Member Info for JohnNth

My take on points raised:
Borrowing rates - not detected any major changes in rates since last update provided in Jan
Kaz inflation of 22% - one third of all costs incurred in Kaz, and given Tenge exch rate holding against US$, inflation will impact costs. Conversely, Russia inflation is below 5%, and Ruble is 23% weaker against US$ to that budgeted; this should more than offset Kaz rise in costs.
Counter sanctions, capital controls - Think POLY would have released RNS if situation regards changed so I assume it is no diff to that explained in previous update
Post redom trading options - All linked to Redom so will have to wait for update. I think this issue may have been responsible in delaying update from 2 May to 10 May
When is the redom going to happen - As above so should get an update on Redom
Is the Company’s current jurisdictional position still unsustainable in the current environment? POLY have dodged sanctions so far so may be encouraged to hold on a bit longer; say till Autumn to see how conflict develops. Peace overtures on the rise so you never know.

This nut is quiet this evening; may be in mourning at departure of his idol and famous fibber on Fox news.

WoW...no it doesn't exist, it is fiction...imaginery; and I think they believe they'll get it as well.

maidit...you're lying/deceiving again. If CINE were earning enough to pay the debt, there is no need for the company to be wound up. You are clearly deluded...get yourself seen to and quick!

"let's not let facts get in the way, hey."

Root out anything and everything resembling facts....latch onto fiction whatever the source (largely from within maidit, Tegop, Stanley & Co) and all will be fine!

I do know you're really hurt in the pocket.......

Tegop...you wrote on 09.04.2022 the following:
"Lenders will almost definately give Mooky another waiver because Cine going bankrupt is as bad for them as it is for Cine. Recovery is better for the lender because they will be sured they will be paid in full, with continued interest.
Cine share has stayed 20-25% above the lowest point and the only way is up."
Only way since then have been down from 32p to less than 1p
Think you'll do all a favour by staying silent.

And yes, I am telling CINE will crash, and have been telling for a while now that CINE is headed for oblivion, and so far proven right. You've been telling everyone exactly the opposite.

Tegop...stop spreading misinformation on CINE; you've caused enough damage already.

"let's not let facts get in the way, hey."
Only the fiction counts with Tegop, maidit & Co. Root out all facts and just dream on; all will turn out hunky dory..............

All roads leads to gold
1) To avoid being victims of US EU sanctions - Invest/Hold Gold
2) In the absence of 'credible' alternative right at this moment, gold provides safety for store of value/reserves
3) Gold price is high despite current high interest rates (when gold price normally falls). Rates have picked and will head downwards so gold should rise further
4) Global geo-political situation/insecurity likely to get lot worse in coming years; gold can provide safe haven for storage of value.
5) Overwhelming number of analysts predict gold price to rise in the coming years
6) US gold reserves not audited since 1956 and US have stopped providing annual figures of their gold reserves since 2012. Politicians and the Fed side step issue when asked. At the same time, over the same period, global gold sales accounted for have far exceeded gold production. Where is this gold coming from? Is US selling gold to prop up US$? How much reserves does US hold is gold?

Gold and silver legal tender inside USA
https://schiffgold.com/key-gold-news/arkansas-law-makes-gold-and-silver-legal-tender-in-the-state/

I would put the events of past few weeks as a storm in a cup of cha at your peril; the ship is definitely going down.

JAB...realistic assessment. Worth a watch - 5 mins from 23 min onwards.

US currently have frozen in excess of $200bn belonging to Russia and Iran. When they get it back it will be offloaded in super quick time, not to mention collapse of petrodollar and generally countries moving away from US$. Now is the right time to move as well as US$ is overvalued.
https://www.ibtimes.sg/end-us-dollar-dominance-near-greenbacks-share-global-reserves-declining-fast-pace-69909

Impact is already in progress. Why do you think interest rates in US are the highest in developed countries?
Cos they want countries to hold onto US$'s instead of cashing it in. High interest rates keeps dollar high and depositors gets handsomely compensated for it.
As for POLY, two thirds of loans are in US$ so they stand to benefit when US$ collapse happens...and it will happen.
Nesis has most definitely used his loaf.

"make your mind up. Either the company is cash rich and can service debt, or the cash is a contingency fund. You can't spend money twice."
Company has already said in its 2022 report that as at 2022 YE, it had enough CASH to service all debt commitments falling due in 2023. POLY have traded for nearly 4 more months since during which time it has traded normally (we would have known if this wasn't the case) and gold market has been very buoyant with higher prices and favourable exchange rates. We wait for the update, but it is reasonable to assume the debt levels have not risen and the company has managed to accumulate more cash; may be even enough to meet debt commitments falling due in 2024.
Company is having to carry higher working capital (including higher cash balance) due to situation surrounding Russia and sanctions; this is a very prudent thing to do. In times of uncertainties, CASH IS KING.
Carrying higher levels of cash than it would otherwise have to is a contingency measure for POLY; resources allowing, all companies faced with POLY's situation would do exactly the same. Without Russia situation, POLY would have borrowed less as it would not need as high working capital.
Do you get it?

bb...."You're not very good at trying to fool people, are you?"

No I'm not so I don't even try...I leave that to you!

"And what was the interest rate when those promises of having more than enough cash in the bank at that moment for an entire years debt servicing? What is the interest now?"
Interest rates have not changed 'as far as I can work out' since POLY made forward looking statements regards meeting debt commitments in 2023; think they have peaked except probably in the UK to which POLY is not exposed. Rates vary between 0.5% to 9% with higher rates applicable for Russia Ruble loans. US$ denominated loans carry average of around 5% and they have not moved in the past 2 months.

"And, why if they had the spare cash now, why are they not reducing the capital of the debt in one go and reducing the interest going forward by paying interest only for the rest of the year?"
In times of uncertainties, a business would want liquidity (cash flow/cash in hand) just in case. You cannot just rely on ability to borrow to raise cash, which can become difficult for company like POLY overnight and cash in hand can shield the company in case of emergencies. POLY's stated objective is not to have loans greater than 1.5 times EBITDA, but they had to breach that in view of situation in Russia and sanctions.
There's no need for POLY to increase borrowing from hereon as it now has enough cash buffer.

I got the date wrong, report was published on 16 March 2023.
Further, in any commodity business both the debt and dividends often track market conditions. In years when profitability is high, the debt reduces and divis are high. Actually, POLY have been an exception to this in that divis have risen almost consistently over past 12 years hell or high water; proves it is a well run company.
Coming back to debt, the company said "The increase in net debt was driven by the decline in profitability,
the persistently high capital intensity of the business and a very significant expansion in working capital."
Note the very significant rise in working capital and that includes borrowing money to just hold in cash, due to volatile risky environments. In normal times the company would not have to do this, and from hereon the company should not have to 'increase' this either as it is now well covered going forward.