Member Info for artrader

I called the rebound today on outside matters and really do believe that most investors here are worried about “what could go wrong” We made $100m last year on a spike and next year it maybe $50m … a 50% drop by…. Will be reported but really $50m net profit ? think about it and then look at your other investments … I think milking the cow every day is the way to go and when we have double the cash in share value let’s just pay ourselves out and go on holiday… it could be sooner than we think

Lack of workers during the pandemic caused shortages in the chip industry which caused the car industry to shut down production due to NO stock on a Just in time Industry. General motors shut down and the US Government got involved and have opened new Fabs to ensure this doesn’t happen again. USA have invested billions. China in the meantime warned against manipulation and then wanted to control/invade Taiwan for theirl chip industry. India meanwhile are invested too… it takes time to build the new fabs but everything will be back on track in the new year. This is the reality and demand will be amazing for PGMs … BUT when other factors such as speculation into futures are shorted it makes a mockery of demand BUT (another big but) means the shorters have to buy back and the new FABS need PGMs . The book orders for new cars are growing and something has to give and I think it’s going to be a mighty explosion. We know there’s a shortage of cars and when you put all the parts together there’s going to be a mighty Elon Musk sell off of his own shares while he piles into PGMs
We should be back to £1.02 tomorrow for starters .

The World Platinum Investment Council said yesterday jewellery demand was expected to increase 13% year-on-year after a 13% drop in 2020. Overall demand for platinum was set to total 7.9Moz in 2021, resulting in a market deficit of 60,000oz, the council had said earlier this month.

Hochschild (UP - + 20% today) has now almost FULLY recovered from the Paddington Bear mauling it took and I think we'll follow suit here as confidence is restored and the rule of law has returned. Nothing more to fear here even Platinum Jewellery is making a big comeback for Christmas I might scrap the Mini and convert the catalytic converter into a necklace.

One of the reasons for the recent drop was caused by Peru putting the fear into the mining world having told HOC to pack their bags. Their shares tanked 75% and sent a wave of selling throughout the world after all if could happen to HOC then what’s to stop other countries from breaking the rule of law? But now the Peruvian government have clarified the situation and restored order. All miners should recover today including the darling of them all.

A rough guess Net profit $30-40m at current basket prices

current PGMs basket value x 70,000 oz should by my reckoning equate to $118m net revenue which should be their 2nd most successful year even at todays levels.
$29.8m already achieved for 1st quarter at basket value $2897 leaving 54,229 ozs at $2,500 current basket.

Sorry I'll try to make it a little clearer and type slower.
The price of Platinum has risen by over 3.5% in the past few hours as has Palladium but the SP hasn't yet caught up. Surely by now with all the good news i.e. the 4p dividend to be paid next month and the windfall dividend paid in April and the greater demand for PGM's this has to be the biggest gift horse in town ( a good buy). I am fully satisfied with my milking cow (my long term investment ) and the $30m net revenue from the 1st quarter this year is an excellent result but it will pivot upwards from here. Now watch the Rhodium price rise as that makes up 50% of income and Palladium 50% of the basket and 20% of income.
All good news and not a dissatisfied investor to be seen.

just being a tad facetious.

Is this the start of a big correction in PGMs surely demand has to push prices up especially as we haven't had a special special divi for a long time, a few months ago and OK we got another 4p last quarter but we have been used to being spoiled. $30m a quarter isn't enough.

Sorry not Tran Siberian Gold but Shanta Gold owed £20m in VAT by Tanzania

Tanzania has Trans-Siberian Gold and Petra Diamonds by the cojones as it did Barrick/Acacia. SImply listen to Adrian Reynolds on YouTube “how South Africa can unlock its exploration potential” about 4:30 in Tanzania ….

Every faith there's gas there but not too much faith that they'll get paid for it without Charlie Santos or have to give up at least 16% of the company. Charlie did get $3.5m in past due gas payments from TPCD but it was far less than owed.

Two questions is anyone going to buy a share worth .678 at a premium at .76 ? or sell at a loss at .678 when its worth .76 ?

Expected $30m net revenue and got $30m so no surprises here. If making this kind of income at your ‘rock bottom’ then they can stay there but as we know they’ve already lifted off again.

Brrr Brrr ring ring ........Hello

Begs the question 'Why didn't they wait for the signatures? QUOTE ''As we stated in our interim results, we have new contracts representing significant revenue that are just awaiting signature.''
and why didn't they use their 'Corporate Underworked Negotiating Team' (C^n^) which managed to get a signature from a Bank Manager instead of the 'Overpaid Underworked Sales Team' (OUST) which probably couldn't extract ink from a squid?
December 2020 average earnings for 58 staff was £76k p/a it is now running at £83k on average for ALL 57 staff - they reduced staff by ONE and increased wage costs by 10 per cent.....

XP Power Ltd - Singapore-based maker of power controllers, which convert power from the electricity grid into the form needed by industrial equipment - Reports strong momentum in order intake which has accelerated in the third quarter, with orders up 73% to GBP97.2 million. Order growth is attributed to continued strength in the semiconductor manufacturing equipment sector,

Sylvania (AIM: SLP) today announces that certain Directors, senior management and employees have exercised a total of 2,385,000 deferred share awards ("Bonus Shares") granted to them in August 2018 under the Sylvania Platinum Limited Bonus Share Award Plan, which have now vested. The exercise of the Bonus Shares was satisfied by shares currently held in Treasury.
1,066,850 of the Bonus Shares were immediately repurchased by the Company at the vesting price of 97.0 pence, in order to satisfy the tax liabilities of the PDMRs and employees. The repurchased shares are currently being held in Treasury.
unquote
The order books for new cars have hit all time highs which means at some stage now the orders for PGMs will also be at record levels once the new FABS start their mass production of chips. Car production has restarted and in a just-in-time industry they will be running low on the 'metals' they need quite soon so demand will increase, a bit like Gas and Petrol.
The last quarter results need to be read very carefully for you to see why the SP dropped and fear set in, the price of PGMs reached amazing levels the quarter before and there were also production problems which should be resolved but they still made a healthy profit. The cost of production is 1/8th of the price of PGM's so you can see how little it actually affects the profit margin unless it falls dramatically, as it did temporarily. The PGM basket price is still higher than a year ago.
People also fear EVs but thats like oil investors fearing Steel Cell energy or Gas investors fearing Electricity others fear that there's only 10 years worth of PGMs left in the ground. The most ridiculous fear are that all the money they have £106m cash is not being spent.
The next quarter results should at the very least calm the SP which at the moment offers a nice dividend at the same time the results are announced in several weeks.

ARE WE BACK IN THE SAME POSITION as June 2019?
This was a section of the 1.3m debt to equity swap and forced a £6m fund raise. However looking at the situation now it looks like they need another 6m ???? The following is from June2019 as a warning to shareholders.
Shareholders should be aware that if Resolutions 1 to 5 are not approved at the General Meeting, the Subscription will not complete and none of the net proceeds of the Subscription will be received. If this were to happen then the Group would only have sufficient working capital to trade through to late June 2019. Accordingly, based on the projected cash flows of the Group, it is highly likely the Company would need to be placed into administration.

Furthermore, if the Subscription completes but the Company is unable to raise Additional Funds of at least £4.5 million by 31 July 2019 then, based on the projected cash flows of the Group, the Company will be unable to pay its creditors and it is highly likely that it would need to be placed into administration. If Resolutions 6 and 7 are not approved at the General Meeting the Company will be unable to raise the Additional Funds.

In the event that the Company is unable to meet such obligations as a result of the failure of the Subscription to complete and/or the failure to raise Additional Funds by 31 July 2019, it is unlikely that the Company will be able to continue trading and it is highly likely that the Directors would need (in order to fulfil their duties to the Company's creditors (and to other applicable stakeholders)) to place the Company into administration. Any such administration would be likely to result in little or no value for Shareholders.

These possibilities are considered to be realistic, not remote.