1. i grinned re aisc reporting. i'm sure with a pencil,calculator and a handful of reports in hand you could get a fairly reasonable estimate of aisc and how its trending. sadly though, unless it's written down in large bold print, most analysts will never find it.
2. the comment re capitalising all that is temporarily stationery is very true IMO. The last few years i am sure any amount of costs 'best forgotten' have been swooped up under the heading of SDTSF costing, capitalised on the balance sheet and so making any C1 interpretation pretty rosy. for some time I have been waiting for the announcement that the SDTSF was completed in which case cost re-direction there should stop. Nonetheless, from a fair value perspective, they had previously written off everything that wasn't cash a few years back so the balance sheet presentation including re-directed costs is not wildly overstated.
3. melbourne property sales ... if I were a betting man, the sales to date are friendlys ie shagang, directors and the like.
4. southdown comment ... spot on. I also think there are other more mature projects around which grr could pick up relatively cheaply if they were keen to develop another magnetite mine.
5. shagang, ah yes, the preferred shareholder. isn't the saying something like some of us are more equal than others. for me this confilct of interest means grr:
will not grab any super profits which might be around. instead shagang will enjoy those by acting as trading intermediary.
will not receive any premium above market for supply surety. the reality is the existing off-take agreement does not provide any surety re either volume or price
shagang has no interest in franking credits or cash ... dividend appetite just fell to the floor. will only be enough to keep filthy peasants basically fed , nothing more, nothing less
Certainly, both 'costs' are significant but until major shareholder steps up and grabs say 30 - 50%, 'suck it up' is what i am feeling.
6. The Chairwoman Michelle, is a lightweight and is more interested in practicing her accounting skills rather than business acumen.
Have a great day!
GRR Price at posting:
26.0¢ Sentiment: Buy Disclosure: Held
(20min delay)
