Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Couple of decent buys 100k Friday and 50k today.
Drop overdone IMO
It remains to be seen but I hope US and French forces are able to work with the Malian army. Already we are seeing online operators of apparent Turkish allegiances, claiming credit for the coup and spreading misinformation about the scope of French involvement with Keita's former government. If this is what happens on public social media platforms then one can only imagine what arrangements are being drawn up by regional powers. I hope Mali is not allowed to descend into the same chaos that plagues Libya. It really needs wider cross-nation support from the US, European and African states.
https://edition.cnn.com/2020/08/19/africa/mali-coup-unrest-explainer-intl/index.html
I regard the take-over as good news, not bad. Mali needs a firm grip instead of riots. My opinion is that the risk is overstated and that this is a buying opportunity
RSG has fallen further than HUM despite production being leveraged across Mali and Senegal. Share price back above 60p at least.
Thanks for that Tiger.
https://www.dw.com/en/possible-coup-underway-in-mali/a-54608009
BAMAKO (Reuters) - A possible military mutiny was under way on Tuesday outside Mail’s capital Bamako, the Norwegian Embassy and a security source said.
FILE PHOTO: Mali President Ibrahim Boubacar Keita poses for a picture during the G5 Sahel summit in Nouakchott, Mauritania June 30, 2020. Ludovic Marin /Pool via REUTERS/File Photo
Local residents and security sources said there was gunfire at the army base in Kati, about 15 km (9 miles) outside Bamako, where a mutiny in 2012 led to a coup d’etat, although it was not immediately clear who was firing at whom.
“The embassy has been notified of mutiny in the Armed Forces and troops are on their way to Bamako. Norwegians should exercise caution and preferably stay at home until the situation is clear,” the Norwegian Embassy said in an alert to its citizens.
“Yes, mutiny. The military has taken up arms,” a security source said.
A source who handles security for non-governmental organisations in Mali said gunfire had also been heard near the prime minister’s office.
A military spokesman confirmed that gunshots were fired at the base in Kati, but said he did not have any further information.
A mutiny at the base led to a coup d’etat in 2012 that toppled then-President Amadou Toumani Toure and contributed to the fall of northern Mali to jihadist militants.
Opponents of the current president, Ibrahim Boubacar Keita, have led mass protests since June calling on Keita to resign over what they say are his failures to restore security and address corruption.
At least 14 people have been killed in the protests, according to the United Nations and human rights activists.
In a message to its citizens on Thursday morning, the French Embassy in Bamako said: “Because of serious unrest this morning, Aug. 18, in the city of Bamako, it is immediately recommended to remain at home.”
Yes but Resolute mining are on target for 430,000 onz of gold. Which isn't far behind Centamin (30,000) onz! Granted they do have some debt.
The disconnect between POG and rsg sp is often rather irrational.
Most goldies took a hammering today so at least it is not rsg specific this time. I was hoping that they would have had some news about Bibiani by now to keep the momentum going.
This was always going to be the quarter when things started to pick up - a good set of results with confirmation that they can consistently recover at >80% on the sulphide circuit, plus some upgrades to satellite oxide deposits should be enough. An improvement in the political situation in Mali would help as well.
Do some research Kemot. You'll see a great deal changed negatively for this company after Aug 19.
The point now is nothing has changed in a month apart from they are getting more for there product and more debt has been paid down.
So what? In August 2019 the SP was almost 120 and the price of gold was 1500
20th July was the last time the SP was below 70. At that time gold was less than 1850.
?!?
I assume that they will lock in another 30K this quarter for the March 21 quarter -if they do this at $2000 this would then give an average hedge for that quarter of $1788.
I like this strategy as it makes it less of a bet on short term gold prices (although you would not think it the way the price moves...)
Thanks Monkshood,
Your list from the recent Q2 report totals 213000oz hedged to Dec21 (min 30% hedging requirement covered by this) as I referred to in my previous post. Implying that over the next 18month period approx 435,000 aren't hedged and could well be sold at the ever more substantial $2000+ current market rate.
They had a large low hedge in A$ in the last quarter which is why the realised price was only $1446.
Originally they had about 30% hedged at around $1500 for this quarter, they then added to this prior to the last quarter results - so they now have approx 60% hedged.
They have to have at least 30% hedged (for, I think 12 months?) for the banking covenants, they then increase this to about 60% on a rolling basis in the next quarter or two.
Details of the current hedging below.
Quarter- price- amount
September 2020 1,625 60,000
December 2020 1,647 60,000
March 2021 1,576 30,000
June 2021 1,577 30,000
September 2021 1,667 18,000
December 2021 1,670 15,000
I believe policy is to hedge approx 30%. I think i read 213000 oz currently hedged to end of 2021 (out of 6 quarters production of approx 650000 oz).
Monkshood,, I thought you said that all the hedged sales closed off at the end of the 2nd quarter? How much is left now?
Rsg hit 81 on Monday but 4 days later its 10% down to around 73 - with the only news being that gold is pushing forward its all time high towards $2000 oz. !?!?
We have discussed this awhile ago, if you look back. it is almost certain to be sold. They sold Ravenswood and carried out a placing to get debt down so I cannot see them increasing it again just yet.
They will need money to convert the oxide circuit for sulphides and to start on the underground mine at Taborkoroni to replace the oxide mining which is tailing off.
Still they said in the last Q & A that their financial plans involve amortising the debt at 25m pa. so they should have plenty of headroom with this.
I think that you may be a bit disappointed if that is what you are basing things on.
Next quarter-
60,000 @$1625 (hedged), 45,000(?) @ $1900(?) ASIC is around $1000oz so around $73.5M - they have paid $17 m in tax in July to Mali, plus there will probably $5-$10 in costs (not in ASIC ) for exploration etc.
If they reduce net debt by $50m next quarter it will be a good result.
My understanding is that we are now making about a thousand dollars' gross profit per oz and producing about 100K oz a Quarter. If so, we should be able to expect a rising SP graph into the future. A comfortable thought.
They are not producing there at the moment so selling will have no impact on current production but would reduce debt.
Developing the mine could potentially increase future production by approx 100k/oz pa with a 10 year LOM but will increase debt to commission the mine.
If they sell the Bibiani mine will this reduce the amount of production or could it increase production if it is held?
If it increases the price share price they should keep the If they sell the Bibiani mine. If this mine is sold will this reduce the amount of production or could it increase production if it is held? ML