a write down has no impact on the dividend unless of course there is a net asset covenant issue which there is not given gearing is at 12%
a write down is non cash balance sheet item.......dividends are paid out of cash flow
plenty of companies keep paying dividends whilst taking impairments, happens all the time
i sure don't want a dividend if it means we are going to need to raise equity to fund frieda, doubt management are that stupid when we have large pending capex......plus there is the clientele effect, people don't own stocks like PNA for income, it is for copper exposure and potential production growth
management have said that the business just does not throw off a lot of free cash at sub $3 copper (from the conference call)
PNA Price at posting:
$1.28 Sentiment: None Disclosure: Held
