Thats right. A company should pay dividends when its rate of return on invested funds is expected to be lower than retained funds. I should buy it's stock back when the shares are highly priced' or poorer value. That way the return on capital for existing shareholders both ways allow shareholders to get funds in their hands.
Right now they have a lot of cash and are expected to earn a lot more a cash, buying back or reducing the shares on issue sets them up for later when they may need to raise capital to fund the projects they are developing. Like Rentails. Parts 1 & 2 and maybe takeover of First Tin after their build or on financing.
It's up to them on when to press the accelerator, right now they are allowing the gas tank to fill. In fact, these guys have done a helluva lot better on capital management than most especially for a co. this size. Probably better then BHP & Rio since the current management is in charge. All have had tailwind from commodity prices.
(I was the first one to mention the option of buyback about two years before they started. They were cautious but I'm happy enough with that).
All IMVHO.
MLX Price at posting:
51.3¢ Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)