Your right, there will be no problem paying a divvy as the company I believe will receive approx US$1.5 million dividend from Quartzite for the december quarter, despite low production. As it is a dividend that means costs already accounted for, hence it is approx AUD$3 million profit.
However my ideal situation would be for them to suspend the dividend. I dont think there is any need for them to pay a divvy yet. The company is a GROWTH company. It should be focussing all its finances on development of OCAMPO and ROSEBY. Ideally i would like to see the price run up a little, then an announcement that the divvy is suspended, which of course would be followed by a fall. However in the long term, and i am VERY LONG term, this would be by far the best option. I'd probably even increase my holding, from its current considerable size.
Anyway first time i visited this board, (cant seem to access ozestock from home for some reason) so good to see there is interest in BSG elsewhere. Minimum the stock price should be at least 25c based on quartzite minimum reserves alone...if everything comes off, including expected extensions of resources at ocampo, quartzite and roseby (and i mean EVERYTHING) the stock could reach $1 over the next 2-3 years. Patience!!! Worked for me with Oxiana (been holding for 3 years now although have been in and out a couple times) and will work with this one too.
PS: Note that the gold, silver AND COPPER prices jumped overnight. Silver was particularly strong which is surprising but fantastic for BSG.
Cdchi1
BSG Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Held
