Punters, beware that MGX pulling out of the Midwest has opened up port and rail capacity. KML could average down on it’s production costs with Stage 2 expansion. By now, they know the ore body and processing well. A stage 2 development would likely produce a solid return on investment.
KML could only finance this through Ansteel. GBG’s holding in KML is a chain around Ansteel’s ankle.
If the majority of shareholders vote this down, it seems unlikely Ansteel would walk away. I can’t imagine a scenario where an administrator gets called, given political risk and the FIRB review process.
It should be an interesting few months ahead for GBG shareholders.
GBG Price at posting:
2.6¢ Sentiment: Hold Disclosure: Held