I mean no disrespect, but this constant Drum Beating for LYC to pay a dividend is (IMO) fanciful, bordering on absurdity.
LYC is a AU$0.68 cent stock (before the reverse split) with multi year growth plans. Yet, this discussion about it paying out dividends never ends. Its like listening to a broken record over and over. It is simply not in the cards. Nor should it be. It has a billion in cash. It does not earn a billion in free cash a quarter. It does not make a billion in an entire year. Yet, the demand for dividends is endless. It has a total of a billion in cash. That is nothing. You argue that with Kalgoorie coming on line, and with Mt Weld "extensions settled", the time for dividends is now.
Lets concoct an assumption, shall we? We know LYC has 1,000,000,000 (billion) shares outstanding. Now lets assume, that a dividend is proffered at AU$0.02 per share, per quarter. A total of $AU0.08 per year. Now, lets further assume you a whale of an investor with 50,000 shares. You are (at present conditions) willing to eat away at 35% of the entire prorit of the company so you can deposit AU$400.00 in your Building Society ??? Or AU$100.00 per quarter year. Are you truly that in need ?... Because that 35% is being used to get Kalgoorie open (which it is not), even though it was promised to us to be operational in August, 2023. And the costs of developing new areas Mt Weld. This is another free endeavor ? I think not. LYC is a growth stock. It has absolutely no business (financially) than becoming cash rich, so it can expand to a company that one day may pay a dividend.
Microsoft was incorporated in 1975 by Bill Gates and Paul Allen. They also knew they owned a growth stock. Perhaps the reason it never paid a dividend until 2006. Only 31 years.
And Google: Does Google Pay Dividends? Google has chosen not to pay dividends, primarily due to its strong desire to remain focused on expanding into new business ventures. This sets Google apart as a company continuously seeking innovation, even though some of its endeavors may fail to succeed.Sep 11, 2023... This is a direct cut and paste from Google search.
If you are an investor in LYC for dividends, you have hitched your bridal to a three legged horse. If LYC decided to pay a dividend, I would dump my holdings tomorrow. Because, a dividend makes no allowance for sector slow downs (like we are in). It provisions ZERO for an American build out, and raping the company of that much free cash flow, would put LYC as a continuing Going Concern in jeopardy. In fact, I would guess that the company would stagnate in its growth, and another comperitor would walk along and grab our market position. Either way, LYC would not continue to exist.
Anyone who things LYC should be doling out dividends at this point, is either misunderstanding the present situation or is a hard up old age pensioner looking to improve their lot in life by trading up from yesterdays newspaper to a more plush two-ply toilet roll...
Its utter nonsense. This dividend noice is not helpful.
With all due respect...
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