gindalbie seeks buyer for loadestone, page-21

MGX HAS $500M CASH AND NO DEBT and is on the aquisition trail.

rather than look for a new greenfields project and all the associated hassles, it would be very viable for them to assume gbg share of karara debt ($1.25B) and an attractive offer of 80c/share t/o. ($1.2b)

however 80c/share may not be attractive enough (especially for ansteel gbg major share holder)and they would have to make a move very soon for when KARARA starts loading ships with ore it will be rerated very highly to the upside.

of course a takeover is just a playfuul scenario as most serious gbg investors realize that gbg is currently greatly undervalued considering its short, medium and long potential.

and mgx has a major dilema on its hands, how to invest $500m in iron ore mining and run the gauntlet of funding huge project cost increases, obtaining unavailable funds and grapling with time frame overruns and labour shortages within the current economic and mining operating climate.

gbg has run the race and is now about to step over the finishing line.

the current pathetic valuation of karara mining operation is just the result of risk off mentality by the market place which however imo is in the process of reverting to risk on.