Ann: Trading Halt, page-48

STOP PRESS

Further to my post yesterday, I have re-thought the reality of GBG/Karara paying of $US27 or $US23,60 per tonne is too good to believe.

I am of the view that the new funding of $US1.481 billion is possibly solely for the $US1,200billion loan.

Never enough details in announcements.

Which means GBG/Karara haven't paid anything off the principal but accumulated further debt of $US280m dollars, plus the $US250m and $US336 loans (plus interest) have to be added.

A 4% interest rate from 2009 on $US1.200b (or when it was fully drawn down) would give a total in the order of $US1.481b.

I think the debt level in Karara is something in the order of $US2.1b.

At 4% interest on that it will cost $US80m per annum. If paying down over 15 years, $US140m pa principal repayment for a yearly cost of $US220m, which equates to $US22 per tonne.

Or basis of 10m tonne export, the Magnetite price will have to in the order $US130 per tonne.

Apologies for all supposed good news yesterday.