Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
2016 was when I first starting buying in I think. Started buying right at the wrong moment whenever that was, averaged all the way down to lows.
Once upon a time I use to trade penny stocks, but then I realised it’s a mugs game and a buy-and-hold strategy usually plays out far better in the long term. If I'd bought and held my holdings in GGP and Eurasia Mining I could have bought a yacht or two by now, but you don't see me complaining about it. Ifs and buts and all that! Best advice I can give anyone is if you like a stock buy and hold, if its sells off buy more. If you have serious concerns about how this investment company is run ask informed questions rather than complaining about the share price performance of a low volume penny stock during a time of wider hawkish market sentiment. You just end up looking a little bit foolish. No argument however that we would all like to see a true reflection of what we believe MTR to be worth, however as discussed over and over on this board we are beholden on various other variables outside of the managements control vis-à-vis investments that they have made.
Let’s hope he meant 48 and actually purchased at the top of the 2016 pump and dump guard, I think the last time it hit 58 was 2013…
Sounds like you have the previous management to blame for your loses not the present lot. The company has also changed massively since then, so not quite sure I get your gripe. You are certainly welcome to complain, but I don’t really get it. I have many stocks I sit on way worse loses than that, of which many I have no hope of ever getting my money back. This is not a company I have that concern with. I was once in your shoes with MYR, but averaged down over the years and now sit in the green for my luck. Long may it last!
Absolutely fair, but in a constructive way would be more educational for those trying to understand your frustrations.. bemoaning the share price doesn’t help much. Though unarguably your right. How much exposure do you have in MTR to cause you so much irritation?
Ziq. What’s your game? If you don’t like the business model or the management style why are you invested. Surely it makes more sense to cut your loses and find another opportunity for yourself rather than ranting about a share price that isn’t likely to move significantly for a while yet
So I've been in this since 2015/16 and all-in for about £60K+. Personally I gave up worrying about the share price a long time ago! it just isn't correlated and doesn't have the volume to stay consistent for the av. small cap trader. To be fair the management did try to change wider investor sentiment, but frankly this investment company is a hard story to sell until you can put a concrete valuation on the smelter royalty. I'm confident that in 18month something will unlock this companies potential, but until then its beholden to SFR and assay results in the Kalahari. I'm going to continue sitting an waiting for now
RR I'm all for learning about financial markets, a large part my job is teaching people about this subject but I'm afraid I can't bring myself to do it on a high risk investment bulletin board. Your questions and statements are all over the place, friendly suggestion keep it to the point. If you want to learn about derivatives check out this course : https://www.fitchlearning.com/investment-advice-diploma/derivatives
Fingers crossed.
They are only referencing the equity derivative financing that they have, not option trading activities on SFR. Simply put they've borrowed money against their direct shareholding in Sandfire, the lender will have used derivatives to hedge their risk. Either way keep in mind MTR is an investment company so it would be well within its rights to option trade if it thought it was an interesting trade.
Check out the thread from the 17th on this board as well. Some commentary on this subject already.
You've miss read the RNS, take another look:
Metal Tiger plc (AIM: MTR, ASX: MTR), the AIM and ASX listed investor in natural resources opportunities, announces that, further to its announcement of 14 December 2021, it has disposed of, in aggregate, 185,000 shares in Sandfire Resources Limited (“Sandfire”) (“Sandfire Shares”) at an average price of A$6.57 per Sandfire share.
Following these disposals, Metal Tiger is interested in 7,812,057 Sandfire Shares representing approximately 1.9% of Sandfire’s issued share capital. As previously announced, 2,842,667 of the Sandfire Shares held by the Company are subject to an equity derivative financing arrangement with a global investment bank.
Great overview
You referring to this?
https://www.investorschronicle.co.uk/news/2021/11/04/the-aim-100-2021-part-1/
If yes MTR doesn't come into scope as its market cap falls below the barrier they use .
Not sure I agree about the need for clarity on distributions. Why would the management make a call on something like that before it has even happened. Furthermore it is some time away before they really will get any benefit from the 2% net smelter royalty, so why would this need to be a topic now..
A bit weird for you to throw out this insinuation about wages and obviously the company has at some junction has to repay the debt. Nothing that I can see suggests that is the way management run this, quite the opposite if you look at the financials over the last few years. Unless you see something I've missed?
Yes that is rather misleading as it was commented on in IC as recently as November not August:
https://www.investorschronicle.co.uk/ideas/2021/11/22/bargain-shares-primed-for-material-uplifts/
lol I think we have different definition of massive, I see a total volume of 585'906 shares traded. 200'000 being a delayed order (got to love the MM). £circa 120K.
Certainly more volume than we've seen for a while :) but this remains and will likely continue to remain for now a very closely held stock.
Personally I think it is a little pre-mature to call for a dividend. Even if it was paying a dividend I'm not sure it will attract the investors you think it would, or the type of loyalty you'd want. Dividend stocks typically attract a conservative style of investor, this stock is not that. I look at this investment as a way of playing high risk pre-seed mining. The advantage MTR has it is now a mix of pre-seed and late stage investments (Sandfire) that are still to come to fruition. Tempers the risk a bit, but still high risk. As with these type of investment companies the payoff for this style of investing is longer than the av. investor understands, most get bored waiting. Maybe they will use the dividend clause, but personally I hope they don't. I didn't invest in this for an income stream, would cause me a tax headaches if it did. I only want the capital gain. Hopefully sooner rather than later, but unlikely to be a reality before the SFR Royalty can better underscore the value of MTR.
Afraid I have zero clue on the tallies of monies spent/traded etc., but the last financials didn't leave me concerned. I assume/hope that the board will have a decent handle on this. They seem to have a pretty decent pedigree, and hold good cornerstone investors so I haven't lost any sleep over this. But I would be interested if you are so inclined to ask them for the data on that front. This is however not something that they can actively publish, similar constraints to that of any asset manager. Can't pump up the stocks they hold etc.
I totally agree that the NAV doesn't reflect the true value in the SP, which is fundamentally why I've held for so long even while I've missed opportunities elsewhere this past year. Personally I don't think that the BOD have been that silent, the issue that they have is they are bound to those that they have invested in for news flow. Some are better than others.
The greater dilemma that MTR face in my view is how to go about changing the share price stagnation, which is doubtless why they have gone with a dual listing on the ASX. They likely wish to broaden their marketing appeal in advance of a being able to assign a value to their royalties. However until they are able to assign such I'm waiting to pass judgment on that front, hopefully SFR speeds up their news flow a bit.
The problem with these type of mining companies is that you have to been damn patient (5-8 year time lines, if not longer), a reserved BOD is not necessarily a bad thing in my view.
Investors should always look at the assets held by the company, not at bulletin boards. You'd be crazy to day trade this stock anyway, this 100% long term view play.
I very rarely post as I follow this board passively.
To be transparent I've held here for the past 6 years and hold just shy of 300'000 shares, I also work in asset management for a living. (not a specialist in this space)
So I understand that a secondary listing is on the cards in Oz, and as I see it a capital raise on the ASX would seem likely as they'll need this to generate interest/liquidity on the listing.
MTR's biggest issue is it's a very closely held stock and its daily volumes are horribly small thus these price swings.
Having read through the recent RNS' I can't see any other obvious reason for a capital raise. I'm not saying that it isn't possible in the future, particularly if we have a sudden upswing in short term interesting rates etc. As far as I can tell the company is simply doing what it has done for some time which is making short term investments/trades using leverage against their holding in SFR.
The use of monthly leverage is not uncommon, so I'm not entirely convinced that this is a red flag for an imminent capital call. No argument that the company's cash flow is certainly beholden on SFR, but as far as I know the dividend covers this cost of borrowing. Also SFR don't appear to be pressed to cut their dividend and the analyst consensus rates them as a buy.
This said, to thefierce1 and or others I'd really appreciate your line of thoughts as to why you are so convinced this is likely now? balanced informative replies appreciated