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Originally posted by Andyrooo
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1Dec22 - 2022 AGM Strategic Objectives "Shareholder returns strategy being developed by Board" Summary "Returns to shareholders expected to be available following completion of investment in Bauna interventions and Patola development, subject to Board approval at the time." 22Feb23 - 2023 Half Year Results "Returns to shareholders to be addressed in 2H CY23 following completion of current capex projects. Dependent on satisfaction of lending covenants, capital priorities and subject to Board approval." KAR appears to be an ASX300 Company. It looks undervalued (certainly on FY24 financial projections). The financial intricacies of an Australian based Company with overseas operations, complex. A long history of failure to address shareholder returns, discouraging. I thought there were significant accumulated tax losses. Its hard to comprehend. KAR pays Brazilian Royalties, Income Taxes and Petrobras deferred acquisition payments. The Brazilians must love us. I have my doubts any Dividend would have franking credits (for Australian taxes paid) attached. Its difficult to say though. However, "foreign taxes paid cannot constitute a credit in a company franking account" . Do people want an unfranked dividend? A Dividend would however, open KAR up to investors otherwise prevented from investing here. The resultant demand may well raise the MC ... and SP into the A$3s and perhaps qualify KAR for the ASX200? This would further impact demand for investment here. I thought there were significant tax losses here when I bought back in but I may well be wrong on that point. The PoO is strong recently. US$86.24 at this time. However, the SP of World Major Oilers aren't correlating with this. The US uses its global reserve currency status and NYMEX/COMEX to manipulate commodity prices. The Saudis have declared War on this US influence by manipulating supply. Budgets mean nothing to them. I mean all they do is defer plans to build another Golden City (simplifying for effect). I recall reading an AFR article sometime back where they said BlackRock, Vanguard and State Street own between 10 and 15% of ASX Companies. I presume it would be dominated in Commodities producers. That's quite a lot on influence and explains the common ASX Change in Substantial Holder Notices in Commodity producing ASX Companies. I was invested in NST before here. The SP hit A$6.60 at one point, which seemed insane to me. The turning point for Oz Gold producers was when the DXY fell markedly from the 115 it had risen to (it had averaged about 90 this century). NST then rose to about A$15.30. There was nothing at a Micro or Sector level to justify such a price swing. Shortman doesn't tell any stories with KAR shorts at lows. There does appear to be some suppression in all Oil stocks SPs ... but especially KAR. A Dividend or some kind of shareholder return would greatly benefit the KAR SP I reckon, for all these reasons. I thought it interesting a month or so ago, that BlackRock CEO, Larry Finkstein announced he would be dropping the ESG tag from their investment products. He also announced that a new Director has been appointed to the BlackRock BOD. That Director also holds a position on the Aramco BOD. "3 days ago — Mr. Fink finds himself on the back foot once again, with BlackRock appointing the head of the Saudi oil giant Aramco to its board" I don't want an Unfranked Dividend or Capital Return. I don't want a CR to M&A and increase the risk profile of my investment here.
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All Brazilian Tax Losses have been recouped. The remaining tax losses are probably largely Australian with a significant proportion of Peruvian Losses. The latter will probably never be recovered now that we are out of Peru. We need to have an income generating asset in Australia to recoup those losses.
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