State of Treading Water, page-123

Just started a bit of research on CVN today. In summary I get the view that CVN is sitting on a huge pile of cash however is in a hiatus while waiting for Santos to pull strings.

I think perhaps CVN should consider a friendly merger of a company that might help it diversify so it can make its cash in bank work harder.

For example, if they did a friendly merger with HGO, HGO could announce a final investment decision on their Kanmantoo copper mine which is ready to start today if it wasn’t for one small problem - they need finance (around $25 million). According to HGO the money would be paid back in under seven months! The economics of the mine plan are very attractive!

It amazes me how companies sit on huge piles of cash and don’t think of ways to make their cash work harder.

Disclaimer: I own HGO shares.

Good luck to all holders and hopefully I will be joining the share register soon.