Who want’s a potential dividend of 8-10 cents per share?
We were not surprised that the company’s management decided to sell Lady Annie for $A135M as a trade sale rather than struggle through a second attempt to float the asset. China Sci-Tech has completed its due diligence and paid a $A5M deposit with another $A125M due on completion of the sales agreement. The remaining $A5M will be paid in two tranches upon Lady Annie achieving certain milestones. After the $A125M is received, the company will make a capital return to shareholders of $A0.08 to $A0.10. Cape Lambert is not for the faint hearted. The last time we reviewed the company we stressed that returns to shareholders would be lumpy because that is the nature of the company’s business. Knowing that the company is managed by investors that just so happen to invest in resource companies, all that matters is the timely sale of an asset and making a return for shareholders. It matters little how this is accomplished so long as the result is the same. For this reason we were perplexed when
