The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
"All outstanding gold hedging contracts matured as at 31 December 2019, and the Company is now unhedged and exposed to spot gold prices"
Gold is already on the high side and wasn't able to maintain 1595; according to the IC the current gold price is at it's highest since 2013. Hedging at least some of the output at the current gold price would provide some security against a reversion back down to the 200MA due to the possible effects of rising interest rates or other adverse developments.
Really good sales and production report but what if anything can be done to reduce the 'high level of fixed costs'?
Pavel Maslovskiy noted, "Given a high level of fixed costs at the POX plant, increasing throughput will help reduce cash costs per ounce which will drive additional cash generation from the business."
My previous post (Jan 8th) was: 'In this morning's FT, the news on SXX includes the view that "...the government would step in with a loan guarantee... the new Conservative government's reliance on Northern votes made them more likely to provide one." Also, given that "Anglo would flush out other bidders..." in may be worth waiting to see what's in the bush!'
* It looks like this isn't happening...
* Selling at 5.5 seems very late in the day...
My guesses are:
* The decision might be delayed yet again
* The award may be a lot less than $1.4bn
* It may take many years before the award is actually received
* It may never happen
* The award may already be priced into the share price
* The impact on the share price may be very muted
No news on further value-added tax refunds
Forward sales reduced to 40,000oz (Q3: 43,000oz)
In this morning's FT, the news on SXX includes the view that "...the government would step in with a loan guarantee... the new Conservative government's reliance on Northern votes made them more likely to provide one." Also, given that "Anglo would flush out other bidders..." in may be worth waiting to see what's in the bush!
Instead of accepting a derisory 5.5p current valuation of SXX, investors might be better rewarded for holding out for support from the government or another source.
Interesting, though needs some interpretation… He seems to have bought 17,400,00 and currently has a Holding of the same amount… but e.g. there was a Notification of Holding for Pavel Maslovskiy of 190,774,346 on 9th Nov ’16 and 149,956,105 on 27th April ’16. He also held shares (still holds?) from the rights issue on 18th March ’15 of 208,038,642 at 5p each (Holding of 215,553,105). The Holding column of the Directors Deals for POG doesn’t appear to be an aggregate, so it looks like Pavel Maslovskiy holds a lot more shares in POG than the 17,400,00 in today’s announcement.
I believe ft.com limits the number of times a shared link can be accessed to 3... but anyway, I've tried file dropper -
http://www.filedropper.com/sxxlink
http://www.filedropper.com/sxxlink>http://www.filedropper.com/download_button.png width=127 height=145 border=0/>
I would do that but it's copyright.
I can see that the other messages have included links so it's probably possible unless ft.com have included a link blocker because it's premium content...
I tried to include a link but it was removed so ... maybe if I separate the https:// then to complete the link simply add... on.ft.com/2Qjod4J
https://on.ft.com/2Qjod4J
Essentially, LEX suggests there is no hope at all for investors and notes that "some floats are simply accidents waiting to happen"
The ft.com - Lex opinion this morning seems to lack the Xmas spirit - "Sirius Minerals: eclipsed" seems to have written off Sirius Minerals altogether. I'm still holding though... Happy Xmas