So u own about 160000 GBG . Back then at 30 cents they looked...

So u own about 160000 GBG .

Back then at 30 cents they looked like good buying.

Then the a fell out of everything.

Now it looks a bit like things are picking up. It all depends on the long term viability of GBG's main investment .. .the Karara magnetite plant. Which in turn relies on the iron ore price ....and the demand for magnetite. Not to mention the general efficiency of the plant .

The plant cost about 2. 5 billion ....it is currently processing a out 8 million tons p/a

We dont know if long term the plant will ever produce acceptable returns . If it does then GBG's investment starts to look good again ... .money flows ....and sentiment and share price head north . Undoubtedly Karara will b depreciating the capital cost of the plant ......and so reporting continual
losses for some years yet. The free cash flow will b the important number to watch .


Seems like a few a people are punting that things are turning around.


Quite a few other. complications as well relating to GBG's Chinese partner .

I picked up a few at current prices .....

I reckon ....at these pricing levels the upside is pretty good .

For another 5 k u could double yr holding ....and effectively halve yr average buy in price . ....thats if u have the appetite for the risk ....and its not gunna send u broke.

Naturally there are no guarantees ..... however the odds are looking ok in my view.

Its a bit too long winded to elaborate on all the reasons l reckon GBG is a good punt ....but l hope the price stays at these levels for a bit yet so l can pick up a few more ...when the bucks are avaikable .

Good luck with it .

Note this is not advice ....its just an opinion . Do what u reckon is a fair deal .

Cheers

VA