JOHANNESBURG (miningweekly.com) – Dual-listed Tharisa is mulling an increase in dividends for the year ended September 30, as well as a change in the dividend policy guiding yearly payouts to shareholders, after reporting expectations of significantly improved earnings for the 2017 financial year.
This comes a year after the group announced its maiden dividend of $0.01 a share.
Tharisa expects basic earnings per share (EPS) and headline earnings per share (HEPS) for the year ended September 30, to be between $0.21 and $0.23 apiece, compared with EPS of $0.05 and HEPS of $0.06 a share achieved in 2016.
“Based on the improved earnings, the directors of the company are recommending a final dividend for 2017 of $0.05 a share, reflecting a material increase on the maiden distribution of $0.01 declared for 2016,” Tharisa CEO Phoevos Pouroulis said in a market update on Thursday.
Tharisa will table the proposal to shareholders for approval at its annual general meeting in January.
Further, the dividend policy will be changed from 10% of consolidated net profit after tax to at least 15% for the 2018 financial year, in addition to the introduction of an interim dividend.
The new policy considers several factors, including overall market and economic conditions, the group's financial position, capital investment plans and earnings growth.
“In view of delivering strong growth, it is Tharisa's stated strategy to not only maintain but also improve returns to shareholders and provide more regular returns during the course of the financial calendar,” Pouroulis noted.
Tharisa will publish its financial results on November 30.