Here are five small cap resources stocks that pay dividends (yes dividends)
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Resources juniors aren’t known for paying dividends — the vast majority are early stage explorers with much more experience spending money than earning it.
But there are a handful of ASX small cap resources stocks that are making money — and paying dividends.
Stockhead’s resident data guru Nicholas Sundich tracked down five mining stocks that are already sharing rewards with shareholders.
>> Scroll down for a table of resources juniors paying dividends
Here they are:
Market Cap: $157.74 million
Share Price (Tues Sept 4): 29c
Lithium explorer Neometals announced a dividend of 1c per share (about $5.4m in total) in May this year. The money came compliments of a 13.8 per cent ownership in a world-class Mt Marion lithium operation near Kalgoorlie, WA.
The dividend marks the third consecutive dividend payment made by Neometals in as many financial years, with cumulative dividends to shareholders now amounting to about $27.9 million.
“We have a share in the Mt Marion lithium project, which is the world’s second largest source of hard rock lithium production,” Neometals managing director Chris Reed told Stockhead.
“We are receiving money out of it. I think sharing the rewards with shareholders is important; we don’t think that’s unlike any other business.
“We are developing other projects, but we have a very healthy balance sheet — more than $30 million in cash and another $12 million to $14 million in an investment portfolio.
“And no debt. So I think we can find a comfortable balance.”
Market Cap: $144.36 million
Share Price (Tues Sept 4): $2.40
In August, gold stock Rand Mining announced it would pay a dividend at 10c per share to its shareholders, following a maiden dividend payment in 2017.
It’s major cash earner is a joint venture project between Northern Star Resources (51%), Tribune Resources (36.75%) and Rand (12.25%) in the Eastern Goldfields of WA, near Kalgoorlie.
Market Cap: $79.53 million
Share Price (Tues Sept 4): 19c
Mineral sands miner Mineral Commodities paid out an interim dividend of 0.6c per share for June half year, on the back of $US28.6 million revenue from its mineral sands Operation at Tormin, on the west coast of South Africa.
Mineral Commodities is looking to expand Tomin, and develop the Munglinup Graphite Project, near Esperance in WA, as it looks to capitalise on the fast-growing sustainable renewable energy storage and electric vehicle revolution.
Market Cap: $260.4 million
Share Price (Tues Sept 4): 22c
Tasmanian iron ore stalwart Grange will pay an interim dividend for the June half of 1c per share, totalling $11.6 million on the back of strong profits.
The miner reported a $67.2 million profit for the first 6 months of the year, compared with a $14 million profit for the same period in 2017.
Market Cap: $168.75 million
Share Price: (Tues Sept 4) $1.46
Phosphate miner CI Resources has paid shareholders dividends totalling 10c per share in the year ending June, on the back of a $21 million profit.
“CI Resources continues to maintain a strong balance sheet and has improved both its cash position and retained earnings,” the company said in the full year report.
“Whilst the Board continues to seek and materialise investment opportunities, it continues to maintain a policy of paying significant dividends to return earnings to its shareholders.”
While not strictly mining small caps, these resources-related companies are also giving back to shareholders.
Mining services specialist Maca (ASX:MLD) will pay a 3.5c per share dividend for the year ending June 30, while Bisalloy Steel (ASX:BUS) and Capral (ASX:CAA) will shell out dividends of 4c per share for the full year and 0.5c per share for the first half, respectively.
Here are five ASX-listed resources small caps paying dividends:
Swipe or scroll to reveal full table. Click headings to sort
|ASX code||Company||Focus||Dividend gross yield (FY18)||One-year yield change||Market Cap ($m)|
|GRR||Grange Resources||Iron ore||6.21%||$269.1m|
|MRC||Mineral Commodities||Base metals||7.37%||16.67%||$79.5m|