You are probably right Nursery but I'm not so sure that it is fatally flawed. (a) Selling RE concentrate ex Mt Weld to the Malaysian plant. What is a fair & reasonable price when you're pretty much the only RE miner in the western world? A small profit pitched at the low end of the fair & reasonable spectrum may well be enough to satisfy the tax gatherer. (b) Franking credits. Dunno much about Ozzie tax system but Rudd's Resource tax at 40% is pretty hefty. Would the higher dividend without franking credit be better than a low dividend with franking credit? Then there is the question of why repatriate profits via dividends? Plow the money into acquisitions (something along the Swiss RE fund perhaps)and grow shareholder wealth that way.
Unlike death & taxes dreams are free.
LYC Price at posting:
53.0¢ Sentiment: LT Buy Disclosure: Held
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