Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
To generate above average capital appreciation of its investments through a selective portfolio of securities and other instruments in the precious metals, diamond and uranium sectors.
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Does look a bit suspect that the nav goes down by a penny but the price comes down by 3. Trying to snuff out gpss which are, as it stands worth nothing, hence the plunge.
On the extreme edge of trading risk to invest in gpss now, but who knows if gpm goes the other way there could be a quick bag. Might as well play roulette.
Market makers screwing Gpss holders to nothing and will make good when the rights are not exercised and the Gpm price compensates more than loss on Gpss. Gpm current NAV 65 and about 58 fair value if all Gpss are subscribed looking unlikely although wouldn’t put it past market to greatly increase price on 26th late on . Will wait and see Gpm worth way more than 46p.
Stretch, just gives you the right to convert the amount of gpss shares you have bought in to gpm shares on the 30th, so red knight, for example will have the right to buy just under ÂŁ25k's worth of shares at the end of the month. Not much of a discount tbh. Was looking a lot juicier a couple of months ago. Although I also think the GPM share price will rise nearer the Nav after the 30th.
49.64p actually which is above today's offer, so hardly ridiculous
Redknight. I'm interested in buying gpss share but don't understand the sub rules. If I buy gpss am I committed to buying gpm on 30th?
Bought another 50,000 GPSS at 3.5p = 49.14p...ridiculous!
Think it’s independently calculated, I think what will happen is the current 25% discount to NAV will reduce, as you say it keeps people from exercising subscription shares, personally I have already subscribed, but with a cancellation option until next thursday. This has got to be worth over 60p in anyone’s joking Fiat money.
MM's are keeping the GPM price low so that the GPSS price doesn't look too appetising.
You can bet your left nut, that from the start of December, the NAV will go back up towards the norm
Couldn’t agree more. Surely worth a lot more than you can buy them for and a good bet if you think gold prices are going up (who doesn’t).
Just applied for full amount of gpss shares I have been holding. Hoping for plenty next year.
GPM is trading at it's widest discount to NAV in over two years
http://tools.morningstar.co.uk/uk/cefreport/default.aspx?SecurityToken=F0000026LS%5D2%5D0%5DFCGBR%24%24ALL
Net asset value as at 10.11.2020 of Golden Prospect Precious Metals Ltd
(TIDM: GPM):
NAV-bid: 69.86 GBP
52p on the ASK. Major shareholder offloading into thin volumes. Nice opportunity for those aware :)
DEFENSIVE portfolio with sources of UPSIDE
SUPPORTIVE GOLD ENVIRONMENT
2-3x GEARING of earnings to gold price gains
Portfolio UNDERVALUED vs gold price and large caps
LSE-traded fund since 2006, invests in small & mid-cap precious metals miners (producers, developers, explorers).
? 2019’s best-performing investment trust among the 400+ London-listed funds (price up 77%) and is currently third best performing year-to-date (price up 78%).
? Primarily a geared play on gold price: In 2019, the gold price rose 18% while the GPM NAV gained 80%. Year-to-date, the
gold price is up 26% while the GPM NAV is up 54% (all in USD and NAVs are diluted for subscription shares).
? The fund managers see supporting factors for further NAV upside – they highlight:
1. Strong gold environment. Central bank policies and low real interest rates are highly supportive. Also, reserves in
the ground have been declining as exploration and development of new projects has been cut in recent years.
2. Portfolio is undervalued vs current gold price and large caps; the managers have rotated the strong performers into
laggards with significant upside potential; many holdings can rerate as projects commission and/or on M&A activity.
3. Silver (20% allocation currently) can deliver outsized returns relative to gold as it benefits from c.50% industrial
demand, which is strongly supported by the growth in the solar PV market (used in panels) and the 5G build out.
? FINAL exercise date for subscription shares (ticker GPSS.L, last price 7.25p) is 30 Nov 2020. Each subscription share
gives its holder the right to buy one new ordinary share at 46.14p, which is currently 18% below the market price of 55.9p
Managers note about the portfolio:
? Very little exploration risk as 89% is in producers and developers and many developers will start producing in 2021
? 60% of portfolio companies are cash flow positive at current gold price and earnings are 2-3x geared to gold price gains
? Valuations are depressed relative to gold price as analyst estimates based on $1,500-1,600 gold price vs current $1,900+ level
? Valuations depressed relative to large caps
? Many holdings have the potential to double in value by appreciating toward their NPV (net present value of deposits), driven by upgrades and significant re-ratings as funded projects commission or via M&A increasing their market cap
Completely agree...but I bought CEY at 129+ today and also hold PAAA...
Thanks for the well reasoned post...
Not entirely sure whether most investors grasp just what a fickle business Gold mining can be: Jurisdiction, technical issues, environmental problems, community groups, etc. All conspire against Gold miners. Even the veins of Gold are sparse and often difficult, expensive and dangerous to exploit. Possibly the easiest way to view it is in terms of the amount of Gold that has already been extracted. According to the World Gold Council, the entire world's existing supply of Gold at the end of 2019 would have created a cube with sides of around 22 metres each. In my view, holding a portfolio of Gold mining stocks in order to exploit the theme of rising Gold prices makes a great deal more sense than major exposure to any single mining stock. Too much can go wrong. I hold individual Gold mining stocks (All producers and no explorers) and they give me exposure to a variety of mines and jurisdictions. To that, can be added GPM. I am still bullish about the prospect of Gold (And Silver) but, in my opinion, it's foolish putting all of one's eggs in the same Gold basket. A collective investment can give a much broader exposure and that includes exposure to stocks on a variety of bourses.
This may have been overlooked...
There are 28,473,716 Subscription Shares outstanding from the original 28,501,013 issued in November 2017...
That means only 27,297 have been taken up so far, which is hardly surprising, because the subscriptions to date and then current share prices were:
30 November 2018 40.37p 18.5p NAV 24.57p
30 November 2019 42.3p 24.9p NAV 35.1p
30 November 2020 46.14p 60p (Current) NAV 73.44p (GPSS grosses up to 56.14p)
So, as the last figures show, it would seem that only an idiot would fail to take up their shares on 30 November 2020 because that is:
A discount of 6.4% to the fully paid price and 23.6% to the NAV...
If they are all taken up, the Company will get a 'windfall' of ÂŁ13.14 million to invest just as the Gold and Silver prices my be poised to take off and to add to its current ÂŁ41.9 million Fund value, making cÂŁ55 million...
So what's the catch?
Well...if all the SS's are taken up, the NAV would fall to 64.3p par share, which makes GPSS a much better bet at a 12.7% discount to adjusted NAV than GPM at only a 6.7% discount.
However, the fact that you can buy GPSS for 10p (grosses up to 56.14p) while the fully priced shares are 60p to buy, suggests that some people are struggling to raise the funds in order to take them up.
Therefore the funds subscribed are likely to be significantly less than the prospective ÂŁ13.4 million, which therefore raises the NAV of the fully diluted shares to anywhere between 64.3p (all taken up) and 73.44p (none taken up).
If only half were taken up the NAV would be c68p.
So...if you have the cash to buy and subscribe GPSS shares, they appear to be a no-brainer...
Apart from anything else, they are a highly leveraged 'option' on the Gold price, as the price action showed when Gold surged to over $2070 on 7 August and GPSS was 19p, having been 24.8p on 27 July.
If we saw the latter again, you'd make almost a 150% gain unless you took up the shares, in which case you'd make a 25% gain..you pays your money...
Which is why we have 350,000 of them; and the Chairman, Malcolm Burne has 318,750 and states in today's Annual Report that he will definitely be taking them up.
AIMHO as usual and DYOR...
China have just created two new Gold exchange traded funds, estimated they only currently hold 2% of Gold held by USA. Anyone who knows any wealthy Chinese people will be aware of how they value gold as a store of wealth. Can see gold price kicking on Gpm rising, it’s NAV rising and it’s ridiculous discount to NAV becoming a premium, should do wonders for Gpss which are even more ridiculously priced.
Chairman: Substantial gains in both NAV and the funds sp.... appreciation of 54% in NAV and 64.4% in the six months to the end of june 2020.
24% discount to NAV on a strongly rising figure seems a tad cautious to me, time will tell but as a bullish goldie I know where my money is going , rather than guess which are the best explorers and juniors to back, sit back and let GPM do the detective work and they also give you a buy 3 get one free. Must remember to top up Gpss even bigger discount there with 40 days of potential free and in the money already.
Not often the market is in giveaway mode, mustn’t be ungrateful just loaded up, in my opinion should be trading at a premium, anyway let’s first get the NAV discount to single figures, or alternatively just watch the NAV increase and the discount stay the same, more bargains.
NAV reached just over 76p yesterday and sp has be stuck on 64p for a week,
Makes no sense except perhaps this stock is not widely known and no buyers.
I was listening to Jim Mellon of Master Investor yesterday, his view was get into gold and then forget about it for for a while
As yet, I’m not invested in Golden Prospect. But it certainly interests me. Firstly, it’s not an index tracker. It’s small and flexible and so is not under pressure to find a home for its money - with liquidity being a prime concern. Taking a closer look at what it holds and there appear no truly awful companies in its top ten holdings. As with most Gold/Silver mining stocks, it comes with jurisdictional risk - Burkina Faso, Nicaragua, etc. But the risk is spread and balanced by its investments in Canada, USA and Australia. It also gives exposure to a range of businesses going from established producers through to advanced exploration and near-term developments. Most of its top ten producers are low-cost (Low AISC) except Westgold Resources. But the latter seems quite likely to experience falling costs as it includes “Project start-up capital” in its AISC and that looks set to decrease.
Importantly, it’s a closed-end structure so it can pick and choose when to buy and sell its assets - there’s no spectre of forced asset sales. And its on-going charges - Ranging from 1% to 1.25% appear reasonable.
Although I invest directly in Gold/Silver mining companies, I’m wary of the risks. It’s simply inherently risky - geology, jurisdiction, unions, community groups, etc. So collective investing in this area does have an appeal. Especially, giving the international nature of the business - it does give exposure to overseas-listed stocks but without the hassle. And there is also the awful chance of being correct about the theme - rising Gold and Silver prices. But investing in a mining company that has operational problems. The Gold price could soar but the company that you have invested in owns one mine and is now exploiting a low-grade deposit. The Gold mining stock and the price of Gold could move in opposite directions.
Uidiot is correct, mining is going to get harder, slower and less cost productive.
If you want to invest in Crypto then do it directly.
Don't invest in a mining company when we know mining is only going South.
IMO, TAF.
ARB Director Deals range from 3.5p to 6.9p
I have been in and out of ARB trading for a while now. The BoD has a lot of skin in the game at 16p a share from memory. At a little more than 6p a share at the moment, the BoD has to really power this share just to break even on their investment. They won't want to lose out.
Thanks u01gjot
Big run up with the BC price recently so care advised.
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