FXPO – Special Dividend Decleration

StockRank 98, Q87, V78, M96, Highly Speculative, Super Stock

Ferrexpo is pleased to announce a special dividend of 3.3 US cents per share. This follows the payment of an interim dividend for the first six months of 2017 of 3.3 US cents per share which was paid on 8 September 2017 (1H 2016: nil).

The Company has continued to trade strongly since it announced its half-year results on 3 August, and its cash flows have further reduced net debt and funded capital expenditure. Together with the strong demand outlook for pellets in 2018, this has given the Board confidence to declare this dividend.

The special dividend will be paid on 15 January 2018 to shareholders on the register at the close of business on 15 December 2017.  The ex-dividend date will be 14 December 2017. The dividend will be paid in UK Pounds Sterling, with an election to receive in US Dollars.

Opinion

The price has fallen 11% since my buy price of 278.3p with no indication as to why.   It is a naked trader qualifying stock and all criteria is met.   At cap/ptp at 8.5 and cap/ptp(fc) at 4.8, FCF>EPS and net debt reducing to around 1.5x ptp, then on this rare occasion I have slightly lowered the stop loss.  The stop is now on the 200MA so hopefully survive the ex-Dividend drop.   I’m still not however willing to let it drop further from that point, no matter how positive the news is.