should grr acquire pan?, page-3

I still think it makes more sense for Shagang to take over Grange completley.

If they bought out the remainder at an NTA value of $0.64 and with approx. $175 million in the bank, it would end up costing them only $100 million or so to own the remainder of the whole thing.

They then could sign a long term contract between Grange and Shagang to supply pellets for about cost, thus diminishing their Australian tax liabilities as it would be run as a break even proposition, and no MRRT would apply.

They then have Southdown that has all the permits required to be constructed and just needs cash.

The only sticking point to this is the 30% of Southdown that they don't own, and I feel an offer will be made for that stake in the not to distant future, maybe from Grange or Shagang.

Shagang then have a quality supply of high grade Iron Ore for close to 50 years at cost if they are smart. Their mills in China will be profitable then.

Just my thoughts anyway.