Ryan Mee, CEO of Fulcrum Metals, reviews FY23 and progress on the Gold Tailings Hub in Canada. Watch the video here.
You're making the assumption that disgruntled retail shareholders don't get Suzy removed as CEO at the AGM if no good news is forthcoming on outstanding projects by then. No news , low SP and cash raise is one hell of a story to sell.
LTI: You are factually correct 8 billion shares have been bought back since February 2018.
For those who don't follow the detail this has been offset by 3.3b new shares being issued in the same period.
At 28/02/2018 shares in issue was 72.1b
At 28/02/2023 shares in issue was 67.4b
A reduction of 4.7b
Case completed. No judgement till after Easter
It seems to me that if the SP remains at it's current level any attempt to get through a resolution 4 or similar at the AGM in June is doomed to failure.
For the SP to move up substantially either THR needs to be resolved to our benefit or good news on some of the other projects pushes THR into the background. If neither of these happen and the SP remains at it's current level we will be in a totally different ball game.
By nature I am an optimist but temper that with realism. I continue to hold but keep under constant review.
LTI: as a pensioner I will happily take the most HMC wish to give me. However I struggle with the concept of HMG not being able to give public employees an inflation equalling pay rise but pensioners can have the full whack.
What makes you say divi nearly 5% ? There are circa 5% less shares in circulation than this time last year.
I thought one of the perceived benefits of buy backs was an improved dividend . I don't see a 5% increase in dividend as an improvement. The company would only be shelling out the same amount of money as last year.
Asp1: Lloy issue around 750m new shares most years so a buy back of another £2b minimum i think is pretty nailed on.
I cannot see Lloy increasing the final dividend by more than 10% - 5% reduction in shares in issue and 5% improvement. this would cost circa £1b. If your prediction of £6b full year PBT is correct that leaves £3b. If this is reduced by £1b+ for provisions you have to seriously question the company statements regarding loan to equity ratios. That leaves a balance of £2b = circa 3p per share . If a special dividend is issued anywhere near that i will be astonished but extremely happy.
We are now in at least the third generation of mass home ownership which is why about 50% of home owners have no mortgage. Add to this the loan to equity ratio of Lloyds mortgage book , i think , is in the order of 75%. I suspect most home owners with mortgages will move heaven and earth to avoid repossession. I therefore conclude the impact on Lloyds in the scheme of things will not be major. The bigger issue in my mind is HMG deciding that dividends are an easy tax grab piling further damage on the pension industry and subsequently pensions now and in the future.
I see no point in arguing about whether the shares in issue are smack up to date or not. They are a lot lower than they were at the start of this year. The reality is that LLOY have a history of issuing circa 750m new shares each year as part of employee renumeration packages. When the buy back is complete LLOY will advise the S.I.I. at that time. Without further buy backs dilution from that point is inevitable.
As I understand it the share buybacks are being generated by an ALGO. The criteria contained in the ALGO was set by LLOY. MS have no say in the purchase quantity or timing they just manage the output from said ALGO.
The issue is simple . Can the ALGO spend roughly £500m in 98 trading days ( I make it 101 days but let's not split hairs ).
Clearly 11m per day is not a problem but as each day passes at the current levels it will progressively become an issue.
I do wonder though does it really matter if the £2b is not spent bu year end ?