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Lol
Thank you Grezzz.
Noel - Your explanation about pennies/pence sure does make a lot of cents!
I was slightly off in saying that " pence is British English and pennies is American English".
In Britain we do say pennies. "The little girl saved all her pennies in a piggy bank."
The British versus American issue is just when referring to the units of currency.
Anyway, when it comes to gold, Americans won't be talking about pennies. They will be talking about the price rising in dollars, and lots of them.
I never realised before that pence is British English and pennies is American English -
This page explains how to use each of of them.
https://thecontentauthority.com/blog/pence-vs-pennies
Thanks for that video 1755.
At 27 seconds - in 1972 the gold price took off just before a wave of inflation hit. That inflation was caused by war in the Middle East pushing up the price of oil to record levels. Yet again, there is trouble in the Middle East. Has the oil price yet to react to the restrictions on shipping in the Red Sea? Plus the situation could get worse. Yesterday I read that Russian warships have entered the Red Sea.
In the video, he goes on to talk about a rising gold price signalling an economic downturn. Hear what he says at 3 minutes about economic growth.
The US economy has a new, huge problem - and this is by Martin Armstrong no less -
"Francis Scott Key Bridge Collapse – Black Swan Event "
https://www.armstrongeconomics.com/world-news/world-trade/francis-scott-key-bridge-collapse-black-swan-event/
In that article - "Let me begin by explaining how crucial the Francis Scott Key Bridge was to America’s supply chain. Around 52.3 million tons of international cargo estimated to be worth $80.8 billion passed through the port in 2023. Around 4,900 trucks, carrying around $28 billion in goods, must be rerouted due to the bridge collapse. It is the second busiest strategic roadway in the US for hazardous materials. These hazardous materials include diesel fuels. Did you know that diesel fuel is not permitted to be transported via tunnel? Fuel prices will rise, fertilizer prices will rise."
- and - "Baltimore is the largest entry point for all large agricultural and construction equipment, and this will have a ripple effect across US agriculture in general. It has been noted that this collapse occurred during the peak of planting season for Midwest region as the ground has begun to thaw. Our entire food supply is at risk."
By the way, about penny and pence. Something struck me that I had never thought about until now - that we have two plural forms of penny - pence and pennies. I don't know if there any other words in the English language that have two plural forms.
There are one hundred pennies in a pound
When Americans get hold of anything at a very low price they talk about buying it for "pennies on the dollar".
We wouldn't talk about a share price rise of ten pennies. We would say it went up by ten pence. In a shop, we wouldn't say that something cost fifty pennies, we say it costs fifty pence.
Pubs used to have a "pile of pennies" to raise money for charity. Perhaps they still do.
I don't know whether this helps you or whether it adds confusion.
Does anyone know of a rule that explains when to use "pence" and when to use "pennies"?
Under my point of view the main driver for rising gold prices (and declining dollar purchasing power) is this one:
https://fred.stlouisfed.org/series/GFDEGDQ188S
So, gold must go upwards. It is inevitable and there is nothing we can do.
The only "healing" to slow down and reduce the "Debt to GdP Ratio" is by means of negative interest rates, that's to say: interest rates below inflation rates for a long time period.
But this kind of macroeconomic scenario is gasoline for gold, silver and commodities.
So, gold must go upwards one way or another, and gold miners price must do the same 3-5 times plus because of the leverage ratio.
Thank Noel, Nick-b, Great to be here.
Please, Keep on correcting my horrible English when necessary.
I've found this 8 min. video that could be interesting for all of us. Take a look because it tells about gold prices to come
https://youtu.be/BQBFQ7g1D8g?si=c-GOgGgGKudS4t8A
The main idea is: as had happen in the past, if gold price goes up then gold/silver mines must unfold 3-5 times gold price increase %.
That goes for allmost any gold/silver miner, but in the case of Shanta there are at least 3 other main drivers that, under normal course, will pump up it's price (with/without gold price increase):
1. Increase in ounces produced, YoY;
2. increase in reserves, yoy;
3. Superpit at Singida.
And Patel knows all about and wants all of that almost for free.
I wish I where wrong, but I think we must get ready and expect the worst case scenario becomes true.
And because of that, and taking into account the idea explained in the 3rd paragraph, do some research in order to find out other miners were to allocate the takeover money, because gold price goes to a bull market.
Cheers.
LOL ... "should" ... welcome in the reality
Hi 1755, don't worry about it at all. Your English is very good. Glad to have you on this board.
Beautiful Barcelona.....lucky man.
Most of us only speak one language so you're well head of the rest of us.
So please don't apologise as your post was completely understandable.
But maybe your valuation of 70 pence is a little too much.
Cheers 🍻
.
In a bull market gold miner should be valuated a 10xPER.
This means that Shanta should be priced at $ 0.90 or 70 pences, not at 14.85 pences.
Gold futures $2,237Today 12:46
A full years worth of gold sales (105,000 ounces) from today at the current $2,200 gold price brings in roughly $230 million revenue and gross profits of $90 million.
The proposed 14.85p takeover price values the company's ongoing operations at $196m (£156m).
Assuming every fund invested is out for themselves and not acting on behalf of the board, the bid has to fail and the share price rerate higher.
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Absolutely; $ 90 M profit equals 9 cent EPS.
$ 9 cent x 0.79 = 0.711 pences.
That's to say, Pastel wants to by our shares at 2.1 PER.
I refuse Mr Pastel.
Have a nice day.
But what about when Gold reaches $ 2,500??
A lot of analysts predict the price of gold to reach $2400 per Troy ounce by the end of 2024. That means even bigger profits for Shanta than the $90 million. Let's face it, gold is going to shine this year
The_shareminator -----
Or put another way, the proper offer should be around 17.5p per share on current values would you agree?
Correct!!!!!!!
A full years worth of gold sales (105,000 ounces) from today at the current $2,200 gold price brings in roughly $230 million revenue and gross profits of $90 million.
The proposed 14.85p takeover price values the company's ongoing operations at $196m (£156m).
Assuming every fund invested is out for themselves and not acting on behalf of the board, the bid has to fail and the share price rerate higher.