I'm holding this sliding stock currently. African Barrick Gold unfortunately don't benefit from cheap mining costs and as such are now looking at mothballing (albeit temporarily) mines due to the current slump in gold prices. The final dividend is due this week which amounts to 12.3 cents per share, at these rates though (as always) my dividend will be reinvested (I'll get a hat full of shares at these prices). I do feel though that African Barrick Gold will be left floundering until the price of gold picks up. If this doesn't happen within a reasonable length of time however then this will suffer and the final results will be poor. This will no doubt affect the share price and inevitably the dividend policy will change and the dividend will be slashed.
I'll continue to hold as I feel this could come back to a reasonable level, a bid could change everything in the blink of an eye.
No comments:
Post a Comment