Gindalbie Metals Ltd (GBG)



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General Information
Company Name: Gindalbie Metals Ltd
Stock Code: GBG
Website: www.gindalbie.com.au
GICS Sub-Industry: Diversified Metals & Mining
Market Cap ($M): 88
Equiv. Shares (M): 1,494

Current Price Data+
Current Price Open High Low Last Close Volume Price Movement
$ 0.059 $ 0.058 $ 0.059 $ 0.058 $ 0.059 599,404 0%

Current Broker Consensus Recommendation more
Recommendation: Hold (3.4)
Recommendation Date: 21st Jul 2014
Brokers Surveyed: 5

Company Overview

Business Description:
Gindalbie Metals Limited (GBG) is an Australian iron ore company based in Perth, Western Australia, which is developing a portfolio of projects in the State's Mid-West Region. GBG's core asset is the Karara Iron Ore project.

Strategy Analysis:
Gindalbie's most advanced asset is the Karara Iron Ore Project. The Project is a 50:50 joint venture with China's Ansteel, China's second largest steel maker. Ansteel also has a 36% shareholding in the company. Through the partnership with Ansteel, Gindalbie has been able to access project funding, equity funding and a product offtake agreement for all Karara iron concentrate. Gindalbie started production of hematite ore in early 2011 and magnetite concentrate production in late 2012. New resource development opportunities will also be jointly explored. Gindalbie Metals reported positive cash flow of $36.4m for the quarter ended 31 December 2012. Operating cash flow for the period was $(3.3m). Payments for exploration and evaluation were $(1.51m). Investing cash flow was $1.16m. Financing cash flow was $38.53m. Cash in hand at the end of the quarter was $70.89m.


Financial Summary
Year to Jun NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2015  F -4,160.0 -0.3 -260.0 -21.1 0.0 0.0 0.0
2014  F 2,600.0 0.2 -101.9 34.7 0.0 0.0 0.0
2013  A -138,617.0 -9.3 341.5 -3.0 0.0 0.0 0.0
Source: Morningstar analyst estimates.

Peer Comparison
EPS Growth (%) P/E (%) Dividend Yield (%)
Company Mkt Cap 2013 A 2014 F 2015 F 2013 A 2014 F 2015 F 2013 A 2014 F 2015 F
BHP Billiton (BHP) $122,751 M -0.2435 0.1812 -0.0857 16.0426 13.5811 14.8543 0.0327 0.0337 0.0352
Gindalbie Metal (GBG) $90 M -- -- -- -- -- 1.8293 0.0000 0.0000 0.0000
Iluka Resources (ILU) $3,726 M -0.6600 -0.6381 3.8306 29.0186 80.1802 16.5983 0.0101 0.0192 0.0242
Rio Tinto (RIO) $27,758 M 0.5848 -0.3510 0.1017 8.2958 12.7830 11.6031 0.0337 0.0353 0.0375
Sims Metal Management (SGM) $2,075 M -0.7514 4.5317 0.6760 121.1470 21.9006 13.0670 0.0000 0.0000 0.0224

Market Comparison
Earnings P/E Ratio P/B Ratio P/E Growth P/S Ratio
GBG 0.25 -- 0.14 -- --
Market 0.97 16.4 1.26 2.11 1.65
Sector 0.84 12.2 0.67 1.48 5.42

Directors
Name Position Start Date
Mr Lim Kim Chuan Alternate Director (other) 31 August 2007
Mr Yan Dong Alternate Director (other) 27 March 2009
Mr Michael John O'Neill Managing Director 12 April 2006
Mr Keith Jones Non-Executive Chairman,Non-Executive Director 01 March 2013
Mr Andrew Robin Marshall Non-Executive Director 16 December 2010
Mr Ping Chen Non-Executive Director 29 June 2009
Mr Wanyuan Yu Non-Executive Director 29 June 2009
Mr Paul Hallam Non-Executive Director 13 December 2011
Mr Fuping Tang Non-Executive Director 10 June 2013

Management
Name Position
D Richardson Chief Financial Officer
Christopher Gerrard Company Secretary
Jan Horsman Joint Company Secretary

Substantial Shareholders
Holding Name
535,492,521 (35.87%) Angang Group Hong Kong (Holdings) Ltd

Calendar of Events
Date Event
27 April 2015 Report (Quarterly)
23 January 2015 Report (Quarterly)
23 October 2014 Report (Quarterly)
14 October 2014 Report (Annual)
10 October 2014 Report (Annual)
© 2011 Morningstar, Inc. All rights reserved. The data and content contained herein are not guaranteed to be accurate, complete or timely. Neither Morningstar, nor its affiliates nor their content providers will have any liability for use or distribution of any of this information. To the extent that any of the content above constitutes advice, it is general advice that has been prepared by Morningstar Australasia Pty Ltd ABN: 95 090 665 544, AFSL: 240892 (a subsidiary of Morningstar, Inc.), without reference to your objectives, financial situation or needs. Before acting on any advice, you should consider the appropriateness of the advice and we recommend you obtain financial, legal and taxation advice before making any financial investment decision. If applicable investors should obtain the relevant product disclosure statement and consider it before making any decision to invest. Some material is copyright and published under licence from ASX Operations Pty Limited ACN 004 523 782 ("ASXO"). DISCLOSURE: Employees may have an interest in the securities discussed in this report. Please refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/fsg.asp.

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