re: Ann: Karara Project Update Construction C...
Gindalbie is also pleased to advise that a preliminary review of the Cash Operating Cost estimates for the Karara Project have indicated that they are consistent with the 2007 Bankable Feasibility Study cost of A$46/t FOB Geraldton.
This is the guts of it for me.Even if the benchmark price was to be $100 by the time we are producing and I doubt it there is still enough profit and volumes for it to be viable. At $53 per ton profit ( assuming $46 FOB ) at 10,000,000 ton PA that is still a lot income even with the currency fluctuations and market volotility.
I think the investors like it too as it is up 10% and on a bad day when the ASX has tanked 75 points at time of writing.I for one am happy with the announcement, it is reassuring more than anything after all the hysteria and panic yesterday.
R&R
GBG Price at posting:
$1.10 Sentiment: Hold Disclosure: Held
