focusIR May 2024 Investor Webinar: Blue Whale, Kavango, Taseko Mines & CQS Natural Resources. Catch up with the webinar here.
Jerome Powell’s analogy of inflation with lumber, it shows Fed is just trying to convince business not to hoard. Higher inflation is going to be long term feature and can peak in 2021. Previous scenarios are not applicable here, higher inflation is blessing in disguise for new entrants to enter in market and to avoid stagnation.
Uk inflation above target, IMO BOE is ready to tolerate it upto 7% and across the pond Fed can tolerate it upto double digit. Gold peaked during last recession after 2-3 years, by that comparison it can peak in 2023
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Policy decision news is on Wednesday, Obviously US Fed will try to mitigate inflation concerns but will remain firm it’s transitory.
Gold Price on course to make historic move, many central banks policy decisions this week. Very likely Fed will steadfast on its original stance
IRC stake is being held for sale and written, but some how this transaction doesn’t go through to Stocken. It’s very unlike IRC stake will disposed off, rather we might see a reversal, because getting rid of guarantee was always priority, not the stake. Even Chairman statement points towards that.
Rusty, cash balance gets deducted from debt , so if irc has $200m cash at hand by third quarter, it will be considered debt free. It’s true irc stake is in limbo, and can settle either way
At current rate, IRC will be debt free by third quarter, As usual Peter Hambro might try to covert loan into some sort of convertible bonds before hand. POG if managed to retAin irc will have free ride onwards
, if POG doesn’t honour this agreement at all, fictitious underscore shell Stocken will never dare to take it to Court.
IRC’s debt to EBIDA ratio is going to drop below .5x, just in case POG manages to rtAin it. Fantabolous
Rusty, if someone wants to t/o Pog today with irc, then t/o price will be $8 billion because irc whole resource will be priced in the offer, because 31.10% stake means holder can increase equity upto controlling stake without any permission or making a full offer. More over its very unlikely now irc will be dumped for $10m but you never know
IRC back in business, what are they going to do with this much cash. What if POG has increased stake in IRC and IRC buying third party concentrate to be processed at POX hub. Little bit complex but a perfect business model to have greater synergy.
It’s unlikely Fed will shoot in its foot when exuasted by monetary policy and very unlikely scale back on bonds buying or change in interest rates
Up 20% on the day
Average Gold price for Gold miners since last June is now $1800-1850.
Rusty, it’s unfair to compare Thomas cooked cash flow and solid metal cash flow
UDF, you are giving impression, IRC is going to stay with POG. Cash flow ? Looks like it was the only angle POG can benefit in short term.
It looks like Peter Hambro is on course to buyback shares in IRC upto 20%. You never know what’s happening in background. If POG still held shares in IRC, it’s %age will automatically go up, to 40%. Real issue is not Gurantee but it’s 31.10% which is above 29.90% threshold. Pavel balanced it by breaking it in two pieces.
Gurantee is not a problem as long as IRC is able to pay its instalments. POG’s debt to EBITDa ratio is below 1.5x. So there is no reason to harp around credit metrics.
Strukhov has no money, Polymetal does. Strukhov would like have multibagger return