I have done some research a while ago on the level of loans (excluding interest payments- if Karara has ever made any) but from GBG announcements which I found (there may be more) the loans from Chinese banks are as follows (held by Karara from my understanding): You can find earlier announcements on ASX site.
14 Jan 2009 Borrowed $1,200m
27 April 2011 Borrowed $336m
20 August 2011 Borrowed $250m
TotalBorrowed $1,786m I think this is $US, but maybe $AUD.
What interest rate? At 4% pa that is $71m pa.
Also from other early announcements Ansteel has invested some $608m and GBG raised some $418m this is up to 3 Dec 2012.
Total $2,812m.
Project cost went from original $1,800m to final $2,570m.
These are big numbers.
So is the refinancing from the Chinese Banks, or is it GBG's relationship with Ansteel being renegotiated, because some one has been financing the loss over the last couple of years.
Media reports suggest Karara's cost (AISC) is $90 per tonne. Has never been confirmed by GBG.
GBG latest export at about 66% Fe grade and has higher price - maybe $US80, so this year on nearly 9.8m tonnes of exports will have lost at least $US100m and that's based on 100% 0f export is 66% Fe grade but we know a lot DSO, so annual loss (without interest - if not in $90 cost per tonne) is probably $200m+!
What are the Chinese banks doing?
GBG Price at posting:
2.2¢ Sentiment: Buy Disclosure: Held
