Here is my calculation of the value of the value of our franking...

Here is my calculation of the value of the value of our franking credit balance (on the basis that it would be used to provide a fully franked dividend(s) to all shareholders.

Number of Shares on Issue: approx 568M (maybe 590M if all performance rights vest)

Franking Credit balance: $21.3M (note 24 to accounts)

Franking Credit balance (FCB) per share: 3.75cps

Dividend which can be fully franked (at 30% tax rate) using this FCB: 8.75cps

Cash required by company to pay this dividend: $49.7M

Grossed-up value of this dividend to shareholders: 12.5 cps

So to be able to pay this dividend to all shareholders and so use and exhaust the valuable (to shareholders) franking credit balance, HGO needs to have both $49.7M in cash plus the ability to fund its ongoing business.

Note that all profits over the next two years (at least) will not incur tax as HGO has $223M of accumulated losses to use (note 24).

It is going to be interesting to see what means and timing that directors can find to distribute this to shareholders - but for me fully franked divs to all holders is fairest, and asap is the correct timing.