Should have added one more point on franking credits. That 7 to 8m in cash is actually worth more than the nominal amount to most investors due to franking credits of over 6m (from annual report). More than enough to cover the whole amount as a special franked dividend - if management so chooses. After franking, the cash balance would cover the entire market cap! Now... if only management would pay out 90% of the balance we would pretty much get back the current market cap once franking is accounted for. Then you could still pick up the 1800 and oz contacts for free and the business would still have some working capital. Of course I would be hit with 15% on the franked up dividend (in my SMSF) but would have a nice capital loss if you did decide to sell the REF FPOs.
If management is listening please consider my humble suggestion.
REF Price at posting:
11.0¢ Sentiment: Buy Disclosure: Held
