Grange's Iron ore pellets at A$427/tonne, page-115

Hi Marsav,

Figures quoted were:
1. revenue of $1.09 billion . . . based on $437 per tonne for next 12 months.
2. C1 costs at $113 per tonne (as per annual report).
3. That equals a profit of $810 million.
4. Last dividend paid equalled 16% of profit (revenue minus C1 costs).
5. If Grange continues with the same policy of paying a dividend equal to 16% of profit (revenue minus C1 costs).then that will equate to a dividend of 12 cents for the next 12 months.

On top of that 12 cent dividend many will also be entitled to an imputation credit from the ATO of 30% bringing the dividend return for the next 12 months to 15.6 cents . . . and that is a conservative calculation based on a repeat of the previous dividend paid that equated to just 16% of profit (gross revenue minus C1 costs).

The consenus is that our high quality low emmission pellets will continue to demand a premium price for at least the next 12 months . . . at this rate the SP will sky rocket.

Grange will pay tax from the 84% slice of the profit that they receive.

Depending on one's situation one may or may not have to pay any income tax on the dividend received, similarly the imputation credit may be in the form of a tax credit or cash refund such as is the case for a low income earner.

Entities outside Australia are not entitled to an imputation credit . . . that is a huge win for the ATO as they get to hang on to more of the company tax that Grange pays them.