Good find "Contractor AusGroup says it has launched legal action against Karara Mining over about $55 million in withheld payments for work performed on the magnetite project in the State's Mid-West." More follows on the website and doesn't sound good. GBG management keeps referring to "in the absence of material issues" but don't seem to want to recognise the more important issues are financial. I seem to recall first reading about this dispute being posted on HotCopper at $22 million, and now it has blown out to $55 million with a possibility of interest being added to the claim. Once again management seems to have chosen to ignore shareholders' concerns by not keeping us informed.
Cantankerous Jim, getting mad as hell I still rate it a Hold, but if it misses the nameplate production target by end of July, then it is a definite sell.
GBG Price at posting:
11.5¢ Sentiment: Hold Disclosure: Held
