Oh I agree keeping cash allows for optionality is a positive,...

Oh I agree keeping cash allows for optionality is a positive, certainly better than tapping the equity market these days. But I am not Schrodingers super fund, where I can assign a value to a 'will they do something with the cash or hold it for some free kick on the p&l statement' scenario. This disrepects the value of my capital.

There is a company which will produce very good quality coal, which will generate (at a discojnt to today's prices) roughly 670 million aud of fcf in 2028, which is valued at 1.5 billion dollars and uis currently in a lower value transitional, more vulnerable period. At a 20% wacc, including cash flows generated during ramp up, it is npv positive (including a takeover premium of 25%). Would you want 9% in undisclosed investments or 20% ish return through acquiring and managing an operation which improves price received, decreases opex, and is in a geographic region and operating model that management is proven excellent with?

(a gold star for those who guess to which company I am refering)