Ann: Scheme of Arrangement and Demerger, page-116

suti1,

the market is currently valuing the GBG spin off, CODA, at zero. Given CODA would have somewhere near 10mm in the bank to fund it, that hardly inspires any confidence in the board of GBG. It suggests if the scheme gets up, the big winner is Ansteel.

Further concerning is the lack of reporting on the Mt Gunson progress. It doesn't generate any confidence in me in the way GBG has been run.

I would suggest a lot of investors have already written off their investment in GBG and used the losses to reduce CGT. And sure, some might see the proposed scheme of arrangement as a little dividend for the years of torment. But if you've already written it off, most wouldn't lose any sleep risking a meagre payout for a potential windfall years down the track.

And by the way, Chinese investing principles can differ greatly from western capitalism. They can decide to be very patient if they see long term value. An expansion at KML still could take place if the numbers stack up and the financing could be obtained. If the all in costs for the next 8mtpa tranche of production stack up, it would reduce the all in costs of the whole mine production. And therefore, the percentage of ore attributable to GBG could generate free cash flow, and GBG's future carrying value in KML may not be zero.

Just my opinion, DYOR