DIVIDEND

Since March 2017 reporting, no dividend has ever been paid to investors. Investors funds was utilized but without benefit to the investors.  Missing a few quarters due to poor results is understandable but this is not.

Bursa Malaysia need to review / update the dividend policy of listed companies.

The ROE of the company had been rising from negative 1 % in 2019 to 6.6 % in 2022. It is not a fantastic return. Cash flow from Ops just turned positive in 2022. I am not sure whether the company should be considering any dividend. Bursa don't determine the dividend policy of companies. This is decided by the company based on its needs.

Are gold miners different from gold jewellers as gold proxies?

I was looking for Bursa gold proxies to invest in by comparing the returns from investing in gold vs investing in a number of Bursa gold proxies.

From 4 Jan 2019 to 26 Aug 2022, gold appreciated by 8.5 % CAGR. The returns for the 4 Bursa companies for the same period are shown in the table.

You can see that only Bahvest return was lower than that for gold. Bahvest is a gold miner whereas the other 3 are gold jewellers.

In the context of proxies for gold, gold miners are typically considered a more direct and volatile proxy for the price of gold. When the price of gold rises, the profitability of gold mining companies often increases significantly. However, their performance can also be affected by factors specific to their operations.

Gold jewellery companies, on the other hand, are influenced by both the price of gold and consumer demand for jewellery. Their financial performance can be influenced by factors such as fashion trends, and marketing strategies. Their performance may not always correlate as closely with changes in the gold price, making them a less direct proxy for gold.

Moral of the story? Invest in the Bursa gold jewellers rather than gold.

What about Bornoil? The company had announced its gold reserves in May 2022. But there was no reporting of this being in operations in its 2022 Annual Report. So until it gets gold out of the ground, you should not consider this a gold proxy.

For details refer to “Are there Bursa proxies for gold?”

PROPOSED RENEWAL OF AUTHORITY FOR SHARE BUY-BACK dd 31st oct 2023.

Quote:

The Listing Requirements stipulate that the proposed purchase by a listed company of its own shares must be made wholly out of the retained profits of the listed company. The maximum amount of funds to be allocated by the Company for the Proposed Renewal of Authority for Share Buy Back shall not exceed the total amount of retained profits available. Based
on the latest audited financial statements of Bornoil as at 30 June 2023, the Company has retained profits of RM172,765,834.  Unquote.

The Company decided it is better to effect share buy-back rather than issuance as dividend.

Ops I forgot "This is decided by the company based on its needs" not shareholders' need ha ha.