Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Me too, entirely as expected. I just posted on the THS board why the political danger may not be as great as expected, there was nothing in the forward statement, though it will weigh on us. I am still here too.
Sotolo,
I am still here - unless the price is pushed down too much.
I hear you sotolo. Like you said if PMs go up more that would at least help us to rise. Like I said few years ago we were in quite a bit of debt.
Let’s see what they say on the call. Numbers look ok. But as markets are forward looking, the election overhang is the biggest concern... there’s already a decent underperformance and valuation discount vs other miners built up post 1st round elections, so if can get some good exploration news and Castillo reverses his current lead in the polls then we can re-rate up a lot quickly...
Only Dark Knight and Prof here after results, as interest in Hoc disappeared? Well as expected the price is flat. We had the drop in anticipation. Wish we could one day get some good exploration/rare earth news and even recovering ounces and costs. We are still overshadowed by Peruvian very bad Covid, the coming election that could whop us with taxes, fewer more expensive ounces mined and the owner sale, so all in all not doing badly. Hope gold saves us as gold price now considerably more important than silver with our hedge.
HOC performing broadly in line with FRES and CEY this morning so it looks like the results are being taken as neutral.
I would hope that as the 'fear' factor that the results could have been bad dissipates that we start to move back up relative to the others.
Best wishes,
Prof
sotolo guess we will find out shortly. However the new discovery is not bad. I guess we will know more on the conf call about the new discoveries. You guys need to remember over a year ago we had debt and not now. PMs still expected to go up. Debt free, new discoveries lots of postives. Depends how the market receives this.
Also Hoc already lost 15p in last few days on anticipation of market reaction to the worse figures, so maybe the drop has already happened?
Prof hope you are right, but higher PM prices obviated by lower oz and higher costs? Hoc has been having a tough time with heavy Covid in Peru and tough distancing rules as well as gold and silver running down and being harder and more expensive to get to. On the plus side the silver hedging has so far looked good, though it won't if silver soars. With 370k oz at aisc around $1230 we should make around £75m for a PE of around 14 this year which is about right, so I don't expect a price rise apart from that from rising gold this am, hope I am wrong.
The problem is similar to Cey, lower ounces mean higher costs so double whammy. l this our figures are exactly as expected, as I expect from Cey tomorrow, but will market be disappointed as it hadn't fully realised lower profits despite management saying - look on cey boards how few believe management predicted lower figures. Hopefully however the price already has this baked in from bigger players, like Ernesto and Bustamente selling, and rising gold prices may keep us level. Good luck all and maybe there will be buyers with relief figures are at least as predicted?
Morning Sotolo,
Thought you might be on here early digesting the Q1 figures.
On the plus side we have sale price realised for gold in Q1 up about $80 per oz on last year and silver up a whopping $10 (guess that takes into account the $27 hedge). So financials should be good.
Combine that with gold being back above $1785 this morning and silver above $26 and I would expect a good opening for us.
Best wishes,
Prof
Ps $16m increase in cash which is not particularly meaningful, but if repeated through year would only be £45m which isn’t a lot for a £1billion company
Ps $16m increase in cash which is not particularly meaningful, but if repeated through year would only be £45m which isn’t a lot for a £1billion company
On quick first reas: Marginally disappointing figures as expected, down on first quarter last year which included COVID lockdown start, and higher aisc all as predicted, as gold and particularly silver running out, not particularly exciting exploration news. Overall neither good nor bad, explains price and why owner and MD reduced shareholding. We are now dependent on gold and silver price though we are quite hedged on the silver so will be less affected by any rise or fall than rivals. IMO
Close, but increase in yields means thast investors are dumping bonds. 10Y has been steady though, I believe the Fed is controlling the curve.
USD down and US gov bond yields up suggests investors are dumping US gov debt and investing into assets in other currencies...makes sense given the crazy budgetary position the US are in.
so let me get this right, the USD is down. Yet the 10 year is up back to 1.63% and the only reason it is up is because investors are dumping the dollar which means the US increase the yeilds on the 10year to attrack more investors because they dont want investors to dump their debt ? Am I am the right lines or way off track ?
Thanks SC, good overview and analysis. Maybe this is the reason they are supressing the price. Funny how the three CEY POG and POLY have gone up almost by 10% from the lows of PMs and HOC and FRES are struggling especially with almost one year record high of silver and gold price.
Dk you are right I looked at the Hoch web site and they say results due 21st. So not long to wait. The last update gave detail of some new interesting projects developing and interests now outside of South America in North America and Canada too. Also Brownfield approved sites, and the fact last years stoppages were covered by increased commodity prices. Well i'm thinking if the Silver price is up 69% on the Heady price of last year and we have had a better production run than last year we should be in for a real treat. As even last year the Company at year end were carrying a lot of free cash and no debt. To be honest this share needs a pick me up as it has become a little bit over looked for too for about half a yr. Fingers crossed.