GMR is an explorer, like many ASX listed explorers, their aim is to discover new resources and sell them. They have done it before. They don't have the expertise to develop a mine,unless they make board changes, which is possible. Yes, their current resource doesn't look economically viable at this stage, but there is a high probability they will find more gold to improve the metrics. The EV is less then 5 mill, on a relative valuation measure, GMR is cheap compared to peers. With regard to their inferred resource, to convert that to indicated requires infill drilling, that generally happens at feasibility stage. GMR's best bet at this stage is drilling new targets in the hope of finding high grade gold.
GMR Price at posting:
1.4¢ Sentiment: Buy Disclosure: Held
