Dividend lower than expected - 45% of NPAT and 25% of operating...

Dividend lower than expected - 45% of NPAT and 25% of operating cash flow. This level of dividend is certainly low by historical standards.

But tax payments in FY22 much higher than expected with a large tax payment to be paid mid year and additional debt repayment is a good thing. Also costs and royalties higher in FY22 than expected, and this will continue into FY23. Significant capital expenditure also planned for FY23 ( $750-$900 million) and coal prices are dropping. So may be a conservative dividend payment of 70 cents is a sound and balanced decision.

Looking forward, it looks like to me YAL is building a large cash balance in case it buys one of BHP's mines or some other material M&A activity. For example, the BHP's Blackwater mine might cost in the order of $3 to $4 billion at a guess. So by mid year, an acquisition of this size could, I think, be funded by cash and debt without the need for raising additional equity. Lets hope YAL gets any acquisition right (ie creates value for shareholders). If M&A does not happen in the next 6 months, I suspect the next dividend payment in October 23 might be higher than expected.