The SP gapped up today at the open which is always concern, given 80% of gaps up are filled before price run continues. Hopefully this will be one of the 20% that don't given that it has already traded on the gap range 120 - 124 back in December and also given the overwhelming amount of publicity/news that this agreement has created.
And it doesn't look it over yet, judging by the last line of this article on the ABC website:
WA iron ore miner Gindalbie Metals has secured one of Australia's biggest export deals with China. Gindalbie Metals has signed a $60 billion sales contract with its Chinese joint venture partner, Ansteel. Under the agreement, Gindalbie will sell all of its magnetite iron ore from its Karara project for 30 years.
The company began construction of the mine last year and is expected to begin production in the second half of 2011. Gindalbie's chief executive Garrett Dixon says the project would have stalled without the deal."Without an offtake arrangement and a guarantee of payments in the future for your iron ore, you really can't develop a project," he said.
"We have a really good relationship, so locking this away means Ansteel actually has a long-term source of premium iron ore for the life of the project," he said.
Mr Dixon says Gindalbie is close to finalising an offtake deal for its haematite iron ore deposits
GBG Price at posting:
$1.21 Sentiment: Buy Disclosure: Held
