Post by nozzpackon Dec 30, 2023 7:09pm
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Post# 35805376
Dividend Resuming ?
Dividend Resuming ?Gold Fields which owned 45% of the Asante Mine has always paid a nice dividend , part of which was paid from the Asante gold mine now 90% owned by GAU. Goldfield current pays a $0.41 annual dividend and their payout ratio is 52.7 % which is sustainable.
The dividend yield is 2.02% which means that Golfields trades at 50 times its annual dividend.
GAU is very cash rich...$175 m or so ..and a 10 cent per share annual dividend..about $26 million cad .. would have a payout ratio of less than 20% which is very sustainable .
Instituting such a dividend would boost the share price to $5 ...$0.10 X 50 ..but will they ?
Goldfields owns nearly 20% and there are several other significant institutional holders all of whom would benefit from such a dividend .
Once this deal closes in early 2024, it's not unlikely that they will announce a regular dividend ..