Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Whatever, I just don't get why this isn't way north of here, except Ukraine of course. Screaming buy when all the smoke clears, of course by then it may be too late.
Nah the ER says mid-7s. Still, wodda bargin, Disc2NAV -7% end-Jun 2022. All coz Ukraine has spooked everyone.
"In addition, the Company has paid a dividend of 2.2 pence per share in January 2022. It will also pay further dividends of 2.2 pence per share in July and October 2022. These four interim dividends, with a cumulative total of 8.8 pence per share, provide an annual payment to shareholders representing six per cent of the closing net asset value per share of the Company as at 31 December 2021."
That looks pretty close to 9% currently to me. Of course, if the NAV hasn't recovered by 31st December 2022 it'll be re-set lower then, if that's what you meant?
Yes, but only on a temporary basis. The nav has tumbled and the divi reset at 6% of that at end of December.
Seriously! Heading towards 9% dividend!
Divi impossible to predict with any certainty. Assuming the sp and nav remain as they are now at 31st December the yield would be a very acceptable 6.2%. Obviously a falling nav is likely to drag the sp down with it. Reserves may need to be tapped to pay the promised 8.8p this year.
As at 30 June 2021 the Company had a Distributable Reserve of £335.8 million.
Total dividend payments year to 31 Dec 2021 £28.8 million.
So even with no income they can afford the dividend for the next 12 years. However, investors will be looking for improved dividend cover going forward in the hope that EAT will be able to maintain the recent level of dividend growth.
If any of the information from boards is reliable, dividend cover was very low...is this now a sell on SME vulnerability to rising rates?
10% increase is pretty decent(long may it continue).. and 2.2 is a nice round number. Might mean it's keeping pace with inflation at least!
Nothing to complain about here performance wise since I got in at least.
Bang on Dusty - well done mate.
Cant complain.
Spot on dusty, 8.8p per share dividend declared for 2022 (barring unforeseen circumstances) in level payments of 2.2p per quarter.
Now confirmed at 8.8p per share for 2022. 4 equal payments of 2.2p.
I guess they will anounce the dividend for this year in a couple of days. Based on the '6% of the year end NAV' policy(does that mean 31st december?) which was £1.46.. that'd work out to around 8.7p or 8.8p for the coming year.
And relative to the current SP, £1.40 as I write, that'll be a yield of 6.2% based on an 8.7p for the year payout.
'Continued policy of six per cent dividend on year-end net asset value per share for annual distribution to shareholders.'
This is showing excellent signs, a new high SP and a 2021 dividend of 8p. Very optimistic with this, social recovery on the way up. Growing inflation will be a concern but i believe this to be in good hands. Glad I'm in.
Very pleased with this years progress, empowering the high SP to go onwards and upwards, a good position.
Excellent report, benefits of the investments made last year starting to work through to total returns. Had to dip in to distributable reserves to maintain the dividend, but the reserves are so massive it's hardly had any impact. Solid stuff, great yield, onwards and upwards for EAT.
Thanks dusty. They haven't exactly helped to clear the mist have they? "readily realisable assets"? Bonds? Bullion? Watches?? Cattle??? After the last (reported) dividend distribution, the distributable reserve had dropped to £346m but as you pointed out in your original post, that's enough to cover the dividend for years ahead even without income from investments.
Like you, I'm very happy with my investment here. My only issue now is that the SP seems to be catching up with the true value inherent here, so the yield on any new shares I bought would now be less than 5%. My current shares are earning over 6%, so I'll try to raise some funds to use in the event of a pullback in the SP. That looks unlikely for now though I have to say.
Thanks again, & good luck with your investments. K
Hi Krustysmegma, thanks for the response.. I did email EAT and got a reply from the company secretary 'the Distributable Reserve is composed of readily realisable assets. This reserve is disclosed to provide shareholders with comfort regarding the sustainability of the Company’s dividend.'
It didn't fully answer my question as to exactly what this reserve entails. There is also some reference to it's composition in the full year report. I suspect it includes liquid assets that are part of the trust. For them to have a reserve this size completely independent of the trust would indeed be awesome, but sadly I think that is hard to believe(I would welcome being proved wrong). That said, and regardless - I am very pleased with performance here in the time I've been a holder. Seems they have made some good decisions at a turbulent time.
dusty42, I'm not an accountant or anything similar but everything I've read about a distributable reserve suggests it is just that, money put aside by a Trust during good times (up to 15% of distributable funds p.a.) to cover liabilities, including dividend cover, during leaner times. If this is indeed the case, EAT looks to be in a very healthy position currently. K
Hi silverknight. Yes, I was trying to clearly indicate I did not believe this to be the case, it was the reason for my question. I will try contacting the company and asking.
I'm happy - will be approving and re-appointing at the AGM
Clearly the 369mill of distributable reserves aren't cash. Feels like this company is chasing its tail to maintain the divi. They seem to have made some good investments lately and the return to shareholders is great as long as it's not countered by a falling share price
Turning the light back on temporarily.. I bought in here last year - seemed like quite a bargain and and has performed fairly well, decent regular income.
If there is anyone out there, I have a question. In the RNS on 30th of March there is the following statement 'and a Distributable Reserve of £339 million.' Can anyone shed any light on what this is? As I understand it a distributable reserve is accumulated profits, used by trusts to cover dividends in hard times? Which is great, but this seems like a big number relative to the market cap.. and what form does it take? Surely this can't be a cash reserve of this size? By my maths this could cover the dividend in full for more than a decade.. which surely can't be the case? Ok so that's quite a lot of questions.. can anyone shed any light?
Switching off light, closing door, will come back in a year see if anyone's passed through..
Final results today, at the height of the pandemic has returned over 20% in total and intends to pay a dividend of 8p (c. 6%) in 2021 in 4 quarterly instalments. Total return of over 200% in the last 10 years. Currently c. 9% discount to NAV.
I'll switch the light off now, no point wasting electricity. If you happen upon this share, it's our little secret, keep it to yourself.....
Yes, not much comment on here. I bought a little time ago, just under 100p
Looking at the possibility of adding more this month. There's just so many high options around at the moment.