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The acquisition of Valunisty in December 2018 has made Highland an even purer Gold play. In H1 2018, other metals (Silver, Lead, Copper and ZInc) made up some 16% of its revenue. By H1 2019, this had fallen to just 11%.
By the way, some investors may not have yet grasped that the far eastern part of Russia is being opened up through a policy of private and public development. The authorities are constructing an infrastructure that facilitates private development. It’s almost a chicken and egg situation. It’s pointless building roads to nowhere and it’s equally pointless investing in areas that lack basic infrastructure. Highland seems to be a key part of that strategy. Its development makes viable infrastructure investment, such as winter roads, and that facilitates further development. In essence, a multiplier effect. The Kekura project is largely possible because the authorities have built a 733 km high voltage power transmission line stretching across Bilibino-Kekura-Peschanka-Omsukchan. And this includes a cable running directly to the Kekura site. Sure, Highland has built a sub-station that fits into the system but it was the authorities who did the heavy lifting. There’s a parallel development. I would suggest that the upshot is that Highland has a great deal more development potential within its current licences.
Agreed. Poly is also a FTSE 100 Russian miner. What stands out for me is HGM is mainly gold production. That is why I bought in a number of years ago, and am still buying.
Outstanding team IMO. PE numbers shown on most sites well out of date as relate to 2018. Our 2019 numbers will be great from what indicators we've had. 2020 has started with the POG a staggering 14% up on last year's average. That's profit straight to the bottom line.
When looked at rationally, it’s strange that Russia is off the radars of so many resource investors because of “Jurisdictional issues”. For sure, Highland Gold operates in some of the most inhospitable climates on earth. But it has no problems with armed and organised artisanal miners. There are no issues with “Community groups”. And most of its operations are within an Advanced Special Economic Zone (ASEZ). So they get substantial benefits including a favourable tax regime. More specifically, Highland has four distinct producing assets - open pit and underground. These are augmented by waste dumps that can be used to even out production. In addition, it has three major development projects. The largest, Kekura, is now at phase 2 and is looking at going into production in 2023 with an estimated annual production of 172,000 oz of Gold per annum. Around this and the company has a raft of ongoing and near-mine exploration projects that seem set to increase the life of its existing and producing mines.
In essence, it may be risky but Highland could be a lot less risky than most other mid-tier Gold miners.
Why is the handbrake still on ? Those bloody sell algos !
Gold pushes through $1,600/oz. Covid virus is having a much wider effect on the global economy than is being reported. Just wait for the major news outlets to cotton on.
At some point this will ping like a coiled spring. Very soon IMO. Results for 2019 and Q1 2020 update, due in April. DyOR
Gold now at $1598 / oz or 102.1k rubles / oz
In the meantime, gold is approaching $1600 an oz again, and up to 101.3k rubles /oz. Rising in all major currencies.
Graphene face masks won't stop traansmission via dirty surface, but before it was abandoned by the sensible medicals - #pneumoniawuhan did have a table that said it actually has a very low 3 hour lifetime on metal surface - noravirus is months - normal flu is longer. Its present in fecal matter though - so water and surfaces are a big risk. #pneumoniawuhan were again days ahead of the game in saying the main risks are not the coughs and sneezes if you keep your distance, its all bodily fluids, close proximity. and washing your hands. I think in most situations gloves might be more useful then face masks - but obviously a queue or crowd is diffrent. Graphene is an excellent water and chemical barrier - but this can get in via your eyes according to the Chinese and #pneumoniawuhan so safety glasses as well - oh and shave your hair off or keep it covered - the virus does not wash out of hair so they said - oh and kick out your pets becuase it can reside within most mammals and snakes - the snakes one I find veru unbelievable. So I think facemasks are pretty much a waste of time - but I could be wrong 0 no one knows really.
And I think it flips after the rule of law breaks down making gold mining impossible to sustain, but gold itself becomes more valuable and paper money becomes worthless - which is a long way off yet.
Could graphene face masks reduce the virus spreading?
Covid19 and gold - gold is normally a safe haven as if everything else goes down in value - it doesn't. However you cant make hospital beds, a health service, anti flu and anti HIV drugs out of gold. So I don't know if this thing gets as bad as world governments actions indicate it could - and they are probably the only ones who know how bad it could get - is gold still a safe haven - are gold miners still going to be worthwhile or even viable if most ot the worlds populus are suffering endless cycles of SARS like symptoms which are gradually destroying their immune systems until they pop their clogs while what's left of the biotec industry is still working on lifetime drug stockpiles to keep those left alive (that is my worse case prediction I hasten to add). So at some point I think this flips - if we get that far.
To be fair total number of cases and deaths curving down on a log scale - especially since lockdown. Recoveries vs fatalities trending asymtopically toward about 15% 0 if the patient is hospitalised, but then, untreated death rate probably much higher once the sparse number of NHS beds available run out - and will we get HIV/flu drug combos once the NHS is overloaded or everywhere else were it doesn't exist - nope - and the populus of China is now back at working giving the pot a stir. Hope perhaps it will be end of flu season in 2 months - but again the negative is this is not flu - this is a weak SARS with characteristics of HIV - and we think virus free means virus free but the Chinese did warn about reinfection - or is that more like dormancy - too early to know. Now how does this effect pog... thoughts next post
The corunavirus is going to cause a ripple though the world economies. Governments are trying hard to play this down, while working hard in the background.
Gold was rising even before this. It's just another catalyst to push the price higher.
Last year looks like it was excellent for HGM with an average gold sale price under $1400 / oz, or 90,000 rubles / oz. Even that is not yet fully built into this share price!
With gold possibly averaging $1600 / oz this year, it could be a bumper 2020 for us.
Yes rubles are important as we incur a lot of costs in rubles. Other currencies also need to be considered, as this may drive worldwide demand.
Ah yes - ok I was looking at £ and $ - good point - should I be looking at something like the ruble as well ?
I would disagree. The share chart correlates very closely to a leveraged position in gold. Of course you need to select the right mix of currencies.
We had a good day on Thursday which led to some short term profit taking yesterday no doubt.
Think and look long term!
Well golds up now... Maybe no one will need it or be around to mine anything soon ? Tbh of my four goldies - this is the one that seems to pay least attention to pog
That data is out of date Volcano. You need to wait until April to get 2019 numbers. EPS will be far higher IMO, and already a lot higher still for Jan 2020.
Substantial uncrossed trade at the end
Shares outstanding 363.90m
Free float 204.58m
P/E (TTM) 13.32
Market cap 718.72m GBP
EPS (TTM) 0.1483 GBP
It should have never been this low anyway , it's heavily traded by algorithms which seem to just follow the gold price trend
we could see a rally up to 250p here soon.
£2 reached, Defensives come back
Expecting gold to test year highs in the coming weeks which should give stocks like HGM a boost, in theory..
https://www.investing.com/news/commodities-news/gold-nudges-higher-on-china-risks-and-as-fed-stays-2070934