Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.
Couldn't the forthcoming dividend from PLS be higher than consensus. PLS has a whopping $3.3BILLION in cash which must be generating considerable interest income in addition to spodumene revenue. There are 3billion shares on issue so if the dividend were only 10c, that's less than 10% of the cash kitty. Is the PLS market price telling us that the forthcoming dividend is going to be much more than 10c ?
Hi John,
Sorry we didn’t get to your question until after Fridays report where PLS have declared a 14c fully franked dividend meaning they are indeed keeping a decent amount of cash on the balance sheet at this stage of their evolution Pilbara (PLS) Financials.
Bloomberg consensus forecasts for the dividend was actually at 22.3c, the lowest analyst input being 11c and the highest being 30c. Pilbara’s shares fell over -8% on Friday as they slightly missed at the earnings line, while the softer than expected dividend would have played into the move lower, given, as you rightly point out, that they could have paid more.
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