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I agree about how quiet is it is on here. Have been tracking this one for weeks and think although I have left it late, that I should buy as it feels like there is more to come here ( gold price keeping bullish of course, which I think it will)
Hi Fuelforlove, not sure what you mean.
Compare the market cap, ie the overall value of the company by the market.
(Number of shares) x (share price) = Market Cap
PAF = 0.24 x 1930m = £463m
PUR = 1.18 x 384m = £453m
Companies are valued about the same.
Hi Gavster. Re the comparison withPUR, remember PUR has approx 384 million shares in issue whereas PAF has 1.93 billion.
What a brilliantly well balanced view that is Gavstar. PAF (other than the county's problems) is being run extremely well and as you point out, with the current price of gold, debt will be wiped out even earlier than they predicted.
Hopefully in around a month's time, the annual results will update us and again hopefully we should see a large increase in dividend. I would be happy even if it doesn't reach the figures that you give.
Hi Nostra. Just consider that PAF is currently paying off it's debt at around $2m to $2.5m a week !!
IMO we're being unduly hammered due to profit taking from the gold rise. GL if you're trading.
In 2021 without debt, and new projects like The Egoli Project we could be looking at a Dividends of 4p 5p and rising into the PAF sunset. The political and health environment being the risks, but this also means that PAF is still currently one of the cheapest Gold plays. Just compare to Canada's Pure Gold, for example. Both have a similar market Cap, PAF resources well over 30 million ounces, Pure a tenth of that, and looking at 60k production whereas PAF is looking towards 250k ounces. Pete Schiff comments on the gold rise.
https://schiffgold.com/peters-podcast/peter-schiff-the-most-unloved-gold-bull-market-ive-ever-seen/
The Federal Reserve is printing trillions of dollars. Fed Chair Jerome Powell has said it isn’t even thinking about thinking about raising interest rates. And there are reports that the central bank is set to make a commitment to ramping up inflation. All of this is extremely bullish for gold.
In a CNBC interview, US Global Investors CEO Frank Holmes said he can see $4,000 gold in the relatively near future with G-20 finance ministers and central banks “working together like a cartel and they’re all printing trillions of dollars.”
IMO if $4000 becomes the spike, then I'll happily take the settled prices of half way to that $3000.
Maybe I was over worried......back in this morning on recent POG drop cheaper PAF. Its actually help up quite well when gold dipped below $2k.
I’ve done nicely on the ups and downs here but just sold again in frustration and slight fear looking at the trades (sells) with the price of Gold Sky high and how leaky this share has been why is it down? Is it just me or is this classic mysterious PAF re trace before some news mysteriously pops up?
pickedpeck, as you point out, SA has major economic problems. It also has huge social and political problems. The combination was enough for me to sell my stake in the company. I still hold the management in high regard. But the jurisdiction is too problematic. Ironically, with rising ZAR Gold prices the company becomes more profitable but also more vulnerable. It may simply become too attractive to be left alone - trade unions, politicians, "Community groups", etc. may all demand a bigger piece of the pie.
Stating the obvious, I know, but it cannot up-stumps and relocate. Jurisdiction is everything.
Took more than the predicted month to get into the mid 20s. 30p anyone? Seems likely now as gold has gone further than I thought, but even so I have reduced my position here now and taken the profits. If I have sold early I can regret at my lesiure having banked a decent gain.
My rationale despite the continuing rise of gold is around the floundering SA economy, it seems inevitable that PAF will be subject to some sort of government grab at some point particularly as the diamond miners are in free fall and not generating the tax revenue the government needs. I see the current shape the company in as great, which will unfortunately make it an even more tempting target.
https://www.thesouthafrican.com/news/finance/how-can-the-economy-recover-from-the-pandemic/
Gavster yes halved my position when went over 16p but will look to buy back in when it hits 12-13. Hopefully for another rally and some end of year divis
Somethings definitely amiss as my trades seem to be working out. Based on the ZAR rate going back down to 21.5 (see my post below) and the lust for gold being displaced by buying into a covid recovery, I have now top sliced most of my holdings around 16p (and some at 14.5p a few weeks ago) to let it ride or trade down the the original average. .
If PAF does retrace, IMO it will be short lived. There will be plenty of buyers in the 12s, 13s, low 14s, including myself.
2021 will be a big year for PAF, the investor herd could even arrive at some point.
Debt must also be coming down nicely.
As lockdown procedures are globally eased, gold seems to be loosing it's lustre, at least for now.
Hi Pickedpeck. With dilution since 2016 the old 23p share price is equivalent to 18.8p.
All is good in PAF shareholder land. Gold price is at all time highs in GBP.
Share price is well and truly exceeding my personal target of 16p by end of the year with a 1.5p dividend.
Covid-19 in check and with this kind of gold price we should expect another kick up towards year end with the hedges going.
PAF is now my most high valued holding within my portfolio.
GL All.
We were in the 9p range at the start of April, now heading for 2x rise in a month. I see this going into the mid 20s over the next month, the five year chart shows this got to around 23p with lower production, higher costs, stronger Rand, and lower gold price than today.