Gin­dal­bie Met­als shares on the rise

Townsville Bulletin - - Investor -

Shares in Gin­dal­bie Met­als have shot up by nearly 9 per cent af­ter the com­pany an­nounced an ex­pan­sion of its $ 2 bil­lion Karara pro­ject and the ap­point­ment of a new chief ex­ec­u­tive.

How­ever, the com­pany also said yes­ter­day that costs at the Karara Iron Ore Pro­ject in West­ern Aus­tralia would rise by nearly a third.

The com­pany an­nounced it would in­ves­ti­gate ex­pand­ing the pro­ject from its start-up pro­duc­tion level of 10 mil­lion tonnes of iron ore a year to 16 mil­lion tonnes a year.

Gin­dal­bie’s joint ven­ture part­ner and largest share­holder, China’s An­gang Steel Com­pany Ltd ( An­steel), has a 50 per cent stake in Karara.

A t 1 1 . 5 4 a m G i n d a l b i e Met­als shares had risen eight cents, or 8.42 per cent, to $ 1.03.

‘‘ This shows how ro­bust a pro­ject Karara is and why we be­lieve this in­vest­ment in an im­me­di­ate ex­pan­sion of pro­duc­tion ca­pac­ity is clearly jus­ti­fied with the ad­di­tional cap­i­tal out­lay to be rapidly re­paid,’’ Gin­dal­bie chair­man Ge­orge Jones said.

The costs of the pro­ject would in­crease by 30 per cent due to the re­sources boom push­ing up ma­te­rial and labour costs.

The com­pany’s new chief ex­ec­u­tive is Tim Netscher, re­plac­ing Gar­ret Dixon.

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