Member Info for leas

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.

nogs
Still a couple of hours left of trading. Market perhaps seeing if the PoG remains above the so called physiological level of $1800. If it can then I think all producers will be re rated.

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.

28jac
I see the Australians are HODling too. Perth Mint have seen sales of Gold and Silver at all time highs with September showing a 22% increase in sales. Hoping that trend is replicated in other countries. Maybe early indication of a bull run on precious metals and I'm sure some shorts on the PoG will be closed as economic concerns continue.

Diversification in their business can only be good for the company. With the REM project in Chile too they are certainly foreword thinking. Would like to see their website updated to reflect the 2 new assets and sustainability but very good news and the option to walk away without financial penalties.
Production report next week so hopefully that will coincide with a good day for the price of gold.

Poker
They have always printed money and like every economy they will continue to do so but it is the quantity they are printing. The status quo exists for now but IMO it is the inflationary pressure that will tip the balance.

@ bonk

Not so sure this time. Numbers are not that good for inflation and certainly not for the world economy. Interest rates v inflation. US cannot keep this policy of printing money at any cost going.
If it gets battered down again then 145 is a pretty good price. Average just under 150.
Fwiw, analysts outlook will be pretty muted until they have rebalanced their funds with gold miners to hedge against a pretty poor outlook for the markets.

$1800 now on the ask. :) Top up me thinks

US inflation at a 13yr high. Gold currently knocking on $1800. Following link worth a view. 11m 30 sec very interesting for investors here.

https://www.kitco.com/news/2021-10-13/Inflation-returns-to-13-year-high-stocks-overdue-for-fairly-significant-drawdown-Ted-Oakley.html?sitetype=fullsite

US inflation is currently at a 13yr high, markets likely to come under significant pressure as they hedge against rising interest rate. imo some funds may hedge by buying Crypto but carries risks and most will buy gold. Economically not much positive news coming out of the US. You would be mad not to have a gold producer in your pf.
Silver above $23 and PoG knocking on $1800. Both psychological barriers that need to be broken to help the sp back to £2

Following link worth watching, especially at 11m 30 secs.

https://www.kitco.com/news/2021-10-13/Inflation-returns-to-13-year-high-stocks-overdue-for-fairly-significant-drawdown-Ted-Oakley.html?sitetype=fullsite

on the plus side also noggers, the recent dividend payment has covered my holiday to Cyprus at the end of the month.
Hopefully the $1830 resistance will be breached whilst out there and patience rewarded.

noggers
Other producers up similar percentage. Chill! :)

Judging by the sp noggers that news was not what the market expected. :)