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Dryland, many thanks we do have a number of posters that rely on guess work or have gleaned incorrect information from other posts and have taken that as gospel truth. Peel Hunt and Winterflood have printed the most volume in Solgold, mainly because their RSP machines are the most widely used across the industry....mainly because of the number of other stocks they trade. A broker pays a set up fee and a yearly for the ‘pipe’ connection, and it’s not cheap.
Rcgl , you make some relevant points, and as an order driven stock the quote is derived from bids and offers posted by those with DMA, Proprietary traders, MM, spread betting companies and Algo programs. Market Makers are not the bogeyman they are part of a system that provides liquidity to us all. I would also add that Market Makers love activity and volatility and their RSP machines would have been printing money in Solgold for the last year or two. One of the ideas that is laughed at, is the belief that they smack prices to trigger stop losses....this type of post would always raise a laugh around the dealing rooms. They want to make money but they don’t need to take Mr Smith out of 10,000 XYZ PLC to do so. They will smack a price to buy stock as PI’s often sell into price falls and buy into rises ...human nature I guess. Most importantly the calculating of buys and sells is a nonsense as it’s total guess work and for example if my offer at 38p gets lifted it’s reported as a buy .....but I’ve also sold the stock at 38p. I added a small amount of GGP this morning and on a spread of 22.5-23 I paid 22.55 which was no doubt recorded as a sell ? The studying of level 2 depth is also pointless as nobody will see an order that’s in a dark pool , an Algo program , an iceberg order or an order sitting on traders electronic order pad.
We are all here to make money, have some fun and provide opinions....after all that’s what makes markets
GLA
Patrm, I’m not here to defend gov policy but to discuss mining companies, Solgold in particular. Couldn’t give a fig what was in the Tories manifesto. Given your ethical concerns on cobalt and the Congo I’m surprised you’re investing into the sector. Cobalt is important as are other battery materials but at the end of the day you need copper for the delivery of increased amounts of electrification.
Patrm, agreed but the argument has two sides here as the large miners in the Congo such as Glencore would insist that their mines employ locals and operate on a safe basis. It’s the illegal artisanal mines that employ children without any regard for safety. Not really sure where Boris fits into this other than encouraging a move towards carbon neutrality
Currently none are acceptable and that’s despite RIO selling off its carbon businesses. The soon to be gone CEO JS has opened every conference presentation for the last 3 to 4 years with several slides on ESG with the most important one showing the number of fatalities. The failure for these businesses to be given ESG status creates and opportunity for us all. Around 40% of new money coming into the market is chasing the same old ESG compliant stocks. One reason why FANGS have done so well. Ludicrous really
Probably have a number of smaller companies funds getting involved. The only issue , being that so many houses and large investors are obsessed with ESG. Particularly the Europeans.Oh the irony of the energy transition starting and ending with copper. The tend ignore the good that companies like Solgold do for the local inhabitants etc etc.
RK, by the same token someone sold 200,000 in last night’s auction.....it’s far to simplistic to assume MM have to buy in every night when clearly you MM long throughout the day who sell into that buying demand. If I worked an order over the day a program would calculate the ave monthly crossing vol and would complete my ticket in the auction. That’s how it works. It not just for MM’s to square off their book
Miagi , yes the bid/offer was high wide and handsome ....but it’s an order driven system and not a quote driven system (MM). Bids and offers are added by market participants with DMA and with no news out those participants weren’t going to create a tighter price
Despite their dismissive attitude and continued avoidance of the mining sector the squeaky ESG mob cannot deny that the energy transition and the move towards a lower carbon future, starts and ends with metals .....namely COPPER
An acceptance of the sector is long overdue
This puts things in perspective
https://www.businessinsider.com/racing-pigeon-sold-at-auction-record-19-million-chinese-buyer-2020-11?r=US&IR=T
I’m fairly certain they would’ve loved a bigger piece at that level, but NM has been very vocal about dilution and diminishing returns to shareholders. It’s enough to keep them interested and nothing to stop them from adding in the market . Unless you get a section 212 notice issued you can build a position without declaring it until 3% or 5%(not sure what the limit is these days) One things for sure .....any bears will think twice before shorting this for a while and we may see a decent bear squeeze beginning.
China has been so dependent on scrap copper for years but tougher environmental laws means they have to look elsewhere. Whilst they mine copper is China it’s similar to the very low grade/quality iron ore that they mine and despite government subsidies it’s uneconomical. Whilst they’ve virtually acquired certain countries in Africa with copper deposits but the real riches are to be found in South America.
Such an interesting move by NM which may accelerate the likelihood of corporate developments. Can’t see either BHP or NCM being too thrilled with this and it’ll be interesting to watch this unfold
Valuestone is an international private equity fund manager dedicated to mining and natural resources investment. Valuestone Global Resources Fund I has been established by Jiangxi Copper Corporation (China’s largest copper producer), CCB International Asset Management Ltd and the Valuestone management team. The target size of Valuestone Global Resources Fund I is US$300 Million. We have successfully closed the first tranche and officially started operations.