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Obviously profits increasing with gold price. So either higher dividends, or they use that to fund investment. I see they are aiming for 500k+ oz per annum by 2024.
like i have said before £2 here soon.
Total stock on loan at end Dec 19 was only about 0.98% down from just over 1% so looks to me like shorters are exiting.
yep.. algos have day to day control on this share outside of big gold price movements or company news..It seems to trade close to the spot price movements but i am comfortable with that as the downside is limited in that case...
Remarkable amount of automatic trades!
yes even better than yesterday , nice
about time this started to move outside of the spot price range. It had a close correlation last year to the spot price up to 252p but although it fell back alongside gold till novemebr it over shot the down side IMO ... last time we were at this price (apart from one instance) the gold price was 1350 at the time.. I see this undershotting again and in my veiw it should be trading in 2012-2018p range now ..... i am bullish but DYOR
Dollar may be a bit softer at the moment, but it's still one of the strongest currencies from a medium term 5 year view.
Yes weak dollar
It is my biggest holding! I didn’t plan to go in so heavily initially, but there is clear evidence confirming considerable upside. Gold seems to be consolidating after the recent sharp rises, but I think it will resume its upward trajectory fairly soon,
it is trading on a PE of 12.6 which isnt cheap per se' however with a 6% project yield and upside potential on company earnings (never mind gold spot price) it is my second largest holding..
yep... we that is at least why i have been buying but DYOR of course :)
Hi Deepjoy!
Doesn't the situation you describe add up to an opportunity for us all?
The last RNS was good, and (at face value) this share is trading "too cheaply". Therefore...
Auson, TBH i have no idea why it is algo traded all the time. Perhaps the predictability of the relationship with spot gold price makes it a simple enough arrangement to remotely trade the margins but that is a guess on my part. I think your right about the short position reducing and i suspect it will reduce further should the world banks continue to reduce rates and the dollar weakens... Ive built up a substantial holding here and, as a producer i see it as a paying hedge.. :)
deepjoy,
Yes that's correct re algos but why ? There is a very small short position here, could be the last push as they exit. The stock on loan has reduced over December.
As I said yesterday the news will slowly sink in. It was a fantastic update. There will be very few holders doing anything accept accumulate at this price. Traders need to assess when is best to jump on board. There may not be much stock left soon to buy.
better day today
the problem with this share is mainly the use of algo trading which appears to be directly linked to movements in the gold spot price... in my veiw it is trading below price because of this and it is evident if you overlay the SP movements against the gold price on a chart. Up until November the trends were closely correlated but now the HGM SP is gapped down and seems to be staying that way so i put it down to Algos and of course the remaining short positions.. it will play out but will take patience IMHO..
Maybe to both. Who knows? Yes the new mine will need some investment, obviously. This will give around an additional 50% revenue from 2022 onwards, at a very low cost of production. Also, another new mine planned for 2024. All very exciting IMO.
Capital expenditure for the year 2019 totalled US$ 94 million and is expected to rise to US$ 205-210 million in 2020
Perhaps this could be the reason for the share price today ?
The Company forecasts that total production of gold and gold equivalent in 2020 will be in the range of 290,000-300,000 oz.
This is same as last year and this could be the reason for the share price today.
Topped up!
Very good result in deed but why the sp is not reflecting at all? The sp was supposed to be at least 200p today!! Can't understand the situation.
Optimistic for today I feel. However, with this update we should see a steady increase back up to the recent high point. Maybe before the full year results announced.