George Frangeskides, Exec-Chair at Alba Mineral Resources, discusses grades at the Clogau Gold Mine. Watch the full video here.
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FT 250 listing?
I’m with you PVX233 just topped up again. Hope market agrees with us.
Rerating continuing. Got to be worth 800 million given growth and their tech. Cost of POX dropping significantly 2020 should see production guidance up around 600koz given POX will be producing at 350koz next year. Hedging ends in a few weeks, too.
They cleared some debt around 2013, when if my memory serves, at one point they were in debt to the tune of $1b.
"The market is fully aware of the debt situation. "
I fully agree with you PVX233, but it is clear from some previous posts that not all readers on here are. The sudden price rise will probably as Freddie2 has said be explained in an RNS in the next day or two. More large institutional buying perhaps?
The market is fully aware of the debt situation. The share price is going up because of operational issues and the transformation of POX to the business model. Also, consolidation in the sector. POG looking cheap with its tech and growth profile. I think the rerating will continue to the high teens possibly by results in Jan.
Depends what you mean by terms.
The interest rate on the previous bank loan was 8%.
The interest rate on the new $500m bonds is 8.125%.
The old bank loans were repayable in stages as well, so POG would not have been paying interest on the full sum for the duration of the loan. It is obviously easier to make the quarterly payments if there is no capital repayment included, but it is then much harder to repay the full debt at the end.
Think of it as an interest only mortgage. Most of which are extended when the loan is up, rather than repaid. Hopefully POG can pay a fair bit of it off and take out a smaller loan in 3 years time.
The loan terms have improved though. I do remember that.
"@kenj so what if they don't have 500m by nov 2022? ~ 3yrs time"
They will do what they always do - kick the can down the road.
I do not remember POG ever paying back a loan in the 8 years that I have been a shareholder. It will be renegotiated and extended, or replaced with a new loan.
hmm so it's not the end of the world
They roll the debt over - issue new bonds, or take out a bank loan.
@kenj so what if they don't have 500m by nov 2022? ~ 3yrs time
Somethings happening though for this to rise as it has , are we waiting for an rns to pop up and tell us why ?
Sorry should read: POG have a $500m bill due on Nov 2022.
"If they can’t pay down the loans then buyback some shares."
CofE,
POG have a $500m bill due on Nov 2020, less that three years away. It would be foolish to spend money buying shares with this looming over us. Better to hang on to what money we can raise or spend it buying refractory gold that we can process in the POX hub for a profit.
Thank you CofE, I am well.
My average is just above 13p, so only a penny away from break even now.
I was in the red with a five figure paper loss following the 2015 RI.
So a good bit happier now.
12.11p it’s moving fast now. Short must be closing.
This is going so much higher. Few more years of good performance and 50p easy. If they can’t pay down the loans then buyback some shares.
Yes another 52 week high , looking good for now !
Kenj, your back. Just gone +12p, what’s your average? Are you back in the black?
Hope your well.
This is not a matter of tax rules, this is a simple issue of contractual obligations.
POG cannot repay their $500m bond issue until Nov 2022.
POG cannot repay their $125m convertible bond issue until July 2024.
Neither of these loans is repayable in full or in part until the due expiry date.
The only way that POG can reduce their debt is to buy back the convertible bonds on the open market, assuming the holders are willing to sell, or if the CB holders elect to to redeem them for cash or shares. Neither of these options is under POG's control.
So let's cut out all this tosh about POG paying their loans down.
Hmm so are we still dependent on a increased gold price? Is that what these recent investors are pricing in?
In a word NO. The interest can be offset against profits but not the capital.
Sorry this might be a daft question but can they use profits before tax to pay off debt?
At times like this I always think ignore the buyer and focus on the volume of shares being traded each day. Then factor in the increased value if each share. Using this simple method shows interest has grown in a big way. As market makers realise they are getting more traffic the more they are likely to focus on this company.
I can see broker forecasts coming back from bigger banks and a continued interest from more and more people and investors.
Only concerns are some investment companies seem to be buying up very large sums and percentages of the company. Would not be happy if they were to pick up enough make an offer for the company. As we will miss out on what is clearly up and up over the next 1-5 years.
If i was in charge I would. Take the profit and split it as follows:
50% reduce debt
15-20% investment in new projects
25-30% share buybacks instead of dividends - buy them back while they are still cheap. Just imagine if they spent 10-20million on a buyback each year for 5 years. Obviously depending on profit each year.