whats actually happening, page-7

interesting

if smelters are profitale on WIP, they are adding 30% to zfx bottom line

will be interested to find out what the expected cash out for zfx is in a float ...

if they acheive more than 30% it will indicate that the market valued smelters as a more stable asset then a limited mine life ... remembering that the mine will have 9 months less of minerals in it at spin off date.

it sound like zfx will want to go down the share buyback route over the additional divi route.

as
they will be required to pay tax on profit of smelter sales ... to be say 30% of market cap ... which would mean about 10% of current market cap would be in their franking account (very lare and would be attractive for a corporate raider who want franking credits) and is useless to the company ... they could use the money to buy back 20% of the market shares in an arrangement of $2per share and the market value diff as a fully franked divi ... attractive to super funds etc

my mad rambiling thoughts ...

my gut feel from this whole deal

is

it is trying to link zfx to a higher pe ... very very good long term