Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
For those finding the numbers confusing, I hope this helps.
You owe your brother £10 and you have in your savings account £1, you get paid £2 and so you pay off £2 of your debt to your brother, you now owe £8 and have £1 in your savings, so your total worth is minus £7.
Or
You owe your brother £10 and you have in your savings account £1, you get paid £2 and so you pay off £3 of your debt to your brother, using your savings, you now owe £7 and have £0 in your savings, so your total worth is minus £7
It’s the same number.
This quarter MTL made $8.2 million clear cash and reduced the debt by $4.7 million, so the interest was $3.5 million for the quarter (8.2 - 4.7 = 3.5) MTL paid the Candy’s $12 million by using their savings, it’s that simple, the total debt is the same whether they had used their savings or not, but the upside to using their savings is they owe $4 million less on the Senior loan and as such save 7% on $4 million for the next 3 months, that’s £70000 less interest owed by Q2, small saving but a saving it is.
Bottom line is we need to clear the last $12.9 million of the Senior loan, then the remaining debt will reduce to 7% and that will reduce our quarterly interest instantly from the current $3.5 million to around $1.6 million, that speeds up the debt free future we all patiently are waiting for, nothing confusing with this latest RNS, I reckon Q2 will bounce back as the 3 weeks lost production gets processed along with the Q2 quarters production, and a bigger chunk of that last $12.9 million will be cleared.
Long and strong.
Oh, any one invested in gold must have the belief gold has to go much higher that it already is, and I believe we are due a huge leap forward in the near medium term. GLA
Hi Mac, It looks like your $4 million is taken from reducing the cash in bank from $4.7 million to $0.7 million, so they used the cash in bank to pay down an extra $4 million along side the $8 million free cash generated, it’s better to pay down the loan than have excess cash in the bank, and with a months operations lost to the BIOX failure, they must have thought it best to compensate with topping up the quarterly repayment with cash in the bank, my take on that must mean they will be expecting to push through a load of material that is backed up from the BIOX circuit not working and generate a load of gold sales in April to replenish it.
The numbers are hard to work out, but DB has stated Q4 for the switch to the 7%, of which he stated last time he mentioned it.
As always you hope for 20k ounce quarters and it’s dull to see less, but that’s gold mining, I’m confident Q2 will bounce back and it’s the yearly numbers that matter most, nothing has changed for 2022s transformation, and patience is simply all you can demonstrate with mining, it’s a get rich slowly business, I’m getting 1% on my savings in the bank, so it would take me a life time to double my savings, MTL will achieve that in a year or two, and it will, we are solid and secure, and gold prices can only go higher, that I fully believe, long and strong
Cheers Mac, these are the numbers as released by MTL:
2 years ago:
Total interest bearing liabilities as at 31 March 2020 were, in aggregate, US$129.8 million (US$69.3 million in senior debt and US$60.5 million in mezzanine debt)
Todays RNS:
Net debt as at 31 March 2022 was US$94.2 million
Senior debt outstanding as at 31 March 2022 was US$12.9 million
So we have reduced the overall debt by
$35.6 million in 2 years and importantly the Senior debt has reduced from $69.3 million to $12.9 million, when that gets to zero we get a very reasonable 7% interest rate on the remaining debt, a massive 8% saving (around $7 million per year) reduction in interest payments, so with all the heads winds and lower gold prices we still achieved solid progress.
So what’s ahead? lower interest rates, higher gold grades in phase 3,4 and 5, higher gold prices? (almost certain) increased mine life (almost certain) equals a faster pay down of our debt.
Happy days ahead for the patient.
Results a mixed bag, Stage 3 gold pushed back a quarter, BIOX power loss and contamination lost production, upside, Senior debt hacked down to just $12.9, when that’s paid down we reset out interest rate to just 7%, efficiency solid at 89% so no drama but no excitement either, business as usual, still waiting for a headwind in gold value, seriously overdue for all gold miners.
Hi Roy, for those looking on the side line, they won’t find a better time to buy a slice of our mine and company, cheap as chips has never been more accurate with MTL, I personally have less interest in the shareprice than ever as I have nothing but the end game in my sight, I look forward for the results and updates, but I know the Candy’s won’t be selling a single share as they know it’s beneficial to wait for the debt free money generating machine we will become, those who have been here for many years have just a comparatively short wait for the big gains, so I look forward with you all to the day we achieve that goal, in the mean time, it will be interesting to see our debts ratchet down, whilst expanding our mine life and open up new ventures and revenue streams, long and strong from me. GLA
We need to shake off the penny share price, its becoming more laughable with every quarter, but as I have said, it’s been a blessing collecting cheap shares.
That’s why I’m so dogged with this investment, because it’s certainly going in the right direction, and yet has had no recognition for its turnaround, but I really don’t mind as I have the end goal in sight, and will settle for nothing less, that’s a debt free cash generating machine with the cash to go much further, it’s no harder than waiting and collecting shares along the way, I have always had MTL as a pension pot, multi bagging my investment and having it mature with me, a leveraged way to gain from gold prices that I fully believe is also vastly undervalued in our cash printing world economy, gold will shine again, it’s just a waiting game.
Will test $2000 again soon, Q2 numbers off to a good start
Buys now showing as buys, above mid price again
Gold running higher again, Q2 results anytime this week or next
If the indicated buy price is 1.30p and the indicated sell price is 1.20p then the mid price is 1.25p, so if you buy at under the mid price say 1.24p it’s shown as a sell, if you buy at over the mid price say 1.26p it’s shown as a buy, all the recent buys are shown as sells at the moment.
Think we will have plenty of that in a couple of weeks, Q1 numbers set to be great ones with the gold average above $1900 an ounce
Wise words Roy, long and strong will win the day here
Nothing wrong with the company CV, just frustrating to see our shareprice so undervalued, but then every cloud has a silver lining, you can buy the shares at a huge discount to value, the company is running like a swiss watch, we get good production estimates, that we beat last year, debts fell quicker than most expected last year, and they will fall quicker this year, gold of £1900 to $2000 will definetly help on that score, I could ask for more media exposure from the company, but I think the prospects here are as bright as ever, no one can argue that we havent progressed every year since Darren Bowden and his team took over production, efficiency at 89%, over 70K ounce production, over $30 million off the debt, well serviced fleet and secure finance, of which becomes extremely reasonable later this year at 7%, extending the current LOM as we speak, so holding for the future will add value to every share you hold, dont give them away with a lack of patience.
I’m not so sure you will find a cheaper time Roy, the seller may have finished offloading, the last large sell wasn't a round number, I can’t imagine anyone selling out at these levels, not with Q1 around the corner, I hope you get the chance but I’m feeling we are currently in the dip, especially as we really shouldn’t be this low, good luck however.
Well I cant resist anothere 200k, our market cap is an unbelievable £26million, about 9 months clear profits at current gold prices, Gold is super happy above $1900 and inflation is running ever higher, gold miners will have their day, its just a matter of time, the current seller will be running low now, many a million have been passed on, the tide will turn this year, have no doubt, 2022 is going to our best year ever, MTL are a very stable solid company, not sexy maybe, but solid, well run and knocking down barriers one by one, next barrier is the interest rate reduction from 15% to 7%, just around the corner, Q1 results in a few weeks, expecting higher incomes this year, as interest ammounts keep falling, happy to keep adding every month. GLA
Europe $63.75 up 1.59% today, reality kicking that the war has no end in sight, Russia will just be happy to bomb Ukraine from afar, that’s always been their method in the past, criminal but that’s the case.
I have a friend who purchased £110k worth, because he trusts me, I trust myself but I haven’t got £110k, your friends have got in cheap Roy, they be thanking you In a year or two, I have no doubt, good to see your well at 75, I wish a few more long term holders were a little more vocal, you would think we had nothing to be excited about this year, far from it.
Hi Roy, I took anther 100k just now, like you say Gold miners are out of sync with true value, they are making fantastic headway and are as cheap as they have ever been, how long can they stay so undervalued? gold price is taking a breather, but it will rise to new highs this year as Inflation is set to rocket even higher, the war is just one element, although my take is it will run longer than it should, Putin wants control of Ukraine and I can’t see him accepting anything less IMHO
Q1 results will be brilliant for us, we have had a fantastic gold average this period, keep the faith guys and girls, MTL have a game changing year ahead, relax, buy the dips and wait, good times ahead.
Inflation is nailed on to go crazy, I’m hoping to be wrong for the sake of the lives of those in Ukraine, but I really can’t see an end to this war any time soon, talks will be just that, talk, Putin wants to control Ukraine, to keep NATO at a distance, and he will make demands that can’t be met, to carry on with his plans, to own Ukraine.