Shthcop,Agree totally, this should be added to the mix - we own...

First 102 Last

Share
Profile

Follow
The Mole

723 Posts.

71

17/03/19

22:00

Post #: 37791409
Share

Originally posted by shthcop: ↑

The Mole,

I just wonder the Karara magnetite deposit should be added to the claims. Karara has about 2,400 million tons of magnetite deposit and about 100 million tons deposit have been mined so far, leaving a balance of 2,300 millions tons to be mined and processed into about 900 millions tons of 65.5%fe magnetite concentrate.

GBG shareholders exclude Ansteel have 32.15% of this production or about 290 million tons of magnetite concentrate.

Since Karara is a producing mine and the management has stated in the NOTES 2. e) TO THE FINANCIAL STATEMENTS For the year ended 31 December 2017 that "KML's cash flow forecast as of the date of this report indicates that KML is projecting cash operating surpluses for 2018 and 2019", royalties could be a suitable method of valuing this 290 million tons of magnetite concentrate at 1-2% rate.

Currently the price of 65.5%fe magnetite concentrate is around A$140 per ton and at 2% rate, the royalties derive from the existing 8 mtpa plantwill be around A$8 millions for next 100 years (290 / 100 * 140 *2%) or A$16 millions for next 50 years if the plant is upgraded to 16 mtpa.

The NPV of A$8 millions royalties for next 100 years based on 8 mtpa would be A$196 millions or A$343 millions based on 16 mtpa, A$16 millions royalties for next 50 years.

This mining asset value could be viewed as credit offsetting the liabilities related to GBG's investment in KML.

Expand

Shthcop,

Agree totally, this should be added to the mix - we own 30.76% of the Karara Mine.

Gina Rinehart gets 2.5% from Rio Tinto on the sale price of iron ore.

I think GBG should get a percentage on the sale price of magnetite.

Whatever rate is standard industry rate (research needed) then Non-Ansteel shareholders should get 30.76% of that rate.

My Rev 2 of the document attached with a section added on the Karara Magnetite Deposit .Proposed Acquisition and Demerger of Gindablie Metals Limited Rev 2.pdf

Again any comments would be appreciated,

GBG Price at posting: 2.7¢ Sentiment: Hold Disclosure: Held
1 Upvote

0 Great analysis

Reply

Top Stories

BTH

Bigtincan's Board backs Investcorp offer: Why a NASDAQ listing could be game-changing

WC8

Pan Asia rebranding to 'clear confusion' after bagging $35M for Chile projects

Here are three global stocks you should watch

GRL

To make modern missiles, you need 3D Printing. And in that gold rush, Amaero is selling shovels

MIN

MinRes's Ellison knows he screwed up – for that reason, hunt for new Chair to be sped up

There are more pages in this discussion • 23 more messages in this thread...

First 102 Last

Add GBG (ASX) to my watchlist

Shthcop,Agree totally, this should be added to the mix - we own...

Top Stories

Bigtincan's Board backs Investcorp offer: Why a NASDAQ listing could be game-changing

Pan Asia rebranding to 'clear confusion' after bagging $35M for Chile projects

Here are three global stocks you should watch

To make modern missiles, you need 3D Printing. And in that gold rush, Amaero is selling shovels

MinRes's Ellison knows he screwed up – for that reason, hunt for new Chair to be sped up

Featured News