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TT-T,
My posting was unfortunately not clear. The payment date I referred to was the date of going ex-dividend.
TT-T,
The situation was much simpler in the old days. Now it is more complex.
If a shareholder sells out after declaration but before payment, how does the company find him/her to pay them out? Track them down in the woods of Borneo/wherever?
So (excepting to special, structured situations to which you have referrred), the payment is made (automated now) to all the shareholders on the date of payment - this has become critical in a world of ETF's etc (the admin nightmare of trying to find out who was the SH of record on the declaration date versus who now holds the share).
The ring-fenced assets situation is more complex - but the admin and structuring costs are a total nightmare and are usually only worth it if the are some really big shareholders involved. It seldom makes sense with a mainly retail investor base.
Seldom does not mean never and it may well be that there are well-structured plans in place.
There are three dates though aren't there - declaration date, ex-dividend date and payment date. It's who holds the shares on just before the ex-dividend date that matters, not the payment date or declaration date. That's the trigger point. However, even that doesn't always apply if certain assets are ring fenced for shareholders on the record at X date. That is a pseudo-ex-dividend date that works a little differently than normal.
TT-T,
That kind of situation requires very complex and expensive legal structuring.
It does not mean it may not be worth it for the company and the shareholders but the complexity levels involved are significant.
I do not see any benefit to PRD in engaging in such structures. It might possibly deter some short-termism (speculator types) but I suspect the costs of the exercise would be way in excess of the benefits.
Hi Androcles,
The payment is made to the holder of the share as of the date of payment, whether he/she held it at date of declaration or not (otherwise the whole thing becomes a complete administrative nightmare).
The shareholder on date of payment is whosoever it is - they get paid the dividend.
If someone sold out post declaration but pre dividend payment, they do not get paid.
I've held other shares in mining co's that have confirmed that future sales of assets, at whatever price they are sold at, will be shared between shareholders on the register on x date, whether or not they still hold shares in the future. I then received payments long after divestment which was nice.
Thanks Sefton,
However is this right ?
“The declaration date of the dividend however can become important because it is payable to those holders of record as of that date (te ex-dividend issue). However, whoever holds the shares on the actual payment date gets paid.”
Surely holding the shares on the declaration date is the key?
Even if there be different classes of share (including Pref Shares - which, as, far as I know, don't exist in PRD), all shareholders of the same class (Ords in this case) have to be treated all the same when it comes to matters like dividends (special or otherwise).
There may be specific lock-in provisions (constraining rights to sell) on some Ords but there is not an ability to differentiate the dividend (special or otherwise) on how long one has held.
The declaration date of the dividend however can become important because it is payable to those holders of record as of that date (te ex-dividend issue). However, whoever holds the shares on the actual payment date gets paid.
So, the ex-dividend thing is a pricing issue, not a payment issue (if you sell after the dividend is declared but not yet paid, you should have priced that in - the dividend still gets paid on the payment date).
GRH.
We might not know the answer, but it’s telling that you think it’s relevant.
It might give pause for thought to any folk that are thinking of last minute bandwagon jumping/trading.
AndroclesB
THAT is an interesting question...
my top of head thought was that it is not relevant (!) as we are at too early a stage
BUT you are actually correct
as we have no idea re state of play on each project...so divestment surprises could be sprung
It is an IF...and I emphasise that ...
if PRD is able to secure project level finance...
the resultant SP moves would be 'interesting' I think
IMO we could readily move up way beyond ATH
en route to much bigger things
Sorry...not really much help!
Regards
GRH
GRH, Zebra.
Any thoughts on how long one might have to have held shares to qualify for any special divis, or what other conditions might be applied?
Morning...
Zebra...
that is possibly THE most succinct and relevant post I have read...you have nailed it
Thank you
Despite all the column inches on this BB
Despite the extraordinarily detailed company presentations
Despite all available information (there is a lot ...including CPRs)
I really don't think that many folk have the faintest idea of the scale of the PRD opportunity
Yes...I might be wrong this time
and I am just a random ...if well informed...chap on a public chat board...
so ignore my ramblings at will
Regards
GRH
It's always good to clear out the weak hands.
Investors that follow tw and the other online gurus are stupid or lack confidence/education to do their own research. Fortunately for them they have the numbers to be influential on the sp in the short term. Particularly when targeting a low mcap stock with a small exchange market size.
Hard facts ultimately win.
There's plenty of ways to do your own research; rns, annual reports, prospectus, cprs, interviews with bod and many others. How some people instead give such credibility to a stranger online is beyond me.
This investment is a special dividend play, the ceo has said so himself since the ipo. The sp is just noise.
Paul extracts a minor salary from the company, his pension is probably higher. He also put up a lot of his own money at ipo. He is not just the ceo, he's the largest shareholder in the company. He will be the largest beneficiary when the special dividends are paid. I've no doubt his interests are aligned with mine.