This does need watching because I initially bought a tranch at around 130 last year and a further tranch at 100 averaging down to 116. Since then the SP has drifted downwards without even any negative news in iron ore prices etc. Never expected it to end up at this level, and bearing in kind this is AIM I suppose anything can happen...
even though the target prices have been lowered by some, other brokers are adamant their target prices of more than double the current SP are worth re-iterating so, this is seen almost universally as being undervalued. This is more of an investors' share, less of a trader's share so anyone looking for somewhere to park money going backwards in a bank could find this perfect for them. No volatility, no need to watch it like a hawk.and with what appears to be an ambitious and capable BOD driving the company forwards at quite a rate.
If this coming year sees similar improvements, the company has moved from loss to profit for the first time and will generate greater profits paying off debt quickly moving towards being a sweet little ore producer, ever more debt free, ever more profitable and lean ..... ripe for a takeover?
Initially, the RNS didn't knock me out but as I ponder it more, it grows on me and after some nerve shredding shares I've owned, this like drifting in the right direction on a calm sea on a sunny day. I'll keep these for the long haul and it's the first share to get me to do that.
I normally don't pay too much attention to brokers ratings but if this even gets near the worst of the brokers' target prices from this level, there's a good return to be had.
i get the feeling the market is setting itself up for a mediocre year for miners .....with a relook in 2015 ...this year being about cost reduction and improved efficiency and selling non core businesses.....
If there was only Marampa I believe SP would have been considerably further north.
But when you look at business conduct the last few years there are Colombia (fiasco and partly sold to LOND by CEO Hossie in the first place), Wadi Sawawin (going nowhere), Greenland (NPV<0 according to analysts, ok it's an option), Xiaonanshang (JV with Wits Basin which spelled disaster), Chile (threaths of lawsuit), bad dicisions (and somewhat bad luck) has been the story since an early adventure in Brazil in 2008.
Still CEO is talking of value for shareholders. Few of the long term shareholders have been seing much of that.
Future looks ok though. Marampa has been a good Investment and will generate cash.
very slowly and selling into the initial rise...... The results seemed to show progress but there is clearly a lot of uncertainty and nerves within the mining sector and with the US showing no clear direction I cannot see any change in sentiment until April/May at the moment....IMO
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