Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Excellent set of interims, looks like Pan African will hit the top end of the full year Gold production guidance c 190,000oz, and of course as Loots notes, Mintails will return “enormous value” when it starts production.
https://www.otcmarkets.com/financialReportViewer?id=392417
Mulder & Selpec,
Thanks for your replies.
To sum up Mulder has never used the DTA form as he did not need to, but Selpec has done so successfully.
I did not need to either with Halifax, but they changed their policy on this for last years dividend, without any advance warning to their PAF shareholders. HSBC could well follow suit next year, who knows?
I guess you got lucky Selpec, as LINK dismissed my application; they too appear to have changed their strategy, as per my rejection below.
"I have looked into this for you, and I have not been able to locate your details on our system. Your form indicates that your shares are held with Halifax share dealing and as such you will need to contact them. We are unable to assist further."
I will be taking this further with Halifax, but do not expect a quick resolution.
As regards it being a scam - I have no idea whether Halifax and other brokers are keeping 10% for themselves, or just can't be bothered to assist their customers in claiming the reduced tax rate, that they are entitled to.
I would expect better of Halifax, but they do have form for ripping off their customers.
Halifax Bank of Scotland (HBOS) – which is now part of Lloyds Banking Group – was involved in a major fraud at its Reading branch in the early 2000s.
They need to have a closer look at the daily sell off into the close here. Scandalous.
https://uk.finance.yahoo.com/news/fca-three-arrested-major-operation-145600666.html
DTA works for me. My share holding account is in HSBC, but I submitted the form directly to LINK only last year. Now I am sure that 20% is a sort of scam. All previous years HSBC deducted 20% even though I informed the bank about reduced rate for UK - 10%. Investigation required.
With Mogali EPS should hit 5.5c which means the forward P/E is now sub-4.
A dividend increase to 2c in 2025 would give a 10% yield at the current price.
I use X-O/Jarvis and they only deduct 10%, without any DTA form.
In any case there's unlikely to be another dividend until December.
You need to focus on why the share price continues to sell off into the close every single day, underperforms the JSE and by a wide margin.
Accumulate and enjoy the ride. Simply read the last CEO statement sentence. Explains it all. Gla and dyor
Would be nice to hear from Selpec and Mulder, who have promoted the DTA reduction claim forms, how they got on, and who their broker is. Unfortunately they have both been very quiet on this.
That guy in the video comes across as a boring, negative, sad git!
He hasnt given much away, but with the development in process I expect its sensible to get it paid, up and running. 2025 will prove a profitable year, fingers crossed.
G-NBC
No talk of an interim dividend, but dividends are a company priority and may increase.
Also a share buy back program has been discussed, but its unlikely to happen until Mintails is up and running or they might prioritize paying down debt quicker--- to be decided later
Reading between the lines Loots knows that PAF will beat the expectations of 180,000 to 190,000 k Oz but he does not want to build up expectations!
Brilliant video, one would expect this to re-rate! But AIM is a bit late.
Analysis of PAF : https://www.youtube.com/watch?v=65wC4p1uves
Kenj,
My use of the word "gross" in my post was loose. I actually asked HL about them dealing with the double taxation issue with Link. the reply I got was as posted.
Only managed to catch the last question of the presentation. Any sentiment for an interim divi with all that cash ?
Drop in gold price overnight was a bit unfortunate for today.
The small alarm bell in today's RNS is definitely this
"The Group is well positioned to deliver into its 2024 financial year production guidance of between 180,000oz to 190,000oz of gold. Increased guidance may be considered in due course."
What exactly are they on about ? After delivering 98k ounces, to keep guidance of 180k would mean a drop in production in the current 6 months of around 20%. Surely that is either overly pessimistic or am I missing something to do with mining development that might cause this drop.
The UK stock market is doomed. CGT tax, dividend tax, pension company regulations, short sellers, etc. Need to move to the States were we would be appreciated. I imagine it will be a duck shoot with some of the p/e ratios.
Go figure why this is so cheap
https://www.proactiveinvestors.com/companies/news/1040910/pan-african-profits-rebound-after-exceptional-surface-performance-1040910.html
They probably just keep the money
Fincent,
Thanks for your detailed reply. My issue is with getting the DTA agreed tax rate of 10% applied. This should apply whether your shares are held in a normal account, a SIPP, or an ISA. The Double Tax Agreement (DTA) entitles UK tax payers to receive a reduced 10% rate of tax. You will never get the divi gross or free of tax.
However it does require the Registered Owner of the shares, Halifax, Hargreaves Lansdown etc to arrange this with the Registrars - LINK. Most trading houses had not done this, but Halifax until this year had. Now unfortunately, they too will not. I expect that LINK would accept being told how many dividends should be paid at 10% and how many should be paid at 20%, if Halifax, Hargreaves etc could be bothered.
42trader,
The irony is that in both 2021 and 2022 Halifax only deducted 10% withholding tax on my PAF dividends. However, the 2023 divi had 20% tax deducted. I raised this with them and got this reply, which I think is a crock of $h1t.
"The tax on Pan African Resources should have always been paid at 20% however was paid on a preferential rate and a business decision was made to release it at this amount. We have since made sure that Link Asset Services (Registrars for Pan African Resources) do not pay the preferential rate and all future dividends will be paid at the 20%."
This was the reply I got from Hargreaves Lansdown when I asked about getting the dividend paid gross:
"Thank you for contacting Hargreaves Lansdown. Please accept my apologies for the late reply.
The South African tax authorities do not recognise the ISA as a tax wrapper so any dividends paid by South African companies would be paid net of 20% withholding tax (tax would be deducted by the registrar before it was received by our agent).
To reduce rates of with-holding tax Hargreaves Lansdown must declare that all holders of Pan-African shares in our nominee holding are eligible for treaty rates.
Unfortunately, we cannot do this, as we have a number of holders of the Pan African Resources stock within our nominee accounts who are not currently resident in countries which have the required Double Taxation Agreement in place.
However, you can file a claim with the South African tax authorities directly as the beneficial owner of the shares. To support your claim, we can send you a tax voucher and a letter confirming you are the beneficial owner of Pan-African shares. Please be aware that we have never dealt with the South African tax authorities and therefore cannot guarantee a reclaim would be successful.
If you should have any other questions, please do not hesitate to contact me."
No mention of contacting Link...
Basically the shares are not in your name but with Halifax and it’s up to Halifax to apply for the tax deduction. Halifax are unlikely to do this though.
Mulder,
In December you wrote:
"If you contact Investor Relations they will send you the forms to send to the shareholders services based in Leeds.
Will cut dividend tax to 10% minimum."
So I got the form from PAF, filled it in, and sent it to LINK.
After one month of total silence, I complained to LINK. Their response is shown below.
"I have looked into this for you, and I have not been able to locate your details on our system. Your form indicates that your shares are held with Halifax share dealing and as such you will need to contact them.
We are unable to assist further."
Basically LINK are telling me to get lost, as my shares are not held by them, but by Halifax, who have previously declined to assist me with this.
Any further comment or advice?