Yes, I agree that spare cash flow is better directed toward growth opportunities rather than buybacks at this stage. The recent expansion into new regions and hatcheries, along with the collaboration with an underutilised pearl grower should help increase oyster production + assuming consistent quality, this should lead to a greater supply of higher-grade pearls. This would support expansion into the wholesale and auction markets.
That said, the current (unfranked) dividend yield is already quite attractive. I'd prefer this not to increase further and any excess capital beyond the current dividend level would be better allocated to growth initiatives or secondly buybacks.
ATP Price at posting:
14.0¢ Sentiment: Hold Disclosure: Held
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