1. Ansteel wants all the magnetite from the Karara mine. It's already pre-sold. They are in the business of making steel and on selling it
2. Ansteel needs the mine to keep open. Moth balling would NOT be an option on their radar. See point 1.
3. Ansteel have shown their faith in GBG by getting a higher ownership at $3 per share to keep GBG and the Karara project going
4. The expansion will eventually happen to remedy the processing problems and Stage 2 expansion
5. Shares will be further diluted by further Ansteel ownership
6. Company announcements about what happens are governed by the ASX, but are filtered by what the company wants to say. All good announcements will be published. Not so good announcements will not be. Announcements only need to be what the ASX requires a company to do.
7. IO companies do not need to announce what their operating costs are to their shareholders - we would all like to know, so we can calculate profitability based on what the ships do in Geraldton, but there's more to it, than just that simple calculation. Everything else is pure speculation.
8. The interest for the debt for Karara is higher than the income from the ore getting pulled out of the ground.
9. Karara mine has an estimated 60 year life span.
10. IO prices will not remain at $80pt
These are just my own thoughts, but purely speculation and based on no facts.
I have faith.
