The report advises us that future surplus capital requirements will include both future opportunities as well as future capital management. They plan to spend the moey on:
1. Expansion capital for New Acland Stage 3. New Acland won't be producing at capacity until FY25, meaning that it will cost us in FY23 and we'd be very lucky to break even in FY24. There's some short term pain for us there. 2. Bengalla Life of Mine increase. 3. M&A opportunities aligned to the Company’s strategy 4. On Market / Off Market Buy-backs, or capital returns
The report also advise us that "Entry into cash-settled equity transactions with a bank counter party to hedge dilution associated with the existing Convertible Notes." I know about the convertible notes but don't really understand what this means - if someone can help me out it would be appreciated.
Weighing these things up, assuming that the price of coal remains strong I anticipate a dividend about the same or slightly higher than the last one. If the price of coal unexpectedly drops significantly, They might want to hold onto more cash. At the same time, NHC is committed to providing significant fully franked dividends to shareholders.
So my guess is a fully franked dividend of 60 cents.
NHC Price at posting:
$5.41 Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)