I have asked Chris for permission to post his reply which he has...

I have asked Chris for permission to post his reply which he has agreed:

Our CFO passed me your email for response.

I am very sorry to hear that you have lost a large proportion of the value of your investment.  I believe that my predecessor was likely correct in saying that Karara had been hit by a perfect storm.

I would note that Gindalbie has retained Karara at a nil value on our books since 2014, our changes in the quarterly were made following review of our communications to better highlight the status of the asset to our shareholders. We feel it is important, especially in the current iron ore price environment to be clear about the value of the asset.

We do regularly review the holding value of our investment in Karara and the asset remains at a nil value based on our models and scenario analysis. The reality is that Karara is carrying very high levels of debt and that it would take a very prolonged increase in the iron ore price in excess of current forecasts for that situation to change.

Gindalbie’s primary focus and potential for future shareholder value growth lies in our business development plans and future projects. Gindalbie is in a very strong cash position and has significantly reduced our administration costs which leaves us in a relatively rare position in the market. As we mention in our annual report, our intention is to capitalise on this platform and to build growth for our shareholders. We do hope to be able to make an announcement at the appropriate time.

I thank you for your continued support of Gindalbie and on a personal note I can tell you that our very small team is passionate and dedicated to moving the company forward.  

Kind regards,

Chris Stevens
Chief Executive Officer