I am not surprised by yesterday's sell-down. The quarterly...

I am not surprised by yesterday's sell-down. The quarterly report contained one item which could have spooked a few investors. That was the point about the second shipment of magnetite occurring at the end of January. My first reaction was one of surprise as I thought it to be a very long time between the first and second shipments. However, I realise this is part of the commissioning process and GBG needs to get things right at the plant - a little short-term pain for long-term gain. Otherwise, I thought the report was very encouraging.

The global economy is stabilising and with China's GDP on the rise, the iron ore price should remain attractive to GBG. I think GBG's PR people need to reinforce the price differential GBG will receive for its magnetite. Consequently, its margin at current prices is not much different to other Australian iron ore producers. Many commentators seem to ignore this fact.