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Make that >65% of market cap is cash.
Gross over reaction here.
Already topped up at 63p and will top up again if price dips
And here's some reasons why you should hold imho.
Commissioning of the Lannex fine grinding circuit expected by the end of Q2 FY2024
"The Thaba JV civil construction works expected to commence in Q2 FY2024.
An updated MRE statement for both Volspruit North and South orebodies is currently under review. The PEA for the Volspruit project, along with the results from the metallurgical test-work are expected during H2 FY2024.
Lesedi back-up generator installation is progressing and scheduled for commissioning during the latter part of Q2 FY2024.
$5M net profit for the quarter
Only reason they are down from 65p. Up they (should) go
Vulnerable to a bid here.
The current basket net of "penalties/smelting costs and contractual payability" is within 4% of the AIC. That is less than $4m pa, your net profit will be higher as cap ex is removed but the CFO here knows exactly that the cash generation is minimal. A recommendation to throw money at buybacks and special dividends here without a definite improvement in Rh would be a mistake. Hope is not what makes you money in this business, it's being brutally honest.
.
Pages 7 to 9 of the 2020 glossy offer a great explanation of the need to hold cash from Stuart Murray, our wonderful former chairman. A number of us are quoted too. It still is relevant.
FCF generation is what I'll be watching, not dividend announcements. The cash pile is priced in...and operations at current basket prices are unlikely to be particularly cash-accretive.
I don't currently hold, but may buy again when the price is right.
a buffer. against what? these guys are still profit-making. true, no where near as much but rh has been holding now for 6 months at a floor.
**** happens? a rainy day??
The cash pile is needed as a buffer. its in the reports.
Anybody care to hazard a guess ???
I mean they have to do summat with that cash pile...
Cash rich, asset rich, making money and rewarding shareholders with good dividend even when basket prices are low or flat.
Not a lot of PGM elsewhere in the world
Very happy to be holding and adding here with NAV well over 90p
DYOR
Q1 $1.8m net profit with $3.2m sales adjustments. Now prices are flat Q2 SA won't be significant so approx $5m, that's H1 $6.8m net.
Your brokers still say $28m for this year meaning you have 2 quarters to net $21.2m........to do this $21m in 2 quarters you need RH to rise to $11k now and stay there for 6 months or they increase production to 105k oz now. Guess what happens?
What happens here if the Rand takes a battering chaps?
$5m is about all you can expect here for Q you will also see they probably cut back on Cap ex as that is $3-4m a quarter and not included in this AKA very little free cash. A reason why no buybacks have started again i'm sure. The time here is not now.
...should look rather a lot like Q1 profit, bar adjustments. Once it's out, do the brokers and the Investors Chronicle guy adjust their forecasts? This continues to trade on an ex-cash forward PE (given current basket price) which is significantly higher than it has been historically.
Considered SPPP but with the FX charges and different time zone, decided the beta and dividend here, was worth a starter position. Will add again if we get a recession, industrial metal sell off or general market sell off.
Do any long term holders here, have investment preferences to get Beta to PGM prices, that when compared to Gold and Silver seem to have asymmetrical risk reward profiles. PHPT, PHPD, SPPP etc.
But I bought back in here today!
I previously bought in sub 7p, to go on to sell at 12-14p range(still find it hard to forgive myself)!
Gla.
So far the company showed exemplary stewardship. whatever the weather, good captains sail their ships successfully.
Been tracking these…expect a significant jump imminently
Https://uk.finance.yahoo.com/news/palladium-surges-12-uk-sanctions-170805942.html
Precious Metals up 5%
What's the divi going forwards me wonders...
On HL dividends were reinvested today. That probably explains it
It is more realistic to work with existing infrastructure first, esp at the levels we depend on it.
See Warren Buffet's thoughts on this matter.
The low hanging fruit is with tighter emission controls (not just cars, but also power stations and industry) and near zero carbon synthetic fuels (these are tested in aircraft as we speak).
Claiming that toys with a huge upfront carbon footprint are the solution, is irresponsible.