what is going on?, page-61

Nicholas,

There is always a juggling act between cash held, dividends and buybacks.

I would suspect the OZL, like BHP has a policy of using the cash for growth and any excess is returned to shareholders. I work in a publically listed company, and I know that long term cash flows are done with multiple scenarios so that the board can make an informed decision. This year just gone, P Hill threw off approx $609m usd in profit. there is every liklihood that number will continue for a few years yet. I suspect that they are finding it hard to spend the cash the mine is making, and so they will feel obliged to return some to shareholders. It will be just enough so that all their options are still open. In this instance we can "have our cake and eat it too". Rarely does that occur.

hT1