Post by
sulphides63 on Sep 18, 2011 11:57am
China
With all these Chinese companies committng fraud and allegations of fraud you can clearly see what is happening. JJ will be scrutinized by the regulators and courts. JJ tried to dilute GBK's interest in the project and has clearly lost in arbitration. GBK has done a great job in protecting its rights in the project and will prevail in the end. Justice does exist so JJ will not get away with circumventing their agreements with GBK.
In the agreement JJ has to purchase GBK at fair market value. It states this!
They must do this before commercial production begins!
What is the fair market value of 25% of the project?
I am not sure what the new NPV is becasue JJ has not provided it. But lets assume the bas case is $1 billion. That works out to about 1$/share for GBK.
It's that simple.
$1