dividend, page-20

I have read the calls for the Directors to declare a large dividend, thereby sending a message to the market that BCI is here and it's earning good money.

The logic is that the declaration of a large dividend will “finally” cause the market to notice BCI, will create demand for the shares and move the share price to where it belongs.
Note: every shareholder believes the shares are unnoticed/unloved and therefore under-valued.

However, it was thought that BCI shares would be re-rated when:
1. mining commenced
2. the first ore was loaded onto rail
3. the first shipment was sent
4. the all weather road was completed
5. there was a quarter with positive cash flow
6. the mine life was extended

It seems that at every stage something has “conspired” to hold back the share price. It may have been the bots, the lack of media coverage or maybe the disinterest of analysts.

Mike has done an excellent job of raising the profile of BCI, to bring it to the attention of the uninformed.
However, he can't make people buy the shares, he can't control the bots and he can't control the price of iron ore.


Will a large dividend make BCI the darling of the ASX?

Will there be a sudden desire by non-holders to become shareholders?

Or will the bots nullify any upward movement?

Or will the iron ore price remain at the current level for a substantial period?

In my opinion, the Directors should declare a moderate dividend as a reward to shareholders, but the majority of the funds should be retained to allow the Company to survive in this current climate of uncertainty and to grow BCI should favourable opportunities arise.