Member Info for Charlie156

'Transforming, while performing' Nice one Bernard.
I prefer 'Share price collapsing, investors capitulating'

At the same Q3, copper is up 8.9%, zinc is up 15.4% and lead 2.1% down. The dividend decision will be interesting. With no 2019 final dividend, will they enhance the 2020 interim dividend? The balance sheet is in rude health, CAML can afford it.

I hope Looney's not sleeping at night, cos I'm not. Is there a medical term called Looneyitis?

That the world is moving from fossil fuels to renewables is a given. BP's stark choice, either become a major renewables company or run down the company's assets, pay off debt and return cash to shareholders was a no brainer. BP's has a portfolio of assets that even in a buyers market would give most shareholders a return on their investment. Just its holdings in Rosneft, Azerbaijan, Trinidad and tobago would equate to today's market cap. They could float their retail operations, the hidden gem in their portfolio. Looney was head of upstream and just two years ago was hailing the acquisition of BHP's shale assets as transformational. With billions written off that, it certainly has been. It takes a special kind of arrogance to use shareholder funds to invest tens of billions in a sector in which it has no proven scaling up expertise. BP is a world class oil and gas company , that's where its expertise lies. Now we face a series of piecemeal overpriced acquisitions. Heart breaking.

Looney is going to get skewered on October 27, and rightly so. This destruction in shareholder value in his 8 month tenure to date is shocking. The Board should act immediately and replace him. The market has no confidence in him or his strategy. I am staggered he got the job in the first place, as he was the main proponent of the BHP deal, which has cost shareholders billions. I wouldn't have thought it possible to schmooze your way to CEO of BP, but apparently it is.

BP really is Shell's ugly sister. Everyday, up or down, Shell outperforms BP.

Net debt down from $58.8m to $38m in 3 months. I believe they refinanced the debt in March from Libor + 4.25%. Every little helps I guess.

highlandmatt, it's$11m. Earlier in the year when Covid panic was kicking in, they set it up to cover worst case cash flow scenarios. Goes to show what one healthy quarter of copper prices does to the balance sheet, with debt repayments as well.

Copper flying today, must be averaging $1000 a tonne more in H2 so far, compared to H1. Another $9.6 million of debt has been paid off since the interims to the end of June, with finance costs falling rapidly. Dollar/tenge rate working in CAML's favour, lowering Kounrad cost base. With a fair Covid shake, the shares are primed to go.

PorridgeOats, I had my shareholder glass half empty hat on there. There does seem to an increasing clamour from investors for an acquisition, I just want shareholders to be shown a little love for what has been a frustrating couple of years.

Since CAML bought SASA 3 years ago, lead and zinc prices have fallen every year. To date, it has proved an overpriced acquisition, bearing no comparison to Kounrad, which throws off cash and unlike SASA requires minimal capex. Since the purchase dividends have been reduced as priority is given to repaying debt, which funded the deal. There is also a deal in place to sell silver produced at $5 an oz for the life of the mine, compared to a spot rate of $28 recently seen. A win win for Osisko Gold Royalties, who are getting bullion for only a fraction of the cost, with as we have witnessed recently none of the mining problems to produce it.

BP yield 7.4%, RDSB 5.3%, and the differential is growing by the day. I listened to the last conference call and Giulia Chierchia was prominent throughout. She was appointed Executive Vice President Strategy and Sustainability from Mckinsey on July 1 this year, and a month later was articulating BP's strategic reset at their interim results. Obviously a Looney appointee, slick and capable, I thought she lacked authenticity, adding to the market confusion over the direction BP is heading in.

I wouldn't let Looney work as a petrol attendant on one of his forecourts.

Over the last 18 months there has not been one significant share purchase by BP directors. I would like to see Looney back up his strategic makeover for BP by getting his hand in his pocket, because the recent city roadshow to sell his vision for the company was a car crash. Why do Shell have a yield of 5% and BP 7%, it's because Looney's strategy has no credibility. Telling the city that BP can achieve about average return in renewables when it is a minnow with relative inexperience in that sector deserves the derision it received.

Looney's 3 day sell to the city has gone down well, I see. Testing times as a shareholder, so where is BP heading.
1)Selling 40% of oil portfolio, keeping high margin fields and staying in Russia.
2)Renewable ramp up- 2GW to 50GW by 2030.
3)Committed to growing LNG operations this decade, as part of the transition from oil to renewables.
4)Rapidly growing retail sector.
5)Highly profitable oil trading division.
6)Ongoing digitalisation of the industry. Not that long ago 20-30 engineers needed to operate a field, now you only need a couple and can run it out of an office in Surrey or Houston.
Surely Calamity Looney can't muck that up.

What caught my eye were finance costs reduced from $6.2m to $3.5m, a reduction of 44% for the 6 months to June, with the refinancing in March promising an even bigger full year reduction. Good to see Kounrad operating at or near normal levels, after July's disruptions. Q3 was the most productive quarter for copper production at Kounrad last year.
6.5p dividend costs CAML $11.5m, which is a bit punchy on these results. While copper is going great guns, lead and particularly zinc prices are still lagging.
Looking 6 months ahead to the 2020 results announced in the beginning of April, I'm hoping CAML will be back on track after a challenging 2020. Net debt and finance costs falling rapidly, stable metal prices, mines operating throughout the autumn/winter and the world finding a vaccine, or if not, finding a way to live with Covid-19. If all that happens, shareholders will be richly rewarded. Perhaps a tad over optimistic,but there is real value to be had here.

RMG should issue profit warnings more often, if that's the way the market reacts.

September's interims will show that if they had declared a dividend in April comparable to last year that net debt figure would have hardly moved due to weak metal prices. Copper output was highest in Q3 last year, they said in July the workforce had been reduced by 40% due to Covid. Hopefully that situation has improved and they are making hay from these buoyant copper prices.

Or lack of it, at these prices is a concern. Looney, I'd have a bit more faith if you made a purchase of note, or do you know something we don't.

When your pining for the days of Tony Hayward, you know something's wrong!