George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
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Summary: Some London-listed companies, facing wide valuation gaps, are looking to the US
The boss of a newly listed gold mining company has said that its future lies in Toronto and New York, as more precious metals miners are bypassing the LSE.
Allied Gold, an Africa-focused producer, listed in Canada on Monday in the country’s largest mining initial public offering since 2010 with a market capitalisation of C$1.3bn on the first day.
Peter Marrone, chair and chief executive of Allied Gold since April, said that the company had been considering listing in London about 18 months ago, but it will most probably opt for a New York via Toronto route.
“New York is a very interesting place. There’s a lot of money that is a multiple of what one finds in the rest of the world,” he said in an interview. “In the precious metals world, they are becoming more comfortable with the emerging markets.”
The change in listing plans for Toronto-based Allied Gold comes after Johannesburg-based AngloGold Ashanti announced plans in May to switch its primary listing to New York in pursuit of a higher valuation underpinned by the US east coast city’s large pool of investors.
London has long been home to Russian gold producers but the likes of Polymetal and Polyus have been forced to pursue delisting plans following western sanctions in response to Russia’s invasion of Ukraine.
The London market’s waning ability to attract companies is not limited to gold miners, however.
Among companies opting for a US listing include Irish paper maker Smurfit Kappa which is moving its primary listing to the US and UK-based chip designer Arm, which opted for a New York IPO. WeSoda, which produces soda ash in Turkey, pulled out of a $7.5bn London IPO earlier this year.
London has historically been the home for natural resource companies whose production is based in Africa owing to the timezone, but Marrone believes that the UK capital’s investors have become increasingly skittish about emerging market risk.
“Whereas in the past, Europe and London had a better focus on Africa and emerging markets in Asia and some parts of Europe, I think the American portfolio manager is now catching on to that. I think the landscape is changing,”
Marrone is the former chair of Yamana, which added a secondary London listing in 2020 before being sold last year for $4.2bn
Allied Gold operates three mines in Mali & Ivory Coast that produce 375,000 ounces. Marrone aims to lift output to more than 700,000 ounces.
Marrone said he consider opportunities for mergers and acquisitions to build a portfolio of emerging market gold mines, which could include partnering with competitors to buy bigger rivals and divide up their assets.
“I would like to get to a platform of 1mn to 1.5mn ounces per year that leans towards the emerging markets,”
For what it's worth I've not seen any indication of a 10 day plant shutdown via the Sukari workers on LinkedIn - esp. one that was unplanned (other than standard maintenance)
Therefore I'd be very surprised if it turns out to be true.
Additionally, the gravity circuit must be nearing a state of readiness, so I would expect some high grade bonanza ore to be processed soon - which should give Q4 a boost across the finish line
My post 26th July following Q2 numbers- Let's hope that things are not playing out as predicted here.
Re Results26 Jul 2023 09:57
Still on course, that's the main thing. - Avoided a kick in the crutch - always welcome. - Agree with Sotolo's take. -an interesting management strategy in putting a $1900 floor under the price covering the next 12 months. - Clearly, a thought out chess move for planning/insurance. - Grades disappointing I thought, an upgrade here would make a difference going forward. - All eyes on Q3 now, the truth quarter, the quarter where they run out of road for bending facts/forecasts. The quarter where if there has been skullduggery, they have to create/invent a cover. - A quarter where all sorts of unexpected and undesirable circumstances can suddenly manifest, affecting all the well laid plans. - However, let's not be too cynical, let's rejoice and welcome a black-eye free quarterly report. :)
Siko would know whether there is truth in the rumour or not. - Siko old friend - are you there?
Hi Mr Bond - I haven't a clue. - I've only picked up on the comment on this forum. - However, I have plenty of experience when it comes to the trickery that Centamin employs from time to time when they seek to cover up.
As a new poster, has nhenderson been put in place strategically, to break the news about the plant close down. - As others have commented, it seems a strange and mysterious communication. - Not accusing you nhenderson, but can you clarify please?
Rebess where is this "News" circulating ?
I think he is saying that he wishes there was an RNS about the circulating news, rather than that there has been an RNS.
This of course is the truth qtr. coming up. - If they've been spoofing about production forecast/figures, they have to find a way to cover up. - Not saying this is what's happened, but some sort of setback, in this case loss of production, is a device they can use as cover. - They've done it before.
Where and when was this mysterious RNS ?
Meant to panic no doubt, sounds familiar dosnt it!!
The poster not coming back to answer previous questions , Why!
Possibly still asleep.
Https://www.bls.gov/cpi/
As a consequence of so many people not replacing cars, annual maintenance inflation is 12% higher and car insurance state side up 19% in a year. Going out to eat in a restaurant 6.5% higher and far greater than most areas of food inflation. A lot of the inflation data looks as if it is under control. There is service inflation in particular areas running hotter. Here in the UK we have certainly seen restaurants charging more re-mortgages on housing down 5.5% after the latest 30 year rise by around 0.07% on 30 year rate. The housing market holding up but only just so. Really tricky to raise rates on that data. Higher rates are choking off one part of the economy and the downstream impacts actually cause inflation by not investing newer for older. Makes no sense to elevate rates in that scenario. I suspect a pause next week with hawkish swagger talk.
Hmmmmm, I would have thought if this was true there would have a big whack on the SP already (all the big players would have already exited some positions), plus, don't take this the wrong way mhenderson, but you've only been a contributor on LSE for 4 days... and if not true, I too would like to know the source, and why you only joined LSE 4 days ago.
Probably when they ran out of diesel ages back.
Speaking of the Fed this just came out on Gold eagle. FED calls the deficit an asset.
https://www.gold-eagle.com/article/lots-red-ink-fed
Yep expect this will turn out to be a regurgitation of 2020 pit wall instability news
I always suspect down ramping from new identities with just 3 posts or so on LSE when they speculate on such news with no link. It is possible that it was old news seen from years ago.
Can you post a source
What I wished was clarification announcement about the news circulating regarding the stopping production in Sukari for more than 10 days due to a technical mistakes in the plant ?
The UK economy contracted by 0.5% in July - with early official figures suggesting that strikes and the summer washout had an impact.
The Office for National Statistics (ONS) said the decline - which was worse than many economists had expected - followed an unrevised 0.5% increase in gross domestic product (GDP) over the previous month.
ONS director of economic statistics Darren Morgan said of the yo-yo performance: "Our initial estimate for July shows that GDP fell; however, the broader picture looks more positive, with the economy growing across the services, production and construction sectors in the last three months.
https://tinyurl.com/yc8zur5w
Postwar CBI in the United States
Every postwar president from Truman to Trump has made an effort, not always
successfully, to influence monetary policy (Conti-Brown 2016). Furthermore,
Congress—sometimes from the left, sometimes from the right—often has the Fed in its
sights (Binder and Spindel 2017; Paul 2009; Wachtel 2017). The statutory
independence of the Fed is clear but that does not mean it is removed from political
influence or criticism that might influence decision making (Cargill and O’Driscoll 2013).
The Federal Reserve begin operating in 1914 as group of 12 regional banks with
weak oversight from the Board of Governors in Washington, D.C. Independence was
reinforced in the 1930s with the establishment of the Federal Open Market Committee
(FOMC) and the removal of the Secretary of the Treasury from the Board. During World
War II everyone agreed that the role of the Fed was to assist in war financing with low
interest rates. The Fed continued to peg long-term interest rates at 2.5 percent even as
inflation accelerated in the postwar period. Low interest rates were popular and the
policy record indicates that the Treasury was in charge; the Fed had little will or desire
to resist. As inflation increased during the Korean War, the Fed was ready to tighten
policy and assert its independence
https://tinyurl.com/mryxcbvp
“US banks are more profitable because of investment banking. Bank of America, Goldman Sachs, JP Morgan, Morgan Stanley – these are the only investment banking relationships you need. In Europe only Barclays has material access to capital markets. It has proved very painful for the likes of Credit Suisse, Deutsche and UBS to try to compete,
https://tinyurl.com/49wmemtm
US banks are more profitable because of investment banking. Bank of America, Goldman Sachs, JP Morgan, Morgan Stanley – these are the only investment banking relationships you need. In Europe only Barclays has material access to capital markets. It has proved very painful for the likes of Credit Suisse, Deutsche and UBS to try to compete, let alone what I call the ‘rats and mice’ players.”
We’re glad to see that you may be inspiring others with our journalistic content. We ask that you copy our content for personal use only, so as not to violate our Terms and Conditions. Otherwise, ask about our group memberships via lorenzo.passarella@ipe.com. Text copied from: https://www.ipe.com/current-edition/fear-and-loathing-in-european-banks/10065378.article
Considering this was published April 11, 2010, 4:00 a.m. ET it shows just how much of a hold the FED has on holding down PM prices!
There is no silver lining to the activities of JPMorgan Chase and HSBC in the precious-metals market here and in London, says a 40-year veteran of the metal pits.
The banks, which do the Federal Reserve’s bidding in the metals markets, have long been the government’s lead actors in keeping down the prices of gold and silver, according to a former Goldman Sachs trader working at the London Bullion Market Association.
https://nypost.com/2010/04/11/metal-are-in-the-pits/
https://en.wikipedia.org/wiki/Andrew_Maguire_(whistleblower)
S1.2449 after results UK. The direction of pound going lower by 0.44%.
Major indexes in Europe traded flat to lower in the premarket on Wednesday in anticipation of the latest data on the United Kingdom's trade balance, GDP, and industrial production, as well as Eurozone industrial production.
At 7:48 am CET the DAX declined 0.10%. The FTSE 100 declined 0.07%. The Euro Stoxx 50 and the CAC 40 were flat at the same time.
The euro was down by 0.11% against the dollar at 7:52 am CET, selling for $1.07420. Also, the pound lost 0.05% compared to the US currency to go for $1.24825 at the same time.
Baha Breaking News (BBN) / DD
Happy hump y’al
Actually, in all probability, it is controlled by those who control the government, but you could argue that is simply splitting hairs :)
CPI print shortly. Ready to add a few here, should we see some weakness. GLA.
The FED is a Government agency , controlled by whoever the Gov is.