CDU - Hit again.... There was a very interesting article in the...

CDU - Hit again.... There was a very interesting article in the AFR highlighting CDU and loophole with funds being spent on executive shares....


From http://www.afr.com/p/national/loophole_led_to_bn_spent_on_executive_0T7uGxmeXhg38MzEP5EvJL

In the latest example, minerals explorer CuDeco last week reported it spent $10 million buying shares for executives in the past year, including $3.2 million in the last quarter, which represents 11 per cent of the funds it spent on a copper prospect near Cloncurry in Queensland.

Criticism for CuDeco share buying


CuDeco, which has never had a producing mine, faced criticism after it spent $36.6 million on a stock buy-back in 2012, compared with $58.5 million spent on developing projects.

After confirming plans to extend the buy-back in June last year, CuDeco instead started buying shares for an executive share plan, which meant it did not have to report daily trading in its own stock, or prices paid for the shares.

CuDeco shares have halved since June, which means the company is sitting on a $23 million loss on the shares bought under the buy-back and executive share schemes. CuDeco chairman Wayne McCrae did not reply to questions from the Financial Review.