ho-ho-ho, page-6

Means little Chubs and Ansteel and GBG are entitled to recoup their investments in KML if KML fails. Whatever cash is left will be distributed- with Ansteel entitled to the vast majority as per their agreement. GBG will be left with $jack! They better have some big blow torches to cut up those grinders for scrap.

We all doubt it will come to that scenario but what I was trying to say is that the terms GBG "may" end up having to accept, may not be as attractive as we were all led to believe. The longer the negotiations drag on, the more unlikely it will be in GBG's favour.

Actually, finance is available now from the more traditional and varied sources than just the Chinese but the Chinese remain the cheapest- currently about half the rate of local finance- which like Gindaldan said, would be impossible to source for this project in Australia.

I made a suggestion to read up on what Sinochem has pulled on NUF to get an idea what can happen. If people can't be bothered or still believe in Santa Claus, then don't bother reading up, but basically, any agreement with a business partner is worthless until signed off and one with a Chinese Gov't owned enterprise even more dubious.

Gindaldan, I was writing two years ago that the crucial element in all this for GBG was the IO pricing and that the key to a strong share price performance was their expansion of production. That hasn't changed and the IO pricing outlook atm is favourable for them. But further strength in IO pricing will see the current producer's shareprices performing far better than GBG's will.

If GBG is to return the magnificent profits(aka shareprice performance) envisaged by the punters, then, being around 4 years away from even the first profits, leaves ample time to build a holding. The biggest profits to be seen from GBG in the next few years probably occurred over the last 15 months and most punters missed out badly on that.

I look at it this way, it's still a very good story, but still has significant risk and very little rush to build a safe holding.