EOY cash and Div reinvestment

DFN directors are reluctant to advise just how much cash on hand they have to grow the companies
Plantations. Growth for growth sake is onet hing but does it add value to shareholders.

In this years AR we held approx. RMB 375m or approx. cash in bank, that is. AUD$75m with RMB 463m uncollected sales approx. AUD95m (at AGM auditors agreed that this is now collected ,no defaults). Thus at one stage we could have has about AUD $170m  ..but lets take away trade creditors of RMB 152m  say AUD$30m.

If we review last years figures as stated below we can expect a spent of say AUD $12.5m in pre-season¦this would leave us with a minimum of $125m as at 30^th June 2017.

There is 2 days left for half-year ,last year on the 30^th June we announced a $AUD 80 mil purchase .. $AUD60m down and AUD$20 in 2018..

If we have a cash balance below $125m..THERE IS REASON FOR CONCERN.
Don't be surprised if we hear of another purchase prior 30th June

I question the strategy as to why shareholders have to opt out of the COMPULSORY Div reinvestment plan.

If you want a cash dividend you had better advise the company NOW.. there is only a few days to go.

The issue price is less 10% of the 10 day VWAP just prior to pay date in August.
If it were on todays VWAP share would be issue at the rate of 80c.

If you follow thaings last year you had to opt in for the div plan the VWAP was $2.07..in this case it was a very efficient use of capital….at current share price it simply does not make sense.

you can review last year
http://www.asx.com.au/asxpdf/20160831/pdf/439v978g1kzqz4.pdf
In this report we see what is required to get the forthcoming season ready for cropping.

Last year directors stated
We have spent over RMB$51 million (~AUD10 million) to date in preparing for our second harvest as a listed entity, and expect to surpass last year's record 240,000 tonnes result.  With the new plantations in hand, we expect to increase earnings per share for the year ahead.
Also
For 1H2016, Dongfang posted a net loss of $3.1 million, $2.2 million greater than the previous corresponding period. This is primarily as a result of dividend withholding tax payment of $2.027 million associated with the 31 December 2015-year end final dividend.

This appeared 5 days ago
https://**.st/news/2017/06/23/is-do...eds-asxdfm-liquidity-as-good-as-its-solvency/

 Great argument for better use of capital and cash on hand