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That would be mighty fine at this level, capital return? Maybe not so keen on that
Perfectly happy if they run down the life of the mines and the shareholder bonanza that would follow over the next 15 years.
I think all commodities are ultimately going higher irrespective of recession and demand control. the supply of all is pretty poor and demand is expected to shoot again irrespective in many cases whether interest rates are high or not.
i.e. whether we like it or not. gas prices might be down but that's not supply that's some demand loss and good weather. people need gas, price will go back up unless weather continues to be favorable for a long long time. we are going to see gas, copper, etc etc go up more and more
Looks like demand is poised to surge along with prices...and profits :-)
Warns of a Copper ‘Train Wreck’ as Supply Stalls
Ivanhoe founder says he fears copper prices could jump tenfold
Copper is poised to follow other commodities upended by recent price surges as the mining industry struggles to expand ahead of accelerating demand, warns the man behind some of the world’s biggest mines.
Demand for critical raw materials is set to jump as nations mandate clean energy and transport while clambering to develop their own supply chains. But a combination of factors suggests supply won’t keep pace,
https://www.bloomberg.com/news/articles/2023-06-26/billionaire-miner-friedland-warns-of-copper-train-wreck-as-supply-stalls?leadSource=uverify%20wall
All. Each to their own but Terry MC1 by his own admission is a shorter. From 26 May (12:08):
'Hi newkotb, enquest delivered their net debt numbers which showed a tiny improvement. That’s cashflow as you know so it wasn’t just ops. Basically it looks like an avoid now unless oil rockets. You confident Sqz will build a lot of cash ahead here? Always enjoy your posts, and yes I’m mostly negative or short stocks'
Nothing wrong with this approach but of course worth baring in mind Terry's agenda and likely position when reading his posts. A quick read of Terry's posts today will show a fairly obvious pattern.
Why so negative now terry when CAML is aproaching lows. Are you a serial deramper and shorter? Holding despite losses withthe faith in the management. World going continue turning and need for resources.
Comon Terry
why on earth funding required? £60m cash
Why on earth funding required? when they have around £60m cash
And if the raise is to buy a new asset it is not dilutive, and will have the objective of being accretive. That;'s the whole point of the deal.
@Terry: If only the directors had a crystal ball 1y back to see the copper/zinc price trajectory and the direction of the world economy. It's easy to comment from the sideline. I don't see that any mistake has been made. They're in a solid position, waiting in the wings for asset prices to drop and scoop one up. Yes, they would have (potentially) had to raise less as a percent of mkt cap, but the asset would have cost more.
I am not sure about dilution, we have had 3 director buys through April and May
1 @ 1.975 x 10,119
1 @ 2.01 x 5000
1 @ 2.16 x 5000
I am leaning more towards cash and debt for a producing or near producing asset.
Some nonsense talked on here. Basic error ; placing is not "dilutive" if it is buying productive assets.
dilution only occurs when funds are raised to progress existing assets, working cap, etc.
Cuirrent sp looks more and moore a bargain to me
"Central Asian metals needs another asset!"
There's no hurry. They're debt-free and Kounrad will continue to be profitable down to very low prices; it's one of the cheapest operators on the planet. At the point at which they switch to being unprofitable, most (90%) of other operators will have already ceased and gone bust. They also now have a stronger positino with the banks, having quickly paid off their last loan. They're now in a much stronger position than they were before buying Sasa.
I have no exposure here... I always look at technicals + fundamentals before buying.
Peel Hunt sees sales and profits falling back slightly in 2023, before a rebound in 2024. early-stage project I believe is on cards which would possible be paid 4 by placing
Tel, not sure if people take your advice. You posting history is way to obvious...haha
Get some more....fillyerboots time. Cheaper than chips
@TerryMC1 - let's stick to what we know. That's your view, which is fair enough, but it's not fact...and it's not a disaster even if it is.
('margin of safety').
That margin of safety is around the 150p for me.
Issuing more shares in order to buy a good, accretive asset at the low of a cycle is not a bad thing. Some here are confusing it with emergency raises that (most) AIM companies do for working capital. CAML is not in that position. That said, I'm not holding or buying yet - I need a bigger safety of margin.
I don't think they'll want to dilute to any extent, they haven't spent all these years to then destroy value hopefully. in this period there might be some bargains out there
Current interest rates not that important for new acquisitions as will be reflected in the buy price.
Anything else going on we don’t know about? These 2% drops every day getting tiring.
Debt at current interest rates is actually not high, higher than the recent historic low rates, but average rates are still higher than todays, so in effect still cheap :-)
Someone posted below on 21.06.23 ''Company has confirmed no dilution. Plus they are looking at exploration/ development assets which can be bought outright ..'
I have absolutely no problem if they do a raise to buy an accretive asset at the appropriate time, but I suspect they'll primarily (or wholly) use debt instead.
The price is dropping because of the collapse in Zinc prices. This has had it’s first casualty, with an Irish mine being put on care and maintenance.
There was a ~$50million goodwill writedown on the latest annual report in relation to the effect lower metal prices will have on Sassa, so further balance sheet losses will be contained. At the same time lead prices are stable and copper is strong, so the continued drop is unjustified.