Majestic Gold Corp. V.MJS

Distributable Reserves

[22882288]

Distributable reserves of the Company as at 31 December 2023, calculated under the Companies Act (as revised) of the Cayman Islands, amounted to approximately RMB525,411,000 (2022: approximately RMB322,794,000). The share premium account of the Company is available for distribution or paying dividends to the Shareholders subject to the provisions of the Articles and provided that immediately following the distribution or the payment of dividends, the Company is able to pay its debts immediately as they fall due in the ordinary course of business.

Annual-Report-2023.pdf (persistenceresource.com)

Going through the PRG 2023 Annual Report, the section of Distributable Reserves found on page 29 caught my attention. PRG has the option of issuing dividends equivalent to CAD$100.965 million so MJS' 70.5% share of that would translate to CAD$71.180 million or $0.068 per share. These figures of course will only continue to increase over time as PRG is already highly profitable and expanding. 

For the calculation of Distributable Reserves, it is found on page 180:

Distributable Reserves (RMB525,411,000) = Capital Reserve (RMB309,147,000) + Share Premium (RMB214,663,000) + Retained Profits (RMB1,601,000)

I am appreciating the PRG HKEX listing even more as we gain further transparency into the capital structure and operations that MJS controls.

 

[richard45161]

thank you very much for this! this is super interesting and reassuring! best Richard

[rocman01]

How much is the debt exactly?

[22882288]

The debt is negligible as there is USD$102M in current assets, US$98M of which is cash. Then there’s another US$85M of long-term assets. Even taking an extreme case of paying off all liabilities at once, MJS would still have over US$63M of net cash which is even higher than the current stock’s trading value so the operating assets and positive cash flow generation are freebies. It’s rather absurd