POG shareholders value is increasing stake in IRC from substantial to controlling interest which is 40%, though its getting expensive. Then IRC valuation will reflect on lse rather than HK, and POG CEO will have more say in decion making.
Annual results? Does anyone know new CEO is going to surprise the market
Gold Price will go up and will have sustained rise, in emerging scenario in aftermaths of Covid, if Gold declines it will come in full force to alternative to currencies mainly damaging US dollar basket. And central banks will be biggest accumulater. That’s the plausible explanation why Yanks are not opposed to rising Gold price
When Fe 65 was around 100, they were achieving sale price $65-70, now fe 65 is 210, they can achieve between $140-160 in 2021 provided price remains steady. Their EBITDA is going to surpass $100m anyway. They have option to make aggressive loan payments and reduce costs.
IRC benefitted from very low LIBOR, high iron ore prices and rubble devaluation. POG is still treating it as a non core asset, which can change in future. IRC has shown $24m profit, probably paid 6-7m fee to POG, and 35-40m dollar interest+principal. Moreover there was big difference between production and iron ore sale volume. In nutshell, IRC is in pretty good shape.
Updownflat, irc’s mcap is already $250-300m, if my calculations are correct
Rusty, POG has pox hub and is substantial shareholder in IRC. Now IRC market capitalisation is going to double or reach 1 billion dollar by end of this year if Iron ore prices remain high. POG board can increase POG stake in IRC.
Cey and POG achieved similar levels of Gold sale price, $1778, that is really good start, these both companies are worth over a £4 billion. If irc benefitted substantially from rubble devastation, then POG should also benefit.
Intrinsic market value of POG is £1, if Gold price stays above $1800 for nex 4 months and crosses $2000 even briefly
Pox hub, a lot of spare capacity. When there is problem, there is opportunity. Mines will come to full swing soon to feed this behemoth. I don’t think margins from third party concentrate is any issue, Rather than buying concentrate, POG should consider processing concentrate on 50% fee, as Russia has abundant refractory ore.
Gold Price is going to sustain between 1800 and $2000 if not major fluctuations upwards. Average realised Gold price to be achieved around $1817 in 2021.CEY and POG are worth around £4 billion
TEMI will paid for sure IMO , Dividends 1p annually .50 p for H1 .
Forget Russia, Putin is unable to move his arm after vaccination, China can annex Taiwan anyday
Fundamentals all pointing Gold to be above $2000, We May see US dollar index between 70 and 85 by end of this year mainly because of inflation, need for more fiscal stimulus
Gold Price above $1600 is mojo for Goldminers, but they reduced or went to optimal production like in POG and in CEY. just to go with market or meet the technicals but not for long. POG has advantages like being in rerate mode, and is parent of Iron Ore producer IRC