The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
The thing is with miners not Truely following the gold share price is that the miners are an unloved sector that have struggled for a number of years. Wages and energy cost are high etc. But when updates come in with higher profits because of the high gold price investors should start to notice.
For me this is a long term hold off 5 years or more. I only see gold getting higher in time but with a small pull back and consolidation. I’ve loaded up in the last year to take advantage of the high dividend which has already returned 10% of my holdings. If people think the current gold price is good, wait 5 years and wonder what profits Paf will be making when gold is above 3000. And in the mean time, as long as gold stays above 2000 paf’s profits will still be good and the dividend will rise with the profits.
Totally agree with you. I hold PAF but this is my bigger holding as I see a bigger re-rate with RSG. It is time soon for the miners to have a bull run with interest rates likely to drop this year and the US Dollar is only going to loose value over the coming years. RSG is cash rich now, 11m oz in the ground, production to increase while AISC to drop. Add to this that a dividend will likely start this year which will bring in more investor. It is certainly a hidden gem that most investors don't see.
I’m sure you’ll do very well. Surprised it’s this low still. Once they start a dividend it will go further but until then it should still be in the 30’s. And if gold does motor on to 3000 the profits will rocket. Dollar is only going to fall over the years to come and interest rates will come back down sooner or later.
Considering it is back to profit making and net cash rsg has a lot going for it over the next few years.
Do you have any price target in mind? I’m looking for 70p but I’d expect that to take 2 years.
Thanks.
Production to increase.
ASIC to decrease.
Cash gone from -229m to +14m.
All looking good for the company. Gold price doing well staying above 2000. It may well drop being at record highs but I'd guess it is likely to rise higher in time as the Dollar is only likely to decrease in time and interest rates are likely to lower. Both the Dollar dropping and lower interest rates will almost certainly be good for gold to rise.
Broker target of about 60p, which is a little conservative imo.
Only negative I see is it looks like someone is selling, which only makes a buying opportunity.
What do you mean by 212 liquidity?
Not sure about buying but I can certainly sell my 47120 shares.
If it can break above the current price, which is a resistance level, I can see it going on to 27p, then eventually onto top off the upward trend channel around 35p.
Personally I'm holding out for around 70p before considering top slicing and leaving profits to run.
Dividend likely next year which should shoe a nice lift to the sp when it happens.
The potential for gold to rise in the next few years is quite large imo. 2300 likely in the short term and I wouldn't be surprised to see 3000 eventually hit. ofc, I could be wrong, but it does keep testing the 2080 resistance and eventually that resistance will break. Just wait for the interest rates to start falling and Gold should start motoring up.