The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Starts on 6:22:48
Excellent back story and issues.
PERTH, May 22 (Reuters) - BHP's bid for Anglo American underlines the growing appetite for energy transition metals like copper from miners who must become more aggressive to secure new projects or risk missing out, investors and mining CEOs said on Wednesday.
The bid by the world's biggest listed miner for Anglo is expected to whet appetite for more deals in the sector whether it goes ahead or not, they said.
"There is clearly a preference for buying over building because costs have ramped up so much in the past few years," said Ben Cleary of Tribeca Investment Partners, which is an investor in Anglo American.
"BHP ... have been telling you for a long time that they love copper. Rio the same. In terms of their portfolio skew they are still very heavily weighted to iron ore ... you are going to see more deals," he said, speaking at the AFR Mining Summit in Perth.
Anglo has twice rejected overtures by BHP, whose deadline to make a third offer expires later on Wednesday. Instead, Anglo has pledged to break up its company to lower costs.
Whether Anglo's management decide to engage with BHP on Tuesday, investors expect more interest in the sector as copper prices, which hit a record above $11,000 a tonne on Monday, climb and encourage new projects.
Rising prices will only make competition for copper assets more intense, said Brett Beatty, partner and managing director Australia, of private equity company Resource Capital Funds.
Beatty said he had faced internal questions over whether RCF had overpaid for the 11.9% stake in Botswana's Khoemecau copper mine that it bought for $70 million in 2019.
That stake was sold when China's MMG bought the mine for $1.88 billion six months ago, making it worth some $224 million, roughly a two-fold return.
“It’s a market where you have to take risk and you’ll be rewarded for it, but if you sit on the sidelines you’re going to miss out,” he said.
Given that lithium prices have begun to recover from rock bottom lows, for companies with the funding, now is a good time to buy, said Joshua Thurlow, head of lithium at Australian diversified miner Mineral Resources. "M&A's on people’s minds. It’s at that point in the cycle. If you can be counter cyclical ... you could argue this is a good time to do it," he told Reuters.
"But also sometimes it takes a lot of gusto and a major balance sheet strengthening process to be able to do it," he added. MinRes embarked on an acquisition spree of significant stakes in Australian lithium developers last year.
It’s a little frustrating that every time we get a little traction above 5p it’s hit with a wave of selling. Unfortunately it’s now become such a common event that I think people are now are selling on the expectation that it will happen, hopefully this pattern gets broken when we get some positive news!
Think I might start taking advantage of these cheap ones . By end of the year I think this company will be looking completely different and in a far better position than it is now , becoming a mid tier company .
Nice interview, rather than presentation. He came across well.
Thanks for the link.... He seemed very confident about becoming mid tier miner, great growth opportunities
" i take the reverse view, they are trying to get something out meaning the other bits are a while yet (maybe not the brandberg drill results). "
Someone who is negative with any company communications/news has only one agenda.
Well it is true that investor relations might be improving but i'm not sure for the companies that i follow that i have seen this kind of thing RNS'd ?
normally you have to find it on youtube etc.
i take the reverse view, they are trying to get something out meaning the other bits are a while yet (maybe not the brandberg drill results)
Nice to see the ceo speaking at this event . Also nice to see communication improving , I reckon drilling results next week .
TDT,
yeah thats what we thought over at shanta !
this was during a surging gold price as well, and it was really clear it was a dreadful offer but still passed.
still made 3k plus divi but thats not the point, luckily quite a few better run gold producers out there, but would have preferred to have had my money free and not wait out the takeover, that part cost me not getting in somewhere else much lower
nothing is off the table with finance as you i'm sure know.
I guess the Namibian government possessing a 15% interest in the Uis tin Mine through the Uis Tin Small Miners Association and the current share structure would make it difficult if not impossible for anybody to succeed with a low ball offer. That's worth noting.
TDT
Having been in shanta, that was surpressed and went nowhere for ages, hope same thing isnt going on here....
a cheap takeover where they quote the low price over last 6-12 months and then put in a low ball offer of say 6.6-7p which is then stated as realistic value.
otherwise cant see why it would be surpressed
Thanks TD - Frustrating tactic I suppose - Probably the MMs themselves
It’s only a matter of time before a serious re-rate happens here
Daitom
That's nothing new, somebody has been doing that consistently for the last 12 to 15 months. Who is anybodies guess, likewise why. I sent the below to Andrada some time back:-
Hi
I am an investor in Andrada Mining and I follow the company's progress with keen interest. I am becoming increasingly concerned at what seems to me to be a concerted effort to suppress the company's share price every time there is a positive RNS or upward move in the price of the metals we mine. Can you comment on this? Does the share register give you a clear picture of who is buying and selling the company's shares and is their evidence of manipulation?
I appreciate that this might be a difficult one to answer but I would be interested to hear your thoughts.
ATB
TrickyDicky2
It probably comes as no surprise that I didn't get a reply. I'm not sure they'd be able to tell from the register given the variety of different ways somebody could manipulate the share price anyway (naked shorts or T trades or some other dark arts like dark pools etc.). Worth a try I suppose but largely fruitless.
Definately a question to ask at the next Q&A with AV.
TDT
Someone actively throwing 100k sells at the sp for some unknown reason!
Andrada mentioned several times in this EU report.
https://acrobat.adobe.com/id/urn:aaid:sc:EU:5990eb9d-921b-4563-ae6a-f9f5b10609f5
TDT
Exactly taufour but that just shows now, with hindsight, that six months ago was ‘sell the news’ time and today is the opposite, time to buy in anticipation for news flow to ramp back up alongside an improving tin and lithium price backdrop.
"6 months ago the tin price was 25,000 and ATM was 5.7p.
Since then, tin up nearly 40%, ATM down around 15%."
True but there is a simple explanation.
Six months ago, i.e. on 17th November, there had been 5 RNSs in the preceding 45 days. Today there have been 0 RNSs in the preceding 45 days.
6 months ago the tin price was 25,000 and ATM was 5.7p.
Since then, tin up nearly 40%, ATM down around 15%.
:-(
#Tin price: 34265 (+536, +1.59%)
12:55pm London $Tin metal.com/Tin/LME_SN_3M