GBG 0.00% 2.9¢ gindalbie metals ltd

nice story

  1. 3,800 Posts.
    I dont hold any GBG, but looking at there story today they look like a good buy. I have been a bear on this stock for a while, but as of today change my tune.

    The Bobby Mcgee discovery looks strong and its a fair bet the following up drilling will deliver more good results. Drilling so far is only down to 65 metres and very high proportion of the drill holes have hit decent grades. The market will like the high grades as they come in.

    The latest quarterly paints a better picture with current production costs improving significantly. Production costs should improve further if they can get the mill onto a continuous roster again.

    They are also drilling underneath the Silverstone Pit which should also deliver some good hits.

    And the Gossan Hill deal with Newmont seems to give the project the longer mine life it was looking for. There maybe a capital raising required to pay for the required Minjar plnat upgrade, but here now looks to be a three or 4 year mine life ahead?

    They look a good buy to me. $30m market cap is not unreasonable.

    The spec end of the market is flat at the moment - and looks to have caused a muted repsonse to the Bobby McGee announcment. Therefore may be presenting a buying opportunity before the market picks up again. The gold price is certainly heading in the right direction.

    my views, develop your own


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