Both parties funded the bulk of the project together for the first few years. GBG reached a point where it was then not able to fund any further so Anstell provided further funding but received a greater % of ownership of the JV.
I presume all profits would go towards paying the funding down - this would be proportionate to the relevant % stakes each group has in the JV.
The important thing right now is that they are getting more $$ for what its costing them to produce (I appreciate there are differences of opinion on this) and they have upped production to close to nameplate. This is huge progress and light years to where we were 12mths ago. IO needs to remain high for a considerable amount of time though to even put a dent in the repayments on the funding.
There are mining organisations out there with a great deal of debt associated with them worth a lot more than the current SP of this org. Considering this mine has a life of >100 years.
GBG Price at posting:
3.0¢ Sentiment: Hold Disclosure: Held
