gearing and net equity, page-3

Net debt (including post end of financial year events) was $2.9b excluding construction debt.

Including construction debt the net debt was $3.2b.

If you strip away the debt and look at the underlying free cash flows. BBP's assets generated around $300m+ free cash flow for the last financial year. This did not include a full year contribution from the Alinta assets.

Current equity value is approximately 70m. So market thinks the assets are worth around 3.3b.

So the question is - would someone pay more than $3.3b for these assets?

Any acquiror would also look at:
- BNB Management Contract - how much would they have to pay to get BNB out of the way?
- future cash flow from plants under construction

BBP is unlikely to fail IMO. Its not a bank. Debt is backed by earnings from power plants which are one of the safest revenue streams you can get at the moment.

This is in contrast to 'assets' such as CDO's which were linked to dodgy mortgages with high failure rates.

I liquidated holdings last week at a loss and traded it today for a nice gain (still at a loss overall though). Interesting buying today. High turnover and a finish in the green?