Ann: Suspension from Official Quotation, page-10

interesting set of events - i've been watching GBG ever since they first exported their first DSO and find it hard to believe it has come down to this

reddwarf - you have a very good point. The suspension announcement does seem to sound like GBG is going to wrap things up and get their share of Karara valued so that they can sell it on to someone else. Obviously, Ansteel would be first choice.

If this is the case, what price will Ansteel pay for the GBG's share of Karara? After cash & term deposit deduction, the current market is valuing GBG's assets to be roughly around $47 million ($88 million minus $41 million) . Will Ansteel consider paying a premium for this? I believe so.

If we delve further into this, there may well be two possibilities - one: The whole of GBG gets taken over, at what price we will have to find out (but my guess will be at a premium of say $100 million?)

or two: GBG's share of Karara gets taken out (at a premium IMO) and GBG is left as a shell with more than likely over $100 million dollars in the piggy. Now wouldn't that be nice for GBG shareholders as cash is king and they can start all over again. Take note of the amount of distressed near-production Fe assets all over the world that $100 million can easily purchase. This scenario will be happy days for GBG holders.


Good luck to all and everything above all in my opinion only.