Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Hmmm... Using Startpage instead of Google bought this up
https://ir.div.energy/financial-information/sec-filings/content/0001104659-23-124384/0001104659-23-124384.pdf
Page 59
C. Organizational Structure
The following table sets out details of the Company’s significant subsidiaries as of December 7, 2023:
DP Lion Equity Holdco LLC United States Holding company 100
Page 1471 or App A-11
“Diversified Holdings” shall mean DP Lion Equity Holdco LLC, a Delaware limited liability company.
Thanks Squeaky19.
Look at the "Managing LOU" about halfway down.
Non-other than Bloomberg Finance L.P
What is going on ? It's for us mortals to think about only.. But at the end of the day, I get the feeling that the hoohaa around this committee will die down.
Bit of a drop today. Probably this :
https://www.heraldlive.co.za/news/2024-01-03-eskom-hit-by-severe-plant-breakdowns/
IMO this will be more than compensated for in the upcoming trading update.
There seems to be nothing about "DP Lion Equity Holdco LLC" anywhere on the internet except, and a bit ironically, a Bloomberg link about a possibly related company called "Lion Equity Holdings LLC". Surely we as DEC shareholders want to know about this company as we own 20%. Was DEC's $40m worth involved in this transaction from new cash we just gave to them or cash already in the company ?
Got to be honest, this sounds like a way around getting rid of problem wells so now the committee need to chase this SPV as well as DEC or even better, instead of, which would be a bit of a master stroke by Rusty on behalf of the company. So yes, your comment @Trek, essentially "The underlying tone of the DEC narrative is total return to shareholders!" is absolutely correct.
Hi Selpec
I've looked at that for a years, and occasionally there is correlation, then the SP moves and there is none.
I've looked at both GBP and USD relative to ZAR, gold price in ZAR, GBP, US$ and it's the same. Basically I came to the conclusion that the market is just fickle, it's pretty much the US$ gold price that has the most effect, even when it moves up and the GBP/ZAR exchanges show no real benefit to PAF.
The main drivers are the basics IMO, gold price, production and earnings.
Production has been very much affected by the power problems
Right now, we're heading back up to 2022 production levels which is amazing considering load shedding.
Eskom problems are back again already after their holiday, as said below, the whole country is moving towards private power and renewables fast, if it's household panels or wind/solar farms or that massive power station ship.
Would we be able to find out if any of the Wells sold were those investigated by the people that informed Bloomberg leading to that video/news ?
Very annoyingly, my SIPP still takes 15% of the DEC dividend. EQi. The loss is significant enough for me to shop around.
Can anyone confirm they get 100% in their SIPP, and which company it's with?
It would be much appreciated to decide which company to move to.
Cheers all.
Another point to make about the asset sale is that some of the problem wells causing the Bloomberg and committee hoohaa may have just been pushed out the door.
Hi mcssupt
Ahh OK, around $70m. They'll get that paid pretty quickly, that will not, and has not smacked the SP to the low levels Elikhulu did. Loot's idea to keep up dividends is a good one. TBH, at that level they could both increase Divs and pay the debt down. I know they're looking into wind farming, Striking a deal with a wind farm power company would be better than owning it perhaps, as without battery storage, power at night can't be obtained with solar, which is when most of the load shedding has been. Anyway..., I don't see this kind of debt level any sort of problem.
Hi damofarl
I admit that I've been favouring TORO in my regular investing and use of dividend income since the gap increased between NAV and SP.
The standout highlight for me was of course the the €26m income (over 8 cents per share) compared to the previous years loss.
On page 52, I found it refreshing that all the expenses except Audit fees were lower than last years. It says much about the directors attitude with respect to responsibility to us holders IMO.
It's impressive to see the income driven from Taurus, page 13.
An increase in the directors holdings wouldn't go a miss here but overall I'm happy to hold through, and collect these attractive dividends.
There is no debt except for Mintails and that's been ring-fenced to be paid from Mintails earnings. That was my understanding of the company's reasoning when funding Mintails, because Loots wanted to avoid the SP crashing to 7p like last time. IMO There may be objections to a detailed buyback. The shareholders have made it clear there should be no issuing of shares, but only 7% against buying back shares. That said I'm not sure the UK shareholders are significant enough to influence a decision. I favour dividends, been waiting 10 years for it to get to a proper amount. With a 2p divi for example, the share price would be driven much much higher (to the 30s at least) which would more than compensate for any kind of 20% WHT whilst keeping the divi down to one cent.
In the past the PAF SP has been notoriously slow to react to the market, even when the speculation is positive (as is currently with the POG) or negative (as in last year when we all felt load-shedding was a problem but the SP was only partially doing what would be expected), until results or a the company releases the news, when the SP react's sharply.
This could be the case now, with a sharp jump coming in Jan/Feb.
The next update is expected in a few weeks where we'll get a feel of revenue/income for July-Dec.
Average gold price I estimate as 1960 for Jul 1st to end of Dec (that's me visually checking the chart and this figure is easily up for discussion).
So Revenue estimate would be 1960 x 96,000 (from their recent RNS) = $188m. Very good !
Using Mulder's AISC estimate of 1325 that's just over $60m profit. Which is well on track to equal and surpass the 2022/2021 figures, and bearing in mind Mintails is on the way and back in 2022/2021 PAF still had a mountain of debt, then surely next year could be the time the dividend gets over a cent, how about two cents per share...
Add in an extra 10,000 ounces a year for mining on fully power from 2024 to 2025, how about they simply pay that to us as another cent per share dividend. Next AGM, maybe it's time to raise the question of whether PAF should pay dividends twice a year..
Cheers and Happy New Year !
@mcssupt Thanks for sharing that article. You can see power privatisation clearly happening just from what PAF are doing themselves solar-wise and that vast Turkish company power ship.
Hi hghotshot
That looks like possible reasons the previous CFO left. They could well represent the buyers from the last issue of acquisition shares.
Have you EVER. (auto text made my sentence appear rude rather than a normal question)
Good new documentary by the FT about Eskon.
https://www.ft.com/video/8f1da4b6-fa36-4000-a2c6-22f92f52e3a9
It's amazing how corruption bought it down over only a couple for decades, then again look at the current Tory government, 13 years in and the NHS, public services and large structure projects are almost now just bones for the vultures. . All those 10s of billions of public money wasted into PPE, fraud, track & trace etc. Michelle Mone epitomises the entitled nature of these vultures, as it's all now openly corrupt, fast lane embezzlement. It goes to show that corruption and greed is not exclusively right wing.
Can they sort it out ?
@Mulder. Have you even noticed this difference before ? Is it the constant outflows of money from the LSE since Brexit that's doing this, as has been widely noted amongst shares. ? Whenever I've check the difference over the years, it's always been a bit different but nothing too much, like a maximum of up to half a penny.
Thanks DiveCentre.
That letter doesn't mess about, and the SP has trashed because as holders we now just hope that their business model is solid and does what they say it does.
If it is what DEC says it is, then they will have a massive amount of work to do to answer these questions fully.
The fact that so much of this has been politicised and the committee is majority republican should actually save DEC, even if they only prove that their Smarter Asset management is on the way to being real and having success. Well so far it's been enough to gain an ESG report award. Surely a fair chunk of what's needed to answer the committe is in that report.
https://d1io3yog0oux5.cloudfront.net/_ebb569201ef3259a37e584f036fca4cc/dgoc/db/556/4674/file/Diversified_ESG_Report_2022_FINAL-PDF.pdf
If there is action, then what might it be ? An increase in well capping but who better to take control of the well capping than DEC themselves anyway, who've proved they can do it.
Initiative 2022 Progress 2023 Plans
Air compression for
pneumatic devices
Converted 57 facilities, exceeding annual
commitment to converting 30 well pads per year
over the next 5 years
Convert an additional 50 well pads
Aerial LiDAR Surveyed ~11,000 miles, approximately 60% of the
Appalachia midstream system
Complete remaining ~6,000 miles of
pipelines and assess remaining programme
Compression
conversion
Deferred to 2023 due to vendor’s delays Convert West Virginia compressor station
to electric and operationalise by year end
Fugitive emissions Surveyed 100% of Appalachia wells with consistent
90% no leak rate at conclusion of survey
Survey 100% of Cent
More funding... For What exactly ?
Let me guess, Stifano and his mates are going to holiday on a yacht in the South Pacific for a few months, pay themselves a few million, and they will keep saying there is gold, but really they will not produce a single bar. No mining plan, with is pathetic, as a 50k a year feasibility study was already done years ago. Rinse repeat, issue shares spend the cash. Not even a trading spike for us to get out, no promotion, no liquidity and a constant falling share price. Pathetic.
Hi Mulder. Interesting offer but it looks pretty low, as if Shanta's BOD have thrown in the towel. I guess an equivalent would be if PAF was offered 18p/19p, which Loots, and every shareholder I'm sure would reject.
Still, the point you make is great, since that large mining funding/off-take, bigger miners are certainly shopping for value and bargains in SA.
Finally a decent number of shares. Loads of those fear sells were gobbled up by DEC themselves. I held through but bought a large amount at 1430 yesterday on US opening. The statement was great, and IMO, the committee will not invoke any actions on the company.
Cheers and GL
@commandokai
stright to filter. you sound like a proper right wing conspi****** trump maga nutjob.