Ann: Karara Operational Update , page-4

KML need to somehow start building phase 2, at the same time they redesign and implement the changes for phase 1 processing.

It needs to be done immediately to get some economies of scale in production versus capital.

The capital for stage 1 is going to balloon to the point where phase 1 nameplate may not be able to sustain the debt load.

Stage 2 would provide a far better return on overall capital invested. But can KML get the funding, given today's announcement suggests an admission of a major flaw in the concentrator design process?

I think KML will survive and GBG along with it, but as to what percentage GBG ends up with, they are really at the mercy of Ansteel.

DYOR