Hmm... Everything you say seems to indicate you are quite a recent holder with little knowledge about GRR and its history. I was a holder until about 10min after the dividend ann... I love how much money is made here but unless paid out or clearly stated what it will be used for it is worthless to me (and to the market). My decision to sell appears to have been correct so far.
And "the board will announce in due time", mate they have had all the time in the world! GRR is just running at steady state, not like they are overwhelmed with work! Your talk about overtaking another company is great! But that has never been GRR's strategy in 5 decades of operation and they have never even given a hint that will change. If this is what they want to use the cash for its a very easy and straight forward announcment which also could mention approximately how much they would consider spending on it. The only real action these guys have taken was a completely misguided real estate venture that lost money.
Prospects for growth? Really? The underground mining wouldn't grow the business it would just extend mine life at Savage River. That is obviously great if viable (which I think questionable, but I am not an expert). It would also only cost about $100M. They had that 5 times (now probable 6 times) at the last quarterly. So not a reason to be so stingy with dividends.
South Down you say? They had it for a very long time all the way through at least two IO cycles. In all this time GRR hasn't gotten to actually developing it. If this is such a great project why didn't they progress much further even through the bearish times to be ready and get going at the first signs of improvement? How come the most experienced, profitable and now also cashed up magnetite miner in Australia hasn't been able to find a JV partner for this, even during recent boom times and knowing the world will be heading towards greener steel and higher IO grades? The answer seems obvious: Its not that good a project! It is however a great excuse to hoard cash!
The "absurd logic" about share prices of GRR in particular being very much linked to dividends simply matches the facts much better then any other theory put forward. Are you seeing the price going back to 50c mate? Happening right now!
And your attitude to other posters is hardly polite!
And no the board did not generate the huge profits, the boom in IO prices did. They changed very little over the past couple of years. And indeed they didn't say what they are going to do the with $$. That's the problem. They had ample time to make a plan and communicate it to share holders. I sold out because I expect the share price to fall. I might buy back in lower yes. And you are right. It has little chance of success because these guys are in bed with a company from a country with a hostile government that holds a controlling stake.... See the wonders its doing for the share price!!
And I am not a retiree and I have very few dividend paying stocks. But in GRR's case dividends are the reason for buying. Illusions of growth so far have proven to be an excuse to hold on to piles of cash.
GRR Price at posting:
57.5¢ Sentiment: Sell Disclosure: Not Held
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