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$1.57 silver lake resources limited

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1ozCopper

129 Posts.

31

22/01/20

11:27

Post #: 42509993
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Originally posted by timbuckley: ↑

There are 760mill or so shares on issue. $180Mill in the bank. Around $100Mill per year free cashflow/profit. How much div would you expect?
For it to be material lets say 5%? That would roughly be $50 mill plus tax for 100% franked so possibly up to about $80mill. If that was paid every year there would be little expansion. If they did a one off, they cut their cash down to half and for what? 7.5 cents profit can be made in a weeks trading if one applies themselves. Any dividend would weaken the company more than the payout would be worth IMHO. Regardless that SLR doesnt pay a div, the stock is up over 50% in 6 months and probably be up another 33% in next 6 months. Isnt that worth holding regardless of divvies?

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It's not about the value in the dividend, it's that the they actually pay one. It's all about the optics of doing so.Hence I said a "token" dividend, that gets runs on the board. As albatrosss said, say a 2c dividend would only cost $15M.

SLR Price at posting: $1.53 Sentiment: Buy Disclosure: Held
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