GL Limited (formerly: Guoco Leisure)

(06-08-2012, 11:15 AM)propertyinvestor Wrote: Wee my orders for 57 done today

Wow, you are BBs also.
Checked some records, Marathon bought their stakes as high as 1.50 2 years ago.

I will buy more if i have more $$$.

Lets assume a conservative valuation of 400kpounds per hotel room for all thistle hotels in London. That works to around 1billion pounds in valuation.

For the Guoman 5 star high end hotels in Prime London, lets use a conservative valuation of 450k pounds per hotel room. That works out to around 1.2billion pounds per hotel room.

Lessing out liabilities of 550million, you get around USD 2.15 per share just on the London hotels alone.

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(06-08-2012, 11:28 AM)Stocker Wrote:

(06-08-2012, 11:15 AM)propertyinvestor Wrote: Wee my orders for 57 done today

Wow, you are BBs also.
Checked some records, Marathon bought their stakes as high as 1.50 2 years ago.

I will buy more if i have more $$$.

You are quite right. the book value of the hotels may be at least 2.8 times what is stated.

Ok, this is even more ridiculous. If we just take a conservative valuation of 200million USD for the Bass Straits Trust, you add another 14c/share to the NAV.

If you add the land bank in Molokai and The Clermont Casinos with a conservative valuation of 100million. In total, the real NAV of the company is USD 2.37/share

Now I know why the fund managers didnt sell when a GO was made back then for $1.20

One of the worries is the royalty of Bass Straits Trust may be expired soon or few years later, without this royalty, GL's profit will be hard hit.

(10-08-2012, 02:43 PM)cfa Wrote: One of the worries is the royalty of Bass Straits Trust may be expired soon or few years later, without this royalty, GL's profit will be hard hit.

Hello, The right to receive royalties will expire only in 2040. By that time, GL would have already earned at least 750USD million from it.

What profit hit hard? You mean the thistle hotels cannot generate profits?

(10-08-2012, 03:40 PM)Hotelking Wrote:

(10-08-2012, 02:43 PM)cfa Wrote: One of the worries is the royalty of Bass Straits Trust may be expired soon or few years later, without this royalty, GL's profit will be hard hit.

Hello, The right to receive royalties will expire only in 2040. By that time, GL would have already earned at least 750USD million from it.

What profit hit hard? You mean the thistle hotels cannot generate profits?

don't anyhow mislead others.

royalties never expire. It just ceases because no hydrocarbon can be produced from Bass Straits.

the royalties can stop any time from tomorrow to the end of the world.

(10-08-2012, 03:42 PM)freedom Wrote:

(10-08-2012, 03:40 PM)Hotelking Wrote:

(10-08-2012, 02:43 PM)cfa Wrote: One of the worries is the royalty of Bass Straits Trust may be expired soon or few years later, without this royalty, GL's profit will be hard hit.

Hello, The right to receive royalties will expire only in 2040. By that time, GL would have already earned at least 750USD million from it.

What profit hit hard? You mean the thistle hotels cannot generate profits?

don't anyhow mislead others.

royalties never expire. It just ceases because no hydrocarbon can be produced from Bass Straits.

the royalties can stop any time from tomorrow to the end of the world.

Please turn to page 25 of Guocoleisure Annual report 2011 section ii) under Bass Straits Oil and Gas Royalty. If the royalties doesnt expire, why does it have a useful life?

(10-08-2012, 04:30 PM)Hotelking Wrote:

(10-08-2012, 03:42 PM)freedom Wrote:

(10-08-2012, 03:40 PM)Hotelking Wrote:

(10-08-2012, 02:43 PM)cfa Wrote: One of the worries is the royalty of Bass Straits Trust may be expired soon or few years later, without this royalty, GL's profit will be hard hit.

Hello, The right to receive royalties will expire only in 2040. By that time, GL would have already earned at least 750USD million from it.

What profit hit hard? You mean the thistle hotels cannot generate profits?

don't anyhow mislead others.

royalties never expire. It just ceases because no hydrocarbon can be produced from Bass Straits.

the royalties can stop any time from tomorrow to the end of the world.

Please turn to page 25 of Guocoleisure Annual report 2011 section ii) under Bass Straits Oil and Gas Royalty. If the royalties doesnt expire, why does it have a useful life?

read again what I posted.....

the estimated useful life is for the estimated of time to run out of hydrocarbon.

plus, it is an estimate. It could be anytime from tomorrow til the end of the world.

if it expires, then why estimate?

"royalties never expire. It just ceases because no hydrocarbon can be produced from Bass Straits.
the royalties can stop any time from tomorrow to the end of the world. "

Hi Freedom,
You meant Bass Straits may face low or zero production of hydrocarbon ,any time any day ( No guarantee of product ) ? This could explain why Guoco Leisure share price is so depressed.

(10-08-2012, 04:34 PM)freedom Wrote:

(10-08-2012, 04:30 PM)Hotelking Wrote:

(10-08-2012, 03:42 PM)freedom Wrote:

(10-08-2012, 03:40 PM)Hotelking Wrote:

(10-08-2012, 02:43 PM)cfa Wrote: One of the worries is the royalty of Bass Straits Trust may be expired soon or few years later, without this royalty, GL's profit will be hard hit.

Hello, The right to receive royalties will expire only in 2040. By that time, GL would have already earned at least 750USD million from it.

What profit hit hard? You mean the thistle hotels cannot generate profits?

don't anyhow mislead others.

royalties never expire. It just ceases because no hydrocarbon can be produced from Bass Straits.

the royalties can stop any time from tomorrow to the end of the world.

Please turn to page 25 of Guocoleisure Annual report 2011 section ii) under Bass Straits Oil and Gas Royalty. If the royalties doesnt expire, why does it have a useful life?

read again what I posted.....

the estimated useful life is for the estimated of time to run out of hydrocarbon.

plus, it is an estimate. It could be anytime from tomorrow til the end of the world.

if it expires, then why estimate?

Ok you may not be wrong. Ive extracted the following from DMG report

Bass Straits Royalty Trust

GLL has a 55.1% entitlement to the Weeks Royalty, which entitled it to a 2.5% royalty
granted by BHP/Esso on the gross value of all hydrocarbons produced and recovered in
designated areas within the Bass Straits of Australia. Based on estimates by Esso, the
Bass Straits has estimated reserves to last another 30 years. For the last 5 years, GLL has
been receiving a steady stream of cashflow of around US$40-45m p.a.

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This News should be of interest to all those who are interested in GL. Not sure if gas is part of the deal. But maybe freedom can comment.

Exxon, BHP pushing to link Bass Strait gas contracts to overseas oil prices
BY: MATT CHAMBERS From: The Australian May 21, 2012 12:00AM


Source: The Australian
THE effects of surging Queensland domestic gas prices driven by $60 billion of planned LNG plants have hit southern states, with Exxon Mobil and BHP Billiton pushing to link Bass Strait gas contracts to international oil prices.

Industry sources said the pair, which jointly market gas they produce from their Gippsland Basin joint venture, had been aggressively chasing higher prices on new and rolling-over gas contracts in Victoria.

Domestic gas contracts in Queensland beyond 2015, when the big coal-seam gas export projects start demanding gas, are already being set at double current prices and linked to oil prices, just as LNG prices are.

The price jump was expected to take some time to run down to Victoria but Exxon and BHP are said to be pushing hard to charge Victorian gas buyers, which are mainly retailers, the equivalent price to Queensland, minus transport costs.

One gas buyer said that in current talks, the Gippsland venture was trying to quickly push prices higher and link them to international oil prices.


Exxon, which operates the joint venture, declined to comment on what was happening to gas prices.

"Our contractual arrangements with our customers are subject to confidentiality agreements, so we are not able to discuss the details," a spokeswoman said.

The big Bass Strait fields have their best oil-producing days behind them but have more gas they can access if prices rise.

In November, BHP petroleum chief Michael Yeager gave the first sign that higher gas prices would flow quickly south when he told The Australian he wanted to sell Bass Strait gas to exporters.

Last week, at the Australian Petroleum Production and Exploration Association conference in Perth, Mr Yeager said the joint venture was still talking to exporters and that higher prices would unlock more Bass Strait gas.

"But it's more important to let the citizens of Victoria and NSW and to some degree even Queensland (know) there's plenty of gas to supply those provinces indefinitely and we're available to be part of that," Mr Yeager said.

"We have gas for sale and we'll work with anybody at any time," he said.

Because the east coast has a substantial network of pipelines, the Gladstone plants compete with domestic buyers, not only in Queensland, but in South Australia, NSW and Victoria too.

East coast gas prices have sat at between $3 and $4 a gigajoule for years but in a recent sales deal to the Santos-led Gladstone LNG project, oil-linked prices were set at $8 to $10.