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Plus if you look at the volumes traded you will see how illiquid this stock is, a single large trade could move this 30-40p easily.
PokerChump, in response I’d say you should look at the detail. The balance sheet is strong the results explain clearly the company is delivering to the plan and will have another strong year. It clearly sets out further cash production, investment and enhancements to performance.
It’s is a strong buy as it remains cheap versus actual performance.
Performance will improve as will the companies track record and immediate future.
Then, it is one of the worlds largest independent resources.
Finally, it is a M&A target for a number of companies when the cycle turns and BOD’s need to show growth as P/E multiples start to rise.
If you focus on the day to day share price movements year on year it is evident that it rises and falls into half year. The January results will push this above £5 and another dividend to follow.
Therefore it’s a strong buy based on 25% capital return plus dividend with 6m.
So my question is, to you, why is it not a strong but????
Still no dividend from the usual suspects Barclays. I'm predicting next Monday with a following wind, hope to be surprised, but this depressed price well below the Director buys a few months ago, looks a good opportunity IMHO.
Mine life and deposits are excellent, cash generation from assets is excellent especially once this latest wcp move is completed, some here think management are good, I on the other hand think they are very average bordering on poor, that is based on cash wastage, operation output stoppage due to dry docking of vessels, which with the cash they have blown they could have spare barges, plus the negative tone to any set of results which in general gets down played.
Then we have the country which has it's issues, on going militants in the north and general sentiment of Africa in general which results in a discounted valuation, current p/e is around 2.4 which is very low imo, however due to jurisdiction I can't see this getting the valuation the asset deserves hopefully in future dividend payments will be some consolation plus there is always the long held hope that someone else will see the value here and relieve management of their duties.
Contango, you have this as a strong buy but I’m not seeing anything in the results or price action to have the same opinion. What your reasoning ?
Lloyds added my dividend this morning to my accounts
Couldnt agree more contango. Will do the same. Starting to wonder if a buyer is lurking in the wings
Interactive investor should arrive Monday. Will probably buy more. I bought more on IG last week. I feel there is 25% upside in the share price plus dividend so that is good for me to buy more.
Thanks shepdave. I dont recall waiting that long with hl last time but there was a delay from receiving the dividend as per quoted payment date. Was curious since some mentioned they were buying and i presumed they were reinvesting their dividend?
For your info, the last divi arrived 7th June, as opposed to an expected date of around 19th May.
With Barclays, not expecting it for 2 more weeks tbh if last time is anything to go by, so not holding my breath. No idea why they are always so late.
Yet to receive the dividend from HL ! Is that the case for others ?
Yes bought more yesterday and will again next week
Delivered €298m and about to deliver €240-260m EBITDA in 2022 and 2023 respectively.
Currently the market cap is c. $392m
Ignoring the net positive cash position and accepting EV of $392m gives a P/E ratio of 1.57x which is low, even in the current market.
The business is low risk, has a strong balance sheet and is stable.
Plus Bucklerfern doesn’t re-appear when the price Isla high 😂 😂
Given the low Share Price, it will be interesting to see if many investors purchase stock after they receive dividend monies after tomorrow.
I’m considering it, will others.
The largest shareholders made public that they were looking for a capital return upon the investment. The BOD were delivering for them. It is more tax efficient to make a capital profit rather than income through dividends.
The share but backs benefit those that didn’t sell in the future.
We now own are greater proportion of future earnings, capital growth and dividends from the point of the buy back and thereafter.
It was clear the share price would drop when the share buy back was oversubscribed. In time it will be good for those that didn’t sell.
Rex
We're buy backs are conserned
99.97% voted for the buyback offer and .003against and at a ridiculous low price of 422 it was oversubscribed
If these shares were sold on the open market we could have a share price in the 300
The company have said there will be no more buybacks untill the next mine move
Interesting simply wall Street have got Kenmare share of over 1500 there fair price according to earnings but the market values far less
With the company 2 biggest share holders selling millions of shares over the last 3 years shares which they brought for 232 good business for them good profit taking
I think the key is ability to pay consistent dividends and distributing a unrepeatable large divs may not produce that whereas the buyback should result in higher and hopefully still consistent dividends
Hi Rich,
Whati don't get about buy backs is the mcap reduces by cash spent buying up the shares, I get we now own more of the company which is now worth less, okay EPs goes up which usually benefits management via performance in which increased EPs is a factor, no benefit as I can see for shareholders, because it's a manipulated performance, not through efficiency or innovation.
So in theory dividends payments should increase, however if they had just distributed the cash, or payed down debt when we were debt laden in my eyes far better usage of cash which is hard earned.
Of course management do very well so no wonder they favour them.
Wow wish I had thought of that
Tosh, if the company had distributed the cash as dividends instead of buybacks we would already be a high yielding share not looking at what might be in the future.
In a higher yielding and inflationary environment having a higher dividend yield helps make the shares relatively attractive
Can't complain about operation and production which are back on track and looking good, prices we can't dictate but they are holding up well.
However I will complain about the share buy back being a waste of money imo it does nothing, for all the shares they've bought back over years you would think we would be at a all-time high, but no, if they want to splash the cash just give it as a dividend.
By the way having lots of small share holders I don't see a need to buy them out.
Back to previous production levels. Operations and resilience back in place. Chinese customers winning globally and more demand to come for high quality products.
My biggest grip is that assuming KMR will deliver $240-260m EBITDA the SP is at a P/E of less than 2x which is terrible. I get the sovereign risk of Mozambique but TotalEnergies are back along with other multinationals. KMR has a long history of stable growth yet the market isn’t valuing the stock.
Assuming Q3 generated c. $40m it covers capex, maintenance capex and interest payments then the p/e could be c. 1.4x-1.6x. I think the SP will react well and investors should jump in to realise significant dividend and capital appreciation into YE Results in January.
Time will tell. Good luck everyone.
It seems like a very strong report and quite a bit better than the brokers note the other day. Lets see how the share price reacts, surely though it must be positive movement.