This is positive news. It confirms the previously agreed arrangements and share distributions following the funding to date. Basically GBG cannot afford any more funding. Ansteel is carrying the can at very favourable terms.
There should be little impact on the share price as there is no new information.
As far as I can see there are three key market sensitive announcements to come over the next year.
1. KML reaches the interim volume and grades using the temporary takings handling setup by the end of March. 2. KML plots a path to achieve 8 mt per annum at 68% within 12 months. 3. Ansteel are able to arrange funding through the Bank of China for the restructuring necessary th achieve nameplate.
If we can get past all the conspiracy theory it appears that Ansteel are keen to maintain an Australian partner in this venture and I would speculate other ventures in Australia where they are trying to engineer a safe supply chain for the future. Ideal scenario for them a controlling interest with a local partner to smooth the way and keep FIRB enquiries at bay.
For this reason I think Ansteel will continue to fund at favourable terms to ensure GBG are at bat for them.
A more perplexing question is whether we or they have the operational expertise to achieve our mining and processing goals!!
U
GBG Price at posting:
7.0¢ Sentiment: Hold Disclosure: Held
