roblems with this one in the long haul

 

[hangseng]

Probably nothing more than an over supply of sellers in a weakening market. You will have no roblems with this one in the long haul

I agree

Also look at the history of GBG in the last 12mths it is a very volatile stock (to state the obvious). In this market I would not be surprised for GBG to go back to 1.25 then bounce hard. GBG for me is approaching a strong buy level when the market settles, not just yet though.

 

[mayk]

I am tempted to sell my lml holdings and buy gbg ( and bhp ). I was waiting for market correction for a long time but now I do not have any cash and most of my portfolio is in red ( with potential like GBG ) .

I think once the santa claus rally will show its head this stock can go towards $2.0.

Uptill now only good news are coming from this stock.. but the market is punishing it

 

[the barry]

I am tempted to sell my lml holdings and buy gbg ( and bhp ). I was waiting for market correction for a long time but now I do not have any cash and most of my portfolio is in red ( with potential like GBG ) .

I think once the santa claus rally will show its head this stock can go towards $2.0.

Uptill now only good news are coming from this stock.. but the market is punishing it

I was fortunate to pick the down trend on this one and sold out 50 percent of my holdings and placed them in more "defensive" stocks to take advantage of the downturn and then reinvest the cash back in gbg. Was a great plan expecpt that the stocks i invested in have gone down just as much. we live and learn

 

[the barry]

Another bad day overseas and the bottom will really fall out of this one. Will be some good buying soon.

 

[nikki]

any chartists out there.

did GBG break resistance today? MGX doing the same??

i must admit, i do not hold GBG but want to and am looking for an entry - any ideas given where the market is currently?

 

[Out Too Soon]

any chartists out there.

did GBG break resistance today? MGX doing the same??

i must admit, i do not hold GBG but want to and am looking for an entry - any ideas given where the market is currently?

I don't hold at present but I just put in a buy at the lowest point reached in August. Some brave ppl made a lot of money out of that August dip.

 

[daggs]

I was one of those brave (cough, lucky) ones to buy @ .84 in august.
One of the highlights of my short trading career.
has been hard watching the slide over the last month, due mainly to the state gov,s negetive view on the hematite operations that were expected to bring early cash flows to GBG.
I think long term this is only a hiccup though and as the govt works through the technical issues with the company there is a good chance of this issue being resolved in the company's favour (IMO).
This comment from CEO Garret Dixon on the issue;

There are a few areas in the report which we are currently working through with the Government, in particular the comments with respect to the development of the hematite and magnetite projects. I think the most important thing to emphasise is that both the hematite deposits at Mungada and the magnetite deposit at Karara actually form part of the same project and it’s the total Karara Iron Ore Project that we are pushing very hard to develop. Overall we are encouraged by the very strong support the Government has shown for iron ore mining in the area and in particular the support for our Karara Iron Ore Project.
At a technical level, it should be noted that hematite and magnetite don’t occur separately and, while we refer to the hematite and magnetite components separately, they are in fact part of a large, integrated iron ore project. Geologically, the mineralisation is closely related and often both styles of deposit will occur as part of the same broader geological structure – as our recent drilling at Karara has highlighted.

I will be holding for some time yet as I think there will be a good flow of news over the next couple of years regarding development of infastructure (including Okajee) and resource upgrades.

 

[mayk]

Can someone elaborate on the state government and GBG tussle and let us know if the reason behind the current downfall is that? ( apart from US stock market volatility)..

I want to increase my holding of gbg but not sure if it has hit its bottom yet?

 

[imaginator]

Hi all,

what's this announcement today?

Kennas or someone, can you do a updated analysis on ol GBG?
Seems like many people are getting tired...

 

[Surly]

This is from the CEO Project update announcement today.

"Gindalbie is undervalued
compared to its market peers
for the size of its in-ground
resource
• Iron ore companies are
carrying an average market
value of $11.50 per resource
tonne
• Gindalbie is valued at just $5
per resource tonne, meaning it
has excellent upside potential"

and

"• Reserve will produce 197 million tonnes concentrate at an average
grade of 68.2%Fe, 4.7% SiO2 from DTR model"

Gives 134,354,000 tonnes x $5 = $671.7m for Kararra

Can someone please confirm the calculation for me and does this rating at half the average simply reflect Ansteels half ownership of the resource?

cheers
Surly