Sometimes on the rare occasions there will be a first time post that has me scratching my head, and I think to myself, don't respond and don't make eye contact, but.........
With no other information provided by you as to why it is was such a good deal, I will respond....
So, and bearing in mind, that the current directors provided absolutely
NO INFORMATION on the proposed deal to enter into a LOI which would of become binding had a deposit been paid. You would of been under the
assumption that if the Li project was sold there would of been a special one off dividend back to the share holders to make this statement that it was a good deal just basing it on the current market cap. That assumption would also have to include that the total proceeds of the sale would of been returned back less tax of course, assuming that a tax of 25% was paid (this is only a guess as I don't know what tax BGS would of been liable for) Leaving a paltry $80M left to distribute divided by the current share registry of 185 million shares = 43c per share. Then come tax time for individuals and you would be paying CGT on the total 43c, assuming most personal income tax averages out at 30% the net gain for you would of been 29c per share, hopefully there would of been some franking credits involved as well.
You would also then need to consider that once the sale was complete and BGS distributed the proceeds there would of been a mass exodus as holders scrambled for the door as the value of BGS would of greatly diminished, assuming you could get out before the stampede for close to what you have paid for your shares without any loses, would or does selling for $107M still sound attractive???
Read this post and then consider, would it have been a good deal selling a globally significant Li deposit for a pittance of what its potential worth would be......
You may look upon the failed sale as a blessing in disguise if the company can/does unlock its true potential as per some of
@Ubique13 posts outlining NPV's and potential share price forecasts truly showing the worth of BGS's Li project.
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All the above IMO
cheers
