Given that BB's research demonstrates that the sharesprice is sig undervalued (should be around 60 cents wasn't it?), todays technical retrace provided an opp for those well researched to pick up some more while Fridays day traders shook out along with a few that had stuggled with this stock and wanted to realise some profits. They'll be back sooner then they know.
Now that the project has QLD government backing from a premier that is under pressure to support job creation a key piece has fallen into place.
The prelim ann states that the QLD gouvernment has been handed the responsibility of approving the Enviro study and for me her somewhat premature announcement of project support indicates that the enviro study will not be a problem.
It therefore must be the UAE partnership that people are now nervous about. I focused on Dr Sudarshan Singh, the techical advisor for the partnership. What I found is that he is a director of Al Tuwairqi in the UAE (http://www.altuwairqi.com/index.php) which seem to be a major player in the steel market and in my opinion hungry for what an Boulder can bring to the table with access to Australian resources and end-to-end steel production at Gladstone. Reference is made by Dr Singh (in his capacity of Al tuwairqi director) that Al tuwairqi had created a steel processing mill back in 2006 to supply railway tracks (https://www.zawya.com/story.cfm/sidGN10086169/%20Saudi%20firm%20to%20build%20railway%20track%20mill). Coincidence he is the technical advisor...I think not! It is all about relationships in the Middle East and it would appear that we have a powerful player in our corner. My understanding is that the preference in the ME is to deal on trust instead of through contracts so the fact they are undergoing the MOU and contractual process must mean Boulder has something they really want.
A further note on the time it has taken to get the Gladstone project off the ground. The annual report makes reference to the disagreement Boulder had with a substantial share holder which had a presence on the board. Now I don't know the history so can only speculate but don't you find it interesting that since that has been resolved they have formed the partnership with the UAE and now bedded down the Gladstone site with State Gouvernment support? My earlier statement that Boulder has had 9 years planning behind them may just demonstrate how fast they are able to move with the dead weight gone.
Lets be realistic here. They have extended their MOU for a month due to the size and significance of the project requiring longer to plan. Those that have an understanding of what is planned for the partnership at even Gladstone alone would surely understand the enormity of what they have to consider and agree on.
I'll be sleeping easy with my holding tonight and looking forward to their presentation at the end of September at the UAE steel conference and signing of the agreement. There is a bright future for BGD so those that bought in the rush on Friday maybe consider holding confidently in anticipation for a decent retun.
I do find it interesting ANZ noms have a substantial holding. You have a rare retail holding traders - sacrifice your priviallage responsibly!
DYOR,
BG
BGD Price at posting:
17.5¢ Sentiment: LT Buy Disclosure: Held
