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Crypto ? Pyramid selling ..
I have no problems with debt per se if it is used to fund growth ..I like to make assets sweat, and nothing like a little debt to keep senior management on their toes and earn their salaries and bonuses
What I dont approve of is debt being used as a sweetener to shareholders to make dividend payments , and I don't go anywhere near companies who take on debt to pay for the housekeeping !
Sorry winged it ..a very long winded reply on NRR but there was lots to get through ..
Regarding Cey...the peer premium comparison on NBV on this basis alone suggests to me it is very undervalued , although it still has to be said that only 70% of its net assets are being employed , with the rest in non revenue earning cash ..that is about to change though .
My major concern remains that we only get 50% of the profits from the 70 % of assets which are employed , and apart from production which is within management control, they are heavily in the hands of the gold price which isn't within their control..and given that gold prices are still very high from a historical perspective , they would be heavily succeptible to a prolonged fall in gold price .
Exit point for me ? £1.35 to £1.40 if it can achieve that by March of next year .
It can and will get to £2.00 plus again at some point , but I would rather run, and roll up the gains on another share , although none are on the horizon for me at the moment . Market prices and PE ratios are too high.
As usual DYOR..
Here is what the Oz Govt and the punters think about Crypto and block chain...
....the digital asset sector has grown far too big for governments to ignore. It is valued at $2.8 trillion, Bank of America said in a report this month, which found 221 million users worldwide had traded a cryptocurrency or used a blockchain-based application as at June – four times higher than a year earlier. The committee took evidence that 17 per cent of Australians owned a cryptocurrency; the Australian Taxation Office told it over 600,000 taxpayers have invested in digital assets in recent years.
I am all for structures and processes which take out the middle men in finance, and make financial transactions easily transparent and traceable. The present system is a shonk, and the middle men and women make far too much money for not adding much in value (execept to their own pockets) and far too many fall into the power game...just look at the commodity traders and what they got up to, not to mention the hybrid model of the Brazilian butchers...https://www.thebureauinvestigates.com/stories/2019-07-02/jbs-brazilian-butchers-took-over-the-world
Not to mention the millions which get donated anonymously in Aus to different political parties..all in the name of democracy LOL If you can see this expose it is well worth a watch...
https://iview.abc.net.au/video/DO1914H001S00
best
the gnome
The workings of the artisinal can sometimes be very misleading. I was involved in a gold rush of about 20-25,000 artisinal miners over running an area. Fever pitch stuff. We caught the fever, and first pass drill program was quickly put together, ...no doubt they were after high grade gold, 10+ gpt Au, but we couldnt make it hang together with a decent strip ratio. One needs to be very measured in going into such areas, and look at the fluid wall rock alteration, in terms of extent, type and grade...lots of spectualar pictures....lot of money been lost in these sort of ventures...
One of the largest artisinal programs I have ever seen was at Fetekole in northern BUrkina Faso. Tourmaline+Qtz+sericite+biotite alteration by the bucket lodes, over 250 wide and about 4 kms long, so many workings it looked like the surafce of the moon. BHP, Resolute and many others got sucked into the workings. Yes there was gold in the system, but it just didn't bulk up for modern day open pit mining.
https://www.researchgate.net/publication/285929315_The_Guibare_and_Fete_Kole_gold-bearing_tourmaline-quartz_veins_in_the_Birimian_greenstone_belts_of_Burkina_Faso
The artisinals are still chipping away, and some Junior explorer will "discover it again", lovely photos, juicy rock chips, new geological theory, request for OPM's and on the circus goes...
best
the gnome
Winged it. .to be honest I am not yet sure. .I would need to see the next interim accounts to see the impact on profit that the Sale of Hawthorne pubs has made .
Pre Covid in Feb 2020. It was trading at over £2.00 then 6 weeks later it was at a one year low of 60p. I knew it was undervalued so I bought in and heavily too . However just because a share is way undervalued doesn't mean to say it can't get even more so ..it fell down to 42p !! I invested more cash at 48p. I held my nerve Finally in the summer it rose from 70p to £1.06 in 2 weeks .. it hovered and fell then they announced the sale of Hawthorne , the price shot up (fools !!) and I got out at £1.06 before the market realised what they had done...sold their prized income earning asset to reduce LTV which had been dropping like a stone.
The rest is history .it went on steady decline to 75p ish.
I won't know whether this is a good entry point until as I say , I read their interims. They will have lost half of their revenues and profits even more because I bet they don't chop corporate salaries and overheads .
I wouldn't enter now though ...so if you went in at 90 p ..I can't see it going above that soon although there is a massive discount between NPV and market value...so who knows .it just needs some good news .
If I was you and I was sitting on a near 20% loss it's an even call.. may be best to hold and wait for the interims. I have no doubt it will rise..in time ...their retail strategy of investing in essential retail (60% of their tenants were open during Covid lockdown ) and not having any of their tenants generating more than 3% of their revenue is a sound one .. so I think it will rise but you might have to be patient ...for me Cey is a better bet
Good luck .
Oh and to add Warren Buffet said last August he’s buying gold …. Timing when?
Ditto hold both
@Squid: "Warren Buffett quotes on CryptoCurrencies :"
Here's what Paul Tudor Jones says.
https://www.youtube.com/watch?v=ZQCGLUVVSd4
I hold both crypto- and gold miners (including a decent allocation to CEY for my sins) and am emotionally attached to neither.
Thanks Don, I have seen it,
Shalateen I remember was difficult to research.
Good points MrBond.
Also, in many of these border areas the Sudanese artisanal miners (or marauders?) have been exploiting the surface gold deposits for decades.
I have included a few screen captures* from the EMRA site - you can easily see the mounds where artisanal work has been ongoing.
In some respects though it means much of the exploratory work is done in advance.
Simplistically speaking all that's left is seeing how deep the resources run...
https://twitter.com/DonLawson_/status/1450918273478840320 *
From memory and research well over a year ago.
The mineralisation of that area to the south on the border of Sudan,is nothing like Sukari .
They originally tried to sell it after claiming an incredible new find of gold reserves .
The Militaries Pension fund had an investment in it. Difficult to find the figures !
It did not make much profit and Gold was not it's primary resource.
Many semi precious minerals and such.
The new resour was questionable and there was much ,shall we say secrecy.
I do not think Centamin will be interested.
Sawaris made an offer that was refused then walked away.
Not without reason.
IMHO.
Thanks Cowichan- interesting for sure!
Interesting Candid.
Do you have a mental sell price for CEY? If you wouldn’t mind sharing…
I also have a small holding in NRR (at 90p - so at a loss) but wondering where it’s going. A line on that would be interesting too if you have a moment :-)
Oct 20, 2021
The Mineral Resources Authority of the Ministry of Petroleum, in cooperation with the Shalateen Company, is preparing to supply and offer the 7 most important gold exploration areas in Egypt in the Eastern Desert, in a new global bid before the end of this year 2021.
These areas belong to the Shalateen Company, according to a cabinet decision, which stipulates their exploitation to search for gold and associated minerals
https://www.dostor.org/3604405
------------------------------------>>>
My Thoughts:
So this means Naguib Sawiris wasn't able to secure Shalateen's concessions through the back door.
That's good news for all legitimate gold miners involved... now, will Centamin bid?
Map of Shalateen concessions here:
https://twitter.com/DonLawson_/status/1450898424593666048
Thanks Steve ...you are a man of few words...I missed it..
Irrelevant in my view, hence my earlier post.
Do you believe that Cey is exposed to allegations of similar practices in their activities ?
Sorry ..I posted this on the wrong thread
https://www.google.com/url?sa=t&source=web&rct=j&url=https://amp.ft.com/content/f9afe5b0-2167-11ea-b8a1-584213ee7b2b&ved=2ahUKEwiD-66DvNnzAhUUoVwKHcMMCvUQFnoECCYQAQ&usg=AOvVaw0TSAIcFBcEcO_3eq09TJcG&cf=1
Sorry posted on wrong thread. ..it was Muddy Waters not clear waters
https://www.google.com/url?sa=t&source=web&rct=j&url=https://amp.ft.com/content/f9afe5b0-2167-11ea-b8a1-584213ee7b2b&ved=2ahUKEwiD-66DvNnzAhUUoVwKHcMMCvUQFnoECCYQAQ&usg=AOvVaw0TSAIcFBcEcO_3eq09TJcG&cf=1
Should have said Muddy waters report
Mmm...NMC Health comes to mind where even the auditors were involved .. I sold after a damning report by Clearwater ... dismissed at the time..but later turned out to be true ...shareholders lost everything.
Yes I agree with you totally ...well , the vast majority of the time . Patience is always the key
I bought Ferrexpo for £1.02 ! write at the bottom during Covid ...I sold months later for £2.10 ish but then just a few months later it hit £4.75 !!
One vastly under priced , the other vastly over priced ..it has now fallen back to £3 .17
I did the same with Polymetal...sold way too soon , and Plus 500 too..
Likewise though , others I timed just right like NRR
I also made very shrewd moves, even selling at a modest (less than 10% loss ) with Saga, Carillion , Amigo and NMC Health ..I picked up very quickly on dangerous shifting fundamentals and exited. I did tell other investors on those boards what I was doing and why , and I was ridiculed and insulted ..lots of paper tigers on investor chat forums like this.
Too true MrBond.
The shareholders are left unaware until it's too late but the culpable parties seem to get off without suffering damage to their wallet or reputation!
Just like Pardey and others involve in this company in the past.