late announcement out, page-19

KosmoS, a very good question and one not all that easily answered but here is my go at it, but care I cannot vouch for the accuracy!

Per Co statement on 15th Sept, CFE had a cash position of approximately $340m". The final payment by MCC of $80m is only due and payable "on the grant of a mining lease and related construction approvals for the project". However, whilst the company currently has this cash balance, it is a little hard to tell how many of the costs associated with the transaction have already been met (refer to p11 of the Explanatory Statement attached to the Notice of General Meeting dated 27th June). The costs in this statement detailed expenses from revenue received to date of some $229m - inclusinve of $87m tax provision and the $100m return to shareholders and proposed exploration costs of $3.4m.

In order to determine at worst how much cash the co will have after the $100m return, by my calculations, if we said no costs had yet been incurred (ie they all have to come out of the $340m current bank balance):

Cash $340m
Costs $229m
Net $111m
Share on issue 439,314,164 (as of today per co)
Cash Backing per share $0.25 (after distribution)
plus cash return $0.227 ($100m/shares on issue)
Current cash backing value $0.477 per share

As stated this should be a worst case cash backing per share and does exclude any value for CL South or S Leone.

After the company makes its announcement of the distribution timeframe it will give 5-6 days to give option holders the opportunity to exercise. If they do not, they will not get the benefit of the unfranked dividend, but will get the benefit of the capital return by way of a reduction in the exercise price of their options. Any further executions will deleiver the company more cash but also dilute the above figures.

Clarification statement yesterday gave me some comfort and current directors will have my support in stoush with Power/Shemezian. These guys have a successful track record and that is worth a lot!!!

IMO, the return to shareholders is still coming and there still bright prospects in CL Sth and even Sierra Leone to come. Just don't count on the last $80m from MCC for another couple of years.

Don't take my word for it though, do you own sums and as always draw your own conculsions and don't forget that this current market is NOT rational!!!!!