3q'13 financial results, page-23

Kenso, more carriages cost more money. mining is almost entirely focused on maximising utilisation of capital to minimise cost and maximise profit. These sorts of business need to be run in a very smooth and efficient manner.

Gbg have proven they can't run a smooth show and this will continue when the mine is running. If they don't have the ability to admit issues during the construction phase then they won't during the mining phase and if they can't admit to the issue then they can't solve it.

My opinion is that this shipping issue is another minor issue but it is kinda the first to be a mining operational issue as opposed to a construction issue. If they show no concern about the Moore master not working 100% then where else are they lazy on costs? There will be other issues they fail to properly control. Perhaps minor like a poorly designed runway that needs more maintenance and perhaps larger issues like failing to design the crusher so they can access the crusher plates for replacement with a crane. These issues will increase production costs and reduce profit. The costs do add up if a mine has problems and management don't admit there is a problem and thus never resolve the issue. Imagine you own a grocery store and the fridge doesn't work right so the meat is always going rotten quickly and you have to throw out lots of meat. If you refuse to admit the fridge is broken and blame the meat company for giving you bad meat then your meat will continue to rot and you'll continue to lose money but if you admit the fridge is broken and fix it you'll start making money.

I'm not saying they won't make money. Just that they would make more money if they got their act together and realised they are at fault. They aren't working out what will make them money and they aren't focusing on the critical issues for profit. Like I still can't understand why they haven't given ansteel a 50% share in shine and started mining it to get better utilisation out of their rail and port infrastructure. Or why they can't provide shareholder with a comprehensive punch list of problems and how they plan to solve these issues. Perhaps I expect too much from the companies that I own a share of. I guess the other thing is that if they exhibited more of these qualities I wouldn't be paying $0.12 a share.. I often think I have a decent understanding of the murky waters that are gbg but maybe I'm wrong, maybe this is a company incapable of survival solely because management of kml/gbg are in adequate for the task at hand and the "attractive financials" are pointless because the people running this thing don't have the capability to make sensible decisions one requires to achieve a decent return on capital. I'm not even sure they have the intelligence required to avoid destroying capital.

Angry rant over. Dyor and