Member Info for Bustard

Hi Mike

I’m not fishing this time. But I’ve seen white and black rhinoceros. The latter at very close quarters.

I’m here with 375H&H with most of what I pay going to rhinoceros protection and conservation generally.

Very encouraging leap in share price today. Of course it’s the gold price which raises and lowers this boat.

I think your figures in your other poster in the right sort of ballpark. I never expected the share price to get much beyond 160 this financial year so we’re almost back at that level. 180 was a real surprise. But when such stocks get a head of steam, goodness knows where they can go in the short term. There is a very bullish article about the gold price in the FT today

Thank you for your posts. They’re very informative and thoughtful.

Mark

I’m very near the Mozambique border……

Thanks Visble. I too have been out of the loop for a fortnight or so – in deepest Zimbabwe.

Been an exciting ride. Now hopefully on an up phase.

I had my dividend just a day or so after it was due. With interactive investor.

My confidence in PAF remains high.

The gold price is obviously the tide about which we can do nothing but I’ve experienced these plunges in stock valuations over the years, and my general experience is to sit tight and wait for them to go back up again.

If the price gets to 120, I may well buy some more.

Mike – there’s not much difference between getting back in at 120 and 130.……

And as regards the volatility, it’s worth remembering that we went from c. 150 to 120 to nearly 190 in very short order. That type of rapid swing is perfectly possible again

Hold tight.

White knuckle ride

Gold Price dropping was always the big risk

The ride was always going to be volatile, but the sell off looks overdone to me. If I didn’t have so many shares, I’d be tempted to buy more.

Thanks Viable. Fascinating interview with Cobus.

I agree with this, oufc.

I’m more excited than not, Tigger

Mainly because of my belief that the company needs to ramp up production if we’re going to make it to a £5 per share.

Ideally, of course, the increase in production would come from our own reserves, and be sustainable well into the future. Then we shareholders would really prosper, assuming the extraction could be done profitably.

But buying new resources at the right price could also be very profitable

The advantage of diversifying away from Africa is the reduction of political risk. Always assuming, of course, that the purchase is in a more stable political environment.

Acquisitions bear risks, particularly if management gets stretched in running companies in different parts of the world, or if the acquisition turns out not to be as good as expected.

And gold miners have a dreadful reputation for acquiring other gold miners at the top of the cycle. History is littered with dumb miners making top of the market acquisitions.

Please excuse me for being a bit dim, but I can’t decide whether there is concern or excitement about a global expansion strategy? I can see pros and cons.

Always darkest before the dawn.

This is a great company

I too sense the CEO is nervous of large transactions, which is a good thing. But I also think he’s got the courage to buy when he judges it’s right.

There may be ways of tying up production opportunities, such as tailings, through option arrangements or royalty payments, so as to reduce the risk of a gold price fall?

I’m 100% confident the company is exploring ways of increasing yet further production, including through tailings opportunities.

Hi Viable

I hope you’re correct about me being way short with my £3.

With the calculations Mike and I’ve been doing independently , and assuming Au price stays somewhere around where it is at the moment, I don’t see the share price going much beyond £3, which would still be tremendous from where we are now - another 100%. And I think that could take a year or so.

What I’ve been wondering much about is whether PAF has the potential to become, say, a $10 billion company – maybe £5 a share. To do that in my view will require strategic acquisitions and great management, absent a free ride from a soaring Au price.

I have a warm feeling about management’s ability to find good strategic acquisitions / more reserves and also plan for the long-term – precisely what’s required if $10 billion is to be achieved.

I tend to be a long-term holder of shares based on a on a conviction that a company I am invested in has the potential to grow. I like to read what others, like you and Mike etc. have to say because I’m pondering the very question: is this one to hold for the long-term?

Cheers

Mark

Thanks, Mike.

I have very good feeling about this deal. I haven’t checked the figures as closely as you, but I have 100% confidence in your sums. Not least because, when we do both do the same sums, we come out with the same answer. 😉

I like the transaction for two strategic reasons:

1. I’ve banged on here about the need to see production growth in order to drive the share price north of £3, and this transaction effectively does that by buying out our partner’s share of the joint venture.

2. It versifies yet further from South Africa.

Access to the Australian stock market also helps, though it isn’t a full listing.

Apologies all. We do have an RNS. It was something I read in an earlier post that made me think we didn’t.

This acquisition looks like excellent news. It’s smart strategic acquisitions, especially outside Australia, plus increasing production and a steady gold Price which will make this company worth £3 a share and more. The current turbulence is temporary.

I remain very positive. In fact, if I understand this acquisition correctly, it’s potentially marvellous news. And it shows that management is focused on the big picture of strategic growth. Who knows where this thing will be in a few years time but potentially it could be a $10 billion company. I’ve no doubt

Surprised we haven’t had an RNS.

Hi Patryk

Nice money and good luck!

I’ll miss your thoughts, enthusiasm and optimism

I won’t miss trying to spell your name correctly 😉

Mark / Bustard.

It’s been a tough week, but the fundamentals are unchanged.

Old Cliché; “when the going gets tough, the tough get going”.

A have a good evening and weekend, friends; I’m still here and determined to stick it out. A few big bumps were inevitable after such a ride and they always come from left field. I think we should feel confident that the war will underpin gold prices. I can’t see how any of the fundamentals of this business, which we’ve talked so much about, have changed.

Congratulations to those that have got out with a huge profit.

We will miss you chatting here. Please don’t come back to laugh at us if the price falls further 😂😂 and enjoy spending your money. You deserve your success after making a great investment.

Mark

I hope the brave ones are those of us that have sat tight.

But nor is there anything wrong with taking a profit