Surly summarised what would happen very well. Part of the JV conditions of the Karara mine is that Ansteel provide the finance - debt to complete GBG's final equity instalment to the JV. So GBG would receive a loan from Ansteel at commercial terms for $AUD143million or the JV would dissolve, giving GBG 100% ownership of Karara and all of Ansteels contributions would be refunded from the JV back to Ansteel. This would be a disaster if the JV was dissolved. We would not find another partner in this environment.
Seems the downward trend reversed near close, obviously based on the ACCC decision re RIO.
GBG Price at posting:
52.1¢ Sentiment: Buy Disclosure: Held
