Aussie $ Impact, page-22

Samson,

You can't divide the debt of $US1.9b.

All the transactions are carried out by KML (that is why we don't get any details on costs because there is a convenient screen between the GBG shareholders and KML).

KML carries the interest cost of the debt of $US1.9b.

So all the costs I am referring to are KML's costs.

So cost for magnetite is as per my assessment of $US96.85 per tonne.

Now Ansteel has guaranteed the whole debt of $US1.9b.

The shareholders of GBG said we would not allow GBG's assets to be guarantee for the $US1.9b debt.

But if KML went down the tubes GBG would lose their KML shareholding.

But GBG still has $39m to do this new venture which is being investigated now.

Hopefully that will restore the GBG share price.

Unless magnetite goes to $US120 per tonne I think we are pretty well stuffed.

At moment we are only getting 85c premium for magnetite, but the market says it should be around $US15 or maybe even $US20 premium.

The GBG board has not provided a cogent explanation why we only get 85c.

But also remember Ansteel owns 37% of GBG.