Seeing as the rest of us are clowns, would you be so kind as to explain with a few numbers how dividends will be paid next year. All signs point to plant not being completed until April / May at the earliest, then a commissioning period. Then the company has to pay back the loan starting Jan 2016, $8 mill a month for 12 months, so that takes out the 2017 calendar year as well.
Then we have Max stated $1 dividends. Let's say there will be some 300 mill shares on issue at a minium and we assume the company will be very generous and return 70% of after tax profits to shareholders and they keep 30% for exploration and expansion.
That equates to needing an after tax profit of $428 mill.
Last year the company announced a NPV of $1.4 billion over 10 years or $140 mill a year. Their assumptions included copper , gold, cobalt and magnetite sales. Perhaps you should check the selling prices assumed by CDU in their calculations converted to A$ at the 90c rate to the US$. Then check the current prices in US$ and convert to A$ at 82c fx. Copper is not far off but gold is down significantly and cobalt and magnetite are 60 to 70% of prices used by CDU.
Very easy to disparage posters who do not believe in fairy tales, but if you want to do so and have any credence then you should be posting some factual based retort.
CDU Price at posting:
$1.34 Sentiment: None Disclosure: Held
