then why are the A40 receivers putting Bald Hill in C&M is what...

First 4 Last

Share
Profile

Follow
remirez

11,807 Posts.

565

30/08/19

22:06

Post #: 40254885
Share

Originally posted by WayTooLong: ↑

GXY paid $20 million in equity in A40 for the box seat in a relationship with A40. I don’t think they actually cared about the potential future value of the equity stake. It looks like they were positioning themselves among the large A40 shareholders as a potential partner. Wolf in sheep’s clothing....

GXY want the tennants and the plant.

They forked out another $40 million for the debt. Own the debt, control the assets.

They’ve effectively taken control of a $120 million company for $60 million. Without a messy takeover bid or overpaying. They’ve now almost doubled their output capacity.

The $40 million is secured against plant and equipment. So they will get that back one way or another. The other $20 million will be the “cost of doing business”.
The $40 million they funded it with was using their own debt facility, which I guarantee isn’t at 15% p.a
If they really wanted to make work for A40, why wouldn’t have they given them a lower interest rate?

Expand

then why are the A40 receivers putting Bald Hill in C&M is what i don't get. I just hope this plays out in GXY's favour rather than some collosal f up.

Last edited by remirez: 30/08/19

GXY Price at posting: $1.16 Sentiment: Buy Disclosure: Held
2 Upvote

0 Great analysis

Reply

Top Stories

AII

Inside the depths of Panasqueira: A legacy carved in rock

WIN

'Incorrect datasets': Old irony sets WIN Metals up for golden opportunity at Emjay

Tuesday's HotCopper trends: Sayona intercepts, Bowen Coking crisis | July 15

Listen: HotCopper Wire Podcast 017 – RBA holds the toppings

ASX Market Close: Tariff fatigue truly evident; RBA eftpos proposal sinks Tyro

First 4 Last

Add to My Watchlist

What is My Watchlist?

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.

then why are the A40 receivers putting Bald Hill in C&M is what...

Top Stories

Inside the depths of Panasqueira: A legacy carved in rock

'Incorrect datasets': Old irony sets WIN Metals up for golden opportunity at Emjay

Tuesday's HotCopper trends: Sayona intercepts, Bowen Coking crisis | July 15

Listen: HotCopper Wire Podcast 017 – RBA holds the toppings

ASX Market Close: Tariff fatigue truly evident; RBA eftpos proposal sinks Tyro

Featured News