"I think it was because after 4 years of loss they shut it down" Rob can you explain this a bit more?
who had the loss? and who shut it down? Are you implying Cronimet was making a loss and wanted out and EQR brought Cronimet out even though they had a loss making business?
Currently with the JV in place the JV is buying the OC ore at arms length. And then it is a 50/50 split from then on. I agree that yes it is quite opaque, and yes it is also due to the way EQR choose to report, but I believe that the dissolution of the JV and the taking over of Cronimets 50% stake in the JV will impact the revenue. To what degree I do not know, but I believe it will be a positive impact.
"In effect to shut the JV down EQR paid Cronimet $15 million for an asset that makes no revenue." This is a bit of stretch. EQR didn't pay Cronimet anything, they gave script at a premium. So the end result is Cronimet now own X% of EQR and the "asset that makes no revenue". If what you are saying is true, who do you think is the winner out of the transaction?
EQR Price at posting:
5.6¢ Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)