company official line, page-47

Obviously we have a blow out. What matters is the size of the blowout and the funding options. GBG said previously that they would not dilute shareholders again.... Clearly not happening. Will CDB or BOC lend the JV anymore money? That is the issue. If we get a 30/70 equity/debt funding option then 400-500m will barely dilute us. Ie: 500m/2 = 250m for GBG @ 30% equity = 75m (65m shares @ 1.15). The problem is if the Chinese Banks close shop and we have to do a full equity raising of 250m (217m shares @ 1.15). Personally I am fine with a quick 65m share place to instos, the latter I am not.

I read an article in the Wall Street on a plane which summarised all the significant cost blowouts to all the majors in Australia. I was astonished when I read it, especially since it was post GBG's quarterly stating "we are on budget" (clearly not). What concerned me the most was CITIC's cost blow out with it's magnetite project being well over 50%. After reading that I thought it was a miracle that GBG/Ansteel were on budget. Clearly not.

Disclosure: I have not sold any cores, BUT i am looking to rebuy some tradeables.