George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
Whereas I recall WIZZ had a hedge just before Covid, thay saved them £££££s.
"All they do is add costs and risks"
Costs, maybe, but risks? How so when you set a guaranteed figure? I don't see the risk.
Yes, you might lose out on new highs, as as happened, but you lock in at least some price that isn't way lower.
And given the latest news read, lower rates look like they might be pushed back some.
Crap growth rates amongst the majors might help POG though, I admit.
The thing is, who knows?
A hedge gives a figure we can use as a cert, is my point.
You're a positive type here, the same as me, so debates are fairly by the by.
We both know this will come good and it's only a matter of time.
Meanwhile, I can stand the naysayers, as they drive the price down. I've only got one blocked as he adds nothing whatsoever and can't even see that he can pull his losses back easily. Hey ho.
Haha, it's even confusing me Bush and I've kept a half eye on it. I need to listen to the whole thing again, at least once.
Whatever, it's safe to say it's all good re the hedge.
I'm still not sure I trust Dan and I hated the fact that the financial bloke didn't even know how to pronounce "Dugbe" and said it literally, but heyho, it's all a game, isn't it?
Rus, here's the original hedge details;
"The Company's near-term revenue protection scheme has been finalised with 60,000 oz protected across the first three quarters of FY-2024 through forward pricing and cost collars, with an average floor price of US$2,000 per oz and upside of up to US$2,150."
So the floor price is increased. Matbe not as much as you like, but the higher you set the prices, the more it costs. I'm well happy with this.
In a volative and risky industry, guarantees are great, imo.
Rus, the first quarter of the hedge was paid down. Then Hum moved the remaining 3 months of the hedge into 4 months is how I understand it.
So basically reduced by 25% a month, which is why it's gone into Q1 25.
It probably cost a few bob, but was obviously deemed well worth it.
There's some stuff that hasn't been mentioned on here that ought to be.
Who caught that Dan said we should be into 4G/T at Kou when we shift a million BCMs? Which according to the contract with Corica should be ONE month?
Dan seemed way less aloof and much more natural in this presentation. Almost like a man that has had at least a bit of a weight on his mind removed.
The Hedge collar has seen 15000 ozs pushed back to Q1 25 from what I gathered, but I need to hear that part again. Whatever, the collar is now 15K a quarter, I think, from $2100 upwards.
I'm massively encouraged after hearing that, but then I didn't really need to be. The upside is massive, imo.
Whatever, it's a swine, as I nearly bought more yesterday, but was hoping it would fall a bit more. I'm building my holding, but do like to trade a few, for clarity. Probably the same as quite a few of us on here, I suspect. The volatility is superb.
Well, we know for a fact that Corica weren't performing as we'd been told about it since last summer when HUM got the fifth fleet in.
I personally think replacing them can't be any worse and I see big upside.
But possibly not imminently, as you suggest.
I'd love some 5p bonus tokens, fwiw.
I really wouldn't read too much into that.
If you read the article, Wagner actually took over a mine near Yanfolila, but didn't stay long.
1. They probably just pillaged a few easy ounces.
2. Quite simply, the locals wouldn't be able to run a mine without Western companies. Let's face it, they struggle to run a bath. It's just how it is.
Swatton, the question should be is Q1 a good quarter for production?
I forget but I do remember the wet season is usually a poor one. We haven't had one in this quarter.
There's been talk that production hasn't been expected to be so good this quarter because we're doing ramp up work on the undergound or something, but that might just have been one of the de-rampers talking. Hopefully someone will clarify that.
Whatever, it's always best to expect a bit lower than what the numbers should be. That way you won't be so disappointed :--)
Monkey, you're not missing anything when you look at those numbers.
Sentiment however, is lower than Whale proverbial because the board definitely do make a habit of making mistakes.
All that said, Betts has built a second mine that if it hits target, will be more productive than what there alredy is.
Me, I'm fully convinced this is a multi bagger in waiting and am in heavily enough to back my thinking up.
Look at the facts, ignore what seems a concerted effort to slate this on here and make your own mind up, is my advice.
Will this shut the usual naysayers up for a while now?
Probably not. Meanwhile, I look forward to taking some nice profit from yesterday's purchase.
You've got to be in it to win it, instead of moaning while not even having a holding.
Playboy, I've no doubt HUM would pay them a delay payment. Indeed, there's probably a clause in the contract where HUM pay Corica for any delay that is not caused by them. Again, that's how business works. I've had to shuffle labour on my job to cover an area where another contractor arrives to work on Monday. If I hadn't, they'd have hit me for standdown time where they couldn't do anything. And quite rightly too, as it's only fair. The employees/subbys will still have to be paid even if they're not working.
This is all standard stuff, so I don't get why you're suggesting that HUM are out to do Corica over?
Maybe you're part of what seems like this concerted effort to talk HUM down?
A very sensible hedge at the time Bonker. What would you be saying if gold had plunged to 1500, as unlikely as it was?
20-20 hindsight really is an incredible thing to have, isn't it?
There's plenty to moan about re HUM, but I don't think the hedge is one of them.
It seems there is a concerted effort on here to talk this down lately.
Meanwhile the SP continues to rise, although in fairness, the trading action doesn't justify that rise.
Whatever,
"you don't stop mining when you're that close"
And you don't continue to be had over a barrel either.
You can't continue to pay a contractor that is not performing anywhere near where it should be. We have a similar situation in my current contract at work. The contractor is not working as fast as is required by the schedule, that was agreed to before the job started. The reason is although the job requires 6-8 men working full shifts every day, there have been just 2 or maybe 3 at best. The contractor has asked for the first staged payments. My gaffer's reply? Finish something first and I'll pay you for that.
That's how business works.
Should my gaffer pay them when they're not performing as agreed?
This is what has happened.
I've suggested that we bring someone else in. My gaffer has said that he needs to hear the contractor's response first.
Ie, he's giving them every chance, even though it's obvious that the contractor is taking the proverbial.
Because that's how business works.
This is exactly what's happened with HUM.
It was RNS'd that HUM had brought a seperate fifth fleet in to help out. That is a FACT and about the only one we know apart from the suspension.
Everything else is speculation, but business doesn't change. If they take HUM to court, it will be agreed that they haven't performed and that 27 million is very likely to be a third of that if they're lucky.
And those who are saying they haven't seen any value from this share need to change their approach, imo.
Don't look at it as an investment. Chuck a few cautious quid in and remove it when it doubles. Because it will.
15p is nothing like a big ask here, imo.
What do you mean by "keep the peace"?
Do you mean pay them what they want for an incredibly poor production rate?
If Betts did that, then I'd be doing my but too.
If they're not performing anywhere near where they should be, they need getting rid of, not pandering too.
We've obviously already done that and it hasn't helped. Sack them off, simple.
On the back of nothing.
I know the spread is quite wide, so it's not easy to trade it, but this is actually up around 8% today on the back of precisely nothing. It doesn't take a lot to work out what's going to happen when some good news arrives.
A massive trading opportunity coming up and I think I've just convinced myself to buy some more on top of my core holding for a quick flip when it comes.
It's also blindingly obvious that this is going to bag once they get this on track.
Not that I'm advising anyone to buy.
You lot can make your own minds up. Or maybe not.
Are absolutely right.
Nobody should listen to the fear being bandied about in here.
Make your own mind up and if it's so bad that you let this scaremongering away your decisions, you probably really do need a financial adviser to do your investing.
The fact is this is risky (but not as risky as some are making out), but the reward will pay off plenty IF things work out. If you ultimately lose out and are likely to fret about it, you simply have too much money in here.