This is an interesting question.There is no share price level...

This is an interesting question.

There is no share price level requirement to pay a dividend.

But there is a "profit test", this is where things get interesting.

A company must pay a dividend out of its "profits", definition below:

"The term "profits" has never been comprehensively defined by the courts. However, it is generally accepted that profit is the amount of net profit attributable to members that is carried to the company's statement of financial position. This means that profits must generally be ascertained by reference to financial statements prepared in accordance with the accounting standards. "

If you look at the FY20 Annual report, GNX has accumulated loses of approx $40,000,000, that's why we can be so confident that we will not pay tax in ages.

But more interestingly we lost approximately $10,000,000. Now over the next 5 years we expect GNX's revenue to increase by heaps, but our two largest expenses depreciation and interest expense we also expect to increase by heaps.

Using jemalong as an example that will increase our revenue by approximately 2/5's but will also increase our depreciation expense by 2/5's and our interest expense by 2/5's.

Now we own the whole Hydro project, our depreciation expense for that bad boy is going to be probably in the 30-50mill a year range (very rough approximation).

The thing that is great about depreciation is that it is non cash, which means its not an expense we pay out of cash, its just an expense that accrues because GNX has developed these assets that have a certain useful live.

So GNX can use the depreciation to reduce its profit and therefore reduce its tax burden, this is good, but then the next question is how will GNX return cash to shareholders.

Probably either through share buybacks, or through paying back debt faster, or through cycling the cash into new projects.

But I have a feeling it won't be paying dividends for a while, unless there is a way to get around the above.