As I said try a dcf with and without debt.
I dont think returning capital to shareholders right now is a bad thing, whether it be dividends or a buyback. You could view it 2 ways, 1. The company has no other viable investment options or 2. It is confident it has the cash generation going forward to cover the staggered capex for growth opportunities and future dividends.
Going out and buying a marginal hard rock assets in aus now when valuations have peaked would be pretty rash and I would be against that.
If money is going into prospective ground where returns are higher, sure.
Other options as you say, Naraha 2.0, hydroxide converters elsewhere, Oz 3, etc etc.
The company has an incredible asset base, I dont think it needs more, it needs to maximise what it currently has, be it expanding capacity upstream or downstream.
Again, having too much idle cash makes you prone to an opportunistic takeover.
What I also left out was, given IFC and other potential lenders have expressed interest and there has been no offtake announcements, either they have an offtake soon to be announced or the potential lenders are willing to fund without one (would be highly unusual in a ring-fenced pf structure).
It may be leading up to more positive news shortly.
Aimo
AKE Price at posting:
$14.74 Sentiment: None Disclosure: Held
