NMT : 11.3% div paying lithium producer

NMT are unique in the ASX listed lithium space, as now both a producer shipping ore to China and recent form as a dividend paying stock.

Just think about this for a moment when NMT shares are currently priced at 34c.

NMT twice paid dividends to shareholders in 2016:

	Column 1	Column 2	Column 3	Column 4	Column 5	Column 6
0	Amount	Frk%	ExDate	PayDate	Price on ExDate	Div Rate
1	2		16-Aug-16	26-Aug-16	37	5.4%
2	2		21-Mar-16	7-Apr-16	34	5.9%

How many stocks paid 11.3% in dividends in 2016?

NMT have very clearly stated their intention to maintain a dividend paying policy going forward.

If NMT pays a single 2c dividend in 2017, this would equate to a 5.9% dividend for anyone buying shares today. If they again pay two 2c dividends as they did in 2016, this would equate to an 11.8% dividend for anyone buying shares today. I am not making a prediction as to what the board will ultimately decide around dividends in 2017, but direct you to what CEO Chris Reed has said consistently. Click the links to hear it in his own voice.

Investorintel Mar 28, 2016
Chris Reed: "In Neometals we’ve taken the opportunity and needed to sell down some equity to bring in China’s leading lithium producer, Ganfeng, as an offtake partner and an equity partner in the project. As we’ve sold down in two tranches so far we’ve built up quite a good war chest. At the end of the month it will be about $68 million Australian dollars. Now that’s far in excess of what we need to retain a prudent level of cash, so we are looking to return some of the cash to our shareholders. As we’re coming into production we want to give something that’s potentially sustainable so we’re giving back two cents a share."

Investorintel interview Dec 9, 2016
TW: 8:50 "you've given your shareholders dividends twice now which is just unheard of for companies in your mkt cap range…can you tell us what should shareholders anticipate in the next couple of quarters?"

CR: 9:14 "we're going into the commissioning phase of the mine with a significant amount of cash on the balance sheet, once the mine reaches steady state production in Q1 of 2017, we can then look at how we are going to deploy that (cash on the balance sheet), one of our main focuses is obviously for the downstream lithium plant, (though) we are cognisant that we have started returning some money to the shareholders, (and) it is our ambition that we would maintain that. The size and timing and quantum obviously still to be decided by the board…

9:57 "but with dividends, when you start a dividend policy and paying dividends  it is not something you would start if you thought you would have to stop it quickly...

10:03 "certainly the cash flows coming from Mt Marion will enable us to sustain a return of something to the shareholders."

10:37 "the true mark of a company is that you can return more capital than you invest."


I personally feel assured that unless something large and unforeseen happens, NMT will pay a nice dividend in 2017.