Ann: Full Year Statutory Accounts, page-12

(d) Ansteel Funding and Options for Equity Conversion and Subscription
In September 2013 Ansteel arranged the provision of US$230 million of additional short term funding to KML. This working capital facility was made available through a series of prepaid sales agreements for delivery of magnetite concentrate between KML and an Ansteel subsidiary (US$100 million) and a US$130 million bank debt facility provided by Bank of China (BOC USD130m Facility) (guaranteed by Ansteel).

A condition to arrangement of this additional working capital facility to KML was that at Ansteel’s option KML’s financial obligations under the prepaid sales agreement and the BOC USD130 million Facility could be repaid using proceeds received by KML, or through issue of new KML equity share capital to Ansteel at $3.02 per share. The potential impact of the conversion is KML issuing 80,848,132 new shares to Ansteel which would decrease Gindalbie’s equity in KML by 9.60%.

Any further equity contribution to KML from Ansteel could further dilute Gindalbie’s ownership percentage of KML.

$3.02 x 80,848,132 = $244m

Therefore, if Ansteel fully exercises their option, the entire $244m working capital facility can be paid off. GBG would dilute it's shareholding in KML to 38.24%.

Regarding the rail haulage and tailings facility $20m liablity, 38.24% of that is just 7.6m.

Even if that is called in, GBG will still have $30m of cash in the bank. Current share price is trading at a 20% discount to the cash at bank and values the remaining 38.24% KML stake at $0, and also the Mt Gunson Copper-Cobalt-Silver project at $0.

Hahaha...