Pilbara Minerals Capital Management Framework and Dividend Policy
Pilbara Minerals Capital Management Framework is designed to establish an appropriate structure that prudently allocates available capital between investment into the existing business, sustainability commitments, strategic growth opportunities, as well as the provision of sustainable returns to shareholders.
The Framework, which is set out in Figure 1 below, prioritises allocation of capital first to maintaining safe and reliable operations, as well as near term productivity initiatives designed to maximise cash generation from existing operations.
Net operating cash flow generated is then intended to be allocated to:
- sustaining capital to maintain operational performance;
- further investment into sustainability commitments and initiatives;
- establishing and maintaining balance sheet strength to protect the Company through all commodity price cycles (inclusive of prudent gearing ratios); and
- paying a sustainable dividend to shareholders, with a target dividend payout ratio of between 20-30% of free cash flow 1 .
Excess cash flow above and beyond these priorities can then be allocated to further investment to improve the Company’s operations, investment in organic and inorganic growth and acquisitions opportunities, debt reduction and/or further returns to shareholders.
Figure 1: Capital Management Framework
Safe and reliable operations
Investment in sustainability commitments
Strong balance sheet
Target dividend payout ratio of 20-30% of free cash flow
Return excess capital via special dividends or buy-backs or capital return
Invest in further simplification and cost reductions
Investment in organic growth
Investment in inorganic growth/acquisitions
Maximise value and returns
As with any capital management framework and dividend policy, it is subject to prevailing market conditions at the time.
Dividends will be paid to Australian and New Zealand shareholders by way of direct credit only.
Shareholders should ensure their banking details registered with Computershare are up to date. Shareholders that did not provide valid banking instructions for any prior dividends will have their payment held in a non-interest-bearing account until they have done so. The same will also apply for any future cash dividends paid by Pilbara Minerals.
How to provide or update banking instructions
For shareholders to provide or update their banking details and ensure their other information is up to date, they should visit Computer Share Easy Update.
Shareholders may also provide or update their banking details by completing a Direct Credit Form and returning that form to Computershare Australia. Direct Credit Forms can be obtained by contacting Computershare Australia:
Direct Credit Forms should be returned to Computershare Australia:
Dividend payment history
||Dividend (A$ cents per share)
||24 March 2023
||3 March 2023
||27 September 2023
||6 September 2023
Dividend Reinvestment Plan
Pilbara Minerals does not currently offer a Dividend Reinvestment Plan.
1 Free cash flow is defined as statutory cashflow from operating activities less tax paid/payable less sustaining capital (inclusive of capitalised waste mine development).