The company is in good shape and the market conditions have hugely favoured GRR. Its worth a lot more and that's why I've accumulated my largest portfolio holding in the company and with the last divi, this one and the price rise I'm sitting pretty, but I want to be greedy! You are spot on that the company has in the past w/o SD and there is untapped value. I care greatly how and with what structure that is pursued. I spent a fair amount of time closely watching another Chinese company attempt to develop a magnetite project of very large scale and encounter a 3-4 times cost blow out. Continual write downs and all sorts of other issues. I am wary of commingling risks that have such significant profiles and as a shareholder want to see that managed to protect capital from the existing current cash generating project. No need to give away SD and can maintain upside exposure and release much value for existing shareholders through appropriate structuring while giving choice as to whether you want to participate in that very different risk of development.
Re the write down of Savage, are you sure they have anything to reverse as i would expect they would've mined a chunk that they had pre-strip etc for and thus no value left to reverse anyway?
GRR Price at posting:
20.0¢ Sentiment: Buy Disclosure: Held
(20min delay)
