rio contract price , page-2

Very pleased the IO contract prices with Nippon & Posco.

Check out the new presentation on GBG's website - the path to production. GBG has updated its projected margins, very nice returns given Karara concentrate will attract a 10% premium to benchmark fines. However I am still very interested to see the final terms of the CDB loan. Hopefully the repayment and interest terms are bearable and hence no equity dilution required to meet or service the debt repayments.

If this is the bottom of the IO prices, GBG will have a significant future ahead of it. You will notice that GBG emphasizes the fact that Ansteel's goal is to reach 50mtpa steel, and GBG is looking at 30mtpa+ of IO. Its obvious we are going to be the vehicle that enables Ansteel to reach this milestone. It makes sense considering the ore is "effectively" discounted given Ansteel's 68% interest in Karara (remember the JV is required to sell Karara concentrate at fines + 10% premium so we receive a full benefit). Hence we really need MMX/Mitsubishi to succeed with Oakjee. I imagine MMX will have some significant dilution to fund its share of Oakjee, however that doesn't affect GBG :P FYI I had a small MMX parcel, I got out in the low $1 mark.