Let me put this out first, I am not in favor of a dividend at this time, but the CEO has indicated that he wants to pay a dividend next year.
Let's say he pays a 25 cent dividend for the year. That would be 86 million based on 344 million outstanding shares. Cash flow for next year may approach 500-700 million. This would still leave them with plenty to pay for their progress payments for future mines.
You really think there is a lot of deals still possible out there? If that's the case, then I'd do without a dividend for awhile....Barnes & Co seem to be getting an even better return on their money than I am...I guess as the price of silver continues to increase it makes mining more and more feasible, resulting in opportunities with smaller operations. But what about more major deals like we currently have with Goldcorp and Barrick...as metal prices increase, why do you think there'll continue to be demand for SLW's services from the big boys?
(What about a one time payment to current shareholders?)
That is a GREAT idea, Slw could from time to time pay a cash distribution to shareholders. It would not be monthly or quarterly, it would be from time to time.
Not knowing when an announced payment would be declared would make it difficult on shorts and add value to the stock.
Can you picture the effect on share price if tonight after close SLW announced a $.50 cash distribution payment to shareholders along with plans to do this or more from time to time based on silver price and cash flow.
I don't think any of you newbies understand the business model. They don't buy "silver"; they buy silver concentrate which they then sell to refiners. They would have to then buy back 1000/oz bars from the refiners at a markup, and then sell those out to some manufacturer to make "rounds". That process alone would eat into their profit margin.
A cash dividend is a great idea. One that I have been saying for 3 years.
A nominal CASH dividend will increase visability, put on additional radar screens, and make this available to additional funds and institutions.
Forget the div in the form of metal. Be realistic.
Realistic? Not saying there should be a mandatory silver dividend. Plus, as explained, the shareholder would pay for "shipping and handling" so the shareholder, not the company, would absorb the cost of administration.
But you need to recognize currency debasement and that a metal option dividend would, IMO, be a BETTER marketing ploy than a straight cash dividend for the next year or two.
If not, my vote (like I have one, proxies be damned) is "no" on a cash dividend. I'm looking for share appreciation, not a few $100 of fiat.
i want a dividend. and i want it to increase every year given the boatload of cash they are making and expect to make. give me the cash flow.
think about where we want to be with this stock 5 years out. how about a $1 dividend by then,and we have to start somewhere.
this is why microsoft price is sitting. managment too greedy and keeping all the cash.
I nominate this for idea of the year on this thread. mv_eric: brilliant.
Fractional oz's can be paid with cash. If you don't want delivery, you can have cash. If you want delivery, you pay shipping and handling. Administration costs paid by those opting for oz's.
Seems like SLW may need to begin tweaking (or even significantly changing) their business model. Deals with the majors (such as Gold Corp and Barrick) will not come as cheaply or as easily in a cash rich environment from PM revenues. Will SLW have to focus on higher risk and smaller miners? The super growth model that has fueled SLW's rise will get tougher and tougher to sustain. This is why a dividend is being contemplated. How long before YDM's 2x formula begin to dissipate?