CSE under-valued, page-3

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zeno9

470 Posts.

246

19/09/17

11:52

Post #: 27312915

Originally posted by Pedro14 ↑

Have a read of this thread https://hotcopper.com.au/threads/easy-money.2785327/#.WbRhMcZLc5Q
Figures for a price of $3.60 show a range of prices from 40c to 24c depending on your tax rate.

Column 1 Column 2 Column 3 Column 4

1 ASSUMPTIONS SALE OF SYR

2 Sale Price $3.60

3 no shares held by CSE 11,000,005

4 no shares on issue 106,844,810

5

6

7 DISTRIBUTION

8 Sale proceeds $39,600,018

9 less past losses -$6,649,097

10 Taxable income $32,950,921

11 Taxc at 30% -$9,885,276.30

12 available for dist $29,714,741.70

13

14 Distribution rate 100% 90% 85%

15 Amount per share $0.28 $0.25 $0.24

16 Plus Franking credit $0.12 $0.11 $0.10

17 Total income $0.40 $0.36 $0.34

18

19 Tax Rate After tax After tax After tax

20 0% $0.40 $0.36 $0.34

21 10% $0.36 $0.32 $0.30

22 15% $0.34 $0.30 $0.29

23 30% $0.28 $0.25 $0.24

Important thing to remember is advice from ATO re distribution of any franking credits which reads
i)dispose of the Syrah shares in the income tax year prior to the income tax year that it franks a dividend;
and
ii)return the proceeds as cash and not as an in-specie distribution.

Given that CSE management have repeatedly stated they see further value in SYR once it comes into production and the fact they did not dispose of shares in the $6+ range this may have some bearing on what is considered fair value.

Expand

Unlike the SYR renounceable rights issue in 2015 when CSE renounced its rights and received a handy sum for doing so, the current SYR rights issue is non-renounceable. So, in the likely absence of funds to take up its rights, I suspect CSE may have to accept a notional 15% dilution in the relative size of its SYR holding.

zeno9

CSE Price at posting: 27.5¢ Sentiment: None Disclosure: Held

1 Upvote

0 Great analysis

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	Column 1	Column 2	Column 3	Column 4
1	ASSUMPTIONS	SALE OF SYR
2	Sale Price	$3.60
3	no shares held by CSE	11,000,005
4	no shares on issue	106,844,810
5
6
7	DISTRIBUTION
8	Sale proceeds	$39,600,018
9	less past losses	-$6,649,097
10	Taxable income	$32,950,921
11	Taxc at 30%	-$9,885,276.30
12	available for dist	$29,714,741.70
13
14	Distribution rate	100%	90%	85%
15	Amount per share	$0.28	$0.25	$0.24
16	Plus Franking credit	$0.12	$0.11	$0.10
17	Total income	$0.40	$0.36	$0.34
18
19	Tax Rate	After tax	After tax	After tax
20	0%	$0.40	$0.36	$0.34
21	10%	$0.36	$0.32	$0.30
22	15%	$0.34	$0.30	$0.29
23	30%	$0.28	$0.25	$0.24

CSE under-valued, page-3

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