Steppe Cement Share Discussion Threads

[aleman] 12/11/2021 09:58

Not sure how reliable this is but the dividend forecast was reduced from 8 cents to 7 cents at the September interims. That's around 5.25p on current exchange rates. I suspect a nice round 5p might be pencilled in but subject to changing conditions in H2 and the resultant outlook for next year.

[king suarez] 12/11/2021 09:39

Mr/Ms breakfast,

"How much do you reckon your Majesty? 7p?"

I wouldn't like to speculate in case Constable Ken puts me in jail for getting it wrong..

Net cash in the bank is currently around 4p if you do the maths and STCM seems to generate around $2m of operating cash flow a month on average, which could support a very strong dividend, however in the last interims the company had stepped up investment spending quite considerably from $2.6m to $4.5m compared to the prior period..

Even so, should expect a record dividend payout next year and the annual cash flows could certainly support a much bigger dividend if sustainable? I have commented about 6p or so being possible annually once all debt was paid down. We will see!

[wanobi] 12/11/2021 09:24

that 60K sell is a buy :-)
Cheers
Wan :-)

[eggbaconandbubble] 12/11/2021 09:17

How much do you reckon your Majesty? 7p?

[king suarez] 12/11/2021 09:06

Happy with this news. Don't want to pay tax if I don't have to! Should be a whopping FY dividend then given cash build..

[mattjos] 12/11/2021 08:54

A bit tardy with the comms but, nice to see this RNS - particularly re the net cash.This should surely prove to be the the lows in the share price

[constable ken] 12/11/2021 08:53

Hey Willie Wonka, you edited your posts but you missed 3704. Here it is, preserved for the record:

wilo101 - 03 Aug 2021 - 06:33:26 - 3704 of 4075

Did everyone now get their cash dividends, interim will be along the same time-frame as last year, perhaps a few days earlier, namely as per the RNS of 29.10.20:

29 October 2020
Steppe Cement Ltd
Declaration of Interim Dividend

Steppe Cement Ltd ("Steppe Cement") is pleased to announce that the Board of Directors has resolved that the Company will pay an interim dividend as follows:

Dividend amount per Ordinary Share 1 pence
Ex-Dividend Date 5 November 2020
Record Date 6 November 2020
Payment Date 20 November 2020

What is their not to like, was a long, long, painful and hard road from early 1998 to here....at one stage all was lost......we will write a book one day, but too much else to do for now.

[doc_oj] 12/11/2021 08:36

I have happily topped up this morning

[zangdook] 12/11/2021 08:35

So were they hit with a tax bill last year, I wonder? If not why not.

[wilo101] 12/11/2021 08:29

There is no WT from Holland to Malaysia and on to Labuan and then to the owners, so total is 5% Treaty relieved.

[wilo101] 12/11/2021 08:29

15% WT is the OECD Model, only, by the Kz-Dutch DTT is treaty relieved to 5%, of course.

[spawny100] 12/11/2021 08:17

Same here dovey my buy shows as sell.

[dovey21] 12/11/2021 08:15

My buy is posted as a sell. For me this is great topping up territory for good income and returns.

[farnesbarnes] 12/11/2021 08:12

The delay isn't that long, you can only imagine the communication back and forth between, UK brokers, the company, their accountants, Kazak tax authorities, etc.

15% withholding tax is also pretty reasonable considering other territories (Sweden for example) is 30%. If paying the interim in the full year div doesn't attract the same 15%, thats also fine by me.

I wouldn't necessarily expect any further selling as a result of this announcement. On the contrary, it removes uncertainty, and the drop looks overdone.

Happy holder.

[wilo101] 12/11/2021 08:12

See our 071121 post 4049, the cash will meanwhile accrue 12% interest in KZT, fingers crossed with oil the KZT may appreciate.. alternative structures exist and are being looked at.

[aleman] 12/11/2021 08:10

So yields 13.8% at 38p, with net cash already ahead of year-end forecast?

[eggbaconandbubble] 12/11/2021 08:09

jeansey - I guess they were probably trying to argue the toss with the authorities.

[spawny100] 12/11/2021 08:03

I would have expected price to rise with that announcement?

[jeanesy] 12/11/2021 08:03

Well that took them far too long to make a statement about the interim dividend. Clearly some sold as a result of the delay and perhaps a few more will exit today.In the meantime the share price has taken a big hit.

[eggbaconandbubble] 12/11/2021 07:57

Thanks Dr. That then begs the question - how big will that FY divi be. With the 'missed' interim divi and and good results it could be...... how much?

The management maybe should consider bringing the AGM forward by a couple of months.

[drdre] 12/11/2021 07:36

My interpretation is that only a FY dividend will be granted post AGM approval of the accounts to avoid the 15% withholding tax. Makes sense TBH. I guess this may drift in the meantime but a juicy FY dividend should beckon? That is early July.

[eggbaconandbubble] 12/11/2021 07:31

Morning peeps! Can some bright spark out there help me get my head around this divi announcement. Thanks.

PS. Cash situation looks very rosy!

[gary1966] 12/11/2021 07:13

Net cash increased from $4.9m on 15th September to $12m now. Very happy with that.

[jimmladd1] 12/11/2021 07:04

Steppe Cement Limited Statement re Interim Dividend PolicySource: UK Regulatory (RNS & others)TIDMSTCMRNS Number : 1762SSteppe Cement Limited12 November 202112 November 2021Steppe Cement LtdInterim Dividend in light of Regulatory ChangesAfter careful consideration of the changes in certain government regulations in 2021 in Kazakhstan and having taken independent accounting advice, the Board has been made aware that an Interim Dividend may attract a 15% Withholding Tax when paid to a foreign holding company.The position of the Kazakhstan Tax Department is that dividends can only be declared from post-tax profit once the accounts are audited and the Annual General Meeting has approved the audited accounts.The Board is of the opinion that paying the 15% Withholding Tax and hoping to recover it in the summer represents a significant risk and has therefore decided to pay the Dividend for 2021 only after the Annual General Meeting.The financial position of the company remains as indicated in the first half announcement and the Net Cash position (cash minus debt) is USD 12 million.This policy on Interim Dividends will continue until the Board is convinced that payment of Interim Dividends can be made under the same conditions as the Final Dividend.

[finctastic] 09/11/2021 16:46

I would doubt that a group of frustrated holders all decided out the blue that last Wednesday was the day to dump. Likewise today. Nothing new here today that I can see as a catalyst to trigger a sell off...........the conspiracy continues.