Price of Iron Ore, page-1625

I recently calculated the cost of providing a 2 cent dividend. Currently there are about 693 million shares issued. I think apart from performanace shares in the future that is it.

So a 2 cent dividend after tax costs the company about 14million aud.

A 3 cent dividend will cost about 21 million aud.

Their dividend policy is set at between 50 to 80% profit. Last year they had big expenses coming up so they even went slightly below the 50% payout.

I expect they will pay out around 50 to 60% of the profit. My guess is they will want to keep 20million aud for expenses like the construction of the access road.

So if we can get over say 42 million total profit I cant see why the dividend cannot be somewhere around 3 to 3.5 cents per share.