You have to understand that it's taken management a long time to build that $100m in the bank and they'll need most of that if/when they find their USNOB, so they're being very prudent in holding a high level of cash.
Also, if the Ni price halves, as it did during the GFC, we'll all be VERY glad that MCR has no debt and has the ability to see-through a period of unprofitable metals prices.
Gearing works great in a bull market where everything is going up - look at the OXR/OZL story - they were on track to taking over the world until the world fell flat on its face - and so did OZL.
I do agree to a certain extent that MCR can afford to return some funds to share holders - a special dividend wouldn't go astray and it would raise the profile of the company whilst silencing long-suffering share holders.
MCR Price at posting:
$1.84 Sentiment: None Disclosure: Not Held
