Hi Speedy ,
I know it’s not news to you , and much of what you’ve been saying for a long time is maybe playing out now and the headlines are reflecting the power of gold.
Here is just a small extract re the merger talks that is in this morning s Telegraph.
It’s all relevant. We will just need to wait and see which way we as a company are able to maximise our progress. Fingers crossed.
ATB
“But Newmont Corporation’s decision to increase the value of its offer for fellow gold digger Newcrest Mining does catch the eye and suggest that some UK-listed precious metal producers could yet represent some value for patient portfolio builders.
Whenever a major piece of merger and acquisition activity is announced, the single most important items of information are the price paid and the valuation implied. This is because they can determine whether the buyers or potential sellers are getting the better part of the deal and also whether the shares of peers in the same industry or sector are looking cheap or not.
image
The gold mining industry has been busy in this respect. Barrick Gold swallowed up Randgold Resources and Newmont snapped up GoldCorp in 2019, while Agnico-Eagle and Kirkland Lake Gold merged in 2021 and Agnico-Eagle and Pan American Silver have just finished buying and divvying up Yamana Gold.
Among the few remaining UK gold miners, Chaarat Gold took a look at Shanta Gold last autumn, and although nothing came of that it did suggest that someone, somewhere thought there was value on offer.
Sceptics will dismiss this as an attempt to manufacture growth and momentum where little or none exists, since gold output grows only slowly and the all-in sustained cost (AISC) of producing gold is rising, in no small part due to surging energy and staff costs (trends that rather dent gold miners’ perceived status as a hedge against inflation). Gold bugs, however, will argue that the proposed Newmont-Newcrest deal is simply further evidence that gold company executives see value that the stock market is overlooking.
The price of gold is up by 32pc since the start of 2020, but the NYSE Arca Gold Bugs index, known as the HUI, is up by just 12pc over the same period – and all of that gain (and more) from the index hails from the rally seen since Jan 1 this year.
American gold miner Newmont is now getting busy again. It first bid for Australia’s Newcrest in February in an all-stock deal that valued the target at $17bn (£13.6bn). The would-be buyer has now increased its all-paper offer to $19.5bn. That price tag puts Newcrest on almost 1.7 times historic book, or net asset value. The major, US-listed producers trade on 1.5 times and London market’s gold diggers at 1.1 times”
One for Speedy Hydro & Costa … amongst others .. :-)
Like many people I love to read for pleasure and to learn of course , and occasionally escape into movie - land . Last night a few well delivered lines caught both my eyes and ears !
For context, the plot was around age- old global fiscal power, currency , control, , and filthy lucre !
Here are the lines …
‘The handle will be a financial atomic bomb ! It will be a digital glitch in the worlds banking system. It will be enough for trust to vanish in the conventional markets . Anarchy will follow with the world reorganising itself.
Gold, as always will be the only remaining currency with any credibility . It will be the only currency you can buy a sticky book with ! its value rising exponentially !’
Well, to me,those few words were interesting especially given our current scenario, perched at the beginning of what I hope will be a gradual then steep incline !
Serendipity , fate , fiction or fact ?
GLA!
Dear Dip,
Awful news. My heartfelt thoughts are with you and take good care of you and yours .M of us know how you must be feeling :
What we have
once enjoyed we
can never lose.
Al that we love
deeply becomes
a part of us.
(HELEN KELLER)
Panama x
You know I’ve often mused about what if / why didn’t I / sell at 38 p ATH and buy back in lower. I’m sure many of us have. But at what price would we have bought back in ?
35/30/25/20 etc etc. Who knew ! I certainly didn’t. Of course with hindsight it’s easy but how many of us on here have let go of a prize too early and regretted it ?
That’s why I didn’t sell then and though one could have bought back in more quantity with the spoils of an ATH it’s a crystal ball call !
This way , as the fundamentals grow and with a solid ASX listing to calm AIM only nerves , at least we will find out and get to the end of the story !
It’s certainly one to write a novel about one day ! I think I just might if we make it !:-)
Our Wizard of 'Oz' is building a foundation with many acorns in it, including an already growing giant of an oak tree in Hav and many mini I hope soon to grow acorns in Scally et al.
If he gets his favoured pathway to a multi asset forest of them in The Paterson and beyond, to grow other acorns then 8p will be a distant memory hopefully, however painful it is to see right now! (and it is!!)
So I am hoping for our real Wizard of Oz to turn the nuggety acorns in many many many 'ozs' of the shiny stuff!
Dip.....poetic licence granted over here please! Lol!!
We will all deserve a medal for staying in the marathon in the end. Hopefully Havieron embossed ones!
IMHO Our Hav will hit the 10 m at MRE which probably equates to 10-15 years minelife maybe ,but in terms of longevity thereafter …. It’s 30 years in the making at least !
I’ll put my Panama on it !
DYOR !
GLA
I'm with him!
But in all seriousness none of us KNOW who/what/if re the shorters except that we appear to be slamdunked every time we get a rise and it's funny isn't it that today with the said 'rise' we've had none of the oomah loompahs trolling on here today?
So there is something in it....but as SD says, they will have to buy back eventually.
I will still be here when they do ..whoever they are!