- Expected very good Q2 figures.
- Production of approximately 9.5K ounces per quarter and approximately 38K ounces per year
- Net income of approximately $5M per quarter and approximately $20M net income per year.
- All-in sustaining costs of 784 for Q2.
- Secure business model with secure profits; Gold price forecast stable to bullish, oil prices already at a high level with the prospect of falling prices
Persistence Resources Group Ltd IPO Shareholder approval must be obtained. The justification for the IPO is the expansion of the mine. I am very confident that MJS' strategic plan calls for a dividend to be paid to shareholders later this year in order to gain shareholder approval. The basis for this is the very good cash position, the secure business model (currently and in the future), as well as the mine expansion, which is paid through the IPO of Persistence Resources Group Ltd. is.
The importand point for the announcement of the dividend is the Annual General Meeting 2022.
AGM 2021 announcement: 09.08.2021
AGM 2021: 08.09.2021
what others in the sector pay in dividends
https://www.boerse.de/gewichtung/NYSE-Arca-Gold-BUGS-HUI-Aktien/XC0009699965
(its german but you can use google translate - the data is well organised) Via the page you can view the relevant gold mining stocks listed in the HUI and their fundamental data. The dividend yield for 2022 is on average 1.5% - 2%.
There are plenty of solid companies in other sectors with dividends that are at least double that.
The fact that the dividend in the gold mining sector is lower than that of other companies is partly due to the fact that the business model is so "safe". In the end, the market finds a balance between risk and return. The risk in gold mining stocks is rated as lower, which justifies a lower dividend. So while we should compare within the sector, discount that MJS is still a small gold producer.
Here is my target for MJS P/E and dividend dividend of 0,01$ which costs MJS around 10.5 Mio $ + taxes which can easily be afforded.
Share Price= $0.3
P/E = Share Price / (Net Income / Number of Shares)
15 = $0.3 / ($20 million / $1.05 billion)
Dividend= $0.01 per year
Dividend Yield = (Dividend / Stock Price) *100
3.333% = 0.01 / 0.3 *100
Dividend yield at $0.01 dividend per share and different prices and P/E | shareprice $ | P/E Ratio | dividend yield in % |
| 0,10 | 5,25 | 10 |
| 0,15 | 7,88 | 6,66 |
| 0,20 | 10,5 | 5 |
| 0,25 | 13,23 | 4 |
| 0,30 | 15,75 | 3,33 |
| 0,35 | 18,38 | 2.86 |
| | | |
As you can see, spectacular price increases are possible if MJS pays a dividend of $0.01. Since MJS is still in its infancy, a valuation of $0.25 would be safe; P/E ratio 13 and 4% dividend yield reasonable.
I hope this was helpful for one or the other and wish everyone luck and success
Greetings Richard