The Gimp - you're talking as though management actually had a choice. The world is in a deep and dark place, steel makers are winding back production, iron ore companies have been smashed. We don't hold the bargaining power any more, and if Ansteel steps up to the plate to take equity - so be it. This has de-risked the project, Ansteel is in boots and all, and we can all sleep well at night - unlike holders of MGX and others.
In saying that, I firmly believe that Chinese demand will recover and growth will march onwards from 2010. At which time we may look back with regret - BUT at least we'll have survived with a strong partner pumping in cash for development.
In the current environment it's a win-win.
GBG Price at posting:
40.4¢ Sentiment: Buy Disclosure: Held
