Copied from Hone , on BCI threadI like his comments at the...

Copied from Hone , on BCI thread
I like his comments at the bottom
Bill

http://au.news.yahoo.com/thewest/business/a/-/business/19803537/bc-pledges-more-payouts/

BC pledges more payouts
Nick Sas, The West Australian November 13, 2013

BC Iron managing director Morgan Ball says he is no rush to expand the company with an acquisition, preferring instead to reward shareholders with consistent dividends.

Addressing shareholders at his first annual meeting as managing director, Mr Ball said the company preferred to take a measured approach rather than doing something "silly" in the need to look for growth.

The expansion question was one of the few qualms brought up by shareholders at an otherwise cordial BC Iron annual meeting in West Perth yesterday.

In a short presentation, Mr Ball highlighted the consistent performance of its Nullagine iron ore project - a 70-30 joint venture with Fortescue Metals Group - pointing out the company's $48.8 million full-year net profit.

And with shareholders screaming out for returns, BC's 30¢ dividend received little protest.

Speaking on the acquisition issue, Mr Ball said the company had no time frame on when a "growth opportunity" was expected.

"But what I can tell you is that it'll be on a really disciplined metric - we want to protect our balance sheet," Mr Ball said.

"If the shareholder takes a step back and looks at investor return then they shouldn't need to (demand an acquisition) . . . we're paying large dividends out."
Speaking on the sidelines of the meeting, Mr Ball also commented on the iron ore price, which he believed would stay above $US100 per tonne price for the next three years. "But beyond (that), who knows," he said.


From the above, I feel that there will be no acquisition in the short term. No doubt though, management are still looking at prospects.

I would have thought that a tie up between FMS BCI & FMG would make sense, but from my observations, the FMS directors would want 50c per share.
FMS currently has no managing director, no cash (well, very little) and no rail.
Not exactly a strong negotiating position.


Just two comments for Nick Sas:
1. The j/v is 75/25 and
2. I don't hear any BCI shareholders on Hotcopper "screaming out for returns".
We're a very happy, placid bunch.