karara update, page-31

Gassin

Woth last interst payment of around 60m if converted by ansteel they will own 62%...

However current interest payments funding that they are seeking around few hundred millions would easily convert another 20% to ansteel that is already spent or will get spent soon.

So gbg share holdes will only hold around 15 to 20% by end of this quarter even if the deal is done...

Then lets say 20% of kml with its full capacity of 10 mtpy gbg would only have share of 2mt even at full capacity...it would clearly be loss making operations for gindalbie..most likely forever...ansteel would only secure its raw material and that is what they are interested in...
Who says ansteel wants to expand their operations...they would only expand if they are unable to keep production cost down to reduce the costpertonne with high ton...the way its going now i even doubt if Ansteel would shutdown the project...just like neighbour sino after putting billions...if they produce at $200 per tonne and if ansteel can buy it for $150 tonne per tonne somewhere else...it does make sense , isnt it...iron ore story has gone long way down with iron ore glut now...its not attractive how it was lwhen they started project last year...

Ansteel is capable for doing what they say but gindalbie mgt i would not give them even a $2 to buy one kg tomatoes...because they would end up buying at $10 per kg imo...

Who says gbg is debt free...


$199/t i suspect it is even more than that now..