They got a please explain on the 23 feb and they mentioned that they will have a cost increase but will not know until mid year when they get the final number.
Now after 2 weeks of everyone asking them to make an announcement and after the market tanked they come out and mention that the increase will be in the region of 30%.
Our they telling us that they did not know that the cost increase was going to be approximately 30% two week ago?
I guess we should be happy they made some announcement because on the 23 feb they said we will know by mid year.
Anyway now to the actual announcement please correct me if my calculations are wrong but based on the cost blow out of 30% of a project which is close to $2 billion that makes the blow out 600m. we should assume that Ansteel should be able to get the Chinese banks to give us the same deal as the original agreement which was a 70/30 split loan which means that the two partners will need to fork out $180M that works out to about 90m each. That is not too bad is it?
GBG Price at posting:
92.5¢ Sentiment: LT Buy Disclosure: Held
