This is a fantastic initiative and a great effort toward...

This is a fantastic initiative and a great effort toward protecting the interest of all GBG retail investors. BOD has blatantly proposed to hand over GBG almost free to Ansteel without a direct takeover bit from Ansteel. It is absurd that GBG via the BOD is asking Ansteel to takeover the company's valuable long term premium IO assets, mining tenements, loan to KML almost free at A$0.026 per share under the lamb excuses of contingent liabilities and a significant premium on an intentionally suppressed very low share price.

Is this proper or tantamount to out right robbery rip off on GBG retail shareholders?

Your effort to prepare this proposal is very commendable and this should make BOD realise that retail investors know the real value of GBG and cannot be easily taken advantage of.

I have a few touchups on your tabulation and calculation as in the follow:

1 GBG annoucement 05-05-10 : the figure $225,000,000 should be $327,000,000 ( $1,975,000,000 - $1,648,000,000, this figure was accidentally drop off when I post the message, it should be next to 20% print)

2 GBG annoucement 16-03-11 : the figure $125,000,000 is part of $327,000,000 with 30% cost escalation for Scope expansions relating to port and power line. Therefore it should not be there.

3. Increase size of Geraldton : the figure $33,000,000 should be part of earlier $125,000.000 and therefore should not be there also.

4. The subtotal should now be $327,000,000 or it can be omitted since the figures A$125,000,000 and $33,000,000 no longer there.

5. Increased cost of construction 30% : the figure $114,900,000 should now be $98,100,000.

6. Subtotal additional Value added : the figure $497,900,000 should now be $425,100,000

7 GBG (Non Ansteel shareholders) as at 2012 : the figure $160,054,756 should now be $136,669,650.

8. Cash in GBG, % of Ownership : the print 32.15% should be 64.29% (1-35.71%) and the figure $10,180.653 should now be $21,279.990

9. Total claims : the figure $318,435,409 should now be $306,149,640

10. Value per share : the figure $0.2123 should now be $0.3185

The $50 millions shareholder loan from GBG to KML should be added to the total claims, increasing it to $338,294,640 ($306,149,640 + $50,000,000 x 64.29%) or $0.3519 per share.


I would like to highlight that the GBG announcement 05-05-10 also mentioned "The significant portion of this construction cost increase ($327,000,000) relates to design scope and infrastructure capacity increases for an ultimately larger project, and upgraded major plant items while the balance reflects the impact of cost escalation, in the two and half years since the BFS was completed."