Non-residents are subject to tax rules of their resident country...

Non-residents are subject to tax rules of their resident country so don't get off scott free. I wasn't aware of the 10% rule, although I will never have to worry about it.
Other side of the coin is that most countries don't recognise Australian franking credits, so a franked dividend can be a negative due to risk of double taxation for a non-resident.
So maybe Molton would prefer to cop the capital gain (if any) than loose the franking credit.

But then with all those losses (US$70M) will there be any corporate profit to tax, hence any franking credit anyway.

Plenty of angles to work to Moltons benefit. Being a non-resident myself I'm happy to piggyback that one.