barry, no one knows if there'll be a dividend. There'll be a dividend if there will be a profit, and there will be a profit if revenues exceed costs. The problem is revenues can be any number - it'll depend on the price of copper and also on what production costs look like.
No one knows what the price of copper will be over the 6 or 10 years CDU is aiming to produce copper for. It's like predicting the weather 6 years out - simply no one knows. What we do know is that historically the commodity markets move in cycles and at the bottom of the cycle only the very, very big scale operations like BHP and Rio Tinto's operations are guaranteed survival.
You don't see other commodity producers like farmers promising dividends - they're simply aware that if you're in the commodity business you're a price taker and "the market" decides for you whether you make a profit or not.
So it's a speculative investment. The problem with people promising dividends for this company is that it is akin to repackaging a risky investment as a safe one and on-selling it to unsuspecting mum and dad shareholders. That's completely inappropriate.
CDU Price at posting:
$1.65 Sentiment: None Disclosure: Not Held
