Long Run Explor Ltd Ord WFREF

RE:dividend

[99999gold]

VentureCapital3 wrote: I think it could be a good idea to link the dividend with the WTI (I don't consider the gas price since most of the cash flow are from oil and it's better to keep it simple). Let say on the long run, long run think the WTI will be on average at 90$, so when for a month the average price of the WTI is 90$, LRE pays is 0,035$ dividend. When lower they reduce it and maybe it should be 0 under 70$ or 75$. When the WTI is over 90$, they increase de dividend. Just a suggestion to avoid the current situation.

They can't do that, oil companies forecast their budgets for the year with revenue and cashflow to fund its operations with assumptions of oil price at 100, 95, 90.