Ann: Quarterly Activities Report, page-13

"with the cash that MCR generates (in good times) it has several options:
1. it can spend $ on developing its exsisting mines (histyorically there were abt 9-months ahead of mining)
2. they can spend $ on exploration (otherwise in a short period of time, you run out of ore !)
3. you can reward shareholders via dividends and/or sharebuy backs....."

Why only 3 options? Why not save up cash and have "lazy" balance sheet?

Berkshire Hathaway run my Warren Buffett never pay any dividend since founded in 1960's and I think they accumulate US$165 Billion (AU$240 Billion) cash in the bank earning 1-2% interest p.a.... no share buy-back, no dividend, but look for a bargain during GFC. With $240 Billion cash, Berkshire can buy both CBA and WBC together and generate $10-20 billion profit.

This is worse than GFC for mining stocks, you need large cash to take advantage of cyclical prices at bottom or near bottom.

Apple Inc has something like US$205 Billion (AU$300 billion) cash, hardly pay dividend nor share buy-back.

Look at Berkshire and Apple share prices... definitely not 13c. Higher share price is the best way to reward holders. If you want dividend stocks, you should move to Telstra.

If MCR did not pay any dividend, cash-backing share price is about $1+ today. And plenty of opportunities now to pick best projects/companies to buy at bargain prices.