Gulf Resources Inc (GURE)

[finesand]

Value Update & More

Value: https://finesand.wordpress.com/2018/08/09/gulf-resources-gure-value/

(see spreadsheet below or in blog)

At $1.22/sh, GURE is currently traded at only 28% of $4.32/sh NNWC (Net-Net-Working-Capital or Liquidation) value or @ 43% of $2.83/sh NNWC value post max $100M rectification costs, insanely cheap especially since bromine production is expected to restart in just days or weeks.

Since 2011 inclusive GURE has not received a sector typical multiple evaluation, even though the annual cash flow is obviously superb and company performing very profitable. Starting with only $5.69M cash in 2017, company increased its cash position to $236.72M end of 1Q18, a 4060% increase!

Bromine Production Restart
As known and detailed in first article, the production restart only depends mostly on government approval – paperwork only.

To confirm this, we have reached an office worker of GURE on the phone, who is involved in the bromine process, here are our notes from the conversation with said man

- In all matters GURE got the best evaluation and their request is on top of the stash of the gov for replies
- He has no doubts and expects they get all remaining paperwork approvals – no additional work/fix required
- He was in a good mood and proud of the progress
- He didn’t like to give an expected timeline for approval, but when pressed he was like ‘before end of year’ then later ‘within 2 months or so’
- He said that since spring festival (Feb/Mar) around, they were producing until the shutdown

These are good news, confirming our research and interpretation from a GURE person. Of course, they can’t definitely tell when the provincial government gives the approval, but having received best evaluation of their work and making good progress is helping.

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Road to Recovery: https://finesand.wordpress.com/2018/08/07/gulf-resources-gure-where-are-we/

Quick Outline: https://finesand.wordpress.com/2018/07/10/gulf-resources-gure-a-quick-outline/

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