The way I see it is this.....
The ML looks as certain as it has ever been. Local, National and written political support with the Minister of Mines stating it as well.
SIA is meeting a lowered anti mine sentiment with government over-riding objections (referendums) so far and are holding final say on approval of SIA anyway.
The new feasibility looks like it will revise the CAPEX considerably downward. The numbers look great if so with IRR ending up somewhere between 30-60% given the time to max ouput and broker projections. I am hoping for a SP jump when its released within the months ahead.
Last broker report stated it unlikely finance wouldnt come through. Bank of Greenland taking a look. I can see Shenghe being backup to it anyway as Shenghe wont wish to lose its investment in GGG.
Offtakes in years to come would be a low and ramping output. Something Shenghe could uptake easily if there was no other.
Even if Shenghe made a move to takeover post approval stage its looking at a price nearer to 60 cents minimum.
Uranium upturning fast. Look at past Sp price to see how much this could value add.
I see many boxes to be ticked looking green.
If anyone has any valid insights Ive overlooked Id appreciate hearing them. Just as Im confused as I cant work out why the SP is still priced as if all this hadnt, or even wont, occur.
All I can think of is
1) Market is being brutal across the board
2) Market is awaiting ML approval to buy in. All in the hope that shares will still be available at this price
3) Finance remains a concern due to being a new investment country. Pricing such risk much like a non-western country would be.
Thoughts?
GGG Price at posting:
8.0¢ Sentiment: Buy Disclosure: Held
