ships, page-83

KML have an agreement to rail 10mtpa of iron ore. They can't ship 10mtpa because they are having production issues. If KML don't use their rail capacity they still have to pay for it. They can minimize the loss by carting Mgx iron with this capacity. I don't think they are as bad as Citics issues but still having issues.

It is important that we ship at 10mtpa because it means we are losing less but they aren't making serious money until they start shipping 68% FE mag because the 68% FE comes with hidden bonuses including a $10/ ton discount for shipping costs because of the contract structure with ansteel.

I'm not that negative on this share. Still holding. Just wary of the risks and hate for people to think its running near 100% when it ain't. I think everyone should be informed on the devilish details before they buy or sell a share

I'd love to know when gbg will start calling these issues "material". Lost 5% stake in the mine last quarter and it didn't count as material. I think we may well lose another 20% this quarter based on shipments to date and previous cashflow and they haven't mentioned anything yet.. I guess it's like how many other asx companies forecast they will earn 100 million and only earn 75 million. They don't tell you this when they work it out. They tell you the annual report after it happens and even then hide it in sub note 24.1. At least we found out before the annual report.

FYI, I still hold because I still see good value in gbg. Just don't trust the management team to keep me informed. If I did I wouldn't be counting ships.