Ann: Half Yearly Report and Accounts, page-6

Interesting read in the Report p15

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CONTINGENT LIABILITIES
As at 31 December 2016, the Company has the following contingent liabilities with respect to potential shareholders’ guarantees provided by the Company in relation to certain liabilities and obligations of KML.
Under the Agreement for the Joint Development of the Karara Iron Ore Project between Ansteel and Gindalbie ("the Joint Development Agreement"), Gindalbie has provided a shareholder guarantee to Ansteel whereby, with prior consent of Gindalbie, any guarantees given by Ansteel to third party in respect of any liabilities or obligations of KML will be guaranteed by Gindalbie for its proportionate participating interest. As at 31 December 2016, Gindalbie has provided shareholder guarantees totalling $700 million in relation to term loans that have been provided to KML by various banks and bank guarantees provided to a supplier of KML. Gindalbie has accepted its proportionate share of the liability under the guarantees, which at the date of this report has not been triggered.
Gindalbie has also provided parent company performance guarantees to a combined value of $70 million (30 June 2016- $70 million), in terms of KML contract for rail haulage facility and tailings management facility.

This is a little bit strange as previously the shareholders voted against providing any guarantees.

Are these contingent liabilities different to the guarantees.

I suppose that Ansteel will not won't KML to go broke so they will make sure there are no claims, but it appears that GBG is still exposed - contrary to our earlier belief that we had no guarantees.

Can anybody comment on this?