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gotti,
Do you wanna give us some numbers for the Gold chart this week ?
with most recent 4hr candle closing above HGM 243p-245p resistance area formed at the end of May along with smashing triple top at the same area I reckon it's our time to test ATH withing next couple days/weeks
Going from past performace, I am expecting to see the price of Gold really breakout some time after 4.30.
still a lot to catch up comparing to CEY or HOC, sp should be hovering around £3 mark
another good start ,
Highland Gold Mining Ltd
HGM
243.20 GBX
+5.40 (2.27%)
i am looking for HGM to get to 270p very soon.
A number of broker notes have gone very bullish on gold miners last weekend. We have been manipulated down in low volumes, so the value here is now considerable IMO.
Looks like we are getting that Gold price breakout I mentioned on Friday. HGM has some serious catching up to do we should be knocking on the door for £3 already.
Well gold has broken through 130k rubles. Not bad as last year it stood at 92k rubles. Cost mainly in rubles.
Could today be different, 50k share buy on the NEXat 224p.
Potential for Gold price to breakout this evening INMHO
Jointhedots
Thank you for you interesting comments re HGM I must say your theory all makes sense to me.
I hold HGM shares and have been wondering what’s holding them back as CEY & FRES have been making good ground lately.
ATB
Ken
I'd be very happy if this doesn't shoot up before the H1 results. I'm slowly moving more of my funds across to here. However, I totally agree this is way undervalued given gold at 128k rubles or 1800USD
Just to back up what I posted yesterday about the strategic importance of Gold to Russia and the extremely unlikely chance of operations being stopped by C19 as has occured in other countries. Polyus, who I highlighted yesterday as apparently having a huge outbreak at their Flagship mine, have today reported that their production is up 16% so clearly they did not stop operations. "Polyus says gold output rises 16% to 690,400 ounces in Apr–June"
Furthermore HGM updated only a couple of weeks ago about their thorough response and that they had no problems.
I just re-read the RNS and it's all very reassuring IMO.
If I had available funds I would also buy more, very happy with my investment here, profitability this year should be very strong, the higher capital expenditure this year will lead to even better performance in the coming years as the new venture are integrated and what an excellent way to expand, great we've got the option, as I suspect assets are going to expensive going forward.
The crazy SP is merely a temporary blip and providing the progess and gold price hold together a rising SP is ineviatable IMO.
Yes it is ,and i bought this morning.
IMO the SP is crazy, but it is for a reason, as I said the other day "All down to the impact and fears associated with C19 IMO."
However someone followed up to say production may have been impacted, that's not what I meant, I was thinking of the potential for problems rather than anything already known - we must all be clear that Mining is a million miles away from a normal steady state production environment in a factory, planning is years, sometimes decades in advance and capital expenditure huge - so the H1 production was pre-planned and the reduction known if the BoD are to be believed (and we have no reason not to). Problems occur where there are unexpected geological conditions or other disruptions - the proof of the pudding in mining is IMO measured in not running out of a workplace year after year whilst turning out the best possible profit as they go. Highland have proved excellent in this regard, unlike the likes of POG, and we should take confidence from it together with the clear forward plan they have communicated.
Hence I'm not worried about productioon or even C19. Again everyone should be aware (I'm sure you are, see first link) that the largest and world class gold mine Olimpiada in Russia was hit by a huge C19 outbreak of 1000+ cases in May - together with many other mines and oil extraction sites. That together with the financial pressures in Russia was what I was eluding to. However, and this is VERY IMPORTANT to note that the Russian government ensured continued to operate and Polyrus have confirmed they will not lose annual production. IMO Highland as much as any gold mining company in the world is protected from disruption, it is now more than ever of national importance to generate $US revenues. News today is that Gold exports overtook Gas exports in $US value, second link, first time in modern times, the government stopped buying IMO to allow the Russian banks to benefit from the $US.
Noticed yesterday and article from stockpedia about HGM, link 3; finally an article about a billionairre ex-major shareholder in POG, looking to buy assets in the far east - maybe HGM is on someones radar.
Crazy, overdone, but understandable and IMO will rebound strongly
https://energy.economictimes.indiatimes.com/news/oil-and-gas/the-oil-and-gas-sites-hit-by-coronavirus-in-russia-kazakhstan/75908916
https://www.kitco.com/news/2020-07-14/Russia-s-revenue-from-gold-exports-beats-that-of-gas-for-the-first-time.html
https://uk.finance.yahoo.com/news/why-shares-highland-gold-mining-131754203.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvLnVrLw&guce_referrer_sig=AQAAACevnCQs5Y5vqcdujIpnHHTGdNwnzV_d2eYKRC4m0572Tnge8XzDuAs-sGVLYptF1oDU39pVsHalikQZVhWnqIM4cCoLg7hiZRX73bPfpyzrKsXlnv-1qA7nqIDYaRKldAWvPIA4Q0u2FGE4z03qiwzryc0q6xTEkOImthoMRF-7
https://www.kxan36news.com/gold-parties-kenes-rakishev-is-studying-three-assets-in-russia
Last week’s update seems to show that the company is ticking over much as expected with its guidance of 290,000-300,000 oz of Gold production re-affirmed. But, in my view, it still needs to replace its flagging core production so the outlook for its two major near-term developments is crucial.
Very importantly, its Kekura project (172,000 oz of Gold for the first eight years and then 46,000 oz for the next eight years) is still on track for commissioning in late 2022. The company reported nothing that could delay the project. Considering the remote location (170 km from Bilibino by winter road), the appalling winter weather and its dependence upon transport routes with limited windows of operation, it’s vital to avoid delays. With the company looking to spend around US$107 million on the project in 2020, there must be no bottlenecks. Incidentally, Kekura comes with a surrounding licence area of around 1,500 square kilometres that it has only just begun to explore.
Highland’s Baley ZIF-1 tailings project (15,000 oz of Gold pa over 11 years) also appears to be on track for commissioning in 2022. That’s predictable overground production. Again, there seems no obvious reason why it should not be delivered on time and to budget - it built Novo and Belaya Gora from a standing start.
It’s also worth noting that both Kekura and Baley-ZIF are in Advanced Special Economic Zones and that gives major advantages to the company. Not simply tax benefits but also benefits in other areas such as fast-tracking the issuance of permits.
As I have said before, it's Russia-based and it produces Gold. So it comes with risk. But the company operates in three separate clusters and has a programme to upgrade/maintain its current producing assets while the above two projects come to fruition. It has, in my view, gone some way to mitigate the operational risk.
No, it is on forecast. Lower grades were forecast last year for the first 6 months. The company are forecasting full year production to be the same. As the gold price is increasing, and likely to continue an upward trend with covid issues worldwide, then more production in the second half is a benefit.
Gold price increase is at least double any dip in production, so the net effect should be at least a 10% increase in revenue or 20% increase in profit for H1. We will see when the results are in.
gold production H1 down 12% compared to 2019, probably due to Cov19
Of around 40p last year. This year must be over 50p, may be 60p+. Gold up over $300 an Oz. I'll be adding slowly over the next 6 weeks before H1 results and dividend announced. You can never predict when this share will surge, but it's my most consistent performer.
All down to the impact and fears associated with C19 IMO.
Can turn anytime, our seller will just be done when he's done no fanfare, liberating cash IMO - there is turmoil in Russia's extractive industries led by oil, but jitters across sectors and companies not yet impacted is the main factor
in two market sessions! £400M! What a total joke!
I sold out this morning, there is real weakness in the HGM price atm, and I was not willing to wait it out. I bought some G4S instead. Goodluck all.
Gold back above $1800 and £HGM is at the bottom of a disappointing range looking like it could go sub 220p. What if gold drops?
HGM was a recommended in the Numis Notes (8th July 2020) "For UK mid caps we prefer HGM for its growth profile and dividend yield, which is the most compelling in the sector in our view. "