Ann: Acquisition Scheme Booklet, page-6

I have just read the BDO Independent Expert's Report and am of the opinion that it does not address any of the issues in an independent manner.
There are errors.
At 5.2.2 in the 4th paragraph it states that it operates close to stated capacity of 8 million tonnes so there is no additional infrastructure capacity to support the export of direct shipping ore.
In 2017 it exported approx 7.8m tonnes, in 2018 approx 7.74m tonnes and in 2019 based on current rates approximately 7.5m tonnes. KML is not operating at nameplate capacity.
In 2014 KML exported approximately 9.6m tonnes including DSO.
If KML exported approx 9.6m tonnes in FY2014 then the statement by BDO could be considered to be false and misleading. It appears that BDO has failed to investigate the facts.

BDO has not valued the of the GBG investment in KML using paragraph 3.2 of its report as an out.
It says that then "the issue of value is of secondary importance". No wonder they were only paid $50k for the report, because they undertook no detailed analysis of the value of the transaction.
This may be an easy way out using ASIC RG111.35 and RGG 111.36 to avoid actually valuing GBG share in KML, and especially in light of current prices of high grade iron ore.
Their attached subsequent letter acknowledging the current iron ore prices is of little interest to them because of the ASIC clauses noted above. The letter just confirms that no valuation has taken place.

But the GBG shareholders want to know what the long-term value of KML.

BDO raises the issue of $231m of contingent liability (as does the Board of GBG) however is there ever a possibility that Ansteel would close down KML? If Ansteel is going to continue running KML then there is NO chance of the pulling of the contingent liability. There are always sunset clauses on contingent liabilities. BDO has not provided any details of when the sunset clauses kick in. BDO should provide a proper analysis of the contingent liabilities.

One would consider that this is an inappropriate use of this contingent liability scare tactics by the Board of GBG to force its shareholders to make a rash and ill-informed decision.

No explanation has been given by BDO as to why the $33m in GBG is not split in accordance with the current shareholding in GBG. It seems to be a random number not related to any legal or moral basis.

CODA is going to have a capital raising - that is possibly only going to provide cash for the obtaining of a JORC without anything for actually mining.

Given that there will only be 35m shares in CODA (before cash raising) it is a small UNLISTED public company which MIGHT be listed on the ASX there appears to be no need for all the directors. Who is going to step down?

CODA has no value being an unlisted public company. How much will is cost to list on the ASX?

I am voting No.