Metals X declares dividend, consolidation

Tin and gold producer Metals X will reward shareholders with an $11 million dividend, the first since the company was listed more than a decade ago.

At 0.7 cents per share, the dividend is 30 per cent of the company’s net profit after tax for the most recent financial year, a ratio which has been formally adopted as dividend policy for future years.

In late November the board will also put a share consolidation resolution to the company’s AGM, on a basis of one for four.

Today’s announcement reverses a decision in August to not immediately pay out shareholders on the back of a full-year profit increase of more than 300 per cent.

Revenue for the 12 months to June was also up 247 per cent.

Metals X has recently signed a pre-pay arrangement with Citibank for gold production, and purchased a gold project in Meekatharra from Reed Resources, then under administration.

Chief executive Peter Cook said it was an exciting day in the transition of the company.

“Our acquisition strategies and execution capability, commodity diversification, and the operational and fiscal disciplines that the Board and management apply across Metals X have generated a strong financial result in an otherwise depressed resource sector,” he said.

“It is right that our loyal and supportive shareholders who have backed the Metals X team, many since inception, should  receive a cash dividend following such a strong financial outcome.

“Our balance sheet remains strong, our operations are performing well and we remain free of corporate debt.

“At the current share price, our fully franked dividend translates to an annualised yield of approximately 3.4 per cent without considering the gross up benefit of the franking credits.

“We will continue to work hard at balancing the expectations of our shareholders to deliver both capital growth and income yield from our portfolio of production and development assets.”

Metals X was unchanged at 20.5 cents at the time of writing.