pp Ansteel incrasing their position to 53% of KML does not give...

pp

Ansteel incrasing their position to 53% of KML does not give them the opportunity for a clean take over unless they buy out GBG which they only have 35% of.


GBG does not have to sell their share if they do not want to and they are debt free so GBG will not go broke.

At this stage GBG has bought themselves 12 months. If in 12 months this things does not become profitable then maybe then will there be a take over. Again if Ansteel wanted it they would have gone for now and not giving gbg 12 month breathing space.


even based on your cost if you do a quick back of an enveloped calculations you get

At $110 cost I am assuming that figure includes all taxes and interest because GBG stated that the cost is a lot lower than you are quoting. Which means everything over 110 is profit.

the current price of IO is US $110 so that makes it about aud $118(.93 AUD) Add the 20% premium and you are looking at AUD141

the aussie componenet of cost excluding financing is about AUD 70 then you have the repayment and interest in american dollar so that lets put the rest of the 110 into US dollars so you have AUD $70 and US $40. which is equal to AUD $43 so that will make it AUD 113 that still leaves KML with $29 profit. mutiply that by 8MT and you get about 240 NPAT of which 110 is GBG so currently if it reaches nameplate then we are looking at a profit not a loss and that is at IO at 110 and the aussie dollar at .93 and based on your costing of $110.

And you still have the other 2MT of the lower grade stuff that can still give you some profits.

at this stage IF they reach nameplate in the next quarter which Tim stated on the business channel yesterday and everything else stays the same then GBG is still profitable.