Drill, firstly without going back whoever posted the divvie would have said 8% not 8c. That was going on past dividends. And no, it's not locked in. DDH sad they will pay somewhere between 30-50% of their net profit in as a dividend. A few things will impact on their profit when compared to last year. Covid and loss of staff due to this, together with lockouts for part of the year in WA where most of their work is done will have a bearing. Secondly, drillers use a lot of energy. The price of oil will impact on profit. As will general inflation and wages. Some mining companies, DCN, as an example, are closing unprofitable mines to preserve money. This entails less drilling, and exploration companies are also being more careful with their spend. Easy money of the past is getting harder to get hold so companies need to preserve their cash. Exploring companies and marginal producing companies may utilise two instead of three rigs, or whatever. The point is that going forward it's probable that DDH's net profit will drop for a while and thus dividend will also decrease .Actually, as most of Swick's drills are underground and focused on more established mines. They should hold up reasonably well, thus mitigating some of the % drop in revenue and profits, IMO. Still all up, doesn't matter how you look at it, it appears a bargain buy at these prices. The problem is when will the seller finish selling. Someone obviously wants out. And as they say, selling begets selling
DDH Price at posting:
62.5¢ Sentiment: Buy Disclosure: Held
