Thanks for the post. Your value proposition is most certainly correct, although I am not sure all of your facts are entirely accurate or up to date.
Not having a go at you or disputing any of the info, just interested in understanding how you got to some of the numbers, especially:
- How to you get to a remaining cash position after distribution of $49m? I believe it will be more than this. If you look at the most recent announcements, the cash position at the beginning of August was actually 230m, plus we have had another month of production at high gold prices, plus interest on our cash balance and possibly the start of our copper royalties, so I think we are probably at around 235m at this moment. This will also increase by the time the distribution is paid at the end of October. If we assume 235m though and take off the 135m distribution, we get to at 100m. I assume you have then taken off the tax bill due at the end of February 2012 (which I believe will be more like 42m)?
- Also, who says the SP will drop back to 40c post distribution? This is the big question really, so interested to hear how others arrive at this figure. We should be trading at over 78c if that were the case (and maybe that's where the SP will go to when the dividend is declared...).
EXS Price at posting:
62.5¢ Sentiment: Buy Disclosure: Held
