If bad things happen in threes, GNG will be relieved when it resolves the issues associated with UPS client TOGA going into administration (it follows problems with Wolf Minerals and Eastern Goldfields in recent times). We focus more on the balance sheet than the P&L impact, and assume the worst case scenario will affect the June closing cash balance of $31m by considerably less than the total ~$17.4m exposure. The TOGA situation compounds an already high level of near term uncertainty, and we look at the pipeline opportunities beyond this to underpin our BUY call and $1.00 valuation (prior $1.05).
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