Trading at cash and receivables and PE of 4, page-12

In competing for funds, the problem is that there are lots of companies in the investing universe, so whether they can find investments or not in the IO space is somewhat irrelevant.

While there is no strategy to return the funds and thus continue to lock them up in the entity with no clear path to investment, i'm of the opinion, GRR's valuation will continue to get penalised.

If more certainty of Southdown becomes clear and it has a very healthy IRR with suitable assumptions, then I agree there would be a solid re-rate - depending on the economics it could warrant significantly more than 5-7c.

All that aside, I have a healthy holding in GRR, despite the lazy balance sheet, as I'm of the view the company is presently undervalued. Logically I can see several reasons why the market has potentially held the valuation down and I think it's important to acknowledge those reasons, but my thesis is that the investment is a good risk/reward proposition.

GLTAH.