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The POG is flying and not far off meaning PAF could earn $1000 for each ounce as profit !
The prospect of $190m (£151m) profit and a current market cap of £430m is a P/E of 2.85
Just saying....
DIVERSIFIED ANNOUNCES UPCOMING INVESTOR ENGAGEMENT
https://www.londonstockexchange.com/news-article/DEC/diversified-announces-upcoming-investor-engagement/16411283
TRANSACTION IN OWN SHARES
https://www.londonstockexchange.com/news-article/DEC/transaction-in-own-shares/16411069
News flow is very thin here agreed, but why not wait until end of May, last years trading update was 24th May, so there should be one due around that time.
Https://www.miningreview.com/gold/tailings-retreatment-mogale-heads-for-year-end-start-up/
"The life of the Mogale plant will very likely be extended from 13 years to 21 years once Pan African starts to mine the Soweto Cluster TSFs. The total resource they contain is estimated at 133.5 Mt at 0.31 g/t for 1.35 Moz of gold and the reserve at 108.3 Mt at 0.26 g/t for 982 koz of gold."
"Once the MTR is commissioned, Pan African’s annual gold production will be increased by around 25%. The company is expecting to produce between 180 and 190 koz in FY-2024 (to 30 June 2024) with this increasing to as much as 220-250 koz in FY-2025 and FY-2026 on the back of the MTR project’s output.'
"The attractive economics of the Mogale Gold TSFs were highlighted by an independent DFS, completed by DRA Global, the results of which were announced in June 2022. According to the DFS, the project delivers a pre-tax NPV (9.5%) of US$65 million and a real ungeared IRR of 20.1% at a gold price of US$1 750/oz, with these figures rising respectively to US$88 million and 23.0% at a gold price of US$1 906/oz."
"He adds that the project will also contribute to bringing down the company’s overall AISC. “Tailings retreatment is a low-cost process compared with the underground mining that we undertake at Evander and Barberton, so a higher proportion of production coming from tailings obviously drives down our average cost of production,” he explains."
Let's hope that's it then. 22.3 became a problem again, but at least the new barrier is 23p, which is higher.
GP $2285...
24p surely sooner than later
Some large trades around 22.15 /22.5p yesterday. Mulder will be instigating more complaints if the market makers keep wandering the price down to do scoop all these lower price trades.
Can we assume the SP is suffering due to the problems at Boeing ?
Specifically the 737. Anyone close to the industry know if the problems are being address, so the sentiment can return.
https://www.wsj.com/business/airlines/disarray-boeing-factory-door-plug-blowout-f063e27e
https://www.sharecast.com/news/aim-bulletin/boeing-approves-velocity-composites-to-supply-737-max-programme--7249124.html
The MM's may have walked the price around to acommodate my limit buy order. (15.59 at 22.1345)
I've seen this kind of thing a few times with all kinds of different shares over the years when I've put in a large (for me) limit orders.
Closed today and Monday. We'll see on Tuesday))
Gold price is astounding.
Berenberg raises Pan African Resources price target to 28 (25) pence - 'buy'
Hi Mulder. Are you sure PAF will be releasing a Q! update ? Is there a link you can share about this. They usually do an update every six months.
https://www.panafricanresources.com/investors/
They have an investors event on the 10th, so hopefully an update or new presentation to go with it. Events Diary :
Gold Forum Europe Conference 9-10 April 2024
Zurich, Switzerland, Cobus Loots, CEO of Pan African Resources will be presenting on Wednesday, April 10 at 13:50 CET.
Anyone looked up the US LAW involved ?
I can't help wondering if it was the impossibility of that tender offer in the first place.
Replacing a dividend with an offer of buying your share using that same dividend money never made any sense.
Gold on fire again ! $2192. Surprised the SP here hasn't leaped up again.
The 20's feel low when considering the company is making money hand over fist right now.
Probably best to consult the Edison Research on PAF.
https://www.edisongroup.com/research/a-happy-valentine/33260/
Is the most recent update which lists their various operations and expected production ounces.
More on their main page going back with all their updates.
https://www.edisongroup.com/equity/pan-african-resources/
I understand your point on concentration on a main mine, however with a resources in the millions of ounces, its considered a cash cow for all the foreseeable future. I actually see it as attractive for the company.
Cheers and GL.
Hi Selpec.
How long is a piece of string? Paf has a new tailings plant, Mintails, for 50k ounces a year starting to produce in a few months which doesn't seem to priced in at all. The P/E is very low as it is, so any weakness under 20p if the POG pulls back is a buy, as the new mine should take care of a rise back to the 20s anyway. This first quarter of the year has been very profitable for PAF, in fact their most profitable quarter ever imo.
I am surprised Adage Capital haven't closed their short position and taken the profit. The positions have increased instead of started to close after "Record average net daily production".
I know gas Natural Gas is volatile and low at the moment. Does anyone know if this an industry wide position as far as shorting is concerned, and generally goes along with low gas prices ?
Not good to see such a weighty name like JP Morgan on the list. Also not exactly inspiring for holders sitting on massive capital losses to see shares being awarded instead of bought by directors.
Jpmorgan Asset Management (Uk) Ltd 0.65% 0.00% 20 Mar 2024
Voleon Capital Management Lp 1.20% 0.10% 20 Mar 2024
Walleye Capital Llc 0.98% -0.02% 14 Mar 2024
Millennium Capital Partners Llp 0.51% 0.00% 14 Feb 2024
Connor, Clark & Lunn Investment Management Ltd 0.51% 0.00% 19 Jan 2024
Adage Capital Management L.p. 0.66% 0.00% 1 Mar 2023
For a deal that's 99% done, the last percentage is taking forever .
Or is this just a "Nigerian Percentage" ?
I had to double then triple take looking at this to believe it.
£1,724.6 or 41,198.76 ZAR !
Can we get past 22.3p ?
Surely this will be a record quarter if guidance production has kept up.
Hi 88v8
Complete sympathy, at over 100p in old money the company narrative was "maintaining the dividend level is the highest importance' etc. SP trashed in a year and shows how much Rusty and the company BOD can ultimately be trusted. The writing was on the wall for months and none of us are really surprised. I do think this will cause the short positions to close however because they bet on the company to go bust and that is not happening. The yield is attractive enough for new investors, so I actually think the SP will settle well above 1000p, in the weeks ahead.
If one is sitting on a 50% or more capital loss, is it really worth selling ? Or sticking to collect a lower divi for the next 3 years with the short closures, buybacks and lowering debt fundamentals providing the SP lift instead. I'll be sticking and DRIP the dividends. Buying more DEC shares from now to lower averages will not be considered "Watering the weeds" IMO.
And the tender offer terminated (no surprise there for me as it was nonsense imo), the SP will not be recovering to levels a year ago any time soon, but debt will be lower and the business will not be going down. Shorts could well have close.