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Gold has a lot to do with interest rates. Gold competes with cash savings. Cash savings are less attractive when interest rates are low... also it‘s not a linear relationship, because money printing devalues money (good for gold) but eventually increases interest rates ( bad for gold) which ever the market will value more ;)
Anyway, I think gold is down since the market is expecting interest rates to start increasing soon... so are Banks by the way...
I think the results are a bit disappointing. Gold production was weak and frankly I expected a bit more from POX. However, smoke is settling and I think so far management seems to be keen on communicating better and becoming more transparent. Hours cleaning is well under way. I think once they handle investor relations better, trust will be back and POG will ultimately benefit from this. I won’t sell for a while... maybe 60 would be where I’d give away some shares but that will take some time...
I only have a few :) trust me, even at 100 it was scary to put money in it so I bought very few ... I put a lot more in POG :) which if you compare risk reward was just as good an investment
Time will tell... like with all investments, you need to be reasonable, which means that it’s about position size and not about whether you should or should not. Obviously, you should always just put in what you can afford to lose in a worst case scenario. I hold BTC from $100, so I am a bit relaxed here :)
Again, do not underestimate crypto, FIAT money is 1.0, some tech will replace that. I do not know which one it will be, but I strongly believe that currencies as we know them will eventually disappear.
I have been invested in POG since about 7.5p. I do believe in hedging against fiat money. I also own other miners And I am also in real estate for that reason. But when it comes to crypto, make no mistake, BTC is the real alternative to gold in the investment sense. A scarce asset, easily transferable, and impossible to temper with. If you believe in the fact that inflation is coming you should be diversified and that means you should own some bitcoin as well. I do.
All of the crypto currencies, that aim to become a real currency but also have their potential. Tough to pick the right one and I still don’t on any other ones because it’s too hard to pick.
JMHO
No much to explain. If you are holding CBs and you short, you are essentially saying “lock in the share price now and cover the short when CBs are Converter.
Your advantages:
- you lock in the share price now
- you still get the coupon on the bond
Disadvantage:
- you miss out on future share price increases
- you pay some financing fee
Anyhow, eventually, they get converted and the short position will be closed, so this is ok...
It‘s because they know, dividends are coming ;) Maybe
Regarding the conversion there might be many reasons, Why one might do that. They may just need some cash for other endeavors where they see more opportunity (unlikely). Also, they may want to show everybody that they are on the shareholders side. Or maybe They have other intentions which others have already speculated about. Fact is we do not know at this point and there’s no reason to waste more time thinking about it. At least that’s how I look at it. In six months we will know more until then congratulations we all have a tremendous investment here.
Let me correct that a little bit. Medium term I’m not sure if negative outcome of this vote is not a long-term positive. I do not think that the new board will simply milk POG, but we will also make sure to share price will increase..
Old management has made many mistakes,On the other hand could also stood by the small investors when things got really bad. We’ll see what happens, the market will not like a negative outcome short term.
I am pessimistic, it will take a lot of small investors to vote in order to reverse this. Because it‘s still too darn hard to place a vote, most guys will not be casting one. JMHO
Correct. Speculation is simply not necessary here. Remember that the only thing that matters is that our operations are healthy, debt seems under control and gold is looking good as well. Why even speculate, we have plenty of fundamentals that are working for us. we don’t know anything about a merger and the market doesn’t either. Thank you Rustybucket for your reality check.
Looks like a great year to me. Obviously the gold price was much lower last year due to the hedging also. We‘ll get a healthy uplift in revenues just from that. Also, cap ex will be healthier due to the completion of POX hub.
My hunch is that traders are getting out now as they are a little disappointed not to see any fireworks. For us long termers I would say these are great results, also due to the fact that the RNS states that the company is checking on giving some back to shareholders. Trust has increased significantly over 2019. Gold is going in the Right direction. Future Production numbers looking great... for me all the positive signals that this time around next year, we will have a dividend and a 1.5Bn market cap. I will sit tight and wait for more smoke to clear (TEMI/IRC/new auditor/dividend decision etc...)
The future looks great.
My average 7.5p - an easy long :)
Exactly. With gold at $1500 and all in cost not changing much, they should get rid of all debt quickly. Nothing should be more important than getting rid of these very expensive loan payments. If it was up to me, I would hedge 70% of the next 2 year’s output at this point, basically guaranteeing that debt would be reduced to ridiculously low levels with high cash levels at the same time. Sure, we might cry and whine about it if gold ends up at 2000, but who cares. I rather have a safe investment at this point instead of chasing pipe dreams and risking another capital raise. Take the cash and make an offer to Convertible Bondholders already ;) We need them out of the way, that way, we also do not need a share buyback program ;)
Looks like all pieces are finally falling into the right places. Gold rising, POX performing, lower interest rates and overall more clarity in the company. Let’s see, but I see 10p.
They will always convert if the share price is higher than their conversion price, but they do it at the very end of the term so they can keep collecting those nice dividends. If bond holders want to build a stake in the company, they may even convert if the price is below the conversion price, but only if they believe that it would be more expensive to buy that many shares on the open market.
We have been pressured by bond holders in the past, so ideally we store as much cash as possible, so bond holders will not be able to come up with another stupid loan. I assume at this point, we would not have trouble finding a bank to cover us with some more reasonable loan...
Hi Kenj,
I guess you must be right after all. I din‘t Read the prospectus, however it doesn‘t change much for us. If Bond holders decide to convert, then I do not see a reason for POG to buy back the shares from them. After all they have been through, they will want to preserve the cash to be on a solid footing instead of putting themselves in another cash crunch position. After all, the company can always start a share buyback program at a later point, which will again reduce the float.
I also think some people had the impression that POG could buy back the CBs at face value, which is not the case.
Not sure why people still think that POG May determine whether CB holders may convert or not. To my understanding CBS can always be converted at the owner‘s sole discretion. I am not aware of any specially negotiated term that PO may offer the bond‘s face value to the holder when that holder wants to convert. Although interesting, I have never heard of a CB with such terms and frankly it kind of defeats the purpose of CBs since this right to convert gives the holder a significant advantage while giving up ROI (lower coupon rate)
They apparently bought on the open market. If any of the major holders had sold their shares, we would have seen another declaration of share sale.
I guess they were the ones driving the price to 8.30ish.
A sign to sell :) whatever they touch involves a scam... argh. I bank with them, but this sucks. Wish we had someone like Goldman in there instead
Not sure how fast they report this and how accurate that is? On Nasda I.e. this is only reported bimonthly.