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http://news.smh.com.au/gindalbie-hunts-for-growth/20071128-1dda.html

Gindalbie hunts for growth

November 28, 2007 - 12:46PM

Gindalbie Metals Ltd, which failed in its attempt to acquire Cameroon-focused Sundance Resources Ltd last month, says it will continue to seek similar growth opportunities.

Chairman George Jones told shareholders at its annual general meeting that the past 12 months had not been without its challenges.

"During the year, we considered one corporate opportunity in the shape of the proposed merger with fellow iron ore company, Sundance Resources Ltd," Mr Jones said.

"While in this instance, both companies made the decision not to proceed, Gindalbie remains on the lookout for opportunities to facilitate growth."

Mr Jones expects Gindalbie's market value to significantly increase in the future, as it progresses the construction and development of its Karara magnetite iron ore project in Western Australia's mid west region.

"Next year will undoubtedly be a strong year for Gindalbie and a major turning point in our growth".

Gindalbie was only just beginning to realise its growth potential, given the continuing expansion of the iron ore industry, he said.

"We've seen analysts at Morgan Stanley factoring in a 30 per cent price increase, to be followed by a further five per cent increase in 2009, and Merrill Lynch predicting a 30-40 per cent increase in contract prices as the global market enters its tightest ever supply phase," he said.

"Merrill Lynch even suggested that iron ore prices could rise by 100 per cent next year if BHP Billiton and Rio Tinto could achieve a 'landed cost' agreement."

BHP Billiton Ltd is seeking to merger with Rio Tinto Ltd, but the target has so far rebuffed its advances.

On Wednesday, Gindalbie will formally appoint a representative of its joint venture partner, China's Ansteel, to the Gindalbie board.

Wang Heng is the general manager of the Ansteel Group International Trade Company and will be appointed a non-executive director of Gindalbie.

Mr Jones is stepping down from his executive role but promised to be a "very active and hands-on non executive chairman".