The latest Investing Matters Podcast episode with London Stock Exchange Group's Chris Mayo has just been released. Listen here.
Hi LWHL - What is your target price ?
Bit the bullet, taken the hit and sold out near the bell at 590. So far this is a good decision.
If the price drops down to 400s I may consider reinvesting but at the moment I have other investments that will provide a better dividend and prospective growth without the FRES bare knuckle roller coaster.
Cheers and GL
Nice to have the RNS showing on LSE again.
"Full scale construction of the tailings retreatment plant at Mogale will now commence, with expected production of 50,000 ounces per year for more than 20 years".
Eksom has knocked our production down but the POG and Mintails progress should take us back up with an SP surely to the late teens at least.
Hi bbr391
No idea where you're coming from. Stifano has taken GAL from one of the most honest companies with production of 12000 a year into a typical AIM miner where we see constant profit taking, including selling of issued shares, of those in the know against, sharp suited business tactics of pumping news attempts.
Sorry but the Cobalt thing is pathetic. We want gold, it's there, so get it out the ground instead of these hopeless attempts at stringing the market along with constant 'Jam tomorrow' news.
It does not take time, they have had over ten years to start the new mine. The mining plan has existed for years already.
Any spike generated I'll be out and suck up the loss.
It is completely inexcusable for a gold miner with so much production structure in place not to be mining right now with current gold prices.
Ouch... This has been been a bad investment last 12 months and now this to kick the boot in.
Could even go down to the 400s with these results. How much is baked in already, and the silver price that is needed to get us back to 700s/800s is what, 28 cents does not look currently attainable.
FRES to the bottom drawer.
Hi LTI, I intend to hold as well, except my strategy is to be initially overweight, then slice that excess weight once a profit target has been reached, the profit in SWIF is from reinvesting dividends or a welcome rise back to the high seventies. The intention is to then hold with a low average, 60s, 50s or the most ideal would be to top slice completely.
Is most welcome..
Back to 78p ?
Back down to the early 40s with so much 'Jam tomorrow', but IMO a lower SP suggest buying opportunities.
I get a whiff of fund raising which as we all know means dilution, but hopefully they'll be experienced enough to do this at as high share price as possible, I imagine by borrowing until the first cash from the $100m contract starts to roll in, and the clients are happy. Also at some point there is surely going to buying from those in the know about this contract as they also see an investing bargain.
Meantime.. the next 6 months will surely see a slow rise.
Hi Damofarl, Agricore et al.
Out of interest...
Have you figure which of the large share holders does not want Claudio Albanese or Jonathan Bridel to be directors ? Also would this be the same holder that's being allowed to sell out via the existence of this buyback, or the whole reason why this buyback is in place ?
I note a question on another BB as to the wisdom of spending cash on a buyback when some CLO's are considered so cheap so this cash could be invested instead.
NAV of EUR 0.6372
10% of that is 6.37 cents. Our current annualised div is 1.6 x 4 = 6.4.
Current yield is 14.5%
Current SP is under 70% of NAV.
Nothing that glares as a worry from the factsheets.
All on track, all is OK.
IMO The yield could literally be the reaction to higher inflation, in that yields all have to higher to be justified as an investment.
Also dollar rate gone back under 1.3 which should add %.
Somewhat disappointing in the short term.. The share I took the cash to buy back before results has since shot up 10%, and VEL down 10%, and is almost at the bottom of the trend line on the daily chart (around 42p) which we should expect it to bounce from.
Waiting game it is. News of first US payments, jobs being accepted and UK growth, should all help to take us up from the somewhat ridiculous market cap of £16.25m.
Surely and MC of £25m to £30m is on the cards.
Cheers all and GL
Why should the company care about the capital depreciation of it's shareholders that have invested 100s of millions ?
Why should investors care that they are down 10's of percent, and so could wait years just to break even on their investment ?
No idea. It's a total mystery why the company or its investors should care.
Hi Ace
Add to that list of things that could effect DEC in a positive way, the US$/GBP exchange rate.
The problem there for DEC is that it is becoming believed amongst traders that the dollar will tank in the coming months.
Bad for the SP, good for a buyback.
I also have seen buybacks negatively effect a share price. After all, a buyback describes a buyer (this time the actual company) sitting on the bid to buy as many shares as possible at as low a price as possible.
In reality what this means is that today one could probably sell 200,000 shares in one go at 87p.
Do this a 100s or thousands of times and the SP might go up, unless of course the company only sits on the bid at 87p.
A not so positive take of a buy back is that there is one or more very large seller, that with an unspoken nod / wink to the right people a buyback is in place so that those very sellers can now rid those millions of shares in a buyback.
Not a fan of buybacks, just give us a higher dividend and stop allotting shares. More dividends would certainly make an SP go up.
Cheers and GL.
Https://www.miningweekly.com/article/official-sod-turning-this-month-at-west-rand-gold-recovery-project-2023-07-10
The official sod-turning ceremony for the construction of the Mogale tailings retreatment project is to take place this month.
The Mogale gold dumps contain a probable mineral reserve of 123.6-million tons of re-mineable material at a head grade of 0.29 g/t for an estimated content of 1.14-million ounces of gold.
The definitive feasibility study (DFS) points to fast payback, low costs, 25% production uplift, long life, high ungeared return and the upliftment of a depressed area, where there is low employment, illegal mining activity, and serious environmental degradation.
Seen as an important mining and rehabilitation development for the West Rand District, the project – being undertaken by London- and Johannesburg-listed Pan African Resources – is expected to produce an average of 50 000 oz of gold a year over 20 years.
Near Krugersdorp and Kagiso, west of the Golden City of Johannesburg, it is expected to provide economic opportunity, local procurement, and jobs during construction and ongoing operations.
Modern technology was employed to survey available tonnages across the project area, with historical holes twinned to verify previously reported head grades. More than 80 new boreholes were sunk – totalling some 2 761 m of drilling – in areas with little or no data.
The DFS pointed to operating costs of R78/t and an all-in sustaining cost of $914/oz.
Standard hydro mining will be deployed and a large carbon-in-leach facility built, where the remined tailings will be processed with additional water treatment that will potentially improve gold recoveries.
At Pan African’s existing Elikhulu and Barberton tailings retreatment plants, optimised tailings management has reduced the pollution load on the surrounding land and underground water resources. This has resulted in improved freshwater quality and lower levels of radiation and toxicology, allowing the re-introduction of indigenous flora and fauna species to the area, which has shown an ability to recover faster. These same benefits can now be extended to the West Rand facilities.
Solar power generation is also on the cards at Mogale by Pan African, which pioneered the 10 MW photovoltaic solar plant at Elikhulu. Targeted by the group is an overall 30 MW of solar capacity by 2024. This will produce about 75 000 MWh of power a year, save about R100-million a year in electricity bills and reduce group carbon emissions. Beyond solar, battery technology and wind power are also under consideration.
The recovery of gold from dumps is viewed as a must as part of environmental restoration and making land available for proper re-use.
'Not long'... Well, six months to a year at least.
I don't see anything particularly new in today's accounts. I did expect some sort of financial deposit or news of first delivery and some received USA payments to be included.
Looks like no jolt upwards today, more a slow rise over the coming months.
Well that 35p hasn't arrived, and neither has mineable quantities of gold. That drilling result is terrible.
IMO the CEO is beginning to take the absolute P|$$. We are literally millions and millions down and the results of the drilling so far is rubbish, but rest assured their salary and office costs are fine and they don't even have to report the exact quantities of gold mined rather what they mysteriously sold to offset against the mining costs, constantly being racked up more and more.
What do we have to sell now before they start reporting properly ? $10m or something like 10,0000 ounces assuming around half the price of gold is mining costs.
In Phelps day the equivalent share price was 60p and he was mining 12,000 ounces a year.
So far the new CEO can't even muster a 1000 ounces a year.
16p the current price, a massive discount to the funding issue prices.
The market is totally unimpressed with the progress here, as am I.
Surely we're all anticipating the good news to solidify and continue with this weeks updates...
Some profit would be good as well as new contracts. Market cap is still so low !
I top sliced 50% of my holding at 55p a few weeks back, now back in with the same cash and with a higher holding at a lower average. Pretty happy with that, as so often these kind of trades go sideways but VEL looks pretty consistent with chart wise retraces.
Cheers and GL
Also top sliced and took some profit at 1.2306 just now. New average 87p.
Now doubt.. The price will zoom up.
Will stay cash to see if the bargains I see everywhere remain bargains, or buy back here if Seplat retraces.
We'll see. Cheers and GL.
Well surprise surprise, the mentioned "Climate Lobby Group" netzerowatch.com, that seems to oppose all kinds of green energy including recommendations to dismantle the entire wind energy sector, has some dubious sponsors.
IMO of course those rules on ever decreasing strike prices should be rewritten. If this government caves in to the these shortsighted, oil loving, profiteering climate-change deniers, then fortunately it will only be temporary until a government that's pledged support to green energy steps in.
https://www.opendemocracy.net/en/dark-money-investigations/global-warming-policy-foundation-net-zero-watch-koch-brothers/
"An influential Tory-linked lobby group leading the backlash against the UK government’s net-zero policy has received hundreds of thousands of dollars from an oil-rich foundation with huge investments in energy firms, openDemocracy can reveal.
The Global Warming Policy Foundation (GWPF), which also campaigns as Net Zero Watch, has also received more than half a million dollars through a fund linked to the controversial billionaire Koch brothers.
The GWPF has long refused to disclose its donors and claims it will not take money from anyone with an interest in an energy company.
But tax documents filed with US authorities and uncovered by this website reveal the network of dark money behind it for the first time – including the $30m shares in 22 companies working in coal, oil and gas that are held by one of its donors."
Hi Tichtich.
"Too many of those new windfarms appear to be planned on Nimby land"
As below, I'm pretty sure they'll sort out the strike price problem with lobbying, and the next government if Labour have already openly supported a vast amount of projects and subsidy so should be fine.
My only concern is when the wider market drops, we drop faster, and our dividend hikes must keep pace with inflation, which as we all know is easier said than done.
Next dividend is in August. Chart did show a cycle between last few dividends which is why I recently went top heavy in the mid 140s, looking to trade my holding larger. We''ll see.