Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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I think it’s pretty much always time to buy here as long as yield is over 7%. It’s still over 12%!
Div costs $144.6m on a forward basis. They have over $350m in cash and axs to $500m.
Market is obviously concerned about debt at $1bn but that’s pretty much what the mcap is. Also 90% of debt is fixed rates on a long term basis so the debt gets paid down as the asset amortises. The income from the asset pays debt, divi, ops and part funds acquisitions. These are long term finance deals 10 years and some of the wells have +30 years to run.
The HC’s are also hedged which is expensive but you can’t have it both ways. 90% of 22 production is hedged so that gives predictable income which, you guess, further covers the divi.
They also spent a lot on acquisitions last year so the new wells will be feeding into the q2 results.
We should be getting a US listing soon which could go down very well given the inflation beating income.
The more you look at this model the better it gets and there is no withholding tax on the divi with ii!
The last opportunity I had like this was GLO, I bought heavy for income and they got bought out as they were soo cheap with predictable incremental yield.
A good share this for income peeps to look into.
Usual caveats
Trek
It's now time to buy.
Sorry about double link. Fat fingers.
Got more at 107.8.
I suspect BR are working their average. I note they sold some and increased their leverage on the TR1.
Not bothered. I liked how DEC had hedged their HC’s.
I would prefer a stable income as can invest elsewhere for capital gain or loss lol!
I Think these can be ‘safely’ tucked away to provide a pretty reliable quarterly yield. If it goes below 100 I will double up as for now I have enough.
Usual caveats
Trek
And it has increased its divi for every year for more than the last 5years!!
https://www.hl.co.uk/shares/shares-search-results/d/diversified-energy-company-plc-ord-gbp0.01
Interesting HL says you need to complete the W-8Ben when ii don’t!
I have given up trying to work out who does and who doesn’t!
https://www.hl.co.uk/shares/shares-search-results/d/diversified-energy-company-plc-ord-gbp0.01
Nb 13% on forward yield. HL yield shown is retrospective.
Usual caveats
Trek
Yield is currently 13.03%. Crazy value IMHO
Reply from ii….
“ Thank you for the secure message.
DIVERSIFIED ENERGY COMPANY PLC is held through the UK market on your ISA account, no withholding tax has been applied to reclaim.
Regards
Operational Tax”
Well that’s nice. Looking like I need to sell a lot of other stuff and park it in here!
Usual caveats
Trek
Just used my divis from here and elsewhere to top up by a small amount. 13% yield was an attraction, even if I have to pay 15% tax. Strong dollar translates into more cash this side of the pond! I had considered IMB, RIO, LGEN and a couple of others but DEC won my attention. Again.
Just been through May 22 ppt. What a great story.
Was previously put off by the W-8BEN process. Have emailed ii to ask how to do it. Hoping they deal as they flipping charge enough!
I just see the gas market getting really tight. Gas could be the covid play of 2020 which was seriously transformational for me.
Anyways in now with first tranche and had to pay over a penny more whilst I revisited my research today! Doh!
Usual caveats
Trek
They can pump oil globally but I think US gas has a very rosy future with shipments to EU now. Whatever slack will get taken up. I expect next divi to rise slightly. I’m on about 11% yield
I am afraid I moved to freetrade plus. General account (as they call it) and isa. They don't do drawdown so left sipp behind. This will allow me to move shares into sipp with no costs. Some of my holdings are quite small so 2 x £11.75p is just to high for me. Also I invested £50 yesterday no stockbroker fees and therefore no money drag. BUT the freetrade plus is not all of market (close). Had to leave one share behind in Fund and share account. If it had been in isa I would have had to sell it.
i dont hold any funds in HL, only shares and these charges whilst arent the cheapest are very reasonable and easily covered in one divi payment from this company alone. i once had an incident with HL when the market went crazy on a stock and i was able to buy and sell outside my actual cash and shares alloaction, i.e. meaning fake deals. afterwards i spoke to HL, explains what impact and losses this had placed upon me. they retrosepctively went back, assumed best decision, best sp gain for me and i got a 5 figure sum returned. i've a full sipp and isa in here so paying extra £100 a year is nothing in the scheme of things
CommandoKai,
Yes, you are right. I don't hold funds so my charges are reasonable. But holding funds is expensive with HL. I had forgotten that.
Yup, they dont like making money at Halifax, virtue signalling is far more important.
https://www.youtube.com/watch?v=Kz3Qq3yP4Xg
Oh I take it back about HL, charges dont look as bad as I remembered, unless you hold funds.
"On a side note, maybe you should leave Halifax as they've been infected with the woke virus and told anyone that doesnt support thie new pronoun badges to leave." Really?! That's madness!!
When you say sky high charges, £200 max a year is not a lot for holding a large SIPP portfolio. Maybe not the cheapest but not bad value.
HL are always good at paying promptly and they get the withholding tax right too, ie none if in SIPP.
Based of current fx rate and SP, yield is 12.7%. What a bargain.
I guess HL have to earn their sky high charges some how, maybe it'll arrive later today for the rest of us then.
got mine on the morning of the 30th with HL, always there on specific date
On a side note, maybe you should leave Halifax as they've been infected with the woke virus and told anyone that doesnt support thie new pronoun badges to leave.
Not yet, always seems to take a few days with Interactice Investor, and others usually report the same.
Probably Monday.
Anyone got their dividend yet? I'm in halifax, nothing yet and I'd quite like the reinvestment to take place asap!
always nice to get a little divi when the markets are absolutely collapsing, saves the overall pot a little!!
i'm fully invested here, keeping the money in cash
Looks like the dividend is going to be reinvested at cheap prices. 11% yield now