My personal review3 Jan 2023 10:19
I've always felt that this is a good time of year for me to review my portfolio. So I thought I might share my thoughts to see if it matches others views.
I have built a good size holding here, which is currently showing a several thousand pounds loss, so how confident do I feel?
There are three ongoing scenarios here, so let's take a brief overview.
Coal: So far, this hasn't moved at all, but is still seen as a sizeable asset. We have been told there may be movement "soon", once P***stan get their finances in order, so they can afford to buy coal from us, resulting in them giving us the LOI to proceed. Whilst many of us do not like the term "soon" as it doesn't give a definitive timeline, I think this is getting much closer than it was this time last year. The government is working in the right direction to get their finances in order and with an election coming up this year, there is further pressure to push this through. I personally feel that there is likely to be movement within a 3 month time period. The arrival of the LOI could ceate a multibagger, whilst any further delays are unlikely to affect the sp. So, lots of upside, little or no downside.
Gold: Again, we come across the term "soon", regarding a possible JV. With this, I have no idea where that leaves us. We are now into the closed season for gold mining and exploratory work, so does that mean we have to wait for the season to reopen to do more exploratory drills, or is enough information available for the JV to go ahead? Once the JV goes ahead, I would expect a reasonable upside to the sp, with further ongoing increases over the next 2-3 years. Further delays in getting the JV are unlikely to negatively affect the sp.
GH: This quarter sees the completion of the Land survey, enabling further devolpment to progress. There is a lot to process in such a huge project, but I still have faith in Oracle and Naheed to deliver. There are going to be further costs to get us past each stage, but I feel that this has been taken into account in the overall planning and will be mitigated by bringing in further partners as things progress. I would expect this to progress reasonably smoothly within the defined timeline. As such, the only downside may be any delays or political issues. The upside is a steady increase in the sp as we progress through each stage.
Overall: I feel that we are at the bottom of the curve. There is still plenty of upside here with the opporunity to see a huge increase in the sp if the coal comes through. If it doesn't, then the natural progression of the GH should build us towards a sizeable growth in the sp and our market value. I would agree with Naheed here that the sp could easily reach 10p. That could take up to 4 or 5 years, but the overall plan looks to head us in that direction.
So to answer my initial question about how I feel, given that I am currently showing my investment as being considerably in the red, I feel confident.
Onwards and
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