Funding of $US400m has been obtained by KML but GBG has not given any guarantees apart from the shares GBG holds in KML.
Now earlier quarterly report noted that GBG has $US500m in guarantees to Ansteel.
The $US400m raised was a roll over of 2014 loan which predates Nov 2015 vote by shareholders not to guarantee any new loans apart from shares in KML. So from my understanding the $US400 loan should have formed part of the $US500m guarantee.
If I am correct then GBG guarantees to Ansteel are now $US100m.
Unsure when $US100m loan comes up for renewal, but the sooner the better. Or it may be tied to rail contract or some other ongoing guarantee.
But, if the Mt Gunson project actually produces money then GBG's shares may have some value.
This is also aided by $AUD100 price of 65.3% grade FE last quarter.
GBG Price at posting:
1.6¢ Sentiment: Hold Disclosure: Held
