Updownflat, IMO this transaction is not meant to go through. Trading has halted on HongKong, it may be because bank has dropped Gurantee,
Shareholders can still block this transaction as its value is substantial high probably under the LSE rules and company rules, though they are not set in the agreement. Current 31% stakes value is between $80-90m, and Gurantee went nill which I was mentioning months ago.
When they entered into sale agreement, it was somehow justified and safety nets were if buyers walks away from the agreement.
On bright side, Gurantee of $200m (shackles) are removed, which was a problem until 2026.
Looks like POG will be sold, not to UGC
IRC’s debt to EBITDa is going to drop below 1x, close to Polymetals one. More than excellent
In Moscow Circus, man you see walking on tight rope, is actually walking on the floor. At current Gold price POG’z revenue will still be above $900m if doesn’t surpass billion dollar
IRC being held for sale, not sure but accounting rules permit them to hold it for sale for one year after announcement date, which in IRC case ended on 31 March 2021. Annual report represents previous year info, so they didn’t mention latest position.
It looks like SP was being held to fill order until late Thursday and Sova crossed 3% threshold on Monday, it’s possible they are sitting around 5%, 2% going unnoticed
Last week , SP was being held to fill order probably from Sova Capital, followed by drop. Commodity Channel index could not impact the SP, apparently market had to buy back at cheaper price. Polymetal’s debt to EBITDa ratio dropped to 0.87x, POG’s dropped to 1.4x. Below 1.5x is a major improvement and dividends could have been easily rendered.
Kando, it’s the era of most unequal economics, swinging between high inflation and high rates. If inflation will go to 13%, interest rates will crawl to 5-7% vice Versa inflation drops to 7%, interest rates will shoot to double digit
Covid has shattered many economies and long term impact still can not be figured out. Fed and many central banks are literally left with one tool called higher inflation to kick start the economies. US fed can tolerate inflation even to unprecedented level may be even double figure upto 13% followed by high interest rates if they see recovery. Crypto has to disappear and literally at the end crypto will take the share blame of Economic downturns. China, Yellen and Bank of England having similar tone about crypto.
Investors and markets considering Gold will 2010-2012 rally and will pull back from $2100. Research@Krss is adamant commodities were rallying even before Covid-19, and still more upwards waves have to come, though we may see sell off around $2000
When dollar is weak, and commodity prices are high. Investment flow is mostly towards ramping up production. TEMI purchase cancelled, debt looks equal to UGC, POX hub is hungry, I told you this CEO wants be CEO of Russia’s biggest Gold miner
Any clarity on TEMI, looks 22 May is the
Deadline
Rusty, we are in POG since 5-8p range, and I told everyone it’s a multibagger when even Peter Hambro and Pavel were not convinced. In comparison with Polymetal, Poly went to £20, so probably above £10b mcap with debt above a billion dollar. POG looks undervalued where per ounce cost goes down when increased production.
Rusty, there are some bottlenecks in POG business model, but underlying potential is better than Polymetal in some areas like POX hub more capacity than Polymetal. IRC with just $50m investment can double its production which is very much possible now and Peter Hambro was keen about it, though they need an Accountant/Economist. Best is POG can appoint me an independent Director
Current year POG will be achieving $1817 Gold sale price if there is no massive surge in GOld price. Yes if they revised production above 500k ounces, minimum 430k ounces own production, that will sure be a good news to £4billion mcap
Sometimes ago, research@Krss had predicted UGC doesn’t want dividends against the prevailing market view. Results can not be poor, even third party concentrate imo was secured before Covid, so merging should be reasonable. Right now , buying third party has high downside risk, that’s why Co is in risk averting mode
Rusty, IRC produces around 2.6m tonne , if they manage to achieve $200 per tonne, even propped up cost go to $55 per tonne, So revenue around $520m, $143m cost of sales, $100m other costs. Yes is $250m is possible to achieve . Also IRC is benefiting from low libor and weak rubble.