Karara 68 % plus grade, page-33

Congratulations for coming to the party late.

Yes 2.4c is very cheap, BUT are you aware that someone paid $1.927 in Sept 2007.

This was during the time when magnetite was $US220 per tonne and the cost of the plant at Karara was going to be $1.5b.

But sadly the cost of the plant at Karara blew out to $2.6b and they spent another $400m making changes to the systems so it could work - so cost twice as much as anticipated.

It has taken a number of years to get the grade to 65.3%.

GBG's share in the Karara mine and plant now has a NIL value in the accounts due to the high level of debt within KML - my calculations are that KML has some $US2.5b debt- they are lucky to make the interest payments.

During the GFC, GBG price did not drop below 60c and a lot of people bought in those prices.

By my calculations they have lost over $700m in running the plant over 6 years.

IF magnetite stays at $US100 for a prolonged period then it will come good.

But remember that GBG has a contingent liability of over $20m + (details not fully disclosed in accounts because hidden in KML accounts behind the secret veil) for the railway contract and environmental deposits. If KML goes belly up then that $20m + in GBG would go.

So I would respectfully suggest you do some research on the history of GBG before making derogatory comments to long term holders who have endured years of torment.