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GBS Gold - MktCap only $30 per ounce


drbubb

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According to Campbell Smyth: "GBS is (cheap- so cheap it is nuts). check it out"

So I did, and i bought some yesterday.

==========================

 

Weekly Chart ... update : daily

bigom1.gif

 

Link: http://www.gbsgold.com

 

= = =

 

GBS is a high cost mine but the management just put in $8m at $1.30 in a pp

 

+ Management: ...is the old Lion Ore team, GBS has 25% management ownership

 

+ just went cashflow positive

 

+ GBS: Market cap $150m. cash at bank $20m

 

+ Production - 120,000oz, and Cash flow is just over breakeven at present

 

+ New resources coming, reserves being defined. reserve 3moz - all categories 4.5moz

 

+ Location : all australian projects

 

+ Overall: Mkt cap/oz $30/oz - seriously cheap

 

I am most confident about the fact that it is the LionOre management running it

and they own 25% personally. The resource estimate is straight from the CFO

- it may be higher than the website as they are about to announce an upgrade

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According to Campbell Smyth: "GBS is (cheap- so cheap it is nuts). check it out"

So I did, and i bought some yesterday.

==========================

 

Weekly Chart ... update : daily

bigom1.gif

 

Link: http://www.gbsgold.com

 

= = =

 

GBS is a high cost mine but the management just put in $8m at $1.30 in a pp

 

+ Management: ...is the old Lion Ore team, GBS has 25% management ownership

 

+ just went cashflow positive

 

+ GBS: Market cap $150m. cash at bank $20m

 

+ Production - 120,000oz, and Cash flow is just over breakeven at present

 

+ New resources coming, reserves being defined. reserve 3moz - all categories 4.5moz

 

+ Location : all australian projects

 

+ Overall: Mkt cap/oz $30/oz - seriously cheap

 

I am most confident about the fact that it is the LionOre management running it

and they own 25% personally. The resource estimate is straight from the CFO

- it may be higher than the website as they are about to announce an upgrade

[/quote

 

 

I am also in the process of researching this one, I heared it on the podcast on CWR. Looks very interesting Dr.B and cheap ! May well buy some in the next couple of days.

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I am most confident about the fact that it is the LionOre management running it

and they own 25% personally. The resource estimate is straight from the CFO

- it may be higher than the website as they are about to announce an upgrade

 

Interesting; I will have to take a look at this.

 

Frankly, however, I was never very impressed with LionOre management. I did a lot of DD on LIM in 06 (well before the big nickel runup in 07) and took a pass specifically because of what seemed to be management incompetency. I believe it was the 2005 annual report that specifically scared me away. Remember, these are the guys whose Board of Directors RECOMMENDED selling the company for WAY less than what Norilsk finally bought them for in the bidding war with Xstrata.

 

I have a word file on my harddrive called the "Hall of Shame" and all of the former Lionore and Rio Narcea board of directors are on that list, since neither of them did enough work to get maximum value for shareholders when they decided to sell out.

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Tried to buy this on Selftrade but they can't trade it. Anyone know how I can do this without having to go through laborious account set ups with another broker (i.e. not having to send off passports and birth certificates etc. to convince people I'm not Al Capone's lost grandson)?

 

Physchological question: is it a sign of a bubble in gold that I seem less concerned buying into gold related assets at $850 than at $450? Or is it simply a sign that the impending doom all around is getting a little clearer to see?

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Physchological question: is it a sign of a bubble in gold that I seem less concerned buying into gold related assets at $850 than at $450? Or is it simply a sign that the impending doom all around is getting a little clearer to see?

 

I'm asking myself this question also..note to self, check The Sun, see if they are reccomending buying gold

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  • 2 weeks later...

Just thought you guys might be interested in this . . .

 

(RealTrader) *GBS Gold Reports Steady Production And Improved Cost Performance

For Q4 At Australia's Union Reefs Operations Centre

*GBS Gold Reports Steady Production And Improved Cost Performance For Q4 At Aust

alia's Union Reefs Operations Centre

 

(RTTNews) - GBS Gold (GBS.TO) reports steady production and improved cost

performance for Q4 at Australia's Union Reefs Operations Centre

 

For comments and feedback: contact editorial@rttnews.com

Copyright© 2008 RealTimeTraders.com, Inc. All Rights Reserved

*** end of story ***

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  • 2 months later...
  • 3 months later...

I thought I'd take another look at GBS as the share price has pulled back a bit.

 

GBS at a Glance

 

• Comprehensive producing, near-producing and exploration asset base located in Australia

• Excellent set of assets in historically well known gold mining region

• Under-utilized 2.5 Mtpa processing plant key competitive advantage

• Indicated gold resources of 2.5Moz and Inferred resources of 1.6Moz

• Strong production growth - organic growth plan to +300,000ozpa over the next 5 years

• Growing resource base in known deposits

• 2008 expected production of 130,000 ounces

• Potential to monetize non-gold assets - base metals and uranium

• Recently strengthened management team with proven operational & capital markets experience

 

PRESENTATIONS

 

Delivering Production, May 2008 - 5/23/2008 (5285 KB PPT)

 

Mineral Resources and Reserves

 

• During the Quarter, the Company released the details of the year-end mineral resource and reserve position. The Company’s

mineral resource base at the end of 2007 comprised indicated resources of 22.8Mt at an average grade of 3.3g/t for 2.4 million

ounces (“Moz”) of gold, plus inferred resources of 20.3Mt at 2.5g/t for 1.6Moz of gold.

 

• The Company’s mineral reserves comprise probable reserves relating to the Brocks Creek, Tom’s Gully and Cosmo Deeps

projects of 3.1Mt at 6.0g/t for 601,000 ounces of contained gold.

 

GBS Gold International - http://www.gbsgold.ca

 

Share price = 1.25 C$ Market Cap = 164.5M C$

 

GBS Gold – NAV Analysis

 

Mid-tier producers trading at 2.34 x NAV1

 

GBS Gold trading at 0.8 x NAV

 

Analysts ascribe multiple: 1 x NAV: $2.00 - $2.50 Target

 

 

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  • 5 weeks later...
Presumably this is the reason: http://www.gbsgold.ca/pdfs/uploads/news/38...20(27AUG08).pdf

 

Doesn't make pretty reading. Oh well, just some more money down the gold junior drain ...

 

 

I haven't fully read the pdf yet but just for the record:

 

Down another 50% today at 0.21

 

 

...and to think that the directors pumped loads of their own cash in at $1.30 just a few months ago.

How quickly things change.

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  • 2 weeks later...

GBS Gold International on the brink

Posted: September 15, 2008, 10:33 AM by David Pett

Mining

It appears close to being over for GBS Gold International Inc.

 

Shares in the Australian-based gold miner are down more than 70% to 3¢ after the company fell into receivership on Monday.

 

GBS Gold said it appointed voluntary administrators to take control of its subsidiary GBS Gold Australia Pty Ltd. The appointment was a requirement under Australian law due the GBS Gold Australian degrading financial position.

 

 

The company stated that claims of creditors are delayed to allow the Australian subsidiaries "to be restructured and recapitalized with a view to being able to continue their business."

 

GBS Gold's troubles have been mounting since late August when the small miner with open pit projects located in Australia, raised its cost guidance and warned that it may have to lower production following a review of its operations. One day later CEO Peter Breese resigned.

 

Wow. Welcome to junior investing. So from costs increasing and lower production to receivership. WTF!?

 

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Wow. I nearly bought GBS. On the other hand, I have lots of TUMIF.OB and HIF.L which have seen massive equity destruction. This is why I'm so uncomfortable about owning stocks where the financial reporting is infrequent and light on useful infomation. If the game has become one of survival before the next major leg up in the POG then I want to know about cash on hand and burn rates.

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Wow. I nearly bought GBS. On the other hand, I have lots of TUMIF.OB and HIF.L which have seen massive equity destruction. This is why I'm so uncomfortable about owning stocks where the financial reporting is infrequent and light on useful infomation. If the game has become one of survival before the next major leg up in the POG then I want to know about cash on hand and burn rates.

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