Mkt Cap = 26.7m shares fully diluted @80c = $21m M.C.
Resources = 6 to 11 billion barrels of oil shale,
Owned in about 3 land parcels, cross-owned with Esperance Minerals (ESM) and East Coast Mineral (ECM), who all also own cross share parcels in each other, with basically same boards/CEO. GRV 3 deposits – Alpha 100%, Nagoorin 50% ESM 25%, Lowmead 25%, ESP 50%, QER holds other 2×25% stakes. BOE have also bought into the projects.
These deposits have been held for a long time, since early 1980s, management has kept running costs exceptionally low, while technology was sought to economically extract the oil. Australia’s biggest shale oil deposits. There are 27 technologies being tested worldwide for prod’n of oil from oil shale. GRV is involved in a number of these. Included is a microwave test plant which could be on site April-June 08, subject to Qld govt approval. GRV has sent samples to Global Res Microwave Tech (USA) for testing, they were selected by Time magazine as one of best inventions of the year.
Upside – huge world class deposits, if technology is successful, blue sky potential.
– very low cash burn rate.
Downside – waiting for successful tests to prove it can be extracted economically.
Also a VERY illiquid stock, very tightly held. So much so that Directors recently sold some share parcels to foreign investors for $3. Five times the then current share value 60c.
Bought a few shares for the bottom draw a few months ago.
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