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@schlemiel, all good, for sure! The more gold they find, the better!
CB completely agree. Initial potential dividend low especially is we sell a bigger chunk to newcrest so they take all future associated costs and GG get a free ride for the smaller %, but as more potential targets get Proved up such as scallywag then this dividend could grow along side the actual share price. Some of us could have a much larger retirement income then we actually realise
TMT
Either way, it's all very positive irrespective of what direction we are taken..cheers fella
"Dividend tax is at a lesser rate than income tax I believe."
0% if within an ISA.
If within a SIPP, taxed at normal income levels in a drawdown (but 25% tax free), or if used to purchase an annuity, the annuity is taxed as normal.
If not in a tax wrapper (SIPP or ISA), £2K of dividends is tax free. Basic rate dividend tax is 7.5%, higher rate 32.5%, additional rate 37.5%. All subject to change at the next budget, of course.
@schlemiel "A hefty cash payment (monetisation) is far preferable to a taxed, unpredictable, unsecure dividend."
No doubt. Though the hefty cash payment would also be taxed.
But it depends on the level of the cash payment, doesn't it? And here's where we have to trust the BOD. If NCM makes an offer for our 25% of Hav, they have to assess whether the offer is better than holding and going to mining. If it's not, then those dividends will be coming.
That won't be bad for people like you who want to cash out, because if we have divs of 2.5p / year for the next 10 years or more, the SP will immediately be at least double what it is now, probably more. You could sell it all, or you could sell 75% and hold the rest to see if Scal hits, too. People who want to cash out don't need this to be sold, they just need the market to catch up to the value. That's coming.
Dividend tax is at a lesser rate than income tax I believe.
8% comes to mind. That was a couple of years ago when I was a contract engineer.
Oops - unless in your ISA which of course they are DOH!!!
Divi’s ain’t tax free Matty - classed as income and taxed accordingly!
Yes I did mean 2 million ounces .
And the 5p was after taxes and r&d in the ggp coffers.
I do see schlemiels point about a bird in the Bush ( see what I did there). Although similar results in scally could see an increase in that dividend.
Chrisatbirdies
Half that would see me right! (a 2.5p divi = £50k tax free!!)
Here's hoping!
Fair point - agree with that too!
A hefty cash payment (monetisation) is far preferable to a taxed, unpredictable, unsecure dividend. At least if the cash is in your bank account and under your control whereas a dividend is at the behest of a party (Newcrest) beyond your control and there's no guarantee that such a dividend will be paid year on year.
Give me the capital and I'll invest it according to my own requirements
An annual divi of 2p a share would give me retirement on equal to my current full salary - I’ll take that ALL day long lol
Yes, perfectly possible and my favoured outcome. But.....
Assuming your numbers are correct, don't expect the full 5p as a dividend. GGP should keep back enough to afford all the drilling on existing prospects, purchase of more tenements, and operating costs. To grow the company organically within earnings and pay a dividend will be superb.
Annual production of 2 million tons au would crash the price of gold and affect the balance of world economic power. Perhaps you had 2m oz in mind.
Assuming AISC of perhaps $1000 / oz (I think that's too high) and POG of $1800 / oz (might be too low), you'd have US$800 / oz. Assuming byproduct-AISC so the copper is used to reduce AISC. In that case, with 2m oz, you'd have about $1.6B, of which our share would be £400 million. Depending on the USD/GBP exchange rate, you come out somewhere around 7.5p/share.
Some would of course be used for further exploration. 4-5p might be a good guess. Of course, there's always the question as to how long Hav would produce at that level, if it ever does. It still remains to be seen if we would be borrowing before that point, and if so, obviously, the debt would have to be paid.
The AISC is a guess. So is the price of gold. So is the production level.
I'd love to see plenty of money for further exploration and a regular dividend of 2-3p / share. That would boost the SP to levels that everybody who wants to be cashed out could sell and sell, and those who want to keep playing the game, at Scal and Rud and other current and future tenements, could hold and hold. If it went to 4-5p / share, well, Mickey would be a popular guy, I think.
If as is really possible. We could be in a joint venture and receiving dividends on profits. On an annual production of 2 million tons of au through telfer, I've come up with a 5p dividend based on 25% to us. I hope I'm right in believing that production is possible and I would be interested in others figures. It is weekend after all