CSE 0.00% 13.3¢ copper strike limited

Have a read of this thread...

  1. 687 Posts.
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    Have a read of this thread https://hotcopper.com.au/threads/easy-money.2785327/#.WbRhMcZLc5Q
    Figures for a price of $3.60 show a range of prices from 40c to 24c depending on your tax rate.
    Column 1 Column 2 Column 3 Column 4
    0 ASSUMPTIONS SALE OF SYR    
    1 Sale Price $3.60    
    2 no shares held by CSE 11,000,005    
    3 no shares on issue 106,844,810    
    4        
    5        
    6 DISTRIBUTION      
    7 Sale proceeds $39,600,018    
    8 less past losses -$6,649,097    
    9 Taxable income $32,950,921    
    10 Taxc at 30% -$9,885,276.30    
    11 available for dist $29,714,741.70    
    12        
    13 Distribution rate 100% 90% 85%
    14 Amount per share $0.28 $0.25 $0.24
    15 Plus Franking credit $0.12 $0.11 $0.10
    16 Total income $0.40 $0.36 $0.34
    17        
    18 Tax Rate After tax After tax After tax
    19 0% $0.40 $0.36 $0.34
    20 10% $0.36 $0.32 $0.30
    21 15% $0.34 $0.30 $0.29
    22 30% $0.28 $0.25 $0.24

    Important thing to remember is advice from ATO re distribution of any franking credits which reads
    i)dispose of the Syrah shares in the income tax year prior to the income tax year that it franks a dividend;
    and
    ii)return the proceeds as cash and not as an in-specie distribution.


    Given that CSE management have repeatedly stated they see further value in SYR once it comes into production and the fact they did not dispose of shares in the $6+ range this may have some bearing on what is considered fair value.
    Last edited by Pedro14: 10/09/17
 
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