I'm back in. I never thought that GIR would get close to 30 cents again. Wow, these are truly strange times.
GIR has a market cap of only $59M, and cash (+investments) of $77M! You could buy the company, have $18M more in cash (30% profit) plus own several promising mining prospects (Gold, Uranium, Iron). However, I'm sure that all you Girites are as perplexed as I am.
However, I would like to flag an idea. Now that BHP has dropped its bid for RIO, would Earaheedy be a suitable target for BHP. Normally BHP would not waste its time considering minnows since they add nothing to its large bottom line. But Earheedy is different - if I recall correctly from posts many moons ago - posters were talking about 1 billion tons of IO. That is large even for BHP. Furthermore, BHP is already a neighbour and knows (or should know) what Earaheedy promises. Most would agree that IO is now out of favour, as are other commodities, but surely BHP realises that this is exactly the time for it to increase its stock. It would not have to mine the site for some time, but would have a vast resource which it could turn on relatively quickly when it was needed.
One more idea - GIR should consider remaining a land bank and not get into the producing business. What? How about it receives royalties from BHP for the tonnage extracted. That way, GIR does not have to experience the considerable risks and costs (think debt) of transitioning from an explorer to a producer. What would be a fair royalty - $5 per ton, $2, $1, 10 cents - I have no idea? What ever it is, when you multiply by a billion it gets large very quickly.
All this is speculation on my part, but if I was running BHP I know what I would be doing - buying all the cheap resources that I can before hyperinflation hits. (All those billions of dollars that governments are throwing around are going to come back to haunt us - real soon).
Anyway, I intend to sit on my GIR shares for a long time - they didn't cost too much so I can sleep well at night.
Reflexivity
GIR Price at posting:
32.0¢ Sentiment: None Disclosure: Held
