Ann: GRR - Quarterly Report for 3 months ended 31 March 2018, page-10

Great report. Inventory remains unchanged (Approx $40 mill waiting to be sold). Cash and receivables $200 million. Liabilities are insignificant. Prices still high for the FOB AUD Pellets which means unless freak of nature occurs, the cash will keep rolling in to the tune of about $20 mill per quarter. Even looks like the usual acculate inventory and sell when cheap might not occur this time as Pellet prices remain stubbornly high so it makes it difficult for directors to minimise the profits of GRR in favour of the parent.

After dividend paid $12 million bank, cash and receivables increased showing if no dividend paid then $20 mill cash came in for the quarter. Company market cap about $200 million.

Company made $20 million in the quarter and are doing some property developments that may cost $20 million in total and people are complaining they overpaid a few hundred thousand for land. I think you need to have some faith. I would assume they would not be venturing into property development in order to lose money so I trust they are doing the right thing venturing into some other avenues of income/asset growth rather than getting paltry interest rates on their vast sums of CASH. I would expect them to achieve at least 25% ROI for the developments. Min 15%, max 35% would be a normal range for such ventures. Self funded so no interest expense or hefty estab fees at the banks which could mean greater ROI. Even if they are amateurs I would not expect much loss from the project.

Cash, receivables, inventory about $240 mill. Business has a PE of 3-4. Dividend yield about 12% fully franked. Looking forward to continuing to buy these babies at these prices before the fire sale is over. It is so tempting I am even departing some of my holdings in SLR early than I was hoping in order to soak up more of these babies on a 3:1 ratio basis. I will however allow the sellers to change their minds later and rebuy them from me but only when the price well above 30c.

I am not racist and I know this is a frustrating stock for many but reality is this baby should be 60c+ and only isnt because it is pretty much owned and run by chinese. If the market gets over this and realises its making good $$$$, not going under during an iron ore price crash, and pays incredible yields then 60c we shall see.

Ive personally never seen company in a better position over last 6 years than it is right now. Im holding.