Member Info for Moneyman64

Sorry should read “no reason not to stick to a final dividend of 4c”

Thanks Mike -I think the actual dividend policy is to pay out a “minimum of 15% net profit after tax” so I don’t think there is any good reason to stick to a final dividend of 4c bearing in mind

1-the total of 7c dividend for the year would only represent approx 20% of NPAT assuming the figure circa $100 million

2-the large net cash balance of circa $125 million

3-the negative message that a dividend cut gives to the market.

4- the capital cost of Karo being spread over a longer period

Thanks Mike -I have similar profit figures to you -however I think it would be very shortsighted/stingy to cut the dividend bearing in mind the net cash position of £100 million plus and the delayed capital expenditure in relation to Karo -the last thing the company will want is yet more knocked of the shareprice as a result of a cut dividend ..A total dividend of 7 cents would still be only represent approx 20% of the net profit for the year

The difference between a final dividend of 4cents and 2.75 cents is $3.75 million representing just 3% of the net cash in dollars

Agree Seatank-ever since Karo was commenced the shareprice has gone in one direction -the cash costs for Karo at over $1000 per PGM ounce seemed to be very high .

Agree the dividend should be maintained but I fear Karo will be used as an excuse to cut it despite some $125 million net cash.

Also I would encourage the management to set aside say $10 million to undertake some sort of share buy back.

I was not suggesting a sale “at a fraction of asset price” but anything circa £2 per share should be considered

it seems to be general stock market conditions -any announcement is seen as an excuse to further mark down a shareprice -anything negative is pounced on and anything positive ignored.

so with cash in the bank exceeding £100 million the market in its wisdom is valuing the sa tharisa mine operation at £80 million (less than one years profits?) still a very profitable operation at current chrome price which would cost at least $500 million to build today (and that of course does not include finance costs)

if i was in charge of a large miner’s m and a department i would be seriously looking at tharisa well this is below the radar-any bid under £2 per share is a complete bargain and of course could be undertaken by a share for **************-glencore perhaps?

Thank you Tharisa-there seems to be a total disconnect between the company’s financial position (cash and assets) and the company’s shareprice .

It would persumably cost hundred of millions of dollar to set up the chrome and Pgm operation in South Africa -could not a few million dollars now be assigned to a share buyback -this could help the shareprice significantly

Be interested to know what the total spend on Karo is to date and how much more will need to be spent to production (how has the prudent delay impacted on the cost of the project)

8 million warrants are hardly material in the over all picture -almost 5 million shares have been traded today -the key to restoring the shareprice to a healthy level is a combination of delivering on projects more or less within budget ,hitting production targets and higher commodity prices -especially PGMs-remember this went from 2p to 20p very quickly mainly on high PGM prices

Also not to try to expand too quickly and over stretch the company’s resources

Time for some definite income generating news -this will move the shareprice

Couple of articles on the PGMs metals daily site today explaining why PGMs prices should start recovering due to a combination of factors including supply restraints,ground stocks decreasing and USA making recycling harder.

15% to 20% recovery in PGM prices predicted-very material to JLP’s bottom line

All these posts and no mention of the factors that will determine the future direction of the shareprice -namely the market price of chrome,PGMs,copper and possibly cobalt .production levels and production costs.

History tells us metal prices can change direction very quickly-they are in the doldrums currently,-If copper was to hit $12000 per ton next year for example (as some predict) the dynamics chance considerably -i

Higher production levels and metal prices leading to higher profits would very quickly reverse the shareprice

Results reasonable bearing in mind the difficulties encountered -both weak PGM prices and now resolved power and water problems.

Good to have strong balance sheet with net current assets of £19 million -so no large crippling debt to pay.

Looking forward to coming year-higher metal prices would make a huge difference

Very funny Gazzleberry -hope the queue at the soup kitchen isn’t too long today for lunch

Someone’s confident £45k purchase

Hope Karo is on budget -shareprice keeps falling despite constantly high chrome price.

Hope there is no nasty news on Wednesday -

At these prices surely it makes sense to buy some shares back -

Have any cost savings been identified in relation Karo?

So far October has been very much a “damp squib” for GLR -come on Mr Bird give us some “transformational “ news

Similar to Sirus minerals -someone will get a bargain here but I fear it will not be the ordinary shareholders

Bit of a bold claim -Bushy -who knows what new technologies will come on line in the next few years to tackle climate change and other challenges -you can’t say there will not be new ones that require PGMs.Years ago no one would have seen the requirement of PGMs for catalytic converters .Hydrogen fuel cells perhaps for one

Agree -a dividend increase would be good to help shareholders but it will probably be cut due to the vast amounts being pumped into karo.-believe this is the main reason for the sinking shareprice-SLP and JLP are holding up reasonably well

Surely something should be done to try to stop the daily shareprice erosion on very small activity -a share buyback would help

The other alternative is a management buyout.

The unknown factor is of course Karo