Australian (ASX) Stock Market Forum

GBG - Gindalbie Metals

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I think it is better than a good outcome. I was worried that the share placement was going to take place at a discount to the market not at a premium. But dilution isn't that bad, and the price premium settled on must have some sort of reflection on future predictions of performance.

I guess it is almost like Ansteel taking out options......
 
Yeehaa!!:D:D

I took GBG for November Stock Tip:D Finally I might get a win!!

Oh well, better wait and see what Mr Market has to say before I count my chickens :(
 
Having got AnSteel further committed to the project it's hardly the time to go slow on development..
Let's hope that by the time the first ore is dug the demand has improved and the price stabilised.


:)
 
S&P has rebalanced its index and included GBG in the ASX200.

See announcement.

Hopefully this can put a more positive spotlight on GBG and encourage more retail and intso investors.
 
Opened Monday 15th Dec at 42 cents
Closed Friday 19th Dec at 64 cents so up over 50% for the week.

Volume Monday to Thursday 5,322,890 and Friday 13,759,662 with a huge proportion of this on close and some very large orders at close.

Could this simply be inclusion in ASX200 or is there a larger announcement pending?

cheers
Surly
 
GBG SP today up 1 cent to close at 57.5 cents

http://www.theaustralian.news.com.au/story/0,,25210702-36418,00.html?from=public_rss

AnSteel faces delay on Gindalbie deal approval

Stephen Bell | March 19, 2009
Article from: Dow Jones Newswires

CHINA'S Anshan Iron & Steel Group Corp has been asked to re-submit its application to Australia's foreign investment review board to buy a $162 million stake in Gindalbie Metals.

The move, which could delay a go-ahead for the $1.8 billion Karara iron ore project, may increase worries among cash-strapped miners that the Australian Government is delaying decisions on a host of Chinese investment applications.

“In recent days AnSteel was asked to re-submit its application,” a person familiar with the situation has told Dow Jones Newswires.

“The 30-day limit was coming up and a decision wasn’t going to be made in time, so they were asked to withdraw it and re-submit.”

A spokesman for Treasurer Wayne Swan, who will make the final decision on the application, wouldn’t comment.

An AnSteel spokesman wasn’t immediately available for comment. But earlier this month AnSteel chairman Zhang Xiaogang said he was confident the Chinese company would receive approval from the Australian Government.

The Gindalbie investment is also subject to approval from China’s Ministry Of Commerce, Mr Zhang said at that time.

AnSteel is applying to increase its Gindalbie stake to 36.3 per cent from 12.6 per cent, via a placement of new shares.

Gindalbie shareholders approved the deal early last month and AnSteel lodged its FIRB application in mid-to-late February, the person said.

FIRB usually commits to making a decision on an investment in 30 days of receiving an application. It can extend that decision by a further 90 days.

By asking AnSteel to re-submit, FIRB will have another 30 days to consider the deal with the option of further extensions to the process.

Gindalbie and AnSteel are joint owners of Karara, a Western Australian iron ore development that would employ around 1200 people during construction.

The delay comes as Australia’s Government considers a raft of Chinese mining investment proposals, including the $US19.5 billion investment by Chinalco in Rio Tinto .

FIRB is also probing a $2.6 billion takeover offer for OZ Minerals by China’s Minmetals.

FIRB considers whether the individual deals are in Australia’s national interest before making recommendations to Treasurer Swan.

There has been growing opposition this week to the Chinalco deal, and Rio shares fell 8.7 per cent on Wednesday as investors speculated that the Australian government may reject the deal.

FIRB this week extended its examination into the Chinalco deal by as long as 90 days.

Perth-based Gindalbie has already experienced significant delays on Karara, where it has spent $200 million to date on exploration and feasibility studies.

AnSteel bought into the venture in 2006 and it was initially due to start exports in mid-2008.

However the partners have been held back by a lengthy environmental approvals process, and are still waiting on final Western Australian state government go-aheads.

Last month Gindalbie chairman George Jones said that he was “concerned” about political delays in sanctioning the AnSteel deal.
 
gbg_ax12jan09_to_17apr09.png
Should I put this in potential breakouts?:confused:
:2twocents I think it depends on the rest of the mkt, if the bull is back for real, or are us optimists abt to get burnt. (again) :eek:
 
Well, I'm a charting illiterate but this prompts the thought that the FIRB must be due to either:

- announce its decision, or

- extend it's 30 day review period another 30 days, or

- announce a 90 day period.

:confused:
 
finally some good news:

"The Environmental Protection Authority has given long-awaited conditional approval for plans by Gindalbie Metals to mine iron ore at its Karara magnetite project east of Geraldton.

The $1.8 billion project is expected to create more than650 new jobs in the State’s Mid-West, more than 1500 jobs during the construction phase and generate annual export revenue of about $1 billion.

The EPA said with the protection of a portion of Mungada Ridge in Class A nature reserve and with the implementation of ministerial conditions, development of the Karara proposal could go ahead.

The authority also gave conditional approval for the development of the neighbouring Blue Hills North deposit, part of the Mungana project, which is to be developed in conjunction with Karara.

Gindalbie has welcomed the long-awaited approval, saying it expected on-site construction to begin in the second half of the year.

However it said it would consider appealing a condition that recommended the Terapod deposit be included in the Government’s conservation area.

Gindalbie said it had agreed to relinquish the Mungada Ridge tenement provided it secured approval for mining the Karara, Blue Hills North and Terapod deposits as well as being able to establish associated infrastructure.

“The joint venture partners are currently reviewing this issue, the findings of the EPA and the conditions attached to the report to determine whether they will appeal any conditions,” Gindalbie said in a statement.

Premier Colin Barnett said if approved by the Liberal-National government, the project would generate about 2000 jobs and help to secure the State’s economic position during the global financial crisis.

“The EPA’s view that mining in this area would not increase the threat status of species and communities with the establishment of a Class A nature reserve and the implementation of the recommended Ministerial Conditions in relation to vegetation, fauna and rehabilitation, is good news for the State,” Mr Barnett said.

“We are a Government which makes decisions in the best interests of the State. We are showing through our actions that development can be done while ensuring high environmental standards are met.

“This project and others that are likely to follow, highlight the importance of the Oakajee Port development as a world-class facility that will result in economic growth and provide jobs within Western Australia and nationally.”

A two-week public appeal period on the EPA report will close on May 12.

Environment Minister Donna Faragher will then make a final decision.

Gindalbie is developing Karara through a joint venture with Chinese steel producer, AnSteel.

However the company is still waiting on Federal Treasurer Wayne Swan to approve a plan under which AnSteel will invest $162.1 million to boost its stake in Gindalbie from 12.6 per cent to 36.3 per cent.

Gindalbie plans to deliver 10 million tonnes of iron products from Karara from 2010, comprising 8 million tonnes of high grade magnetite concentrate and blast furnace quality pellets a year as well as2 million tonnes of direct shipping hematite ore a year.

Gindalbie shares closed up 3 cents, or 4.65 per cent, at 67.5 cents after hitting an intraday peak of 70.5 cents."

from the West Australian
 
The FIRB ann is very good news along with the recent EPA tick. Good to finally see the ball rolling, troops on the ground now does not seem that far away and all this in the middle of the GFC, speaks volumes on the quality of the GBG team and Karara project. Look forward to the Lodestone project details now being released.;)
 
Now that the Chinese had lost RIO and Pilbara maybe they will go for the second rank players? Maybe GBG may come into play?

Maybe to get back into the Chinese good books BHP and RIO may allow GBG to use their rail and Port facilities (for a fee of course).

If this comes about GBG can start shipping their high quality DSO stuff in 6 months. The high quality ore is basically dig and ship with very little value added. Perhaps it need to be grinded down to fines but this is not rocket science and I think GBG has got some of these mills already on order. The all important ingredient that is needed is the infrastructure to get the ore to China.

The lower quality ore needs more processing to strip off the ore. Special pellet plants need to be built and may take about 2 years. They can most probably reach 30 mtpa within 3 years.

I had a dream that the Chinese will now turn their attention to Companies like FMG & GBG.
 
Well, Ansteel already have a 36% interest in GBG. I'm not sure that they want more at this stage.
As for infrastructure, port and rail facilities are either secured or in hand. The plant is being built or is on order. The biggest outstanding issue, IMO, is final environmental approval but the company appears to be confident that this will be obtained in due course.
Every reason to be positive about GBG's prospects but good things take time.

;)
 
http://www.thebull.com.au/articles_detail.php?id=4155

Gindalbie secures $162m Ansteel approval
23.06.2009 08:38 AM

Gindalbie secures $162m Ansteel approval Iron ore miner Gindalbie Metals Ltd says it has secured Chinese government approval for a $162.06 million share placement to its joint venture partner, Ansteel.

Iron ore miner Gindalbie Metals Ltd says it has secured Chinese government approval for a $162.06 million share placement to its joint venture partner, Ansteel.

Gindalbie said in a statement that the Chinese approval was the final condition required to complete the placement of 190,658,824 shares with Angang Group Hong Kong (Holdings) Limited at $0.85 per share.

Gindalbie shares closed in Australia on Monday at 80.5 cents.

The company received approval for the transaction from the Foreign Investment Review Board (FIRB) in May.

Gindalbie said that the completion of the share placement would allow it and AnSteel to make final equity contributions of $143.68 million each to complete the entire $534 million equity component of the funding package for Gindalbie's Karara Iron Ore Project near Geraldton, in Western Australia.

Gindalbie has said the balance of the capital for the Karara Project will come through a Project Loan Facility of up to US$1.2 billion from the China Development Bank (CDB).

Following the share placement, Gindalbie says Ansteel will hold 36 per cent of Gindalbie.

"It's all systems go for Karara and we are continuing to work very hard to achieve final Ministerial approvals to enable us to be on the ground during the December Quarter of this year to begin construction," Gindalbie Managing Director, Garret Dixon, said in the statement.
 

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