Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Results are very good, very likely Divi policy in a week or two, rest is just accounting World.
Results are same as last year, but with profit , operating profit is same if irc contribution is included. Cash at hand did not increase because again they diverted cash to working capital. New segments are good , very good results
Profit Without reporting IRC’s $56m ebitda contribution
If BOD is moving towards SP consolidation, that is most useless thing to do, 1 for 10, SP between 200 to 400p, only it will look high divisions 4p, current capital structure is very accustic
US dollar index at very dodgy technical levels 93, Basel 111- tier 3 to 0 risk is giant step for Gold , though banks can apply for exemption for physical gold maintenance against paper but 0 risk level is very tempting for banks to increase physical Gold. Technically, $4000 an ounce is on the way.
Rusty, I am trying to teach for almost a year, ok once again open annuals report page 58, EBitda by segment, Last year IRC contributed $25m to POGs ebitda ,, IRC’s ebitda was 80m, and 31% makes $25m. Now if in 2021 irc ebitda is $400m, POG will receive $125m. Guarantee fee is separate
Fresh calculations? If IRC stays with POG , and irc achieved $190 per tonne average sale price , POG will receive $132 m from irc as of its 31.10% proportionately. My only confusion is whether it will come after cost of sales or even further but many chances it’s ebitda.
Palladium, IRC’s 31% EBITDa is attributable to POG because of irc being its associate if remember this accounting treatment correctly. High shares valuation is on top of it
Correction, POG will receive $70m this year from irc but will up to year run
Many chances IRC will stay with POG, stocken has to arrange cash until 25th August, even then POG can refer it to note holders, above legal challenges also there to stop this transaction. 7 months already past, on proportionate base , POG will above $ 70m this year from irc , POG’s revenue will still fall around billion dollar but profit high. All IMO
If inflation was key reason was gold price to rise from 400-500 to $1800 dollar , then this new phase in inflation looks very sticky
More likely this cash can find way into POG shares
Fed has probably first time talked about US bankruptcy if interest rates are raised to 5% but termed it a very unlikely scenario. IMO they have started talking the talking about it. Gold looks behaving independent of dollar boost, that if sustained can achieve $4000. More over Basel 111 is similar to dual listing of stock, We can just get the idea how algorithms reacts. IMO if above premise works then $4000 is in cards for sure. Recently hammerson jumped from 18p to 40s. I was sure but missed it.
IMO , this bonds buyback is in line with announcement in annual results where they intended to reduce it.
Looks good blockbuster news as debt to EBITDa ratio is going drop further, What’s next?
https://www.kitco.com/news/2021-07-06/Goldman-Sachs-say-gold-is-not-the-optimal-store-of-value.html , Goldman Sachs is making the case, Gold is not hedge against inflation, IMO, Gold is massive hedge against US dollar along with inflation if inflation keeps creeping up
Who was on board?
Since last June to this July, POG has enjoyed average realised Gold price around $1850 for almost a year. So underlying strength is massively there, since long they are a very broad working capital.
Jerome Powell , “US debt is on unsustainable path”. Why Gold is not already at $2100
This is very basic principle of corporate law