I understand and appreciate the point you are making and I am aware of that too but I was actually trying to make reference to the profit distributed to GBG's orignal shareholders by way of dividends, ie. NAA shareholders. Having said that, Ansteel will want a return from GBG by way of dividends too.
If KML retains the majority of profits for expansion, or, distributes profits to the JV partners, and they in return re-invest it in KML to support aggressive expansion, where are the returns to shareholders from their investment? Capital gains aside of course. GBG has to develop projects of its own.
That's what I meant by GBG needing to develop their own ventures outside of Karara. The obvious ventures are low capital intensity projects like the smaller hematite deposits they have and are exploring, not the large capital intense magnetite projects. These smaller deposits would also be a lower priority for KML.
I probably made that as clear as mud, eh?
GBG Price at posting:
88.5¢ Sentiment: None Disclosure: Held
