I thought the GMC management were very competent in getting the...

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rvajna

2,176 Posts.

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12/09/18

09:47

Post #: 35539601
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Originally posted by rocket973 ↑

OK, fair enough. Whether you sell its up to you. Can't say you weren't told.

Mining in NTT has produced little for the locals and has only enriched a few fat cats. GMC had planned to take advantage of the local population expecting they would get the manganese ore for a pittance. Never did GMC contemplate paying the current market price for the ore, they just intended to take advantage of the poor people to make money for themselves. The new governor is undoubtedly an honest man who is looking to help his people and the environment which had been destroyed by unscrupulous mining companies.
I'd doubt whether the new governor will actually take action by shutting down the smelter construction directly, GMC's problems will result from the withdrawal of capital from investors and the trashing of the GMC share price.

No mines in NTT means no cheap raw materials, therefore it would be necessary to import all the manganese ore, coke , FeSi etc. Frankly, its impossible for the GMC smelter to make money doing this. The best alternative is to stop building and ship the steelwork and furnaces to another country where cheap power exists. Otherwise its selling tocash converters and paying the proceeds back to shareholders.

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I thought the GMC management were very competent in getting the project to this stage with the backing of a significant investor. The only problem is that they chose the wrong location. A way out would be to find another project in a more suitable location.

Last edited by rvajna: 12/09/18

GMC Price at posting: 1.6¢ Sentiment: Sell Disclosure: Not Held
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