Let's assume they are motivated by tax position.Net profit...

Let's assume they are motivated by tax position.
Net profit before tax -> 126M
Tax losses available -> 54m
Taxable profit -> 72m
Income tax payable -> 21.6m ... ouch

hmmmm... exhaustion of tax losses might change appetite to pay dividends. After all, there is no point paying company taxes and shareholders not deriving equal and opposite tax relief!

I'm leaning towards a fat dividend because:
1. available deductible tax losses conceivably exhausted
2. imminent labour government 'questioning' appropriateness of dividend imputation system
3. maybe need ahead to raise some capital to underwrite underground mining play
4. maybe handy to detract from unbelievable property development foray
5. shorter term pellet prices look 'strong' ... see Vale dam wall will not be helpful

I'm going for 2.5c full year dividend in which case they will announce 1.5c final, fully franked.

Be brave. Be optimistic. But, be sensible and don't spend it until announced!

Have a great day