dividend yiled of 8% expected from next FY

Hi Folks
Apologies to start a new thread but i think this is a important investment consideration for many and will be a core reason for a major rerate in HZNs price IMO

Update broker report - note comments about dividend. I would note that cash figures assumed are conservative as the miss the guidance by the company that the end of March results did not include receivables from oil sales that would hit in April and USD cash was expected to be 19M USD by end of April which excluded April production. So here is my net cash estimate by end of June
19m USD plus June quarter USD revenue of 12m USD = 31 m USD = 40 m Aud plus 18.3 from options equals 58m odd new cash

Note the next siz month should delver operational cash flow closer to 13-14m USD so net cash even after the development spend for the new filed is accounted for will be 65-70 AUD IMO

How can they not pay a dividend

Early exercise of options strengthens balance sheet

· Samuel Terry AssetManagement, a Sydney based boutique investment management fund, has exercised300m options at an exercise price of A$0.061/sh, which will take theirinvestment in HZN to 19.9%.

· Notice represents anearly exercise, as options were exercisable on or before 6 September 2021according to terms of the Prospectus.

· Cash balance increasesby A$18.3m to ~US$46.5m (US$32m Mar Q), while HZN’s net cash increases 108% to~US$27.7m (US$13.2m Mar Q).

Strong cash flow generation provides optionality

· HZN’s balance sheet iswell positioned, underpinned by low cost production across the portfolio(operating costs <US$20/bbl) and A$18.3m unlocked via options exercise.

· Moving forward, HZNhas optionality over future capital management initiatives including buy-backs,dividends or even a capital return to shareholders. An on-market buyback isunderway for up to 100m shares representing 8% of shares on issue. HZN istargeting a future 30% free cash flow dividend payout ratio, which we expect tocommence in FY22. We estimate an FY22F dividend yield of 8%, with upside potentialgiven HZN’s strong balance sheet and cash flow generation.

· We continue to rateHZN as an undervalued small cap with good oil exposure (FY 2022F EV/EBITDAX1.0x) with strong leverage to rising oil prices. By way of sensitivity, a 10%uplift to our assumed Brent oil price deck translates to an 18% uplift to ourNPV₁₀ (Figure 2).