Ann: Dividend/Distribution - GRR, page-59

Those talking about reinvestment and dcf clearly have no clue. The cash is being reinvested at 0%. The cost of equity capital in a low cap miner is 10%+.

The market correctly perceives that the cash will be paid out ultra slowly over the next ten years whilst no investment is made. 500m that is maybe paid out slowly over the next 10 years is worth probably 250m in today's terms. The market correctly realises that BOD actually has no plan for reinvesting the cash and no plan for paying it out and therefore the market discounts the value of the cash. Those saying there is a floor in the market cap around the cash value miss this point. The share price can, and in my opinion, will, fall below cash value very soon.

What you say whisky and friends when that happens? Yes the stock will be cheap. But isn't out goal for the stock price to increase!? The stock will forever be cheap until management get their act together and start paying out profits.

Even if theoretically management eventually invests the spare cash it will have been sitting their on the balance sheet for several years doing absolutely nothing until that happens. That severely dilutes the long term roi if any investment they make.