Ann: Joint Venture with Ganfeng - Overview, page-60

"From Ganfeng’s point of view, they got 50% of the $1.2b Goulamina project for $65m ($130m is in the JV so they own 50% of it). What a deal for them."

There is no way i can agree with you here. They paid $130 mill usd for half ownership in an entity that has $130 mill cash right now and a project with a $1.2 bill project. So they own half the project $260 mill and half the cash and they will pay back half the loan that they lend to the JV.
When they spend the money on the construction will it be worth $500 mill? and they own half $250 mill?
and they owe $32.5 mill and so do we. our 50% will be worth $217.5 mill usd each enterprise value.
We will have paid zero and they will have paid $130 mill and loaned $65 mill.
when we use our first years earnings to pay back that loan we will have earned $100 mill (theoretical) paid back their $65 mill plus 6%. Lets say this entity is worth $700 mill our share $350 mill and we have paid $32.5 mill plus 6% interest and they will have paid $162.5 mill plus interest.
Our equity $317.5 mill and theirs $187.5 mill.
we are $130 mill ahead which is what they paid for their share.
If you can show me how they have paid $65 million for that half share then i will glad to take back what i have said.

cheers contra