Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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JMT,
You're correct in saying 60% of the debt has been rolled over until 2050 on better terms making it irrelevant, however, FRES are still on the hook for the other 40% over the next few years until 2023 and must be confident they can afford to repay it so the debt is being reduced. Juanicipio coming online and the underlying commodity value at a level well above our AISC means the company is generating plenty of cash as yesterdays RNS, there is currently no other explanation for the SP other than manipulation at this point, however, when it moves up it will be quick.
Regards
Caino
Just saying I think the whole Peruvian election weighing on the sp was overdone for hoc and it could be due a retrace? I'll go crawl under my rock again shall I?
And the RNS came out on ex div day....that is pretty shifty behaviour
I wouldn;t touch HOC with a bargepole right now.....And i haven;t forgotten (and i bet they haven;t) the chairman honey trapping the institutions on ex div day by selling a chunk of his holding at a substantial discount....they ran in for the div and got scalped !
If they have fallen out with fres then they've turned their back on hoc. Although they're up nearly 3% this morning so maybe turned a corner? A bad week for fres but there's always next week.
Debt hasn't been reduced it has in fact increased since not all of the old debt has been retired. IMO it is a positive since it has in effect been rolled to a point in the future that makes it irrelevant for the next decade. IMO the debt situation has improved, but it is not true to say that it has been reduced. This company needs to get back to being a growth silver producer to have a chance of being taken more seriously by the market/silver needs to break above $30. I beleive both will happen with the new projects coming onstream in 4th quarter this year and the gang busters money printing / PSLV draining physical silver from the market. For now The obvious of increasing cash flow and profits is not enough to get the market excited about this share. I am confident this will not always be the case.
This got hit badly couple of years ago by capex exceeding income but that has completely reversed now. According to my calculations, we are on course for revenue of at least $2.8b for 2021 and that would be a record for Fres with similar costs. There will also be upside in 2022 to that from Juanicipio. The profit growth will be huge in 2021 so how can that be overlooked by market?
The H1 results will confirm the numbers end July so let's see what the price does then. With record profit, we can't possibly trade at 60% below the peak right? There has been no dilution to boot.
You just have to look at the long-term chart vs. PM prices, factor in debt reduction, stabilised production with a positive pipeline, FIAT currency dilution, inflation...this will rebound.
And which share has a record of moving up at record pace in a very short space of time ? Yes Fresnillo (FRES)
Reminds me of Puppy sellers hiding the best ones around the back ! Or Estate Agents taking advantage and doing shady deals out of view, have heard of them refusing viewings and refusing to pass offers on so they or mates can seal the deal
The markets have really fallen out with FRES for some unknown reason, don't know what they can do to get back in favour.
I think the exact opposite they are wanting in at a bargain. Fres is the one they want, it's multiple mines, making money reducing debt...offers gold and silver exposure...and the updates are good. FRES is the apple of their eye it's quite QUITE obvious OBVIOUS in my view
I can tell. I hold some poly share too, not as much as fres(i wish pick poly) . it seems to be moving up more and consisted to the gold price than fres. fres is all over the place.
The markets have really fallen out with FRES for some unknown reason, don't know what they can do to get back in favour.