Let’s call rentails A$300m and say it gets built over 18months from 2023. They need $50m per quarter of capex from 2023 (renison as 100%).
Even using A$35k/t tin - renison should do operating cash flow of A$40m per quarter (will be heavy into the high grade at 2023) - which leaves a small shortfall. So I think - build the cash stack to A$40m (A$80m at 100%), then start distributing anything more than that until Rentails is ready for development. Why would you keep cash on ur balance sheet and earn 0.5% interest or whatever in a term deposit. Distribute it to ur shareholders. If it becomes a yield play you’ll also attract a different group of shareholders to the stock (or do buybacks).
Discussion on SP, page-217
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