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I guess this is another successful quarter. To be honest, I would stay away from Russian based companies, but I am in this for the long run, but the political situation creates some headwinds for now. Overall, I really like the fact that they brought in an independent consultant to estimate whether there would be any delays, it's a sign that the company is looking to gain more credibility. How accurate such a consultants opinion is, is to be seen of course. Nothing is out of the ordinary which is good. Let's hope that once they are close to completion of the POX Hub, they will attend investor's conferences and spend some money on PR, so the company regains some investor trust which will eventually move the needle for us. G/L
Hey guys, so I guess I was wrong with the vesting part. In the new RNS it also states "Price(s) payable on vesting". Since this was an investment company purchasing the shares I assume that this was not an option execution. I guess that's good news. More people trusting POG
I am not bashing anything. I am just saying the wording is confusing: "Price(s) payable on vesting. I think it does make a difference. The result is the same, he now owns those shares. Well, almost the same. If these were shares purchased via his stock options then that increased the number of outstanding shares.
well, if the guy received options for 0.1p and they vest, he would exercise them and pay 1p per share. his gain would be let's say 7p-1p=6p so he would only pay capital gains tax on that 6p. Everybody who receives options would exercise them. his cost of these would therefore be, 1p*150000 shares = 1500GBP + Tax on 6P*150000. Not sure what the rate is in the UK but probably 28%. So that'd be 9K GBP*0.28= 2520GBP. So his net cost of these is really just 4020, which he can sell at the market immediately resulting in a 5K gain. Anyhow, it is a share purchase, except that there is no risk involved because he is getting them at a little more than half the price. If the purchase was a straight up purchase, then of course it's just at the rate he paid and even if it's a small amount, it confirms his trust in the company.
hmm. Not sure if this was a share purchase. It says "Price(s) payable on vesting". To me this means that he had received options, which were probably valued at some ridiculous price, so once they vested, he basically only pays capital gains tax on the difference between option value and price. Not sure if I am reading this correctly though
Pogman99, I guess you are new here. Instead of calling others' opinions BS, you should think first and then talk respectfully like everybody else does here using arguments and not foul language. Anyhow, you are of course always welcome to post your opinions and some of those facts you mentioned in your earlier posts make sense to most of us. Just remember that some of us have been here for years, and we know many of the very obvious reasons why POG should be trending higher. Also,we have discussed the "hedging" issue many times before and it really comes down to how conservative you are. You know my opinion. I don't think this is a start-up where you can take major risks (especially with the debt we hold), it's a mining company which should focus on securing the lowest possible mining cost, high output & the highest possible gold price at maximum visibility and that to me includes some hedging at these levels as well as at higher and even lower levels. Anyhow, it's an opinion....
obviously you have never run a business before. Of course the long term gold price is vital. hedging takes out the short term swings and gives visibility so you can plan ahead as you know your cost and you know your revenue in advance. Keep in mind that continuous hedging always smoothens out your gold price and if we hedge at these levels, we will benefit from these prices down the road. I guess you'd be the first guy screaming "great hedging" if the gold price was at only 1200 in 12 months and we had hedged at 1350... not smart
there is only one thing to remember. POG is in the business of mining gold and not in the business of speculating on the gold price. Once you get into a state of no hedging, your business strategy is driven by gold price fluctuations. I don't think thats what we want
unfortunately, that's what I thought of 2018 :(
I am just puzzled :) when the heck will we start a continuous upward trend? Maybe I should be buying more
I mistyped... I own just 100K of them and not 100k worth :)
good for you. I have 100K of these and not willing to add more. I am more convinced than ever that this is undervalued, but then again I have been disappointed by POG many times before and it smells fishy that this is not moving higher. I will not top up and will not sell them either. My avg is at 7.5 so I am ok. Anyhow, I will not feel comfortable with more shares :) g/l Lawrence
PE ratio has been irrelevant for this stock in the last few years, but I think this will change. As some of the debt fears (both company debt as well as IRC) are lifted slowly and we get some growth back due to POX and growing gold price, I think this will go through some major revaluation. There are few companies out there now that you can buy with a solid prospect of growth and still very low p/e ratio. Does anyone have an estimate of how the production should look like once we are operating the POX hub at full scale? Also, does anyone here have any experience as to what the profit margins are on added production via this POX hub? I guess it would be interesting to see how our overall profit adjusts once this is completed. Of course we will incur much less cost with the POX hub finished as we go from construction costs to maintanance costs. Thanks for your insights.
You're right. I guess reading this while stopping at traffic lights sometimes cause you to misread some info ;) Thanks, this makes a lot more sense. This also means that they effectively did not do any new hedging, otherwise the avg. hedge price would have moved up a little. I actually don't like that, on the other hand, 350K is pretty good. I just wouldn't want to see this number drop to less than 200K. Transparency is more important than being affected by day to day gold price changes....
Hi all, to me everything looks as expected. Nothing out there that makes me worried about my investment at all. The reduction in debt looks a bit weak, but I understand that until POX is up and running, we should be looking at building positive cash flow to have extra change in case there are still some bumps in the road ahead. I am curious to see how markets will react. I know everybody will be talking about the hedging, but I made my stand clear on this issue before so I won't repeat it. One thing to note though is that I don't quite understand why between December 17 and end of March 2018 there were new hedges which seem to not have increased the avg. hedged price while the gold price was significantly lower. Are they selling their gold forward at below market rates to someone??? Seems fishy to me. Anyhow, great job by management outlining exactly what this board was looking for. Let's hope that they will execute this year. I don't see a reason why we wouldn't start moving up from here. G/L all
I am not even sure why I am watching this... everybody gets emotionally to this stock and it keeps failing :) Unreal, but every other stock in my portfolio I never even have to look at. POG is like the troublesome child in my portfolio where you just know that it always remains trouble but you still love it somehow. Anyhow, I hope that with the POX hub nearing completion, IRC becoming more profitable and the gold price stabalizing or moving higher, we will eventually some solid gains for the next few years. I don't own anything gold related except Regis Resources which I bought at 1.50 $AUS and it's now trading at over $4.50. I would have expected a harsher move by POG, but I guess my 7.5p entry is still not good enough. I really had hoped for this share to trend higher towards 9-10p by now. Afterall, debt is under control, and we are getting more and more profitable by the day (-> gold price is up). Yet, this laggard cannot move an inch higher and if it does, it gets sold off in the next few sessions. Oh well, little kid, I guess I still love ya and will remain patient, one day you grow up and do well for all of us...
sunk cost don't matter. The question is, how much more will it really cost and what can we expect from it.
from tomorrow's RNS... If anything, then trading suggests that we are in for another disappointment tomorrow.
I partially agree. In case they use the money to grow top and bottom line, they may not need to repay debt. A strong growth story requires debt and the more you pick up the better if things are rosy. However, I do not see that growth story and therefore paying off our debt aggressively makes more sense to me as well. What we don't know is whether these guys see something we don't. Say, if there was no POX hub and they generated 100Mio in free cash flow and someone offered them a POX hub for 100Mio, I think I'd pick the POX hub over paying back that debt load faster. As long as my marginal added income from the POX hub / the 100Mio investment, was significantly higher than the cost of holding that 100Mio. Anyhow, it's all a matter of perspective, but I think we would be meaner and leaner if we had that debt burden reduced significantly and when you have cash it gives you a lot more maneuverability in the mid and long run...
we should finally have some interest coming back to POG. TO be honest, when I look at 174,073 shares traded so far today, I am not sure what we can even talk about here. At this volume a single seller who needs to liquidate the position to free up capital can move the price down by 0.5p. I don't think I have ever been stuck in such a low volume stock. We are talking about less money than a silly used car :) Anyhow, this is the reality of POG right now. I hope their results will eventually draw some interest but this is just pathetic and boring.