food for thought, page-5

Hi broomy,

I appreciate your input.

The current shareprice makes CFE a prime takeover target and Capital Group would be silly to sell out at these low prices. On the other hand, they might have obligations which forced them to sell out ( increase of sovereign risk due to RSPT or declining AUD).

The delay in announcing the dividend occured because CFE needed to consider the incurred costs for the rail and port upgrade at Marampa.
CFE will retain a 33% ownership of the total infrastructure and must invest approx. 40 - 45 M$ in the infrastructure upgrade.

The 33% ownership will benefit CFE tremendously and the upgrade is a requirement for CFE to be able to sell CFE to one of the 3 interested parties.

This means if African Minerals is going to be taken over later this year, the acquiror will also snap up CFE's Marampa because otherwise he'd have to pay pretty high royalties for the use of the rail and port.

So for the dividend to be announced Tony had to consider all upcoming costs( also DMM) and we'll find out on Tuesday what the dividend will be like. I assume that it will be 8c/ share.

Cheers