Lots of risk for GBG / Karara besides the actual cost of construction. The magnetite plant has to be commissioned and certified for operation. That won't be easy and there are lots of things that can and probably will go wrong.
Dilution of equity and lack of money will mean that GBG will end up being a bit player in the KML joint venture.
GBG will end up like Midwest Corporation imho.
Bought out at a maximum point of weakness.
Shares and money fall from the hands of the weak into the hands of the strong.
They're worth a punt at a 70c or less imho, but any further capital raisings will be at a discount so there is no prospect of a share price rise unless there is a bit to take them out.
Even then the shares might be a lot less than now when that happens.
GBG Price at posting:
$1.01 Sentiment: Hold Disclosure: Held
