a better way forward

Management need to face reality with this one.

Ok, they've got a comfortable gig.

They are also handy at picking resource stocks

However, a large part of the register has wanted out at close to asset backing for 3 years. That's proved by units trading at a ridiculous 35-40% discount to asset backing since the GFC began.

The buyback is a good start. They should get swamped with stock at a 15% discount. Take the bull by the horns management and take more than the 25% (you have mentioned in the documents that to 35%~ can be taken).

Buying 35% at a 15% discount will improve the asset backing for the remaining 65% by about 6% to $1.20~.

Also get aggressive on the current buyback. You are buying small amounts on market now but 78c v post scheme asset backing of $1.20 is a no brainer.

Another 10% of capital at 80c increases the post buyback NTA to maybe $1.24.

So what are you left with at this point in time. The LRF fund falls in size by 45% so sorry your fees are a bit lower. However, all the hedge fund holdings are seriously reduced.

The remaining investors are more aligned with your style and the hot money has gone. Shares should trade within 20% of asset backing by my estimation(ie $1.04).

Now how to finance the buybacks. Simple, sell 30-40% of your RIV, AGO, CCC etc into a booming market. Remember how they plummetted in the GFC. Sell while they are rising I say.