GBG - Gindalbie Metals

[the barry]

Company presentation out today, well worth a read. Things look good for the future. A good stock to hold for the long term.

 

[dj_420]

i agree barry

looking good for when BFS comes out, would like to see the lodestone drilling results when they finish up there. potential to host another karara style deposit!

would love that

 

[the barry]

i agree barry

looking good for when BFS comes out, would like to see the lodestone drilling results when they finish up there. potential to host another karara style deposit!

would love that

Have you got any ideas when the lodestone drilling results are due, was trying to find out but have had no success as yet?

Cheersz

 

[dj_420]

i believe they are about a month into the drilling program. not sure, i remember reading in somewhere in the ann, think it is a fairly large amount of drilling 10 000 metres by memory?

anyway we should see results sept qtr IMO. assuming program finishes up in a month or so then take another 4 weeks or so for results.

 

[the barry]

http://www.theaustralian.news.com.au/story/0,20867,22046292-643,00.html

Zinifex surges on merger rumours
Andrew Trounson
July 10, 2007

SHARES in zinc major Zinifex hit a new record high yesterday amid continued speculation about a possible merger with fellow Melbourne-based miner Oxiana.

Zinifex is also being buoyed by the prospect of an injection of $3-5 billion in cash once it spins off its smelting assets in October.

Last weeks comments by Oxiana chief executive Owen Hegarty - that he sees synergies in a possible tie-up with Zinifex - have reignited longstanding speculation that the two companies could eventually merge.

However, market watchers point out that it would be a strange tactic for Oxiana to flag a play for Zinifex.

It is believed that the two companies have discussed a merger in the past, but both yesterday said they had nothing to report.

Amid expectations of further consolidation in the global mining industry, investors are proving quick to buy on any takeover or merger rumour.

Zinifex shares jumped $1.10, or 5.4 per cent, to $21.32, sending the company through the $10 billion mark. The shares traded as high as $21.60.

Oxiana gained 11c, or nearly 3 per cent, to $3.85. Brokerage Citigroup helped to stoke the speculation yesterday with a research report estimating that a merger would create a group with a combined enterprise value of about $11 billion, filling the void left by MIM and WMC.

"From a comparative perspective, a combined entity would have a similar profile to WMC Resources prior to the BHP takeover, and with the addition of a bulk commodity business would have a similar profile to Teck Cominco," Citigroup said.

"With Zinifex still to appoint a new CEO, this could be the opportunity for Oxiana to show their wares."

Zinifex boss Greig Gailey retired at the end of June and the board is now assessing external candidates. Zinifex would have liked to name a successor in time for the July 26 shareholder vote to approve the spin-off of the smelter assets of Nyrstar, but that is now looking unlikely.

Citigroup said a merged entity would have a cash position of $4.4 billion by the end of fiscal year 2008, with minimal debt, following the spin-off.

Interesting read, not really sure though what the relevance is to gindalbie?.......................................................................

 

[bigdog]

The Barry,

Yes you are right and now deleted

Perhaps you could delete your response
--------------------------------------

 

[the barry]

hey mod,

can you please delete this post and the other couple above that aren't relevant to the stock .

Thanking you

 

[kevien]

Thanks Barry. GBG is one of the several green stocks in the red sea. What do you guys think how high it could be until Aug? Happy investing!

 

[Frankhalo]

My crystal ball broke last month but I'm hope to see the month out with GBG in the $1.50 to $1.70 range, which is a pretty fair call. The BFS should and I hope add at least 50 cents to the stock, so in Aug maybe around $2.30 mark would be my call. Interested in the other gurus thoughts, I'm off to BigW now for another Crystal ball I've got on order, this ones made in Japan so it should be better.

 

[serendip]

Barry, as far as the Lodestone dates are concerned, the announcement on July 6 stated that "drilling started earlier this month" (can't have been much earlier!), and was expected to take about six weeks. So we would have to assume that the program would be completed by the end of August.

The announcement went on to say that the first results of analysis of the core samples were expected "in the September 2007 quarter". This gels fairly well with the assumption that at least four weeks would be required for the analytical work, and gives us the reasonable prospect of a continuing run of (hopefully, positive) announcements.

Cheers, Serendip

 

[the barry]

My crystal ball broke last month but I'm hope to see the month out with GBG in the $1.50 to $1.70 range, which is a pretty fair call. The BFS should and I hope add at least 50 cents to the stock, so in Aug maybe around $2.30 mark would be my call. Interested in the other gurus thoughts, I'm off to BigW now for another Crystal ball I've got on order, this ones made in Japan so it should be better.

I got a couple of mates in at around the 95 cent mark last month and had a price target of 1.50 by the end of august with the bfs for both projects. If the lodestone result (due in the next month or so) produces anything like the kangara then I anticipate somewhere between the 2.10 to 2.30 mark. That is provided that both bfs's are favourable. There is also substantial exposure starting to be attracted to the stock which will also help.

 

[imaginator]

Do you think this stock will go down for a while to find a support?

can anyone do an analysis on what the next support line is?
thanks very much

 

[Pat]

Do you think this stock will go down for a while to find a support?

can anyone do an analysis on what the next support line is?
thanks very much

Hey Imaginator, I'm not sure about the SP going down, Perhaps some sideways movement to form a base. GBG has had a great run from 60 cents. So i'm counting on some consolidation/sideways trading... but at what levels? beats me. $1 looks like support???

 

[dj_420]

GBG has run very well. has been completely re-rated.

GBG broke out and then had consolidated aruond $1, then found support at $1 tested that support around 4-5 times and held very well. next break was above 1.12 as that was old resistance, failing to close above this level.

the break above 1.12 has seen old resistance/new support been tested twice and held.

you can see from the dark red lines GBG was in a steep trading pattern from which it broker out again in last couple of days. massive volume increases have been sustained over last couple months.

its all blue sky from here as no clear overhead resistance, although GBG hit 1.50 and retraced slightly.

downside i would put at 1.20 and 1.12

 

[imaginator]

Thanks PAT and DJ 420,

May I know what software do you use? Same softwares...

Anyway, Im waiting for GBG to go $2+, as forecasted by Macquarie few weeks ago. (this is from an actual forecast report, not ramping!) Could the moderator who gave me a yellow card last week take it off, I wasn't ramping! See the result these 0few days yourself!

 

[Love Zn]

its all blue sky from here as no clear overhead resistance, although GBG hit 1.50 and retraced slightly.

downside i would put at 1.20 and 1.12

I agree DJ, looks like it has some resistance at $1.50, but with the re-rating because of the two resource upgrades I think it should hold above the $1.20 mark now.

And with two BFS due in August, drilling reports from new area at Lodestone due in September and then Engineering work to start in October, should see this progressing along further.

The other interesting fact which I think some people seem to over look and they mentioned it again in todays release of the presentation, is that their current projects are just 20% of their Iron Ore rights, and with production beginning in 2008, they will be able to fund further growth. But then how do you valve potential?

 

[Frankhalo]

But then how do you valve potential?

Potential = Faith x Hope + Hardwork, there you go...Thats how you valve potential...

Great few days with the old GBG lets hope it continues in the coming weeks.

Regards

Frank

 

[gfresh]

I've used the general downturn today to buy a small amount into GBG at $1.41 .. Will be watching things closely over the next few months.

After reading a lot of the information on here, and through their ASX announcements, they seem like they have very strong prospects, small scale production is 'just around the corner' to keep money coming in, and there is always the possibility of further large deposits. Unlike some Iron Ore companies, which are still very much in the exploration stages, and blue sky only, they seem to be on the cusp of actually hitting large.

Looking at MMX (which I also hold), I can see them heading that direction in next 12 months.

My : only

 

[Love Zn]

Quite true Frank, what I was trying to elude to by also including a couple of slides from their recent presentation is what gfresh has said.

Looking at MMX (which I also hold), I can see them heading that direction in next 12 months.

Last year MMX, MIS, MGX and GBG were all about the same price, but MMX and MIS have taken off.

Stage 1 for MMX was the 1.2 Mtpa DSO and they had their first shipment in January/February this year and Stage 2 is 25 Mtpa by 2011.

MMX shares took off from MGX and GBG leading upto and after the start of their DSO and based on their potential production compared to the others.

See MMX presentation page 14 http://www.mml.net.au/images/murchison---ohpux.pdf

Now GBG will start a 2 Mtpa DSO about October 2008 and the potential to be 10 Mtpa 2010 and 25 Mtpa by 2013-14 see page 28 of presentation or image in previous post.

http://www.gindalbie.com.au/Investor+Relations/ASX+Announcement//Downloads_GetFile.aspx?id=127

So therfore as gfresh said, in 12 months in the lead upto and after they start their DSO, there is no reason why GBG couldn't repeat MMX.

The risks are not completing projects on time and like what happened to AGO today, EPA approvals delayed 6 months.

 

[Pat]

Thanks PAT and DJ 420,

May I know what software do you use? Same softwares...

Anyway, Im waiting for GBG to go $2+, as forecasted by Macquarie few weeks ago. (this is from an actual forecast report, not ramping!) Could the moderator who gave me a yellow card last week take it off, I wasn't ramping! See the result these 0few days yourself!

Try this site buddy.... http://bigcharts.marketwatch.com/default.asp?siteid=&avatar=seen&dist=ctbc

GBG broke out of the top bollinger band no doubt as a result of the latest ann. It will either continue to hug the top band or the SP will continue to consolidate to DJ's $1.20 support. Ethier way the fundamentals are great, so a chance to top up?