If you read the last quarterly report GBG is liable to the extent of $500m in loans.
What the shareholders voted on, from my understanding, was the refinancing of the latest loan. It did not expunge any liability for previous loan agreements.
But also remember that Ansteel owns 36% of GBG.
So pretty silly to send GBG broke as they lose their investment in GBG, BUT Ansteel could take full ownership of GBG by Ansteel guaranteeing the $500m loan.
But how that would work I don't know.
Based on $500m liability on 1.496 billion shares = 33.4c each share, 18.5 times current value.
Unless 65.3% magnetite goes to $US110 per tonne (and stays there for 5 years) GBG is stuffed.
Supposedly KML has lost more than $US700m to date and counting.
Current price $US76 - still losing $US4 per tonne (on 9m tonne pa) = another $US36 at least this year and limited to that if it stays at $US76 per tonne.
O there goes a squadron of pigs.
But never say never!
GBG Price at posting:
1.8¢ Sentiment: Hold Disclosure: Held
