is it was it is?

From GBG annoucement 2 July 2013

"Further to the ASX Announcement of 10 June 2013 regarding the restructure of the Karara Project and funding arrangement with Ansteel, Gindalbie Metals Limited (ASX: GBG – “Gindalbie”) advises that Karara Mining Limited (KML) has received an $84 million cash injection from Ansteel, representing the first instalment of bridging finance to cover Karara’s working capital requirements.

Under a Binding Memorandum of Cooperation between Ansteel and Gindalbie which has now been concluded, Ansteel has undertaken to provide bridging finance to KML to fund forecast cash requirements over the next 12 months."

From today's announcement

"In light of the decision to temporarily reduce Concentrator throughput, KML is re-estimating its working capital requirements through to the end of the year, which will exceed the May 2013 forecast. Discussions are advanced with Karara’s Chinese banking partners regarding a suitable funding solution."

I told people to read the words carefully back in July 2013, particularly the words FORECAST cash requirements. SDO you know I told everyone to read these words carefully. No one wanted to read the words.

These guys are very clever. I didn't even read the words carefully enough myself. They didn't use the word "ALL" preceeding the words FORECAST CASH REQUIREMENTS in their July announcement. If they had have, we as shareholders could have looked at potential legal recourse if our dilution was to have been increased due to the problems announced today (within the announced twelve month time frame).

IMO we should all now clearly expect the second tranche of funding under the previously announced funding arrangement, which I highlighted to everyone in July and have been speculating could be necessary since then.

Based on this announcement I will put my buying strategy (averaging down) on hold, that is, change my sentiment from LT Buy to hold again and keep my existing end of April 2014 sell strategy in place (i.e. sell all stock no matter what if the company is not cash flow positive by then).

If the company announce that a second tranche of funding is required under the existing funding agreement and clarify that the second tranche will be sufficient to reach nameplate production, within the previously announced 12 month timeframe and they unequivocally state that no further dilution will occur before nameplate production is achieved, I'll consider resuming my LT buying of the shares.

Please note that these guys are a bit to clever for their own good.

SilentO

P.S. This is not investment advice, it is my opinion only. Do not rely on any of it. Please do your own research or seek professional advice to suit your specific investment needs before making any investment decision.