GBG - Gindalbie Metals

http://www.egoli.com.au/news/post/Minister-upholds-Karara-project-appeals.aspx

by Ben Larsen 24 July 2009 14:54
Minister upholds Karara project appeals

Gindalbie Metals Limited (GBG) said all of the key appeals lodged by the Karara Joint Venture against the Environmental Protection Authority’s recommendations and conditions for the Karara Iron Ore Project have been upheld. Western Australian Environment Minister, Donna Faragher, upheld the appeal on the Terapod hematite deposit, clearing the way for it to be mined, together with the Blue Hills North hematite deposit as part of the 2.0Mtpa hematite phase of the Karara Project.

The iron ore producer said the Minister indicated that she would now consult with other relevant Ministers to obtain agreement on the final conditions for the approval of the Karara Project.

Managing director, Garret Dixon said the announcement was an encouraging step for forward for Karara and the company was looking forward to working with the Minister to agree on the conditions required to secure final approval to enable the project to proceed.

“We are confident that this can be achieved during the current Quarter, enabling us to be on site in the December Quarter, 2009, to commence construction and development activities,” Mr Dixon said.

Chairman George Jones said the successful development of Oakajee and China’s potential involvement would underpin the long term future of the Mid West iron ore industry, and in particular the expansion of the Karara Project to over 30Mtpa.

“With these approvals Gindalbie and AnSteel can now get on with the job of building the project and start to realise the potential that this Project has to add serious value to the Joint Venture partners and to Western Australia,” Mr Jones said.

At 1457 AEST, Gindalbie shares were up 6.5c to 83.5c.

At 1600 AEST close was 83.0 cents

does any one have any idea on what gbg share price would be worth down the tack once they get going.last year i went to rising stars seminar and ask george jones 5 to 6 dollars was his comment.hope he is right .i am a holder an looking to buy more.

camel63 said:

does any one have any idea on what gbg share price would be worth down the tack once they get going.last year i went to rising stars seminar and ask george jones 5 to 6 dollars was his comment.hope he is right .i am a holder an looking to buy more.

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You're holding and you have no idea what the price might be once they get going? I assume you think that they will go up? The answer must be yes since you hold it. Why will it go up?

kennas said:

You're holding and you have no idea what the price might be once they get going? I assume you think that they will go up? The answer must be yes since you hold it. Why will it go up?

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why won`t it. everything is in place to grow and expand and most of all this will pay a dividend down the track

camel63 said:

why won`t it. everything is in place to grow and expand and most of all this will pay a dividend down the track

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OK, so you assume it will go up because everything's in place, it will expand, and it will pay a dividend down the track. So, what's in place, what's expanding, and when will they eventually pay a dividend? I'm raising these simple aspects of a fundamental analysis question to 'what price will this be?' because without understanding capex, opex, debt, refinancing, interest rates, contracts for sale, etc, then the question is impossible to answer. Do you have those answers? You should since you're holding it.

Have you visited their web site?

http://www.gindalbie.com.au/

You'll find lots of info here.

They even have broker reports there that will give you their evaluation and justification.

The latest one by Patersons gives a 98c valuation.

Investment Highlights

• GBG is developing the Karara Iron Project (KIP) in JV with one of
China oldest steel companies, Angang Iron and Steel Corporation
(Ansteel), which is ranked third by steel production of the
majors in China. The KIP has two phases – hematite production,
which commences in 2010 and magnetite concentrate and pellet
production which commences in 2011. The project is not
constrained by Port infrastructure (Geraldton) and can transport
iron ore product utilising existing railways with only minor
upgrades and extensions. Additionally the project is fully funded
(equity completed) while Ansteel is responsible for arranging
project debt by December 09. Our NPV for GBG is $0.98/share
with a successful ramp up and confirmation of project quality as
catalysts from here.

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Maybe have a read of the others and tell us what you think?

hey kennas. i understand where your coming from but it means nothing to me charts and analiss .i only hold 2 shares gbg and kar in abig way if i used all that rubish would never of bought kar at 2 dollars.would like bigben101 on sdl to value gbg

hey there kenmas i am just wondering how u picked your tip for the stock tipping competition .all that tecnical darter lol. hope u make millions.69 out of 75 wow. gee wiz mate i only want a guess of what someone thinks its worth. like bigben101 on sdl . is it really to much to ask .

camel63 said:

hey there kenmas i am just wondering how u picked your tip for the stock tipping competition .all that tecnical darter lol. hope u make millions.69 out of 75 wow. gee wiz mate i only want a guess of what someone thinks its worth. like bigben101 on sdl . is it really to much to ask .

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Why dont you tell us what you think it is worth (and provide some analysis)? If you cant do that then its obvious your gambling and just want some positive reinforcement.

How much will they be earning 'when they get going'? What if the price of IO falls? What costs will they have? etc etc

ASF is about logical discussion and debate, not randomly plucked price targets.

camel63 said:

hey there kenmas i am just wondering how u picked your tip for the stock tipping competition .all that tecnical darter lol. hope u make millions.69 out of 75 wow. gee wiz mate i only want a guess of what someone thinks its worth. like bigben101 on sdl . is it really to much to ask .

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LOL. I can't believe you actually went back to edit that post and left it looking like that. No wonder you can't even attempt to do your own evaluation. I started to try and help you but when you start abusing people (especially mods) for doing it, your lifespan becomes short. You should just stick to taxi driving I think.

SP currently up 3 cents at 93 cents at 11:00 AM

ASX ANN yesterday
03/08/2009 Gindalbie Welcomes Government Power Decision
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=00974514

WA PREMIER’S ANNOUNCEMENT UNDERPINS KARARA’S LONG-TERM GROWTH POTENTIAL
Gindalbie Metals Limited (ASX: GBG – “Gindalbie”) welcomes today’s announcement by the WA Government that it has committed to building a major power line in the Mid West region that will help underpin the planned significant expansion of the Karara Iron Ore Project.

WA Premier Colin Barnett and Energy Minister Peter Collier announced today the State Government would build a 330kV power line from Pinjar, north of Perth, to Eneabba.

Gindalbie was pleased to note Mr Collier’s comments today that following a recent review: “…there are a number of major Mid-West projects that are well under way and will require access to substantial electricity supply. As a result, the review team proposed that the 330kV line initially extends from Pinjar to Eneabba to encourage progress of Gindalbie’s Karara mine, six prospective wind farms and a major new power station.”

While the existing 132kV power network is suitable for Karara’s start-up capacity of 10Mtpa, the increase in transmission capacity is required for the planned expansion of the project to a production rate of more than 30Mtpa.
Gindalbie and its joint venture partner, Ansteel, are building a 330kV power line from Karara to Eneabba as part of the Project infrastructure which will connect into the State grid.

The project will draw power under a 15-year supply deal with the State Government’s power generation arm, Verve Energy. Until the new Pinjar-Eneabba line is built, Karara will tap into the existing 132kV network at Eneabba and be able to draw sufficient power for the Project’s start-up.

“The Government has shown tremendous leadership and support for the development of the resources sector in the Mid West region,” Gindalbie’s Managing Director Garret Dixon said. “The Premier has shown his commitment to Mid-West iron ore and infrastructure development, and particularly has demonstrated strong support for Karara and its long-term potential. This latest decision to ensure the region has sufficient power infrastructure, is testament to the Government’s belief that the Mid West is set to becom the next resources growth centre in WA.”
462

Hi guys, this is kind of off track, but I bought these shares a while ago through commbank, and have never recieved any notification or written proof of purchase, such as a letter or what not from the company. Am I the only one here or what?

Furthermore, are there half yearly dividends handed out, or not?

plowking said:

Hi guys, this is kind of off track, but I bought these shares a while ago through commbank, and have never recieved any notification or written proof of purchase, such as a letter or what not from the company. Am I the only one here or what?

Furthermore, are there half yearly dividends handed out, or not?

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Better get in touch with Commbank - you should receive a statement within about a month of purchase. Presumably you have a contract note from them?

GBG don't pay dividends yet. They havn't actually mined anything yet!
I suggest you have a look at their website for a rundown on progress and prospects.

Disc: Holding GBG.

11 iron ore "winners"
Robin Bromby | August 12, 2009
Article from: The Australian
http://www.theaustralian.news.com.au/business/story/0,28124,25918554-36418,00.html

TAKE the possible 21 iron ore stocks - outside the two Pilbara majors, of course - and Petra Capita of Sydney has found 11 they can recommend as value buys.

The broker tried to make it a level playing field - comparing apples with apples, if you like - by converting magnetite resources to their haematite equivalent; they did the sums on the amount of beneficiation required to produce a concentrate. Current benchmark iron ore prices were used to calculate enterprise value and that was all mixed up with expected EDITDA for the companies concerned.

Then they were handicapped into three divisions by market cap - one above and two below the $500 million threshold.

Four got the big tick in the heavyweight category: Murchison Metals with its Jack Hills project in the Mid West region of Western Australia; Gindalbie Metals which is also in that region with its Mungada and Karara projects; Fortescue Metals Group, the “new force” in the Pilbara; and Mount Gibson Iron which has Tallering Peak, Koolan Island and Extension Hill.

Middleweight contenders that got the nod from Petra Capital were Brockman Resources with its Pilbara iron ore deposit, Sundance Resources toiling away in tropical Cameroon, Northern Iron - a surprise winner - with the Sydvaranger deposit in Norway and - back to the Pilbara - United Minerals Corp.

In the lightweight division, there’s Western Plains Resources drilling away in the South Australia at Peculiar Knob and Buzzard, Strike Resources over there in Peru, BC Iron which has kneeled at the foot of FMG in return for access to the latter’s Pilbara railway and as a consdequence will be in production next year, and Flinders Mines and its Hamersley project. In regard the last mentioned, FMS yesterday received a speeding ticket from the ASX, the company responding that the price and volume surge may have been due to a new broker’s report.

It was interesting to see which companies got taken out in the cull. Notably there was Atlas Iron which is one of the great Pilbara junior success stories - but remember, this was all about finding stocks that are still value buys, not ones whose achievements and prospects have already been factored into their price.


The writer implies no investment recommendation and this report contains material that is speculative in nature. Investors should seek professional investment advice.

An important milestone today. The W A government has given final environmental approval to the Karara project!

http://asx.com.au/asxpdf/20090909/pdf/31km91wzp7hr3t.pdf

oldblue said:

An important milestone today. The W A government has given final environmental approval to the Karara project!

http://asx.com.au/asxpdf/20090909/pdf/31km91wzp7hr3t.pdf

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Good news day indeed! Terapod, and to a lesser extent Blue Hills, were a crucial piece of the puzzle to get cash flow going.

oldblue said:

An important milestone today. The W A government has given final environmental approval to the Karara project!

http://asx.com.au/asxpdf/20090909/pdf/31km91wzp7hr3t.pdf

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& that's why my profit trigger tripped & I'm a happy chappy
Big gap up, it's sure to retrace & I'll be back on but finally looks like the stock market is a place to make money again Happy, happy happy

Out Too Soon said:

& that's why my profit trigger tripped & I'm a happy chappy
Big gap up, it's sure to retrace & I'll be back on but finally looks like the stock market is a place to make money again Happy, happy happy

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Are you sure you are not out too soon? hang on... you are.

On the charts quite a neat little coiling 5-wave traingle. If broken on the upside then a target of $1.3 based on height of triangle. But quite possibly a gap close before shooting up?

Of course it pretty much all depends on the Chinese had for dinner last night.

I have been following GBG for a while now as it seems to re-appear with the same (decreasing in magnitude) pattern every few months.

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http://www.news.com.au/perthnow/story/0,21498,26052876-951,00.html?from=public_rss

Metals full-year profit falls to $26.22m
September 10, 2009 07:23am

GINDALBIE Metals' profit for financial year 2008/09 almost halved as the company continues to develop its key Karara iron ore mine.

Net profit ending June 30, 2009 for the consolidated entity was $26.22 million compared to $44.52 million in the previous year, Perth-based Gindalbie Metals said in a statement today.

Gindalbie is working to start production at its Karara iron ore project after the Western Australian Government yesterday gave final State environmental approval for development of the mine.

That just leaves Federal Environment Minister Peter Garret to give federal environmental approval for the project.

The WA decision clears the way for on-site construction and development of the large-scale Karara project to proceed during the fourth quarter of 2009, the company said.

The Karara project is a joint venture with AnSteel, China's second-largest steel maker.

AnSteel was given Federal Government approval earlier this year to take a substantial stake in Gindalbie, increasing its stake from 12.6 per cent to 36.28 per cent.

Most of Gindalbie's income of $33.45 million during the year came from the cash paid by AnSteel for its stake in Karara and Gindalbie.

Total income was $57.68 million in 2007/08.

There was no dividend paid.

skc said:

Are you sure you are not out too soon? hang on... you are.

On the charts quite a neat little coiling 5-wave traingle. If broken on the upside then a target of $1.3 based on height of triangle. But quite possibly a gap close before shooting up?

Of course it pretty much all depends on the Chinese had for dinner last night.

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That's a neat charting program, I need one that can see the future too :
Of cause you're right & if you were a fish I'd be having you for dinner LOL
Gindalbie has peaked @ .95c today so far, I always expect to lose a few percent in "what if" to be safe. As I said yesty it has gapped up, even tho the fundamentals (govt approval) say it should keep going up we know the market doesn't work like that. GBG will dip & cover the gap up at some stage, the ASX may just be taking a breather at the same time, & I'll happily be back in
If you don't take profits at some stage ( 13% in 15 days ) you eventually lose them.
Letting your "winners run" can be very painfully frustrating when you live by that mantra especially with the current market

PS Someone tell Joe that in all the million extra smileys there isn't a fisherman ala "gotcha hook line & sinker"