saturday's west australian//sgw Hi Dingo,I dont think I will be...

saturday's west australian//sgw Hi Dingo,

I dont think I will be buying any more 5m is enough .. lol... but do think that there is every possibility that we will go after some of Southern Cross, I just hope they do it soon ..

That article in the WA follows for those interested...

Gwalia's liabilities may exceed $800m
NEALE PRIOR - West Australian Sep 04

Creditors were told yesterday that Sons of Gwalia's hedging debt had blown out to around $500 million after the crippled miner's estranged banks closed out extensive gold and currency positions.

Gwalia's administrators confirmed the company's estimated liabilities had increased by about $75 million since June 30, when the gold liabilities were put at $348 million and foreign exchange exposure sat around $78 million.

Total liabilities may now exceed $800 million.

However, creditors could yet emerge with a significant return, depending on the outcome of asset sales planned by the administrators.

More than 150 creditors and their advisers attended a meeting in Perth yesterday, the first since the Sons of Gwalia board decided on August 29 to call in administrators after a strategic review identified "a serious deterioration" in its gold resources and reserves.

The collapsed reserve base meant the company was unable to meet its gold hedging commitments, which were built up under Peter and Chris Lalor's management of the company over a 20-year period which ended in April.

The new board called in administrators after being unable to secure standstill agreements from its nine hedging banks on its commitments that would have given the company time to reorganise its affairs.

It is believed the banks had balked at a proposal that could have left them exposed to a blow-out in bullion prices, with a $50 increase in the gold price potentially increasing the liability by $200 million.

Administrators estimated yesterday that in addition to the estimated $500 million in hedging liabilities, the company owed between $70 million and $80 million to trade creditors, $7 million to $10 million to employees, and about $232 million to US noteholders.

Administrator Richard Love said he and his co-administrators Darren Weaver and Garry Trevor had received many phone calls since their appointment from parties interested in the company's assets.

"Garry, Darren and I have made a lot of friends in recent days," he said.

Mr Love said Sons of Gwalia's assets could be worth in the range of $600 million to $700 million.

The tantalum business accounts for the lion's share of the estimate, with the struggling gold arm said to be worth tens of millions of dollars.

However, Gwalia might be able to keep the tantalum division through a restructure that involved the sale of its gold assets, Mr Love said.

"In terms of the assets, nothing has been ruled out and nothing has been ruled in," he said. "When you have a valuable asset, you have many more options available to you."

The administrators are keeping the company's gold and tantalum operations running while they assess restructuring and sale options, and look into Gwalia's affairs.

After yesterday's creditors meeting, Marvel Loch plant maintenance worker Daniel Fitzpatrick said he was quite optimistic about his future with the operation. "It is positive," he said.

One creditor said he and several others were concerned that the company was still buying equipment and parts after calling in the administrators' firm, Ferrier Hodgson, early last month to advise on a potential restructure of its commitments.

When asked yesterday about his view of the management of Sons of Gwalia, Mr Love said he had not yet formed a view and he would not pre-empt the outcome of an investigation that he was required to carry out.