Ann: Goldfields Credit Union Limited - Prospectus, page-2

re: Ann: Goldfields Credit Union Limited - Pr... A really bizarre demutualisation in its cost compared to its size. I will be interest to see its strategy to grow the business in a world of high cost money (at least for smaller banks) compared to what they can get lending it out.

The one big advantage is that they fund a large portion of their loan book from deposits, which helps to keep funding costs down.

The net tangible asset backing of GCU at completion of the Offer (on the basis of the pro forma statement of financial position set out in Section 7.8) will be approximately $0.87 per Ordinary Share.

The purposes of the Offer are to:
• provide additional working capital for the ongoing conduct and expansion of GCU's business and the implementation of a growth strategy;
• substantially improve the capital adequacy ratio which will facilitate substantial loan growth; and
• enable GCU to comply with the Listing Rules and seek admission to the Official List.

Dividend policy
GCU anticipates that for the foreseeable future it will retain future earnings and other cash resources for the operation and growth of its business. Payment of any future dividends will be at the discretion of the Directors after taking into account many factors, including GCU's earnings, operating results, financial condition, and current and anticipated cash needs.
(A little disappointing that they are not putting a dividend forecast out)