Australian (ASX) Stock Market Forum

Mines - Explorer - Producer - Dividends???

Jump to new
D

DionM

Joined
14 March 2007
Posts
257
Reactions
0
I'm curious.

Is there a "rough timeframe" that one could expect with a recent explorer turned producer miner before they pay dividends? I know there's no obligation too, but what's a typical figure? 1yr? 2yrs? 5yrs? 10yrs?

I'm thinking of, for example, PDN and AGM (both of which I hold) ... wondering when (or even if) they will pay dividends?
 
DionM said:
I'm curious.

Is there a "rough timeframe" that one could expect with a recent explorer turned producer miner before they pay dividends? I know there's no obligation too, but what's a typical figure? 1yr? 2yrs? 5yrs? 10yrs?

I'm thinking of, for example, PDN and AGM (both of which I hold) ... wondering when (or even if) they will pay dividends?
Click to expand...
Some never. They keep spending on exploration. Remember the staff get paid, the directors get paid salary and bonus options and they get super so they don't need dividends. Most companies treat shareholders as a necessary evil and tolerate them. AGM, I believe I read somewhere in past statements, said the expected to have funds available to pay dividends within one year of start up. Some companies buy back shares to increase the value of the remaining shares. That increase is taxable if the shares are sold. Most dividends are franked so tax is basically eliminated and can even be refunded under some circumstances.
 
nioka said:
Some never. They keep spending on exploration. Remember the staff get paid, the directors get paid salary and bonus options and they get super so they don't need dividends. Most companies treat shareholders as a necessary evil and tolerate them. AGM, I believe I read somewhere in past statements, said the expected to have funds available to pay dividends within one year of start up. Some companies buy back shares to increase the value of the remaining shares. That increase is taxable if the shares are sold. Most dividends are franked so tax is basically eliminated and can even be refunded under some circumstances.
Click to expand...

In many cases it's 5-10 years. In some cases, probably more.

Please keep in mind though; explorers (no matter how sound) always come with a lot of risk ... which is why they're so cheap!
 
Top