George Frangeskides, Exec-Chair at Alba Mineral Resources, discusses grades at the Clogau Gold Mine. Watch the full video here.
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Looking at your previous pessimistic posts on pretty much every board you post on, maybe share trading isn't for you flabby. We made a profit of over $1.5 million for the quarter, so people are interested in our products. Could be better yes, but this is an AIM company making a profit, Q3 also looks to be a gamechanger in adding company value.
Bit of a nightmare really for me. Thought i had found a company that was well run and profitable but it seems they are mining products no one wants or is willing to pay a decent price for. i have now lost more than half of my investment and may as well stay as i would have thought the bottom must be cash value!
If the market doesn't value the product you are selling at what point do you just stop selling it?
i am not sure what the answer is here as we appear to have a product that isn't valued properly. We can wait until the price goes up again but what are the chances of that. Commodity prices are cyclical but is that the case here?
Bangrak, something like what when what they mine sells for less than it costs to extract, exactly how to reduce costs and what if this long secular price fall continues as seems likely…
The issue here is AIC is now $1096, net basket is $1047. Down here it's Zero cash as mentioned, they need to do something, costs are now too high.
USD1.559m.
Cash USD107.2m
Looks like they had a lot of typing to do so the Quarterly figures will be tomorrow plus all the other news which has been building for the past months which should show a bright future.
The quarterly figures with a similar production could be $3-$5 million net as not much change in the basket price but if they brought everything on line during the quarter we could see a boost. Basket price it seems to have reached a bottom so looking forward to what they have to say
Looks like it might be tomorrow then lol
Quarterly production figures tomorrow hopefully!
This should bottom around 40s…definitely not rushing back in yet
True enough, Dave. I might well buy in at a lower price. I guess my valuation doesn't include interest income on the cash pile, so that could raise it a bit.
I've tried to back up my thoughts with some maths. Of course, I might well be wrong. Nothing anybody writes on these boards has any effect on the price though, even at the small-cap end of the market. I should've sold my whole position at over a £1, but I got a bit attached, so my final sale was 79 pence. Hope I won't make that mistake again.
The reason I post here, is that I've followed the share for a long time, and under-and over-valuations appear easier to spot than on most shares. It's not an attempt to annoy anyone.
What if you are not a pair of traders hoping for a lower entry price?
Net assets of around $240 million, making a net profit even on low basket price and sharing the profit with shareholders.
DYOR
...is maybe £120-125m for SLP at the moment on prudent assumptions. So under 50 pence.
The cash pile after the Dec dividend was about £87m.
I used a PE of five on predicted profit after tax.
It still looks over-valued and the market is beginning to reflect that.
Great business. Good management team. Price too rich.
Someone mentioned a potential for a bid. Possible if you were very bullish on ICE vehicles (I am!) But what impact would a take-private have on the Samancor offtake?
DYOR
Q, It's not doing Zilch it was contributing $6.5m (net interest) to the figures, remove this $6.5m and add in the cap ex $15m and your zero cash flow in the real world. Your net profit of $5m a quarter doesn't have the cap ex included, therefore the dividend policy states a % of cashflow i recall which is nothing much down here, so why would anyone be fantasizing about some exciting dividend when it's dropped 20%?. I don't get the point about the price of Rh and the AIC, what matters here is the net basket price per oz based on the prill split and the actual AIC for SLP 4% diff. Cash adjusted 2-3 is where I'm buying there is 20% to be made at that level imo then out.
Nobody mentioned "special" dividend.
When (which Quarter) did SLP last fail to make a profit?
Rh is still more than double the price of gold with a fraction of the AIC (all-in-costs)
Either put the cash to use or distribute it but do not leave it doing zilch.
Make that >65% of market cap is cash.
Gross over reaction here.
Already topped up at 63p and will top up again if price dips
And here's some reasons why you should hold imho.
Commissioning of the Lannex fine grinding circuit expected by the end of Q2 FY2024
"The Thaba JV civil construction works expected to commence in Q2 FY2024.
An updated MRE statement for both Volspruit North and South orebodies is currently under review. The PEA for the Volspruit project, along with the results from the metallurgical test-work are expected during H2 FY2024.
Lesedi back-up generator installation is progressing and scheduled for commissioning during the latter part of Q2 FY2024.
$5M net profit for the quarter
Only reason they are down from 65p. Up they (should) go
Vulnerable to a bid here.
The current basket net of "penalties/smelting costs and contractual payability" is within 4% of the AIC. That is less than $4m pa, your net profit will be higher as cap ex is removed but the CFO here knows exactly that the cash generation is minimal. A recommendation to throw money at buybacks and special dividends here without a definite improvement in Rh would be a mistake. Hope is not what makes you money in this business, it's being brutally honest.
.
Pages 7 to 9 of the 2020 glossy offer a great explanation of the need to hold cash from Stuart Murray, our wonderful former chairman. A number of us are quoted too. It still is relevant.
FCF generation is what I'll be watching, not dividend announcements. The cash pile is priced in...and operations at current basket prices are unlikely to be particularly cash-accretive.
I don't currently hold, but may buy again when the price is right.
a buffer. against what? these guys are still profit-making. true, no where near as much but rh has been holding now for 6 months at a floor.
**** happens? a rainy day??
The cash pile is needed as a buffer. its in the reports.