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20.5¢ minotaur exploration ltd

MEP or ADN, page-752

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Yagami

336 Posts.

317

09/02/21

20:36

Post #: 50838998
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Originally posted by Alreadyexists: ↑

I am a holder of shares in ADN and MEP. I know it has been said many times before there is something seriously wrong with the market perception of MEP. The SP of ADN went down 1.5% today and MEP 8.5%. The market cap of ADN is $678m and MEP $80m whereas MEP has 1/3rd of the assets ADN (75/25) has that are driving ADN’s share price. How can this be? The SP of a company is ultimately a function of expected dividends whether in the short or long term. I think the problem is that while James Marsh has made clear his intention to reward shareholders with dividends such a message has either not been clearly made by the board of MEP or alternatively the market doesn’t believe it, perhaps thinking they will use the cashflow in other ways. If the board of MEP want to improve the company’s SP they could do worse IMO than make a real commitment to the level or percentage of surplus cashflow (assuming things go as planned) that will be devoted to paying dividends.

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Similarly to ADN, Minotaur have also mentioned future dividends once the project delivers profitable cash flows.

Last edited by Yagami: 09/02/21

MEP Price at posting: 16.0¢ Sentiment: Buy Disclosure: Held
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