Ann: Sale of New Hope Shares & Entry into Long Equity Derivative, page-42

Agreed, I was thinking that a combination of buybacks and dividends could be an option over the next 5 years to reduce dividend payments. However, I'm generally only in favour of buybacks when the business is undervalued, so if the price moves significantly higher (say to $3) then I would be less inclined to favour buybacks (however I would reassess at the time, as my valuation may have moved).

One more thing I'll add before I tap out (I'm sure some are getting tired of me droning on), I do think that noteholders, as sab8 summarised above are effectively equityholders at $2.10 (with no franking credits), plus 2.75% interest, plus option to redeem at face value. With the * that they are equityholders that have their dividends (total dividends over the 5 years) reinvested at the current conversion price. So in year 1 if the share price is $1.90 and we receive $0.14 in dividends, us equityholders can reinvest at $1.90, whereas the noteholder effectively reinvests at $1.96 ($2.10 - $0.14). As the shareprice moves higher, and dividend payments add up over the 5 years it gets more in favour of noteholders in terms of dividend payments, as they are effectively reinvesting the dividends at the new conversion price, whereas we would only have the option to reinvest at the prevailing shareprice. We do however have the option to invest the dividends in any other investment. To me this means that, once the conversion price moves below a certain level compared to the current share price, we should potentially restrict or withhold dividends, although it would need to be kept in context of the difference in dilution, and shareholders desire to receive a $1 today rather than tomorrow.