Normally I wouldn't think that the board would be interested in making a capital return but given the major shareholders are chinese they may need the cash given the liquidity issues in china at the moment - probably just wishful thinking on my part.
Either way I still think they should use those franking credits which are worth 2-3 cents a share.
Going forward they don't need to bet the house - there are plenty of projects out there that could get up and running for less than $100 million.
To sit on over $300 million for as long as these guys have without any guidance as to what they intend to do with it is just wrong in my opinion. Having said that they haven't blown it yet which is something - things are a lot cheaper now than they were 6-12 months ago.
Furthermore any guidance that shows they are willing to pay a dividend should see the gap between share price and cash backing close pretty quickly.
IMHO
MGX Price at posting:
21.0¢ Sentiment: Hold Disclosure: Held
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