Well, the accounts indicate that GBG and Ansteel have already put in the additional 50m each into KML. So $100m extra put into KML.
This was done as an interest free loan. Don't know the terms, but hopefully this is repaid quickly i.e. before dividends.
GBG's cash is low at 31 Jan being $35m. But we will get Ansteel's top up of $22m in the next few months. Assuming no more contributions required for blowouts then GBG should be fine. Costs in GBG are minimal.
'Project on track to be completed broadly in line with previously announced constructed budget' is open for discussion. Just hope that the extra fat on 'soon to be shipped magnetite' from a high iron ore price allows us to self fund this.
*'Gindalbie intends to be in a position to start reporting cash costs and more detailed production and cash flow information on its magnetite operations once commercial production at Karara has been declared, which is likely to be in the June 2013 Quarter'.*
This is key. This is where we could see a significant rerating.
Ignore all the going concern crap from the auditors. Thats standard given the funding risk/blowout. Nothing new.
Thats my take.
Not much else worth mentioning that we didn't already know.
GBG Price at posting:
25.5¢ Sentiment: Buy Disclosure: Held
