Hi Spectrum, GBG hasn't even put a shovel into their own tenement let alone Oakajee.
GBG is limited to about 12-14 mtpa through POG but worse than that is the costly and time consuming manner in which they will have to load from POG. I agree Oakajee is essential to GBG's future.
While Roy's new plans may have attractive features to it, it's the timeline involved that makes it fairly irrelevant to current shareholders. And, in which time, ROY could be broke, dead and gone long before they even get anywhere near completing a BFS.
There is no shortage of magnetite in Australia or other parts of the world so 500-1,000 mt in ground doesn't mean as much compared to a large DSO project. Capex and time are the huge drawbacks on any mag project, but in time, can be overcome with a willing partner.
There is still no certainty of a reserve to be established even if ROY goes ahead- providing shareholders give it the go-ahead.
MFE Price at posting:
7.3¢ Sentiment: None Disclosure: Held
