MS strikes again, page-60

Mature companies pay dividends, growth companies typically do not. PLS is in a transitional period where they are no longer an exploration company but have only just begun to turn a profit and have not matured. We have a significant capex spend coming up over the next 18 months including increasing our capacity at pilgan, building our LiOH facility in SK, and buying our extra stake in it from 18% up to 30%. Despite the fun-ness of getting dividends, I agree with the Board that it's better to hold off this time round, in 12 months time we will have spent all of what we have in the bank and more and will be in a strong position to pay dividends out of our FY23 result.

The main reason one might want to own PLS now, despite it not paying dividends (if income stream is of particular importance to you.....retirees etc) is that you can buy them at $5.00. In 12 months time they might well pay a 30c dividend, but on a $9 SP that's just a touch over 3% yield on your investment (excluding whatever else you might make on that money in the interim). If you buy them now, you'll not only get 30c on a $5.00 investment (yielding 6%), you'll also have made 80% in SP growth.

I'm not pegging the SP in 12 months time to $9 specifically, just illustrating the reason why there might be interest in PLS now from people such as yourself who like the company but would prefer a dividend. In any event, with 10yr almost at 4% there's not much to attract a yield-focussed investor to this company when to beat it PLS would have to pay at least a 20c divvy this year, and I'm not sure we made eps 20c this year, from memory it was just short. Easier to go into the note at 4% for no risk at all.