Ryan Mee, CEO of Fulcrum Metals, reviews FY23 and progress on the Gold Tailings Hub in Canada. Watch the video here.
"The Board has approved an interim dividend of 42.54 pence per share which will be paid in two payments of 21.27
pence per share. The first interim dividend payment will be paid on 30 June 2022 to shareholders registered on 27
May 2022."
Price action was always going to be a bit strange given the current macro environment. I notice that if the one-off lease purchase is added back onto the profit figure and then we divide by the actual outstanding shares, rather than the average over the year, we get an EPS of 32p (424/1330). This just about covers the 23p div and 7p buyback programme. With around £1.60 of tangible net asset value per share, this adds a floor to the share price (in theory). Overall I'm happy with today's results. GLA
Paul, this from page 8 of the presentation you may find helpful: "1. For regulatory reasons, and consistent with past practice, the final dividend will be declared and paid as a second, interim, dividend. Ex-dividend date 17 March, payment date 28 April;"
The reason IMB used to have a dividend cover of 1 was that they made around £2bn in operating profit and paid just under £2bn in dividends (just over £2 a share at the time). What the dividend cover figure didn't capture though was that another £1.3bn or so was added back to operating profit in that cash flow statement due to the non-cash expense of amortisiation/depreciation. It was this £1.3bn buffer that gave IMB headroom to pay interest, cover capex and slowly chip away at the debt. I think it got to the point where a lot of investors weren't happy with the speed of the debt reduction so Alison was shown the door and the dividend was subsequently slashed by a third. They also sold off our wonderful cigar division. Going forward I think there is a good case here for resumed dividend growth.
I was under the impression that advertising bans inadvertently helped tobacco co's in the past? The established players got to keep their market share without having to spend any money on marketing. No advertising = no new players gaining a foothold in the market.
The buyback is effectively an extra 87p dividend this year that gets automatically reinvested on your behalf to increase your ownership, this is on top of the £2.18 coming directly as cash. Let's see how many other companies increase returns to shareholders by 40% this year whilst managing to reduce debt.
Does anyone know what will happen to my LON:BHP shares over the following months? I'm happy to hold onto the company but my broker is unable to trade with the ASX. Will I have the option to select whether I want the shares converted to BHP Ltd or the new LSE issue? Thanks
Continuing on this thread is a very good post from finumus: https://www.finumus.com/blog/what-if-my-broker-goes-bust
Slodo, short interest is way too low for that - only a couple % last time I checked. Not sure how far they expect to drive down the price though, our market cap is under £3.6bn now and if management surprised the market and said forget the div everything is going on buybacks they'd be looking at about £400m per year i.e. 11% of the company at current prices. That would get the shorts sweating pretty quick haha. We also have around £1.65 of tangible net assets per share which I feel should put a floor on the price.
Personally, I view both DLG and LGEN as reasonably and similarly priced at current levels, they should both earn about 30p EPS this year which means an earnings yield of 10% (PE 10). DLG typically pays a 22p ordinary dividend with the remainder usually paid out as specials or buybacks which basically eats up all their profits, they tend to increase the ordinary div at 2-3% per year. LGEN on the other hand will pay about 18p in divs and will retain the remaining 12p for growth, 12p at their usual 20% ROE equals 2.4p in future profits or 8% growth. So with LGEN you get a slight bit more growth at a cost of a lower div yield. Recently LGEN has stated they will be running div increases below profit growth for the next few years so I'd actually expect div increases to be around the 4-5% level for them, rather than the 8% above. ATB
"The Group has outstanding Tier 2 debt issued in 2012 with nominal value of £250 million and a first call date during the
first half of 2022. Excluding this debt, the Group’s solvency ratio after the proposed interim dividend would be 177%" Page 8, 2021 HY report.
Also, take a look at page 16 on the H1 2021 presentation, they display the solvency ratio excluding callable debt prominently with the callable debt percentage greyed out. Therefore I'm assuming this is the figure they'd use when determining potential capital returns. ATB
The solvency ratio was 177% at HY excluding Tier 2 debt callable in 2022, to get back down to the 160% level we'd be looking at a capital return of around £250m via special dividends or share buyback i.e. 18-19p per share. This would potentially be in addition to the 22.3p ordinary div per share. Did the CFO mention where the solvency ratio was in Q3 out of interest?