Carabaea,
The WA Gov't has said they are committed to upgrading the power supply to Geraldton. Gindalbie intends to source power from this upgraded network - bypassing the current closer network which is incapable of supplying their needs.
The 15 year contract with Verve has put the onus on Verve to supply the contracted power requirements. Should they fail I suppose it will be time to go to court and GBG will be wishing solar power was feasable! It's a valid point but I am not qualified in any way to make any judgement or comment on this though and I know you have brought it up before, so give GBG a call if it concerns you. GBG sound confident that the power side of development is taken care of though.
Denial,
Yeah I agree, Ansteel can't get cheaper ore than Karara's unless they dig up their own themselves, and then the quality is probably lower from their mines. A lot of Chinese mines are currrently yielding around 12-13% magnetite which is expensive to concentrate. Because of the prices though, these mines are economical and apparently there are heaps of small private mines digging up ore all over China. They work underground in 8 hour shifts, 7 days a week.
By the same token, in return, a lot of GBG's development costs will be limited because a lot of development and construction etc. will be done in China, by Chinese before being shipped out. The same goes for the construction here as well with Chinese and Aussies employed in the re-construction of the concentrator etc..
I look forward to the divs too but don't count on anything spectacular soon. A lot of Investors will be receiving dividends that are multiples of their buy in price. That is, a lot of shares were bought around 7-10c a few years ago yet the first divs could well be 400% more than what they paid for the share!
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