Building the share price:Good to know our new MD comes from...

Building the share price:

Good to know our new MD comes from companies that recognise the importance of dividends to attract a bigger share of the buyer market and the effect adding buy demand has on the share price. The total opposite effect of short selling.


N.B. For the first three years Evolution Mining, paid unfranked dividends while raising capital through a dividend reinvestment plan to fund capital expenses and a strong cash balance.


Having a strong cash balance that is adequate enoughto provide for unexpected set backs and bring current assets up to a level commensurate with current liabilities ( $20m) needs to be the first priority.

Hopefully we will end up with a distribution policy similar to evolution mining where 50% of cash flow is distributed ever 6 months. Starting next calendar year.

Given no debt and no tax to pay on the first $270m of PBT we can look forward to circa 6.5 c a share in dividends and 1 c a share in franking credits coming our way over the remaining 2.5 years of the current mine plan


The updated MRE which will include a reserve estimate and hopefully a mine life extension is not far off.