Member Info for Bismarck

SGZ spread is similar to my other favourite gold miner, CMCL. They also have low liquidity and typically a 4% spread. CMCL are paying a 4.5% divi and their 12 month forecast P/E is currently 4.0 They are cash rich/debt free so on paper a better buy than SGZ, but geopolitical risks are obviously much greater with their mine being located in Zim. For me it makes sense to split the bulk of my gold mining investment between them.

I actually make the yield 4.5% based on current exchange rate and SP, and I too cannot understand the lack of trade.

Just to add, equity returns for the next decade are forecast to be 4.3% PA globally according to Schroders, which I understand is a fairly typical prediction. At a P/E of 4 the company basically earns your money back in 4 years (obviously not all in divis). Don't need to be a mathematician to see where this is leading..

The SP is still where it was 8 months ago. POG is up, profits are up, dividends are up, 12 month forward P/E at an incredible 3.9 according to stockopedia, new project in the pipeline......

Can anyone explain what's going on?

Looking to top up again at this price...cannot think of anything better to buy when CMCL is at this level, or is there something I've overlooked?

"II" = Interactive Investor

I hold DEC in an II SIPP and I receive the full untaxed divi

@ GeorgeZibbos - I know something about the 18K buy @ 74p this morning. It was on a limit order I placed about a week ago. As you say, good buy price at this level.

1 share was sold tonight for 66.2p it seems, 10% lower than anything else today, so a 10% drop in SP is recorded for the day!

@ BlakeneyP

As I understand it next exploration will be drill testing the undrilled areas of Cononish where additional resources are expected to exist to confirm mineral resources and extend LOM.

This will be followed at some point in the future by exploration/drill testing within "promising" areas in the licence area within the Grampian region.

If there are other or different plans on the table I'll be very interested to hear them.....

@JonnyGee

Interesting post about ARO. Based on DEC's wtd ave 50 year well life, the plugging cost equates to only $500/year of well life which sounds a lot less scary than the $1.7bn total for 69,000 wells, a number that dwarfs DEC's current market cap. On the other hand, the 50 year well life is hypothetical as we may not be using NG in 50 years.

@ RetiredBanker

I concur. I bought into HUM at around 23p last spring but since the circa 43% drop in SP since then due to one problem after another after another I've now lost all confidence in the company.

Fortunately I sold out most of my HUM shares in December and bought SGZ, now up to 85p, a 40% increase from my 61p average price, so much of my loss in HUM now recovered.

I still have a holding in HUM, about 20% of what I had originally. Just kicking myself now for not betting the full 100% on SGZ last month.

On the basis that nominated analysts understandably tend to be bullish I'm not too surprised at the £1.62 price target.

Not knocking it, but personally I'll be delighted if the SP makes up half the current difference between SP and target and reaches £1.20+ this year. That would be a 100% increase from December's lows.

https://www.scotgoldresources.com/wp-content/uploads/2022/01/Scotgold_Resources_SGZ_Flash_Note_210122.pdf

Yes, and that really pi88ed me off!

Maths correction, 15% increase, but quite achievable IMO

March 3 2021 SP £1.31

Revenue and profit for 2022 should be significantly higher

So on that basis there is no chance of reaching those highs, a whole 10% greater than current SP again !

AGM in a couple of weeks.

Maybe worth attending (via web)?

@ canonbie

Is there enough liquidity here for the institutions?

Thronegames, I hold this in 2 Sipps, II and AJ Bell and pay no withholding tax in either. US treasury respects the tax free status of pension funds but in all other situations I would pay 15% withholding tax as a British citizen.

Furthermore, since I don't see this as a growth share I'm just happy with the >£5K/year tax free divis I get from this in the SIPP. Actually topped up yesterday. My £10K loss (same as yours) due to 20% drop in SP yesterday is just a number on a piece of paper in the short term. In 10-20 years when or if I need to sell who knows the value? I'll have made handsome divis in the meantime I'm sure.

For growth I invest in SMT, not DEC