RE:RE:RE:Your math is wrongOther than being overpaid Davis as well as most other resource CEOs are foolish permabulls that consistently poorly allocate capital. Although admittedly Davis has done a much better job compared to his peer group with regard to allocating capital he still didn't hedge copper to guarantee the dividend to be funded from operations at $3.20 Cu when it looked very obvious that was going to be a long term price ceiling for the metal. I believe a very large supply of copper from the sector being overbuilt from easy sucker capital especially after the credit crisis is off of the inventory radar that could end up liquidated if the world economy tanks. (Remember Glencore easily came up with a 9 month supply of off of the books inventory of zinc which is believed to be in an even larger supply deficit when it faced some financial pressure to restructure).
Even though they can fund the dividend the company may find it more advantageous at this point especially for management given that they receive options at this point just let the stock price free fall and preserve capital either for a share buyback at prices at or below a zero enterprise value to make it easier for a management LBO or keep as a cash reserve to pick up average failed mines for a penny on the dollar in bankruptcy court waiting for the next bullish cycle in mining.
You have to remember most public companies are run for management's benefit with little regard for share holders. Investing in public companies IMO has turned into a short term trading casino and sucker capital for most industries long term and what makes it even more difficult for the last 4 years the market really has been mainly driven by new world order politics dictating company's fundamentals by picking sectors that will be winners and losers with crazy forward valuations on most of the winners.