GBG 0.00% 2.9¢ gindalbie metals ltd

press coverage

  1. 1,194 Posts.

    Gindalbie getting very good, and positive, press coverage on the new direction for the Company and the appointment of George Jones.

    Will sit on holdings now and look at other opportunities. GBG taking a Portman direction will do for mine.

    INTERVIEW: Australia's Gindalbie To Focus On Iron Ore

    By Stephen Bell

    PERTH (Dow Jones)--Buoyed by growing Chinese demand for iron ore, Gindalbie Metals Ltd. (GBG.AU) said Monday that it will appoint former Portman Ltd. (PMM.AU) executive George Jones as chairman and raise A$2 million in a share placement.

    Perth-based Gindalbie also plans to sell noncore assets as it targets an iron ore production start up in less than two years, Jones told Dow Jones Newswires in an interview.

    Production in the first half of calendar 2007 is a "broad target" for Gindalbie, Jones said after agreeing to join the company and buy A$2 million of its shares on behalf of himself and associates. Jones becomes a non-executive director and will be appointed chairman on November 30, replacing Keith McKay.

    Gindalbie, one of several companies aiming to produce iron ore following a recent 71.5% price hike for the steel-making commodity, said it will focus solely on its Blue Hills iron ore project, near Geraldton in Western Australia.

    It will also look at options for selling its Minjar gold and base metal project, which surrounds the Golden Grove zinc deposit owned by Oxiana Ltd. (OXR.AU).

    The proposals were warmly welcomed by investors, with Gindalbie's shares closing up three cents to 14 cents, valuing the company at A$44 million.

    Gindalbie becomes Jones' first public role since resigning as chairman of Portman in April after that company's A$676 million takeover by U.S.-based Cleveland Cliffs Inc. (CLF).

    Jones oversaw the growth of Portman over a decade, building it up to Australia's third biggest iron ore producer behind industry giants BHP Billiton (BHP) and Rio Tinto (RTP).

    "Gindalbie made the approach to me," Jones said, in explaining his earlier than expected reemergence as a company director. "They thought the experience that I had at Portman is appropriate to where Gindalbie is at now," he said.

    "I'm quite impressed with the suite of iron ore assets that they have and I think the company has got very serious potential for development."

    May Partner Chinese Steel Makers

    Jones said that a "number of companies" are talking to Gindalbie, adding that Chinese steel makers are "likely candidates" for any future partnership. But he said it is "probably a little bit early" to consider joint ventures.

    Instead, Jones will aim to speed development of the company's hematite, a type of iron ore, while pursuing a longer term aim of producing pellets from a separate ore type known as magnetite. In July Gindalbie said that it will "fast-track" exploration drilling to delineate enough hematite to underpin a direct shipping ore project at Blue Hills.

    Jones believes that the cost and scope of the project will emerge "over the next six months". "I'd guess you'd call it grass roots, but they have plenty of indications and plenty to work on," he said.

    "Gindalbie is in a similar shape to Portman when I got there 10 years ago and I think it can develop faster than that company did," he said. Following the current A$2 million share placement - which is subject to shareholder approval - Gindalbie's cash will rise to around A$12 million.

    Those funds are "more than adequate" to work current drilling targets up to a feasible project, Jones said.

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