Dividends/Buy Backs15 Dec 2021 10:37
On a slow day to promote some discussion:
TGA has said it is "appropriate to maintain a liquidity buffer of between R5bn and R6bn during and following
periods of stronger market conditions". There is a "cash position of approximately R8bn on 30 November 2021" which at current prices should be more than R9bn at year end.
By my estimates this leaves approx. R3.5bn for dividends/buybacks , equal to £1.20 per share, for the 6 month period till end Dec 2021 to be paid March/April 2022?
Then, by my estimates on current forward curve prices, at conservative 7mt export sales per 6 months:
Cash profits of $290m (Av RBCT price $130) for 1st half 2022.
As the R6bn buffer is already in place, what else can they do with this extra cash other than pay it out/buybacks??
So equal to £1.57 per share for the 6 month period till end June 2022 to be paid Sept/Oct 2022?
Cash profits of $195m (Av RBCT Price $113) for 2nd half 2022.
So equal to £1.08 per share for the 6 month period till end Dec 2022 to be paid March/April 2023?
Personally, I would like to see some buy backs, as well divis, to help strengthen the share price, but with £3.85 "returned" to share holders, R6bn still in the bank and a coal mining business attached, even allowing for a volatile commodity in an industry that will eventually shrink, why is the share price currently only worth the pay-outs earned to the end of next year? Especially as the last few days the sp has been dropping even as RBCT price is rising?
Anyone else care to share their own estimated figures or reasoning and/or correct mine?
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