The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Obviously Berenberg would have been aware of today's bullish RNS when raising their latest share price target. Trust that the Company will be able to maintain the current dividend payout and increase substantially in 2024 onwards.
Think I will add more now. Looks a safe haven
Primary difference is that Berenberg is paid by the company, whereas BoA isn't.
With both Berenberg and Scotiabank (one of the debt facility providers) putting out bullish research and targets over the past few days I wonder whether there's a deal in the pipe over in North America. We shall see, but somewhere between BoA and Berenberg suits me!
Interesting broker upgrades & downgrades.
How can these two opinions be so different?
At least they both have APF down as buys!
Bank of America cuts Anglo Pacific price target to 220 (230) pence - 'buy'
Berenberg raises Anglo Pacific price target to 450 (300) pence - 'buy'
All the best, Trek.
I'm averaging 120p, will hold it out and buy more on any weakness.
Typical, brokers up targets and clients sell! SP looking v weak again. Was getting near my 140 average. Decided to sell the rest and may feed back in later.
SP below 200 DMA is not usually a good sign. Doesn’t matter about news can’t fight the trend!
After that great RNS it’s just resumed it’s downtrend!
Once the war in Ukraine hopefully ends this and a couple others will be strong buys but until then have had a change of heart and gone to cash/higher divi paying/spec sit stocks.
Good luck all
Usual caveats
Trek
I just wish that JT would bite the bullet and sell his 2 million odd shares since it would clear an overhang in the stock.
£3 target for Berenberg
https://www.proactiveinvestors.co.uk/companies/news/985584/anglo-pacific-gets-upgrade-after-queensland-changes-coal-royalty-rates-985584.html
LOL indeed, they can mine as much Coal as they want as far as i'm concerned, burn baby burn
@ otemple, ah yes - in the days I was paying more attention I'd have known that. But thank you for the response.
Prices are 'silly' arguably now, but even higher prices would have a big impact if they caused a larger share of the sale price to fall into the high bracket.
I'd still like to know the situation regarding the crinum royalty, but I emailed the company a couple of times and got no response.
It's an incremental scale and some of the rates at lower levels are unaffected, hence it being c.75%
Guess we're now all happy they haven't totally decoupled coal from their royalty income mix haha
Very good news out of the blue, I am a little confused as to why Mr Lafleche indicates as 75% increase in revenue from the royalty. If the current applicable rate is 15%, and that's changing to 40%(assuming sales values of the coal stay the same), surely the revenue increase is greater?
Needed that as the SP was looking weak. IMO APF shouldn’t be to hasty to divest coal as HC’s are in demand and if we don’t provide then others will and with lesser ESG.
Cobalt and lithium prices are off highs and EV manufacturing will weaken due to recessionary pressures. Big ticket items are often put off until people can see what’s ahead. That’s why Tesla are reducing staff. Hoping though this is short lived and more supply side constraint than recessionary.
All said though I am v positive on copper because electrification infrastructure will continue especially as governments invest ahead of the curve. SMS’s RNS today was a good indication of sentiment and planning.
I hold APF and will slowly add timing the dips as it’s deleveraging at pace and will soon be debt free.
Usual caveats
Trek
Brilliant news. Things really falling into place for APF.
Stunning Announcement and just the kick that the share price needed !
@ queensland royalty rate changes..
I agree they could be a little more dynamic. I don't want to see the pursuit of growth at all costs (which will come back to bite some of the smaller players adopting that tactic), but I would like to see APF flesh out the portfolio and diversify its future cashflow profile a little more. As I said earlier, Piaui should be a cash cow for many years to come, but I'd like to see APF add to that income profile rather than relying on Voiseys Bay and Piaui to provide the bulk of future earnings.
Doesn't change that fact that they've done nothing for over 12 months now.
Commodity outlook for their portfolio isn't great in the short term and the deleveraging at pace is curious. Mining companies are struggling to raise equity meaning that this is a perfect market to go out and proactively build the royalty portfolio directly with the miners (rather than paying up for second hand deals).
Other companies are doing deals in the commodities APF says it's focused on. They're losing out.
Successful royalty and streamers have to be somewhat contrarian in their approach. There's no point paying top dollar at the top of the market. We're about to see further evidence of APF reaping the rewards of what they've sown. Both Piaui and Incoa will require funding fairly soon. A deal like Piaui would cost multiples in today's market. APF had the foresight to put a very accretive deal in place early, when nobody was interested in nickel/cobalt.
Main aim is to drive down the debt, and then buy in the down-cycle.
When was the last deal they actually did? Hard to be positive when other companies are doing things and Anglo seems to sit there and do nothing.