Punters, beware that MGX pulling out of the Midwest has opened...

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.