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BEN are making $8M a month in profit, so likely first opportunity for a dividend would be 6 monthly results end of June. By then at the current rate they would have approx $48M in profit banked for the half year. Maybe more if they complete an aquisitions and get the second HWM on site, both of which is almost certain to happen. They shouldn't be paying out all their profits, initially they should use it for expansion. So lets say they pay out $10M as a dividend. This would be approx 3p a share. So as a 5% yield this works out as circa 60P share price. Which we are expecting to be well beyond by the middle of next year anyway.
This share should be in the pounds already based on the potential, but early next year once profit is taken, aquisitions are announced and then the additional High Vol A mining equipment is brought on line, followed by additional HWM. Then this will be yet another achievement that BEN have over delivered on again and the SP will align once the market takes notice.
However this isnt a share that you want to sell, the dividends will reward early investors handsomely.
On the latest video chat Adam said they are looking to purchase further local acquisitions and based on the expected returns from Ben alone that they will be looking to get a second mining rig and even a similar Ben site elsewhere. So whether we get a big dividend or an increased acreage and assets to create a larger mc and thus sp value it is all good. Revenue is already being generated with every lump of coal that comes out of the seam on the highwall mining rig's conveyor. That machine is a beast! Like something out of an Armageddon film. Check out BensCreekdotcom website for their photo and video updates to see what they are doing.
agree, market cap and hence share price tend towards industry / sector average p/e, though still quite a bit of variability. BEN should be at the upper end - no debt, large resource, own infrastructure etc etc. But even using BEN's early projections for production, costs, profit etc, that implies market cap and sp of multiples of current levels.
And that's before they get a 2nd highwall miner going and start processing for neighbouring producers on a royalty basis, both of which are clearly part of the CEO's master plan.
That would give the company a valuation of £2.46 billion alas they are doing a fantastic job and hats off to all but it does not work like that i am afraid.
They could give a special dividend of whatever is available in free cash is they desire but they would not want to empty the coffers in case of unforeseen circumstances and other potential purchases coming along.
If 5% is a normal high yield and BEN can pay 100% the share price has to move up 20x to give a normal yield. There are no shares that yield 100% but BEN will if the shares don't move up.
How do you work out x 20 on the sp please ??
BEN will have enough cash to pay a dividend of over 100% this time next year. A normal good yield is 5% so the share price could increase by 20x from here.
Merc, I'm new to the markets as much as I'm new to BEN but I think you'd be hard pressed to find a more exciting (and mid-term lucrative) share to hold!
well done - enjoy the ride! if you haven't already, listen to the CEO's recent interviews e.g. this one from yesterday, guaranteed to get investors excited ..!
https://audioboom.com/posts/7989398-midweek-takeaway-with-adam-wilson-ceo-of-bens-creek
Many thanks for your reply…I got in yesterday and the day before and currently hold at an average of 36p so I’m still very new to the share
mercman - this business will be enormously cash generative and profitable in 2022, and will continue to grow. The CEO has committed to returning as much of this as possible to shareholders. No details yet - it's very early days - but back-of-envelope calculations suggest the returns could be very large in relation to any investment around current sp, and on-going. This is in addition to capital growth - most are expecting sp to rise, perhaps to £1 and more over coming months, so that market cap reflects p/e of at least 4 (it could easily be much more than this).
Evening all…I’ve heard the mention of dividends on here quite a few times…what is the yield? When are they expected to be paid? Apologies if this information has already been disclosed.