Some good points here, but with the greatest respect, I'd challenge a few things of your statement.
1. Management have paid out a lot in dividends previously. Also how does whether the money is paid as salary, or as company dividend effect a directors personal tax rate? It doesn't. At the end of the day your personal tax rate is based on your income - regardless of source.
I'd also challenge the fact that director's are paid very high salaries? The chairman of the company is made $80K + super. He is a major shareholder and the only way he 'gets paid' is through dividends - that's to the benefit of all other shareholders.
The cash is not their own cash, it is the companies cash - that's just totally incorrect sorry. They would have to pass resolutions to increase salaries and wages of executives - as per a companies constitution - otherwise it would be paid out in dividends to all shareholder (as it has been before).
I broadly view management's large interest as positive. They have skin in the game. One does need to watch if salaries increase significantly over-time, if shareholders are diluted, or if there are related party transaction to directors as "consultancy fees"...etc. I don't see any evidence of that occuring however, or happening much in the past? Happy to be proven wrong on this!
2. Africa - perhaps short-term yes you may be right. However, Africa population will double in next 30 years, it's a big growth region. Short-term, I believe that they will benefit from Gold prices (see West African Gold Resources share price - a key client), commodity prices raising, Iron Ore boom in Australia and infrastructure boom.
LYL Price at posting:
$3.90 Sentiment: Hold Disclosure: Held
(20min delay)