Ann: Operational Update, page-55

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euphoria

369 Posts.

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16/04/24

14:15

Post #: 73368683
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Originally posted by elixer8: ↑

Let's indulge your idea. Reduce dividends to zero, allow the shorters and take over merchants to spiral down the share price. Meanwhile the windfall cash is pouring into the NST cellars. I can think of no faster way to have NST taken over for peanuts, and chopped up into sell able parcels, like a slaughtered turkey..

This is why I suggest the opposite path.
Keep it simple, from $AUD2500 gold price to $AUD3500, times two million ounces is an extra two billion windfall dollars.
From $AUD2500 to $AUD4500, times two million ounces is an extra four billion windfall dollars.
Raise the annual dividend to $AUD1, as a 1.1 billion dollar cost to the company. Currently paying $AUD300 million dollars, so this is an extra $AUD800 million dollars (less cancelling the share buyback)

Now the long-term super funds move in, and heaps of others, where dividends are important.
With a windfall of four billion dollars, NST has only allocated an extra 800 million dollars, so retains a windfall of 3.2 billion dollars.

The share price goes to $20+, the company is rock solid, and the shorters and take over merchants are disempowered.

What is not to like???

What is the alternative? Wait for Iran to block the Straits of Hormuz, taking the oil price to the stratosphere, and the gold price with it, while the share price remains at $15????

The reason the NST share price is stuck in concrete is that is being prepared as a turkey in a take-over operation. Try not to assist this process!

And go and check the major shareholders in NST, and there you will realise that the take-over pirates, are already within the building, and setting up the turkey processing plant!

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my argument is that the money that is allocated to dividends was allocated to a buy back instead, it would be more supportive of the share price.

no investor in nst is buying it for yield i would argue. there are far more lucrative plays if thats what you want.

just letting nst sit on cash and return nothing is a foolish idea. management will get itchy fingers and make some dumb purchase with it.

NST Price at posting: $15.20 Sentiment: Buy Disclosure: Held
9 Upvote

0 Great analysis

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