Doubt it. The market is factoring in that the final equity component is coming through via the placement, thus GBG's finance risk significantly decreasing. I'm hoping EPA/CDB sees a $1.40 price tag, however thats a $1 billion MC based on the placements dilution.
I don't like the dilution affect. But i've picked up more shares below 70cents since the crisis hit to help with the dilution.
I believe we don't really have an option but to accept the placement. Without Ansteel we will not get funding, and a 36% stake in GBG + 50% in KML will ensure that Ansteel get the CDB loan. Ansteel used the crisis and GBG's pathetic share price to its advantage, and they know we are held at ransom by them.
The positive is that we will not be taken over and will see long term growth into a potential 35mtpa IO miner. Ansteel have more of an incentive to see other projects which are 100% GBG owned to go online.
I'm going to vote yes, however I am not pleased.
GBG Price at posting:
67.2¢ Sentiment: Buy Disclosure: Held
