I think your spot on, they are either trying to pull the wool...

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24/10/23

22:36

Post #: 70516417
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Originally posted by poppy44: ↑

FROM THE ANNOUNCEMENT

1.2 Rationale On 31 March 2023, Danakali completed the sale of its 50% interest in Colluli Mining Share Company (CMSC) to Sichuan Road and Bridge Group Co. Ltd (SRBG) for US$166 million in upfront cash and deferred payments (Colluli Sale). Net of all Eritrean government taxes, Danakali received approximately US$105 million (A$156 million) on 29 March 2023, and final payment (Tranche 2) of approximately US$16 million on 29 September 2023.The Company has previously expressed its intention to distribute approximately 90% of net sale proceeds from the Colluli Sale to Shareholders.The Board has determined that the Distribution shall comprise two components, being firstly, the Special Dividend (unfranked from conduit foreign income) and secondly, the Proposed Capital Return (the subject of this Resolution 1).The Proposed Capital Return will result in approximately A$100,466,735 being returned to Shareholders.The Special Dividend will result in approximately A$54,233,691 being returned to Shareholders.

At 1.2 in their "Rationale " for their "Notice of General Meeting" announcement above, they again refuse to exchange the $16mUS into AUD$. In their calculations they count the $16mUS as in fact $16MAUD. They have done the same in a previous announcement that many on Hot Copper expressed their shock at. $16m US is approx on todays rates $25m AUD. Counting the sums as they do, the distribution is $154m AUD. whereas counting the $16m US as $25m AUD and discounting 10% the sum to be returned should be $161m AUD. Where am I wrong?

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I think your spot on, they are either trying to pull the wool over everyone's eyes or it is a diabolical typo overlook. We really need answers on this as it's extremely important. Would also love to know NGE's opinion on this matter. Anyone else also questioning why they need $35m odd leftover? I mean with this kind of cash, anything less than a cracking aquisition will be very disappointing.

DNK Price at posting: 41.0¢ Sentiment: None Disclosure: Held
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0 Great analysis

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