Business Description:
Gindalbie Metals Limited (GBG, formerly Gindalbie Gold NL) is a Western Australian based emerging iron ore producer focused on the development of its Karara Iron Ore Project in alliance with China's Ansteel.

Strategy Analysis:
GBG's most advanced asset is the Karara Iron Ore Project. The Project is a 50:50 JV with China's Ansteel, China's second largest steel maker. Ansteel also has a 36% shareholding in the company. Through the partnership with Ansteel, GBG have been able to access; project funding, equity funding, a product offtake agreement for all Karara iron products, concentrate and pellets and, the location for a pellet plant in China. GBG started production of hematite ore in early 2011and will start magnetite concentrate production in the September quarter 2012. New resource development opportunities will also be jointly explored. Gindalbie Metals reported positive cash flow of $17.55m for the quarter ended 31 December 2011. Operating cash flow for the period was $(7.27m). Payments for exploration and evaluation were $(9.29m). Investing cash flow was $(50.01m). Financing cash flow was $74.83m. Cash in hand at the end of the quarter was $264.36m.