RNS was out rather swiftly. I must say that I was somewhat surprised that they put in the effort to explain the degree of feedstock that was reliant on IFL, and other relevant information rather than simply the absolute minimum. I did not have high expectations of the passing of information from PAF HQ, I suppose. SA is not business friendly at the moment, and I think that inbetween that, the energy prices and the miners expectations of continuous bumper pay rises, it's an unfortunate place for mine owners. However, some mines shutting down may well be the kind of thing required to make various people in SA become more realistic.
27 Aug '15
some interesting reading
http://dailyreckoning.com/the-dollar-will-not-be-overthrown-in-october-part-ii/ http://dailyreckoning.com/the-secret-to-successfully-investing-in-junior-miners/ Also An extract from Daily Reckoning 24 August: a quote from Rickards- - - "as I posted on Twitter this morning, gold won’t go up right away. Hedge Funds will be forced to sell gold to raise money for redemptions. But soon after that, gold will go up with a vengeance." There are quite a few interesting interviews on youtube: https://www.youtube.com/watch?v=3lXhikYTG44 Somewhere there is a youtube interview in which the interviewee explains why the gold content grade being worked by producing miners is so important, and how the search to expand the known limits of a resource can (if the extension of the resource is at a lesser grade that that already being worked) actually dilutes the value of the company. The interviewee explains that the negative effect is leveraged by a number of factors, not least the cost of production per ounce. That's the trouble with stuff you find on the net, it's easily mislaid or lost.
26 Aug '15
JR Ewing aka Rickards
Have read his currency wars book. It is a good read and his views on currencies, rates,and inflation are a good read. Not sure if he is a gold bug but never really agreed with his view on gold as it was pretty high. The talk of all this yellow metal going via HK to mainland China has tapered off a bit. The Chinese play a crafty game and like all this talk. It will take more than retail gold buyers to move the metal up. In my view the Chinese like holding dollars and are more than happy to let the US be the reserve banker. On another note IFL in administration so PAF should release an RNS regarding the platinum plant. Worrying to see IFL give the reasons as, Eskom ouatages and labour dispute. SA govt seems to be anti business at present.
26 Aug '15
salz et al
I have been following the comments of Jim Rickards, and he is someone who believes that gold will lift off (eventually); but his privileged position gives him a whole different viewpoint as to what factors are holding back the price of gold. (The following is my interpretation of what I have read and others should bear that in mind when reading it. It's best to follow up anything here that interests you with your own research on it). He cites 'currency wars' as being a major factor, the way that various nations are each trying to devalue their currency against the others in order to gain a trading advantage for their exports. He also reckons that for China's Yuan to be accepted into the IMF's "Special Drawing Rights" (a specific form of currency which is used between governments only) China must increase the amount of gold it holds in reserve as backing for the Yuan. They have indeed been building those reserves, but it seems they have not reached the target yet. and the recent announcement made by the Chinese, stating the revised level of their reserves, came as a surprise (on the downside) to many. Many pundits have given the opinion that the price of gold has been manipulated down just to give the Chinese the opportunity to buy in the vast amount of gold that they need to comply with the IMF's requirements. Once in the SDR, the Yuan will be more ameanable to international trading and may then become a second world's reserve currency; and once there is a second reserve currency there will be the room for maneouvre that the Americans need to take action with the dollar to generate inflation. At the moment they dare not take the actions that they need to take for fear of crashing the world's economy. There was an interesting quote from Rickards regarding China, He put it on Twitter. I saw it in a recent issue of The Daily Reckoning, which is a free newsletter. I will look it up later this evening and post it in case anyone's interested.
25 Aug '15
RE: share consolidation
Get off the AIM, provide a more continuous stream of information, and perhaps have more than one dividend a year. Would probably improve confidence a bit.
25 Aug '15
Was invested here initially thinking gold had one last leg back up but it kept falling away. Picked up the dividends and let it run a little giving management the benefit as they were approachable. There was a chance of them being bought which kept me in but I think they were not upfront on the situation at Evander and that they moved to early with acquisitions. They just seemed to have watched things slip away. Evander, no hedging, Manica, and not being active with the feedstock at the platinum plant. Worst of all they kept saying how well they did for the last two years based on the dividend without mentioning the constant sp fall. Others may like PAF and gold. Commodities in general look a couple of years away. Probably a good example of how poor miners are with regard the cycle and buying at the top. Even Glencore looks to have finally made the error of going public and moving from trader to a large investor in assets.
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