Current magnetite production at double cost at least $200.. They even made 60% loss at iron ore spot price $130 to $140 range..add their 65% premium to it.that production cost does not include state royalty which was waived for last year.
Dilution is in way either by ansteel or by share guarrantee...
Working capital requirement is huge such as rail and track maintenance, power station and line maintenance...
Add commissioning issues and its funding to cost which is in hundreds of million alone...
Apart from that current iron ore price plunge and its outlook....even if they reach nameplate capacity they need iron price well above $120 to cover its cost...
In short gbg shareholders get better value now than after a year exactly how it would have got better value last year than today.
No point of increasing debt with time...they are just dragging on for no reason in my opinion.
Ann: Half Year Accounts , page-48
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