Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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The problem is the baby is thrown out with the bath water as a result of shorting activity on gold miner ETFs and other funds that catch Polymetal.
Barny
Its not tagged to gold price. In a month gold down $60 per ounce. Polymetal AISC declines $100 per ounce in H2. The company had unsold gold and silver in H1. Total sales in H2 are likely to be 50% higher than H1. In one month Polymetal declines 250p say or 1/6 of its value 16.67%. The profit per ounce declined by 7.2% (despite 50% more to sell). The current Polymetal price equates to around $1570 gold price. 16% drop from 1800 gold is 1650 and the 1/3 increase in production drops it another $225 per ounce. The increased debt to repay does add 10% back again and takes us to $1570 gold and yet its at 1740. Polymetal should be at 1395.
No matter what Poly does she follows the Gold price . Gold price going down so I don’t think we are near the bottom yet . Unbelievable really when you run the numbers. Still a massive profit machine but the market only tags it to the gold price
Shall be buying some here soon. Wonder if they might exit the FTSE? or PLC altogether?
I think the issue is that most are expecting a drop in the gold price, like down to 1600's or 15's. Seems that this is already priced in here. If poly stay the course this will be a great opportunity to build a stake.
To be honest I’m not in Poly I was about 6 months ago after looking it up on share pad and at the time it had everything going for it a massive buy consensus with broker ratings about £25-30 but I learned my lesson buying into a company that just follows the gold price I sold and just about broke even after dividend payment.
Now I fancy EUA this keeps having massive surges but because I had a bad experience with poly I’m still leaving anything Gold alone.
>>Ade1234 I watch a lot of analysts, both wall street and general investors/traders, the consensus is that hiking interest rates will make the debt unaffordable, the economy itself has a lot of structural issues with supply chains not to mention the huge cost developing from decarbonising everything. Bottom line, even if a small interest hike occurs, they will probably create some noise or event (e.g. lower job figures) and quickly reverse it...One thing, which is also a long shot, is a revaluation of gold to offset debt, this has apparently been done before; whilst it's a long shot with today's MMT, this debt cannot be reversed now, its too big, and therefore it is worth staying long.
Inflation will rise but interest rates won't not this time.
All world banks are expecting higher inflation but are not going to react just ride it out for 12 months.
Yea the price may keep dropping. No1 can predict one way or another. But my reasoning is I believe inflation rates will eventually rise along with interest rates. At this point gold or crypto will be in high demand to hedge against it. This is when the share price will rise and protect you against this. While I'm waiting around for this to happen (3 years?) I get to collect a nice little dividened.
I am down on this share. As the price has dropped since my first purchase at 1396. However I expect to make this back and my other stocks protect me from the loss on this one. GLA only you can decide what's best.
Topped up more at these prices. Good opportunity to lower my averages
Agree Rzez. Bought some more at what S.P. i consider undervalued now. Still caught up in gold futures sell off hence drop but i have noticed that big banks are actually accumulating physical gold and not lending as much. Tells me they anticpate a large market correction and want to be solvent when it happens.
Unless you're trying to sell the stock and are desperate for your money back. I don't see an issue here. The lower the price goes the better the divi yield. This means its an opportunity to buy. Stocks don't stay the same price and do go up and down. This is an opportunity to buy for everyonr. A defensive stock like this isn't meant to be traded quickly, but sat on in an ISA collecting the dividends and checked on every now and again to see where its at. If you're scared of stocks going up and down you really shouldn't be investing. Sit back, relax and come back to it later on. Chill Winstone! GLA and this obviously isn't advise but the rantings of a mad man.
And yet the Nasdaq finished RED too with the SP500 and DOW @ zero!
Rouble falls against USD which is very positive for Polymetal yet share goes down. Does not make sense.
This is absolutely awful. The DOW is up more than 500 points and the FTSE100 has finished in the red. British shares are truly unloved indeed....ugh!!
This share is giving chance to build on over time treat it like a marathon.
Tried to buy some physical gold from my usual dealer and all bought out except for the large expensive bars. No coins available. Physical gold is very in demand on dips so looking at gold price rising again very quickly. Hope so cos i`ve just sold other shares to buy some more of these given the price.
Yes the value switch is likely to come in, think lot of US are waiting for further clarification on biden tax plans, plus general sentiment that no significant correction/pullback only 5% dips, which have all been bought up. Exception being the miners of course, been waiting long enough, so happy to rebase on the monthly, the macro environment has never been better; even in the best of worlds there are so many structural problems in the economy, industry, business reform, and social unrest, that something will eventually trigger the fear trade. Lot of people have had enough this year with inflation etc and not to mention the sweetheart treasures at the world economic forum, 'You will own nothing and be happy!'
Yes. I feel this way with many 'defensive' stocks in using pension funds and insurance. Some are trading at very low PEs now in the UK well below 10 and some below 5. But this is also compounded by staggering dividend yields of 7-9.2% well covered by earnings generated all through COVID. Things for these types of stocks in the UK are massively undervalued and it makes me think there could be a switch from US heavily overvalued and under yielding carp to UK value stocks such as POLY, DLG, MNG, PHNX, LGEN etc.
Yes, this is what the printers at the central banks thrive on, sat there laughing with their coffee, knowing that they'll buy in just before the rocket launch, taking pleasure as retail investors struggle with their 'holding hands' with a cup of tetley's and a hob knob...Remember this, you will be more annoyed if you sell, and it goes up exponentially. The money from the printer is monopoly money it won't stand the test of time, gold is 'gods money,' from the supernova of a star! Ain't that a fact!