ÌÇÐÄvlogÈë¿Ú

Dividend policy

At the end of each financial period, the board will determine an appropriate total level of ordinary dividend per share, taking into account the results for the financial year, the outlook for our major commodities, the board’s view of the long-term growth prospects of the business and the Company’s objective of maintaining a strong balance sheet. The intention is that the balance between the interim and final dividend is weighted to the final dividend.

The board expects total cash returns to shareholders over the longer term to be in a range of 40 to 60 per cent of underlying earnings in aggregate through the cycle.

The board is committed to maintaining an appropriate balance between cash returns to shareholders and investment in the business, with the intention of maximising shareholder value.

Acknowledging the cyclical nature of the industry, in periods of strong earnings and cash generation, it is the board’s intention to supplement the ordinary dividends with additional returns to shareholders.

Dividend determination

The majority of our sales are transacted in US dollars, making this the most appropriate measure for our global business performance. It is our main reporting currency and consequently the natural currency to determine, announce and pay dividends for ÌÇÐÄvlogÈë¿Úplc and ÌÇÐÄvlogÈë¿ÚLimited.

On request, shareholders of ÌÇÐÄvlogÈë¿Úplc and ÌÇÐÄvlogÈë¿ÚLimited can elect to receive dividends in US dollars, Australian dollars, pounds sterling or New Zealand dollars. If an election is made to receive dividends in Australian dollars, pounds sterling or New Zealand dollars, the dividend amounts will be calculated by converting the declared US dollar dividend using the exchange rates applicable 7 days before the dividend payment date.

Holders of American Depositary Shares are paid dividends, at the declared rate, in US dollars.

Dividend mandates

Registered shareholders may elect to have cash dividends paid directly into any bank, building society or credit union account.

Dividends and taxation – ÌÇÐÄvlogÈë¿ÚLimited dividend imputation system

The basis of the Australian dividend imputation system is that when Australian resident shareholders receive dividends from ÌÇÐÄvlogÈë¿ÚLimited, they may be entitled to a credit for the tax paid by the Company in respect of that income, depending on the tax status of the shareholder. The application of the system results in the tax paid by the Company being allocated to shareholders by way of imputation credits attaching to the dividends they receive. Such dividends are known are franked dividends. A dividend may be partly or fully franked. Any imputation credits attached to the dividend are shown in the Dividend Statement provided to shareholders.

Since 1988, all ÌÇÐÄvlogÈë¿ÚLimited dividends have been fully franked.