RE:RE:Time for Duffy to Reinstate the Dividend!I personally think that MND stock will not appreciate significantly in value unless the company succeeds in doing two things simultaneously:
1) continue to increase production at Costerfield
2) increase Costerfield's mine life out to at least 7 years
The latter is key, because without it, MND is simply not a realistic takeover/merger target. Costerfield is a great mine for throwing off free cash flow, but if it is going to give up the ghost in 4 years or so, who would want it? The fact that MND has successfully maintained it at 4+ years of mine life for over a decade doesn't mean anything. They need to drill it out and get the reserves up high enough to sustain a longer timeline. Bjorkdal, even with the great drill results, just isn't in the same league (yet).
This is why they should have a dividend. If Costerfield produces a huge amount of free cash, but that isn't reflected in the share price, they have to find some way of paying people who hold their paper. A dividend is straightforward and simple. Otherwise, they're just depleting their reserves to absolutely no shareholder benefit. This will be doubly true in another 5 quarters, when the hedging agreement will be finished.