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Nigel - you are correct that that a number of costs are not included in your basic calculation.
Production costs Excludes depreciation, royalties and selling, general & administrative expenses and cost associated with COVID-19
At the half year, selling and admin costs for the Group for H1 FY2021 were $11.6m, so estimate $23m for full year
You also need to consider financing costs ($3m for H1 2021), corporation tax and minority interest at Vametco of 26%.
The growth and profitability is coming but it’s not going to happen overnight.
Hope that helps.
Carpfisher - also just noted that although notice was given of the EGM, when it actual took place on 28 April 2021 it was referred to in the RNS header and also within the RNS as General Meeting.
https://www.lse.co.uk/rns/EUA/general-meeting-results-86bno9roff1b3au.html
I can only conclude that the original notice RNS that you referenced was incorrectly worded?
Carp fisher - Can’t explain the RNS but here is the link I referred to….
https://uk.practicallaw.thomsonreuters.com/4-107-5988?transitionType=Default&contextData=(sc.Default)&firstPage=true
Sharegar- EGM terminology no longer exists…,
From 1 October 2007, under the Companies Act 2006, the term "extraordinary general meeting" is no longer applicable and instead the term "general meeting" is used to describe a meeting of company members.
Cv76 - aaah ok, please excuse me if I misinterpreted your responses and thanks for the polite exchange.
As I said I rarely post and in fact hardly ever look in here anymore. I just thought I’d look in over the last couple of days to gauge sentiment and reaction to dividend policy RNS.
Obviously I am positive on sale of assets being agreed and have held firm for two years. To be honest, I am not the least bit concerned about the level of dividend, it’s all about the sale for me, as there will be the opportunity to take profit/cash by selling some shares as soon as the deal is announced and the rerate occurs.
Cv76 - not being defensive, and I hardly ever post here to be honest because of all the nonsense postings.
So from my earlier post, could you kindly respond to the following:
4.6 covers off a special dividend to be paid from 2022 net profits.
This is clear to me. If you do not agree, please explain why as if so then you are stating that the company would issue a dividend policy which would prevent them paying a dividend out of current year profits. No company would ever do this.
Also why do you think the policy is being published now, when without a significant sale, the company would have to generate trading profits to declare a dividend. They would not be in a position to declare a dividend without a significant sale of assets for several years as they would need all of these cash reserves to set up the mines.
@Shergar - The AiM rules require that on the announcement of a proposed sale of substantially all of the assets, the company is required to set out in detail at the same time, the plan for the business moving forward.
There will be no suspension IMO due to this.
@cv76…..
“4.6. If, at the time of preparation of recommendation on the dividend amount, the preparation of the Consolidated Financial Statements for the reporting period and its audit have not been completed, the Board may propose to establish the dividend amount based on the expected Net Profit amount. In such event the dividend amount shall be adjusted based on the Net profit reflected in the Consolidated Financial Statements as of the date of the Company general meeting declaring the dividend.”
4.6 above covers off a special dividend to be paid from 2022 net profits.
This is clear to me. If you do not agree, please explain why as if so then you are stating that the company would issue a dividend policy which would prevent them paying a dividend out of current year profits. No company would ever do this.
Also why do you think the policy is being published now, when without a significant sale, the company would have to generate trading profits to declare a dividend. They would not be in a position to declare a dividend without a significant sale of assets for several years as they would need all of these cash reserves to set up the mines.
Net income will obviously include profit on disposal of significant assets (e.g. MT + Flanks).
Last years net profit is totally irrelevant- the company will announce a special dividend when these assets are sold. They will declare it from 2022 net profits. Do you really think they would have to sit on a huge pile of cash until 2023 to pay it out as a dividend!?
Not gone through in detail as at work, but Orion and La Mancha taking a chunk at 7.5p.
“Orion has entered into the Orion Investment Agreement pursuant to which Orion will subscribe for US$50 million of newly issued Ordinary Shares at the UK Placing Price subject to a maximum of 7.5 pence per share and will procure that one of its subsidiaries will subscribe for US$50 million of Convertible Notes.”