Gindalbie Metals
Gindalbie Metals (ASX:GBE) is an independent Australian iron ore company based in Perth, Western Australia which is developing a portfolio of projects in the State’s Mid West region.
Gindalbie’s core asset is the world-class Karara Iron Ore Project, supported by a growing resource base of Direct Shipping Ore (DSO) hematite in multiple deposits and an extensive pipeline of exploration and growth opportunities within a 1,900km2 tenement position.
Gindalbie has completed a Bankable Feasibility Study on Karara and is working towards an initial start-up phase of 2Mtpa of DSO quality hematite production commencing in 2009 and 8Mtpa of high grade magnetite concentrate commencing in 2010.
Gindalbie Chairman optimistic on China Iron Ore Demand at AGM
Gindalbie Chairman George Jones said at the Gindalbie Metals Annual General Meeting today, "once the final payments are made early next year from AnSteel, our joint venture company, Karara Mining Limited, will have cash resources of approximately $450 million, while Gindalbie itself will be debt-free, with uncommitted cash reserves of around $40 million."
"AnSteel has made it clear to me that they want to help Gindalbie develop into a major resources group focused on the carbon steel materials sector."
Speaking of the Chinese economy, Mr Jones said, while there is evidence of a slowdown in Chinese economic growth from its peak of 11.9% last year, it is unlikely it will experience a so-called “hard landing” where GDP growth slows to 5% per annum."
"My view – which is supported by recent discussions I have had with a number of senior Chinese business leaders and other experienced China analysts – is that there is a solid “bottom line” of demand for key raw materials.
"This will continue to underpin and sustain quality Australian resource projects. We are also seeing the Chinese Government’s push for consolidation of the Chinese steel industry rapidly gathering momentum – with the industry likely to be dominated by three or four giants, with AnSteel being one of these. Ultimately that is probably a good thing for the stability and long-term growth of the iron ore industry."
"All of this gives me comfort that China will continue to grow, and grow strongly for many decades to come,providing a solid underpinning to the long-term outlook for commodities – a view which is supported by recent comments from BHP Billiton (ASX:BHP) Chairman Don Argus and Rio Tinto (ASX:RIO) Chief Executive Tom Albanese."
Gindalbie Strengths
"In our case, we have a joint venture partner which is one of the pillars of the Chinese steel industry. Importantly, Ansteel is earning a 50% direct stake in the Karara Project and is also our major shareholder.Their interests are firmly aligned with ours and it is important to remember that Karara will supply most of the feed for the new state-of-the-art steel mill they have just completed at BuYuQuan in north-east China.
Importantly, we have achieved the following:
- A world-class, multi-billion-tonne ore body, as well as a growing inventory of high-grade hematite resources;
- A strong joint venture partner which is absolutely committed to the project, wants our ore and is committed
to organise and underwrite the entire project financing to earn its 50% stake; and - A committed, high quality team of personnel who are continuing to go about their business with focus and dedication – not deterred by the current market turmoil.