Hi Mosey, here is a rundown on the use of funds. I'm sure all...

Hi Mosey, here is a rundown on the use of funds. I'm sure all the info would be on the CFE website.

Use Funds

In-specie distribution to Shareholders (Resolution 2) Up to
approximately

$37,700,000

Possible unfranked dividend Up to
approximately $62,300,0001

Commission for introduction of Transaction $38,000,000

Taxation costs as a result of Transaction $87,000,000

Proposed exploration expenditure on existing projects $3,355,000

Working capital and new projects $171,145,000

Expenses of Transaction $500,000

Total $400,000,000

This might also be of note to you:

"in accordance with ASX Listing Rule 7.22.3 all Options on issue in the Company at the Record Date will have their exercise price per Option reduced by the same amount as the Return Amount per Share."

Make of that what you will, it was cut and pasted.

I have had some time to read the ann a bit more thoroughly, as my limited knowledge will allow and I guess this is my naivity and lack of experience showing but I am not that impressed. 38M in commission seems like an extraordinary amount to be payed but maybe that is standard... I wouldn't really know to be honest. 400M I expected a lot to be eaten away at costs I couldn't honestly forecast with my knowledge, but I thought the company would receive more than 271M.

shamol, re:options there are also 200M with only very few over the current price. Therefore you have to assume these will all be converting, giving us roughly 500M shares.

Personally therefore I don't think the cash returned will be any higher than 20c.

By my rough calculations I work out that the equivelant cash of this share is 65.5c including the money from the exercising of options. This isn't including the shares to be issued to directors upon shareholder approval, doesn't include any costs or taxes associated with the conversion, this is tax free I think, and also does not factor in the fact 80M will not be received until 2 years time and so should be reduced taking out the interest it would accumualte.

If people have a differing opinion then please let me know, I hope I am undervaluing it a bit to be honest, my workings are not to be trusted but I thought I would post what I figured out with my limited knowledge. Does anyone else get a differing figure?

I also read on HC and relayed that the redistribution of cash to SH would have some beneficial tax implications but as nothing like this was stated, I guess this is incorrect.

In saying all of this, I still maintain the share is an excellent proposition at this SP. No value has been placed on the current tenements. The current price of the share is almost the equivelant of the cash backing, discluding the delay for the last 80M.

The company now has a large amount of cash to start proving and hopefully developing its remaining tenements, hopefully there is something worthwhile to be mined now that CFE has the cash to develop it themselves. This would be best case scenario IMO and the company has repeatedly made comments such as this:

"the Company has established a relationship with MCC, which may reduce the barriers to exploiting iron ore occurrences that may be delineated on ELA47/1493 through access to infrastructure."

of which comments I find very exciting providing there is something worthwhile mining. If we have the resources, the cash to develop them and the assistance of a multibillion dollar corporation also looking to mine right next door, this is an extremely promising scenario IMO.

To the people who see the SP dropping, why are you predicting a fall or feel the SP will be under pressure? Is it just market sentiment in general or do you see a negative from this announcement that you believe will result in a drop?

"Option holders should be delighted."

VP, I don't see option holders as having any advantage over shareholders aside from the extra leverage. They will still have to pay the exercise amount and will get a return of roughly the same percentage back as SH if the gap is still roughly the exercise price, as far as I can see it or am I missing a reason as to why you said this?

Someone associated with CFE, I forget who, touted the SP as 90c if the sale went through and IMO I still view this as being reasonable, with a large potential upside on top of this in the future, but risk as well.

Hmm that turned out to be a long post. Just some of my rambling opinions which can't really be trusted. Feel free to correct any mistakes, I would welcome any corrections, hopefully politely though heh heh. GL.

Oh btw, do you think this means Mr Abramovich will not be entering the scene now or is there still a possibility before or during the meeting?