Way to early for a dividend, this company needs growth because if iron ore prices fall now growing the company in a direction that will increase revenue is pointless and even though you get your 10c dividend, your shares will diminish in value.
a 10c div will kill $80m from the cash available, which could better be spent growing the company. Once 12mtpa are reach then 20mtpa in a few year, dividends should be considered. But for now the focus is getting the company in a position to be able to produce at these type of rates.
Good company coming into alot of cash over the next few years, so exciting times ahead to see what happens.
On track for about 6mtonnes in the year which should give them a handy first up profit of 250-350m which should at least justify a share price of about $4-$4.50
AGO Price at posting:
$3.64 Sentiment: Buy Disclosure: Held
