blowout, page-11

the cost blow out has been made out to be 'bad management' and has at least as far as it has been reported so far a 'credibility' issue for management.

When the cost are officially released my feeling is that the increased costs will be explained as increased/brought forward expenditure to increase capacity beyond what was originally outlined. And this increased expenditure is to take advantage of high iron ore prices that won't last forever.

One report is $600 million which is a huge blowout (even for a resource of GBG's size) but if it relates to increased/brought forward expenditure it is acceptable.

The truth will probably be somewhere in the middle but going on the market reaction on the rumors so far it is not a huge issue.