Today, another very similar company to LYL reported, GR Engineering Services (GNG), and despite having had BHP shelve the West Musgrave project (see here: Market-Update---West-Musgrave-Project.PDF) in July, GNG maintained their very high final dividend at 10 cents per share (cps) which means their full year dividends for FY24 (interim + final divs) adds up to 19 cps, same as FY23, and that means that at yesterday's closing share price of $1.855, GNG are paying a dividend yield of 10.2% and that's fully franked, so if you add in the full value of those franking credits (which I can use), the "grossed up" dividend yield is 14.3%. Again, this is another company (like LYL) who specialise in gold mills (so, tailwinds), have zero net debt, have high insider ownership (17% of the company owned by Directors and company founders and their families) and are conservatively run, but run well. They aren't growing as fast as LYL are though - they are smaller and have lumpier revenue and earnings.

GNG reported  $74.6 million net cash, -13.3% lower than the $86 million they had at 30 June 2023, and their ROE is also very high at 47% (based on today's results), and it's been over 45% for the previous 3 financial years also according to Commsec, but the main difference in the eyes of the market appears to be that the market had lower expectations of GNG and GNG did maintain their very high dividend, so GNG is up today, currently trading just over $1.90 and they've traded this morning up to $1.95. I was buying GNG two days ago at $1.81 (average), so that's one thing I did get right this week (selling down Codan yesterday here on SM, not so much...)...

Like LYL, GNG is a highly illiquid stock where large volume trades can significantly move the share price, but unlike LYL who had a detailed and positive outlook statement yesterday, GNG's outlook statement was more, "We'll let you know in a couple of months.":

"FY25 Update and Outlook: GR Engineering has a solid contracted pipeline and has been building its orderbook for FY25 and future periods. GR Engineering intends to provide FY25 guidance at its 2024 Annual General Meeting, to be held on 27 November 2024, when it is likely to have more certainty in relation to the timing of key projects."

'Nuff said. Oh, except their EPS, earnings and margins were all higher, on lower revenue:

Source: GNG-FY24-Financial-Results---Media-Release.PDF

I hold GNG (third largest real life position, plus here also).