Let's say the POG and gold sector goes ballistic. FML might be making shedloads but so will other (worthwhile) goldies and it will be cost prohibitive to buy-out/in. Why not a dividend under those circumstances? (Provided capex taken care of)
The blanket statement that all divvies are wasted is IMO invalid. Divvies stabilise many companies by keeping on the register LT investors who would rather earn an secure income and a LT capital gain on their investment instead of earning a few pips from a bank/trust/bond etc, without the complexities and illiquidity of RE or investing in private companies/partnerships.
At the FML end of the mkt it might be all about cap gains but that's not true for all coys.
I do agree that a lazy FML balance sheet is the least desirable option.
Cheers,
C12
FML Price at posting:
5.8¢ Sentiment: Buy Disclosure: Held
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