The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
RSUs issued in lieu of bonuses. I like it.
1. Saves money
2. Aligns senior mgmt.'s interests with shareholders
3. Locks key people in.
Well done Rambler!
Best wishes,
Prof
Hi Loggy,
A very fair approach!
The good news is that is we take the strike price of his options as .25p then, he stands to make over three and a quarter million (before tax) if he gets us to the £1.24 necessary for them all to vest. I guess that puts the £700k he would make on his shares into perspective.
Personally, if gets the SP to £1.25 then I think he is worth every penny of the £4M.
Best wishes,
Prof
Loggypunt,
It is not just the 696,270 shares. TB also has a lot of options.
If you look at page 86 of the annual report you will see that he is listed as having 3,284,615 up from 2,884,615 last year with an excise price of $0.3 (not sure if Canadian or US but presume Canadian).
If you then turn to page 77 of the annual report and assuming TB's are in line with the broader option scheme then it appears that 50% of the options are date based (1/3 immediate, 1/3 in a year and 1/3 in 2 years) and 50% are share price based. For that 50% it appears that 16.5% vest at a share price of 57p, 33% at 90p and the remaining 50% at 1.24.
It looks to me that there is already a lot of incentive for TB to drive this share price up without him throwing more of his own money into the ring.
Best wishes,
Prof
Rich,
Also I suppose people could be buying in for the dividend next week (although why they would do that today and not yesterday is anyone's guess).
Prof
Hi Rich,
It is perplexing me too. The only logic I can see is that CEY overcooked the fall yesterday and people are realising that today. Put the two days together and we are still down a fair bit.
Prof
Hi Iodan,
I was thinking the same. KitCo have the support line at 1809.1 so interesting to see if that holds.
Prof
Hi MB,
All good points that you make.
Thanks,
Prof
MB,
Overall I agree that RMM has never been better placed. I would however make one very big exception to this and that is the price of copper which is down close to 20% in the past few weeks.
Best wishes,
Prof
Thanks 2phevs. Hadn't realised the pay back was that quick. Guess the soaring fuel price will only make that sooner.
Hi 2phevs,
Interesting what you say about the scaling of the plant and I would instinctively agree with your logic that the bolt-ons should be less than the original work. I guess the higher the price of fuel is projected to be the better the case albeit the past couple of years are a stark illustration of how much volatility you can get in price and therefore pay-back time.
So far the day is looking a lot better than yesterday albeit we have a long way to go to recover from yesterday's car crash.
Let us hope than when the US wakes up they are in a bullish mood for gold. Instinctively I would say they will be as there is no mega-bad news to push it down and I would not be surprised to see some short positions close ahead of the weekend after what will have been a very successful week for them.
Best wishes,
Prof
Hi 2phevs
Thanks for posting. I would however caution that the first article looks AI generated and the second one does not say much.
Nevertheless it is clearly good that we are getting some positive exposure in these difficult times.
Having held for a number of years I guess my current view on CEY can be summed up as follows:
1. I believe we are at the nadir in terms of high costs/ low production and the investment over the first few years of Martin H's tenure should see, all other things being equal, production move back up towards 500k p.a and AISC fall.
2. However I am nervous about the impact of inflation generally and fuel inflation in particular. We are very large fuel users, albeit the solar panel project, has come at a very opportune time to off-set some of that. Nevertheless I worry about the impact on our AISC despite my positive comment in point 1 above.
3. Gold price. Well obviously this is one of the three key variable (along with AISC and oz produced). And it is difficult to call. High inflation is typically associated with high gold prices however high interest rates make the cost of holding a none income producing asset like gold. Also at present the dollar is on a tear and that is putting enormous pressure on the price of gold.
So at present I am a bit like a rabbit caught in the headlights, not knowing which way to turn.
Best wishes,
Prof
One concern for me is the share buy-back. If the share price is a this level with the amount of share's being bought daily by SLP as per the RNS does it not suggest a drop once that buying stops?
Also I would like to think that by London opening POG might be close to the 1836 or London close. Not always be often it seems to do that regardless of what it does when London is closed.
Interestingly if you look at gold in GBP you get a very different picture. We are still hovering around £1,500 per ounce which is historically very good.
Possetwolf,
That ties in with my understanding too. I would add that more stopes gives more options as to which stopes and therefore which grades to access at a point in time.
Best wishes,
Prof
Hi Analytical,
The cynic in me says ' we have been told the mill capacity if 1350' however we have not yet seen it perform at that average over a month. I really hope that we will get there however don't know if May is a bit soon for that. We also need to factor in that we will get 'unexpected' down time so will always lose the odd day or part of day. Now if they can get to an average of 1350per day in the month even after any down time that would be awesome!
Hi Aubery,
Do we know whether the power upgrade and therefore plant outage went ahead in Apr?
Best wishes,
Prof
Apologies the last part of my post at 11:00 got cut off (thing I exceeded the characters allowed). What is should have read in the last line was:
'and with grades of 1.6%, 1.7% and 1.8%, shown in that order after the colon on each line'.
PART 2-
Applying the 97% for recovery that gives the following (numbers after the colon are respectively for 1.6%, 1.7% and 1.8%:
1100: 529, 562, 595
1150: 553, 588, 622
1200: 577,613, 650
1250: 601, 639, 677
Perhaps over-optimistically I have assumed 31 full days of work in May but based on the above I would say 600 tonnes of copper in the month is within reach.
Key to this however is the grade an no more black swans!
I hope there are not stupid calculation errors in my numbers but please point out if there are or if you think any of my assumptions are widely out.
Best wishes,
Prof
If I had a choice between having to sort out the milling and the mining I would opt for the former every time. So the good news is that RMM seem to have now got the mine in a shape where it can produce enough ore to meet the current capacity of the mill. Toby B was explicit in the last RNS: 'Our mining is now at a rate that can support the designed plant throughput...' Looking at the mining numbers they were 35,535 dmt for last month. Now is you take 30 days that is only 1,185 dmt so below the milling capacity of 1,350 however there is a stockpile of 22,500dmt at the mill so it may be they have not mined at max. The daily dmt mined is also on an up having been 1,073 in Mar, 1,091 in Feb and 813 in Jan (assuming every day in the month was worked). So I will chose to take TB at his word that the mine is no longer a restricting part of the process which is an ENORMOUS achievement.
So now let us turn to the mill. The output of copper to sell is broadly dependant on 2 factors: how much ore you feed in and the grade of copper in that ore (there is also the recovery % but that seems to be stabilising at 95-97% so I will leave that out other than for calculations.
In Apr the RNS tell us that 30,195 dmt were milled with 9 days at or below 800 dmt because of the crusher issues. Noting that the RNS says at or below 800 I have run calculations with an average dmt for those 9 day of 800 and of 750. With the former that means 7200 dmt were mined in those days leaving 22999 tones to be mined over the other 21 days of the month. That would therefore be 1095dmt. If they did not work Easter day that would be 20 days therefore 1150 dmt p.d.and if they also did not work good Friday that would be 1210dmt. With the later (750) that means 6750 dmt were mined in those days leaving 23445 tones to be mined over the other 21 days therefore 1116 dmt p.d, if 20 days 1172 and if 19days 1234.
It is important that we do not know:whether the days above 800 dmt were all full days or whether it was a gradual ramp up to full production, whether rented crusher was used in lieu of the normal crusher for some of those 21 days and if so how its capacity compared, and we do not know whether for the half of May when the rented crusher will still be on site whether it will be possible to use it in parallel with the normal crusher and therefore boost throughput.
So turning now to grade. TB tells us in the RNS: '... we will now optimise the feed grade to the mill'. Is is therefore hopeful that we are going to be significantly above the 1.46% grade of Apr which was due to working a specific zone for reasons other than grade, and at least at the 1.6% of Mar. We might get to 1.7% and perhaps even 1.8%. Now this being mining they might have the option, increasingly likely with the increasing number of stopes, of chasing to mine even higher grade but I will hold off on that upside scenario.
So for calculations I will do it with 1100, 1150, 1200 and 1250 dmt per day and with grades of 1.6%,