That's a pretty good summary Yaq and the reality is that the asset backing will still be there except that we will be more fully invested in a copper production business rather than swanning around with a truckload of cash.
In one way we will be better off if K (which will chew up a lot of the cash) earns in excess of the deposit rate paid on the money market which I would assess at around 5.5%.
However, DA does need to clear up the issue of the paid dividends v the placement.
I'm sure the answer will be "changing circumstances and taking advantage of better opportunities"...but it would be good if he could wrap some financial numbers around this.
HGO Price at posting:
40.0¢ Sentiment: Hold Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)