December 04, 2008

Gindalbie remains on the lookout for merger opportunities

Iron ore explorer Gindalbie Metals said it maintains a positive outlook and will continue its transition into an iron ore company in the year ahead, despite some challenges in the past year.

Mr George Jones chairman of Gindalbie Metals at its annual general meeting told shareholders that the past 12 months had not been without its challenges. He added that “During the year, we considered one corporate opportunity in the shape of the proposed merger with fellow iron ore company, Sundance Resources Ltd. While in this instance, both companies made the decision not to proceed Gindalbie remains on the lookout for opportunities to facilitate growth."

Mr Jones expects Gindalbie's market value to significantly increase in the future, as it progresses the construction and development of its Karara magnetite iron ore project in Western Australia's mid west region.

He added that "Next year will undoubtedly be a strong year for Gindalbie and a major turning point in our growth. Gindalbie is only just beginning to realize its growth potential, given the continuing expansion of the iron ore industry. We have seen analysts at Morgan Stanley factoring in a 30% price increase, to be followed by a further 5% increase in 2009, and Merrill Lynch predicting a 30 to 40% increase in contract prices as the global market enters its tightest ever supply phase.”