Ann: Half Year Accounts , page-22

If we were to hang on & secure this next loan, I would like to know if we could trade our way out of this. $2.5 Billion is huge debt. Just for this exercise lets forget about DSO, after all it will only play a small role when at nameplate. Magnetite for the last six months of 2013, 1.6mt shipped which got us $200 million, which averages $7.5 million per ship but it cost a whopping $318 million in production costs because it was such a pitiful amount. The first six months of this year their saying we'll ship 2.55mt or 42 ships @ $7.5 million, that's $320 million. So more production brings production costs down further, lets say $250 million. Now of course this is all based on the dollar staying around the high eighties & iron ore around $125. But when it gets to nameplate of 8mt that's 133 ships @ $7.5 million per ship, well thats a billion dollars & hopefully production costs would be around $400 million. Go to phase two & it now becomes $2 billion with production costs at around $700 million. That is serious cashflow. Pure speculation I know, but I just wanted to highlight the potential Karara has. They have proved that they can get at least 9.47mt through Geralton Port on an annual basis, their rail seems to work just fine. They also state that commercial production will be declared in the June quarter. If they could get the $300 million loan from Ansteel to cover those upcoming payments it still leaves us in the game with a possible cashflow that will leave us with the enormous capacity to service & pay down loans & head towards huge profits. Dale Harris speaks at a Perth function tomorrow about GBG future, I hope it's impressive. GLTA, my wife doesn't speak to me either. Oh well.