Hi Gindaldan,You were correct on the options outstanding. For...

Hi Gindaldan,
You were correct on the options outstanding. For some reason I remembered 128m being outstanding (and for some reason still suspect there was at some point??) but I must have pulled that figure out of the Chinese statisticians office! Sorry.

Other points:
GBG quotes saying less exploration not nil. GBG will still explore on their 100% ground, and if Terrapod and Mungada are gone for good then, even more reason to explore. They will still incur exploration expenses anyhow.

Interesting to note that GBG thinks they may be allowed to mine Mungada later on, once they prove their responsibility to the environment with Karara??? That would go for Terrapod too I suppose but it is only their view at the moment. No evidence that is the case.

Cashflow from KML will be used by KML and profits to the partners aren't expected for a few years anyway. Until there are distributable profits from KML operations, (maybe CY2012), no money will be distributed to the partners. I seriously doubt GBG's cash will last them until then.
KML by way of the JV will operate independantly to GBG and GBG itself has to establish it's own production and revenues and an ability to prosper. It needs more money to do that.

Re. "No reason for excess money to stay in KML"- but then how will they pay for expansion in output? KML will be paying and borrowing for that. That's also why GBG needs development of it's own. Non- Ansteel associated GBG will be getting only a third of the profits from Karara, so GBG will need their own projects, hence exploration and development costs of its own and maybe a newfound interest in ROY's share of Warriedar now?

With little hematite to speak of, it's all tied to the price of IO over the coming years then.
I don't care what anyone may "dream as being reality" but to a high cost producer, IO pricing is the be all and end all. For GBG, a good outcome in IO pricing negotiations could see KML revise their start dates.

In the end, I don't think they can avoid raising capital in the coming years and I am all for it- if it is EPS accretive. In fact, I'll bet they will raise capital for one reason or another and it will be for significant amounts, in order to grow the business- and not stagnate.

It should be considered too that this issue of shares to Ansteel has changed the outcomes of the "old" BFS for all GBG shareholders.

For those who never read the Independant report, it's a good eye opener.