GBG - Gindalbie Metals

[Bosco]

Good to see someone is responding to GBG news. I find it amazing that if GBG is what the 600 brokers put at the top of their list, or at least those willing to stump up $35000 that we do not hear more about GBG. I hope Charlie Aiken from Southern Cross chose the Bosco Bear retirement fund as his chosen charity. After the Goldilocks fiaso a litlle porridge in the bowl would be nice.

 

[Frankhalo]

We have a lot to look forward to little bear. Two EPA approvals in the next 12 months, resource upgrades to our region of holdings late July, early August and continuous funds from our joint venture partners. You should look into legal action against Goldilocks and her well publicise home invasion too...

 

[chimp]

Hengseng,

are you still around. more than six months ago, you said GBG is likely to maintain at about $1.3 level before real production. it seems.......you're right..... unfortunately.

 

[MR.]

Hengseng,

are you still around. more than six months ago, you said GBG is likely to maintain at about $1.3 level before real production. it seems.......you're right..... unfortunately.

Or was that $1.10 - $ ????

I believe BBY dropped their Strong Buy, when that was I don't know....
Must have been sometime ago....

 

[hangseng]

Hengseng,

are you still around. more than six months ago, you said GBG is likely to maintain at about $1.3 level before real production. it seems.......you're right..... unfortunately.

Yes I am still here and I still have my GBG. One of the few stocks still in good profit with the latest downturn.

BBY have not changed their view of GBG and I believe GBG is about to be rewarded. Still not yet confirmed however it is no accident that the MMX share price is suffering greatly, speculation is rife in Perth that MMX will not achieve it's rail option.

I am firmly of the opinion that GBG will be a major beneficiary of the new Oakajee rail line option. What I do know as fact, is that no matter what the WA govt considers GBG as critical to the long term viability of the port and rail.

Time once again will be my judge.

ps. Miner, how is the paragraphs?

 

[Miner]

Yes I am still here and I still have my GBG. One of the few stocks still in good profit with the latest downturn.

BBY have not changed their view of GBG and I believe GBG is about to be rewarded. Still not yet confirmed however it is no accident that the MMX share price is suffering greatly, speculation is rife in Perth that MMX will not achieve it's rail option.

I am firmly of the opinion that GBG will be a major beneficiary of the new Oakajee rail line option. What I do know as fact, is that no matter what the WA govt considers GBG as critical to the long term viability of the port and rail.

Time once again will be my judge.

ps. Miner, how is the paragraphs?

Hi Hangseng

Thanks

Paragraph and content both are excellent.

Please keep it up and it seems you might have sacked your secretary or make him or her redundant having his or her job in your hand

Now please lift the share market up too - I need to see my reds to be green.

 

[MR.]

BBY have not changed their view of GBG

This is nice to know then. I am sure on commsec GBG / RESEARCH / FORCASTS...... BBY used to be there with a strong buy. It is not now.

However on the 27/6/08 BBY released another report. Perhaps you are right there and they might be just recommending to their clients. Fair enough if this is the case and so I understand the drop off Commsec. The report title on the 27/6 does sound positive. No down ramp intended here.

 

[hangseng]

DYOR but I can do nothing but buy again with GBG at current prices. The best thing about this market is that it provides excellent opportunities not often seen.

With just so much about to occur such as the rail, port upgrade and enviro approval and extending the lodestone resource GBG will only get much bigger and better.

I note with interest a passing comment from Allanah McTiernan yesterday, 'hinting' of the 20Mt upgrade of Geraldton Port to stave off any delay with Oakajee. Strange that, about the same capacity that Gindalbie has indicated.

You should see the excellent engineering and enviro people leaving Rio projects in Perth to join Gindalbie. I see this as a major positive to be able to attract people of this calibre and expertise.

I do know the review of rail proposals is well underway, no hint of a winner yet but no guessing what my money is on. The best thing is that GBG wins either way on rail, the WA Govt has made it clear that the rail is reliant on Karara/Gindalbie. As it is to the long term benefit and viability to the rail operation.

SCE report extract below.

WHAT THE BROKERS SAY: Sarah-Jane Tasker | July 14, 2008
source: http://www.theaustralian.news.com.au/story/0,,24013400-643,00.html

Gindalbie Metals (GBG)

Southern Cross Equities. Buy recommendation . 12-month share price target of $2.35 . Last traded at $1.17

"GINDALBIE is an emerging mid-cap iron ore producer, well placed to benefit from the new prices being secured by the big miners. Its Karara project in the Mid West region of WA is capable of generating substantial production and earnings for Gindalbie. In the first year of full production, likely to be in 2012, Southern Cross Equities estimates NPAT of more than $600 million on rising iron ore prices. The magnetite project should be a major contributor to earnings. "Management has a vision, which is founded in the size of the Karara resource, of attaining a production rate of more than 30 million tonnes per annum once a new port and infrastructure are in place," Southern Cross Equities told its clients. Driven by the new pricing paradigm in iron ore, as encapsulated in the appended Metalytics' analysis and forecasts, the economics of the Karara Project are extremely robust. "However, in the new world that brings higher prices, there are also enhanced risks in the areas of capital and operating costs, offtake over the long term and infrastructure competition," Southern Cross said as a risk warning. It said one of the greatest risks in magnetite concentration is the cost of energy, relating to the need for fine grinding. Mitigating this energy risk is a 15-year supply contract already signed with Verve Energy for enough power to support 12 million tonnes of concentrate a year."

 

[Sean K]

DYOR but I can do nothing but buy again with GBG at current prices. The best thing about this market is that it provides excellent opportunities not often seen.

I agree, looks well oversold to where it sits. On my close watch list for the possibility of a nice bear rally after the relentless selling of the past 2 months. Hitting support around the .90 area as well.

Probably put it's JV partner ROY in the same boat, but more spec of course.

 

[big sal]

i am also looking to buy in hopefully if/when the price drops to the .80 level, but it seems to be holding up around the .90 mark. will wait and see what happens early next week. GBG anor of the IO hopefuls which had a big kick up in may but now dropping fast again.

 

[Sean K]

Potential bottom here, pending general market implosion.....

It's hit the target from the H&S too....

 

[hangseng]

Oakajee Port and rail decision by WA govt next week. See todays West Australian.

Agreed Kennas, GBG has encountered very strong support in the 90's I can't see this going any lower now. I just wish I had some free funds.

 

[lucifuge]

I'm not so sure about the potential bottom at current level suggested Kennas; the money flow is quite negative and seems to be accelerating if anything. I would expect it more likely that the price to keep falling and breach this level , but the general market direction will dictate more than anything.

Potential bottom here, pending general market implosion.....

It's hit the target from the H&S too....

 

[jonojpsg]

Resource Upgrade out! Surprised noone has mentioned it yet as it's HUGE!

1.85 billion tonnes of 35.5% Fe magnetite or equivalent to about 900 Mt of premium grade haematite! Should give them a MC of way above where they are at when you crunch the numbers.

Have to wait until people realise this I guess

 

[poretti]

yes i saw this ann this morning, 10 hours later i check forums tonight and no one is interested! whats the deal jonojpsg?

 

[gfresh]

Anybody else thinking that this is bargain territory at the moment for a longer-term hold? I know commodities are not so hot anymore, but this has predated this significantly, so may not fall too much further.

Still consolidating around Kenna's 90c mark at the moment a month on.

RSI hovering on oversold 30's, MACD consolidating

Could go one of two ways at the moment 1. 60-70c, which would make it even more attractive 2. continued consolidation 3. even a bit of a pickup to $1.00 mark.

Funding is assured from Ansteel, no nasty surprises so far, management seems to be meeting or exceeding stated objectives. Resource upgrade of 1.85bn tonnes has been ignored, but is very significant. Very long mine life and high quality product will be in demand once production occurs (as stated in diggers & dealers presentation)

 

[trillionaire#1]

well i dont know if were at bottom but i reckon gindalbie looks close to a buy price for me.....all aboard:bowser:

 

[Sean K]

well i dont know if were at bottom but i reckon gindalbie looks close to a buy price for me.....all aboard:bowser:

trillionaire, why is it close to a buy price for you?

FA?
TA?

I'm not sure if we should all get on board because it's at your buy price either.

Anything else to add?


As mentioned by others above there's some long term support between 70 and 90c, which I called as a potential bottom, but support lines in commods across the board haven't meant a real lot recently.

Wonder if we'll look back at this period and realise it was a great opportunity to pick up some resource stocks at a good price, or the boom ended in June 08.

 

[MR.]

656,000 on close at $0.81

645,467 of those were from (2) sellers at close.

Not sure about the up bit. But the price is better than $1.80 if you want to buy. Also buy side seems stacked at $0.80

 

[trillionaire#1]

kennas,as you mention i see a price range of about 70 - 80 cents as a support level .
a few professional recommendations for this stock lately also.
i bought some Gindalbie shares earlier this year and made a quickfire 100%+ profit,so im going to cast a few dollars in, should lightning strikes twice.