I stuck with Oz Mineral through the dark days of the GFC, and it was a nerve breaking experience. It followed by the class action (which turned out that I am not eligible, as I bought before their timeline) and a great recovery, if I may say so.Yesterday, Oz announced a $587 millions of profit and cash on hand of approximately $1.33 billion. No debt!. It is followed by the news about rewarding the shareholders with a fat payout of higher dividend, capital return, consolidation of shares and a buyback.
It's all good, I suppose, but when Oz concern, there's always a question in my mind about the action of Australian Government at the height of the GFC. I am not an expert in public finance, so my question is why the Aussie government did not help those mining companies that had trouble with their finance then? Instead, many of those companies are forced to sell their assets at very cheap price to Chinese companies which were backed by the Chinese Government. I realise that mining companies are private entity, but the Government could still help them by buying their assets, or shares in their companies. That would be a great investment, and if they would have done that, they will sit in a very nice profit, and saving Australian mining assets at the same time.
But apparently, everyone's a winner from Oz Minerals' Chinese transaction. Minmetals (chinese) got a good deal, so did Oz
Anyway, back to Oz results:
- Final dividend of 4c a share (7c for the full year)
- Subject to shareholders approvals:
- a capital return of 12c per share
- a share consolidation in the ratio of 10 to 1
- On market buyback of up to $200m
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