Sapan Gai, CCO at Sovereign Metals, discusses their superior graphite test results. Watch the video here.
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Yes that sounds right, quarterly results a couple weeks after that. Last year we rose into this period when gold was trading between $1290-1320/oz. I'd expect to see at least 20% from these levels in the coming weeks.
Gold flirting with $1650/oz
i think next news is full year results in April if not wrong.
Good reasons to keep buying here and other well managed gold producers. Hold for the quarterly results and subsequent market rally.
and the share price is going up
224.00 GBX +6.40 (2.94%)
21 Feb, 08:13 GMT · Disclaimer
i have seen many people chasing shares of a companies without any income , i think they should buy HGM ,profits,dividend money in the bank what not to like. nice.
In H1 2019 operating profit was $57m, at a gold price of $1,308/oz, on production of 142k oz.
If we achieve an average of $1,608/oz in H1, 2020, that could roughly add $42m to the operating profit, an increase of over 75%.
Now extrapolate the share price during H1 2019, which was bounced around £1.60 to £1.65. An increase of 75% puts us in the range £2.80 to £2.90.
Now add in forecasts by pundits that we will go over $2,000/oz in the next 12 to 24 months, and a share price exceeding £4 during 2021 is quite possible.
Some assumptions have been made, and this is a very crude estimate. It hopefully demonstrates the potential though.
DYOR
A lot of algo sell action still going on.
Why would anyone be selling here now ? We should see the yearly high being attacked again before long.
Gold just topped 104k rubles/ oz
yes you are right mate ,HGM share price will be 250p soon, again.
Gold now at the highest ever price in Rubles / oz. Also rising strongly in all currencies including USD and GBP.
Yes, a share that provides growth and an excellent dividend are rare.
Echo your comments on both HGM and POLY, rylidan - if gold embarks on a tear from here, POLY should do especially well, as it's the ONLY gold miner in the FTSE 100 right now and the Instos / trackers, etc., will have to go there for exposure...
These two are my favourite picks in the pm space, fwiw and their decent divds add to their appeal, of course, in this low yield environment - sasa.
The acquisition of Valunisty in December 2018 has made Highland an even purer Gold play. In H1 2018, other metals (Silver, Lead, Copper and ZInc) made up some 16% of its revenue. By H1 2019, this had fallen to just 11%.
By the way, some investors may not have yet grasped that the far eastern part of Russia is being opened up through a policy of private and public development. The authorities are constructing an infrastructure that facilitates private development. It’s almost a chicken and egg situation. It’s pointless building roads to nowhere and it’s equally pointless investing in areas that lack basic infrastructure. Highland seems to be a key part of that strategy. Its development makes viable infrastructure investment, such as winter roads, and that facilitates further development. In essence, a multiplier effect. The Kekura project is largely possible because the authorities have built a 733 km high voltage power transmission line stretching across Bilibino-Kekura-Peschanka-Omsukchan. And this includes a cable running directly to the Kekura site. Sure, Highland has built a sub-station that fits into the system but it was the authorities who did the heavy lifting. There’s a parallel development. I would suggest that the upshot is that Highland has a great deal more development potential within its current licences.
Agreed. Poly is also a FTSE 100 Russian miner. What stands out for me is HGM is mainly gold production. That is why I bought in a number of years ago, and am still buying.
Outstanding team IMO. PE numbers shown on most sites well out of date as relate to 2018. Our 2019 numbers will be great from what indicators we've had. 2020 has started with the POG a staggering 14% up on last year's average. That's profit straight to the bottom line.
When looked at rationally, it’s strange that Russia is off the radars of so many resource investors because of “Jurisdictional issues”. For sure, Highland Gold operates in some of the most inhospitable climates on earth. But it has no problems with armed and organised artisanal miners. There are no issues with “Community groups”. And most of its operations are within an Advanced Special Economic Zone (ASEZ). So they get substantial benefits including a favourable tax regime. More specifically, Highland has four distinct producing assets - open pit and underground. These are augmented by waste dumps that can be used to even out production. In addition, it has three major development projects. The largest, Kekura, is now at phase 2 and is looking at going into production in 2023 with an estimated annual production of 172,000 oz of Gold per annum. Around this and the company has a raft of ongoing and near-mine exploration projects that seem set to increase the life of its existing and producing mines.
In essence, it may be risky but Highland could be a lot less risky than most other mid-tier Gold miners.