Proposed Directors of Tirupati Graphite explain why they have requisitioned an GM. Watch the video here.
Spindler
The Peruvian government have clearly seen a change of tactics with foreign investment particularly in the mining sector. It seems that the Marxist government have realised that they need them as much as they need them.
Sadly safety is still an issue as there has been quite a few fatalities in companies sub contracted in the sector which is understandably a concern with the government.
Poker
I guess any rise above 160 will be easier now that shares are in ‘stickier hands’. Maybe spinning off Aclara makes more sense now as the sp here seems completely driven by the PoG. Yesterday’s update derisks this significantly as targets are met (pandemic aside)
IMO the REM project has no asset value when it’s under the parent company as clearly the institutions are focused on gold and gold only.
kenj
It is a very odd valuation based on the fundamentals we know. My strategy will be to hold Aclara as it will find its true value as a standalone company. I was invested in SLP when they spun off its iron assets so expect HOC to fall in value by the MC of Aclara but expect the REM company to rise reflecting its true value when the dust settles.
Although subtle, the update was ‘firmly’ on track. Full year update is looking very good and may exceed expectations.
If PoG remains above $1800 or turns positive then I’ expecting a clise of above 160.
Just my opinion of course.
CaneToad
Still in the midst of a pandemic with world supply chain issues on top of inflationary pressure. All equities at the moment are a gamble. I think given the world economic outlook, physical gold is a good hedge.
Sololo
Another thing of note. Investors must now be concerned over inflation or possible hyper inflation so adding a PM producer would be prudent. This also applies to the bigger institutions. If I was looking around HOC would have to be right up there especially after today's update. No hidden surprises, everything on track and meeting expectations. Also an opportunity to add a REM investment via the backdoor.
As posted previously, for now the PoG is the driver in the sp direction.
Sotolo
I see the 'apparent' lack of interest here as a positive. Less likely to be volatile on any swings. Yrs, great update today but of course the 'markets' will be more focused on the PoG (as per) May get some analysts and brokers throwing their 2 penneth in later. Pattern recently is the sp moves when our cousins across the pond get out of bed.
kenj
Maybe the recent valuation is smoke and mirrors. Valuation based on current sp at the time if the RNS. Surely it has to be worth more now. The US Fed Govt have already said that they will seek to curtail China’s domination of REMs and can see an asset being spun off as a cheap and easy target.
My assumption of course but makes sense. Diversification was the buzz word last year but now a change of direction.
Have to say the Peruvian Govt seem to have also changed strategy with foreign investment so perhaps ceasing hostility towards miners is also a consideration .
Let’s hope Gold can keep hold of its gains. Broker upgrade and Q3 update tomorrow. If PoG pushes towards resistance level then hopefully that update could carry us above the 150s.
Hoping rather than any technical analysis :)
nogs
I think because the market expects a retrace the sp is not seeing bigger gains . With Russia and China on a buying Gold spree then that expectation may not happen.
When the market is convinced that the PoG is heading towards 1900 then we will see a sp closer to £2.
All my opinion of course.
candid, I was called a dinosaur back in 2000 when I ignored the dotcom companies floating on the LSE. One that springs to mind was Oxygen Holdings. It consisted of 5 guys and a room. No assets. They were supposed to be 'clever guys' selling ideas to make students rich. Their sp floated at 2p and closed the day at 65p. There was a surge of people not knowing anything about investing getting sucked into this promise of overnight wealth. The companies with no assets seemed to fair the best as anything tangible could be 'priced'
Yes those that bought Oxygen at 2p and sold at 65p on that first day of floatation made a killing but the vast majority of inexperienced investors lost the lot.....
Thanks Ed
I no longer trade online as I no longer trade. I am back with paper certificates for many reasons. Selling on FX will not be a problem.
My online broker went into admin a couple of years ago but eventually got my money back. Buying share through a nominee account carries a certain amount of risk and would recommend to any investor to make regular printouts of any transactions.
I see inflation concerns again pushing up the PoG.
bonks sadly I sold when the touched 30p although I did double my investment. I ISA wrapped HGM instead of SLP which was the rationale in selling. :(
Good balanced article in the FT about today’s news. The REM shares look a good long term investment despite the need to raise funds. Aiming to produce almost 30% of the worlds dysprosium outside of China. Must be a very attractive target for any EV manufacturer.
Ken
Maybe a move not to load up more debt on HOC as I’m guessing infrastructure on top of start up comes at a considerable cost. At the moment earnings more than cover debt so maybe that’s in their thoughts.
Or talks have been held on an ‘informal’ basis and spinning off another company guarantees them a fat salary should they sell the PM side of the business.
Is there not a production update tomorrow? Timing coincidental? Lots of questions to be answered and like any other pi all guesswork.
HOC have invested just over 60m in buying and developing the asset. Asset value must have increased significantly since 2018 as REM are even more in demand which will surge as carbon emissions are reduced. Im guessing circa 8% of the current MC is a fair value.
Not so sure why the company now has a different strategy in finding value for its shareholders.
Not so sure it’s so they get ‘double salary’ as suggested but it certainly throws up more questions than answers.
I was invested in SLP when it spun off its Iron ore business and there are many similarities here. Owning shares in both resulted in a very good profit for me so I will keep holding and add if there is further sp weakness.
All opinion of course and judging by the quality of some posts here I’m sure many will have their own strategy as more information is made available.
Kford
My understanding is we only get 20% of the new floated company and that will be reflected in HOC's MC but get the 80% of the value of aclara at the floatation price. If so then the dividend will be subject to CGT. Or is this too simplistic? I guess we will know more later today.
The 'market' seems to like the news and being mindful of any cries of ramping this could be a logical stage in any approach to sell the company. Not that I think that will be the best for investors here as true value lies in the rising price of gold.