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It’s ex dividend date today for the 8p payment that will be received by holders on 22nd Oct, and so a related drop in the SP is quite normal….indeed as a write this message the SP drop today is only 6p so it’s less than the dividend value which is a good thing.
whats wrong with this share price
Yep, I've had a little top-up.
The Co fundamentals are solid. Record earnings are on the cards. Also M&a activity happening in the copper sector.
Any further advance in price here looks like a breakout from the downtrend in place since May.
Ex div Thursday 8p. Sweet.
I doubt the rationale behind the increased capex at SASA is higher costs and falling output.
What is certain as the SASA production becomes ever more operations interdependently complex, less reliable & more costly with additional dry stacking plus cut & fill operations, costs may rise significantly while output correspondingly continues to fall.
Think much of this has to be taken into wider perspective. All in all, it's likely a good thing for most of us on here for metals to settle a bit in order to remove some of the inflationary pressures that will otherwise inevitably filter through into our daily lives.
Equally, what does 'weaken' mean? Looking at the charts, I'd say good chance for copper to break the 6 month support line and 50 week MA resistance at ~$3.95. Frankly, there's a gap down to $3.5 (Jan support levels) combined with monthly 20 MA support. Pretty fair gamble before year end I'd say.
Is a ~15% drop weak?
Remember, Jan support levels still had CAML trading in the 210-278p range. And this 'weakness' would still be equivalent to highs not seen since 2013!
It's understandable that SP would forward trade in towards the lower band of that range, giving a comparatively bearish sentiment compared to the beginning of the year when metal prices were rising. But jeez, CAML should be soaring with anything over $3 - and same for the other metals in our portfolio.
I did read an article, which I am sorry I can not find now, but it was titled 'Moodys downgrades base metal outlook'. I think its getting more accepted that base metals may start to weaken. Hence the weakness in the share price. Shame really, but an opportunity for the value investor with a little time on his hands.
"CAML is known for copper production"
The last results, copper made up 54% of turnover, lead and zinc 46%. CAML today is known as a low cost metals producer.
"metals coming off the boil now"
Zinc is the highest its been for a few years, lead in H2 is 10% up ion H1, copper prices in Q3 have been buoyant. I don't know what metals you refer to that are coming off the boil, but they are not in CAML's portfolio.
I wrote:
"This year?
Do you really think that the big fish, dealing with millions, will simply rely on this year?"
In response to your statement.
CAML is known for copper production ....
.... while metals are coming off the boil now as in 20011 .... after the financial crisis.
CAML itself has come down too easily in my view these past few months, while I was in this stock heavy at 128p last year.
While cheap for me is below 180p.
The increased capex at SASA will lead to increased production of lead and zinc in the years ahead. Don't post unresearched twaddle.
This year?
Do you really think that the big fish, dealing with millions, will simply rely on this year?
Your money your decision.
I said my piece …..
Really?? Many US miners on similar ratings. This would be considered a tiny illiquid pink sheet stock in the US.
UK investors are just plain dumb. americans will vlaues this 3X.
Tod, CAML stated yesterday they will meet metals production guidance for the year, copper at the upper end, lead and zinc at the lower. Don't be a doughnut.
I agree with you on production and growth .... difficult one ... if the production decline continues so will the shareprice.
I would have liked to hear something about the kind of growth opportunities they are looking at. But otherwise it's more of the same from caml, the focus on keeping on top of costs is alway good to hear, even when metal prices are doing well.
https://www.youtube.com/watch?v=QN_EDxZh7yo