MGT General and Off Topic Chat, page-789

Responding to a post in the PFS Predictor thread - "I seriously doubt dividends of $1 within 10 years. I think we will be miles off that. But extremely happy to be wrong", by Raeburn.

So I agree very much with this.

I am however, asking myself where things might be at with dividends.
I'm not great with maths, and I don't know the complete picture of operations with a magnetite business, but it's an interesting concept to think about.

Let's say in 10 years we're shipping ~20mtpa. I feel like that's a best case scenario,
but we're all dreamers, so lets roll with the image,
and humour me while I speculate out my ass;

if we're making just 50 bucks profit per tonne, after all other expenses -
and assuming we're not paying off any debt, etc -
50 x 20m = a Billion dollars.

Let's assume we're still at 4 billion shares.
so 1 billion, divided by 4 billion,
that's 25c a share.

you got a million shares, that's 250 grand annually (un-franked).
spread out over two payouts a year, that's 12.5 cents a dividend.
Franked.... I don't know.
Not sure how the franking situation works, to be honest.

Would that be like, 7.5 cents franked?
so 75k franked, per million shares.

This is all assuming that they wouldn't be forwarding profits to expansion, other operations, etc.
It's also assuming no offtake/business partners.

On the positive side, we might have offtake,
but we might be making more than 50 bucks profit per tonne.
So we might get that 75k bi-annually regardless.
There's a lot of unknowns.

Iron ore price,
partners,
future demand.

I guess that's the reason we say GLTAH.

It's a good thing our management is just so damn efficient.
Not letting these shares go for anything.