Look at the annual report and the JV figures are all there as they are accounting for it using the equity method. Look at notes 17 and 18 to the accounts and the consolidated balance sheet.
On paper (after all the smoke and mirrors figures are applied) GBG has a net equity value in the JV of $654 million.
This means that GBG market cap is lower than it's equity value in the JV and that means the shares are under valued if we use this measure.
Why is the share price low. Maybe people believe they will have trouble with the plant? Maybe they expect a CR, however the JV has cash/finance at the moment.
Initiating production may be the catalyst for a rerate. Who knows? The next two to three weeks may tell the story?
GBG Price at posting:
32.5¢ Sentiment: Hold Disclosure: Held
