G'day guysGreat thread and ideas so far, I would like to throw a...

G'day guys

Great thread and ideas so far, I would like to throw a few things out there

I dont think we have to be a growth or income stock, we have the asset and cash to do both at the same time.

HT and dasa your thinking is not that far apart, what I would think would be a fair compromise would be, say if we still had 1.5bill after the litigation


Seeing as though we have no franking credits, we do a capital return of 10c per share, we also make it clear that we intend to pay a fair percentage (around half) of our earnings as fully franked dividends when we do have the franking credits available, at current earnings after tax say 5cents per share.


We also instigate an on market sharebuyback say to the tune of a minimum 250mil shares pa, that would require around a mill shares per day, we could try and do this in a way of not trying to bid up the price, but supporting any weakness, this sharebuyback has many benefits, because even if we do nothing on the corporate or development fronts, by decreasing the number of shares on issue, incresses the value of each share (hence growth stock), so with 10% less shares on issue every year, the divvy could be increased at the same ratio, so the next year the divvy would increase to 5.5cps all things being equal. As ht has pointed out the benefits of a buyback and dasa has also pointed out the real time for a buyback was when the SP was undervalued (I totally agreed), this would be kind of a compromise buyback, but IMO I would love to see in say five years time <2bill share on issue and ten years (if we are still here) <1bill shares on issue, these figures are acheivable IMO. PH was built to last for three decades, not the current one decade we are being priced at.

The divvy and buyback would just about be able to be both undertaken with just the annual current earnings, but depending on the copper price, we might have to dip into the pot a little to complete the BB, but normally if the copper price falls so would OZ sp, so the BB would cost less.


we would still have $600 million left over, and if we did find something that fills our aquisition strategy, then we would just suspend the buyback until we have positive CF again, if at any time mgmt thought that our shareprice was quite undervalued, then that $600mill could be used to buyback more shares, it would give mgmt quite a bit of flexiblitiy to entertain many options and developements if we do fingers crossed find another PH.


I suppose now after reading the thread again, this is closer to HT thoughts than dasa's, but maybe the capital return might sway your thinking Dasa.


cheers grant



the above is opinion only and written without prejudice