Well according to UBS they will seek $200m via a rights issue, rest will be funded from existing reserves. Better than $300m but still bad news.
Operating costs are a concern but I am not surprised and expected something like this. However Karara will still produce great returns and cash flow. It is a shame all of these uncertainities exist around Oakjee, it is partly why our share price is so depressed. The key for GBG to be a standout play was always in the expansion of Karara into 20mtpa+.
GBG Price at posting:
81.8¢ Sentiment: Hold Disclosure: Held
