The company has net cash of $1.7m, paying 12% p/a on their existing $3m loan ($360kpa interest) and due to be fully repaid in a few months. So I expect a rolling extension to this loan.
The company is also entering a high cash-burn phase starting an underground mine.
They announce success from a small open pit mine and want to share the spoils with everyone on a dividend costing the company $350k (which equals 20% of their net cash!).
This makes zero sense as it is actually costing shareholders 12% or $42k/year to have paid that divided while the company still has that debt on its books.
The value of this return of cash to shareholders from this divided should be slammed at the AGM, it is another odd decision (like the "free" shares given last year) that is not justified by any common sense or logic
MAT Price at posting:
13.5¢ Sentiment: None Disclosure: Not Held
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