Highly unlikely to pay a dividend in CY16 in my view.
Previously, they started paying div in 2011 when they paid out US$19m and ended the FY with US$62.4m in cash.
On that basis one could maybe hope for a resumption in 2H17 when they are likely to have built their cash back up to that sort of level again. But much will depend on the PoG of course.
Their original plan had been to get Co-O 'hitting the straps' over FY14 and to then have accumulated sufficient cash to build Bananghilig before recommencing dividends. However, given the delays to the Co-O expansion and the total smashing of their share price since, one would hope that they would start to reward shareholders before advancing Bananghilig - even if by only a token amount.
Frankly, I would actually prefer them to leave the gold in the ground at Bananghilig and their other prospects until the PoG has risen to such an extent that the economics are really compelling. They should not be rushing to deplete their resources there so that they have to sell gold into this depressed market for physical. Why waste it?
Co-O can keep the cash build going for many years. I hope they will conserve their other prospects for when the market is fully back into 'bull' territory again. Then they can 'fully' reward shareholders!
CPDLC
MML Price at posting:
43.3¢ Sentiment: Buy Disclosure: Held
