Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
It definitely has limited mine life which as stated why they are on the outlook for further opportunities if this is a worry try ATYM cash positive with a concentration plant on the go in a favourable jurisdiction.
Recent investor presentation with q and a at the end worth watching.
https://www.investormeetcompany.com/investor/meeting/interim-results-173
Caml bought Sasa in 2017 they have since completely paid off the debt, are debt free with $50m cash, continued to payout dividends while paying down the debt, capex will decrease this year returning to normal production expenditure.
The above suggests competent management obviously investors with averages in the upper 220 range will be not be happy with the current performance however others might of bought a position when the sp dipped below 200p or when the sp crashed 2.5 years ago it comes down to timing as is it is with all stocks, if this heads down 140-150p that to my mind would be an excellent buy for a well run profitable company, or to reduce your average.
Nothing stays the same situations change all the time taxes increase as they have here and as they have in other industries the windfall tax for oil companies.
The choice is wether you see value here or not, however one area that is not up for discussion is the fact it is a well run company.
There has been a flicker of improvement in Rh price this week which bodes well although we still have a lot of catching up to do. But it's not not just pgms we rely on Chrome is doing well to support our commitments at Karo.
Johnson Matthey released a series of videos a couple of months back looking at pgms well worth your time this is just one there are several.
https://youtu.be/n7BjuMqTADg?si=pKrogcjtbse9sHJZ
Hi Rich,
Whati don't get about buy backs is the mcap reduces by cash spent buying up the shares, I get we now own more of the company which is now worth less, okay EPs goes up which usually benefits management via performance in which increased EPs is a factor, no benefit as I can see for shareholders, because it's a manipulated performance, not through efficiency or innovation.
So in theory dividends payments should increase, however if they had just distributed the cash, or payed down debt when we were debt laden in my eyes far better usage of cash which is hard earned.
Of course management do very well so no wonder they favour them.
Over the years I think they have earned the right to be trusted, they have steered the company through some difficult times, economically in the country and the currency woes, while at the same time sinking the central shaft from cash flow was a great achievement.
Even though we have had some set backs with the new venture I trust the board
to get Blanket running at optimum levels to give the financial support required to the Bilboes project.
Nice to see the sp stabilise.
Hi Viable,
Yes I thought she is an interesting addition to the board her background certainly implies she can have some positive input and I don't think she is here just to pick the additional pay check.
Funnily enough I googled her but there was so many Emily Morris's I didn't know which one was her, so thanks for link.
We are in a inflationary period and this is worldwide not localised to Eastern Europe, all producers are impacted and their production costs have increased accordingly I would argue that Caml are still at the lower end of the producers cost curve.
If copper, lead and zinc are of interest there are loads of other companies to invest in, from exploration small caps to multi Billion £ producers we have the option to pick and choose, or sit on the side lines.
Tosh, if the company had distributed the cash as dividends instead of buybacks we would already be a high yielding share not looking at what might be in the future.
Can't complain about operation and production which are back on track and looking good, prices we can't dictate but they are holding up well.
However I will complain about the share buy back being a waste of money imo it does nothing, for all the shares they've bought back over years you would think we would be at a all-time high, but no, if they want to splash the cash just give it as a dividend.
By the way having lots of small share holders I don't see a need to buy them out.
Caml dividend policy is to pay out between 30-50% of free cash flow, however recently they paid out 82% which is probably not going to be the rule.
It should be noted that they are a lower cost producer and even with lower prices for their metals they still generate profits to support the dividend, obviously if profits fall then the dividend would decrease pro rata.
2027 seems to be the year being touted we will wait and see what happens.
Copper producers warn of lack of mines to meet demand for metal - https://on.ft.com/46nJO1s via @FT
Broker note released today with our results due later this week.
Kenmare Resources will release its Q3 trading update on Thursday 12th October. The key focus will be the delivery of operational improvements after a challenging first half, in our view. We estimate heavy mineral concentrate (“HMC”) production in Q3 of 378kt, delivering ilmenite end-product output of 276kt, zircon of 14kt and rutile of 2.2kt. Including solid H1 financial results (reported o 15th Aug), we revise our FY23E EBITDA upwards by 5% to US$236m. Our Dec’24E target price is unchanged.
I wish I knew what it was lol.
Another steady as she goes update capex due to reduce after paste fill mining gets into full swing at Sasa and the decline gets completed, then we return to normal operational expenditure.
Good to see progress on the solar plant, although music to my ears they only did it as tick box exercise for green credentials not because it was necessary for the plant.
With the current sp there can't be many lth in profit the IPO was at 35p, especially those who bought in the open market are well down at this level.
I can only assume some lth have bought at the bottom and flipped for a quick profit when we moved up, why wouldn't you, plus we still have persistent sells to push us back into the twenties.
Hopefully drop is due to general malaise in the market and although oil is down from its recent highs I would of thought JSE will be generally happy with the oil price.
The Cu news is mixed, while longer term we are heading into surplus territory currently we have a small deficit. However fund managers are bearish and are taking up short positions see link below.
The global copper market is expected to see a deficit of 27,000 metric tons this year and a surplus of 467,000 tons in 2024, the International Copper Study Group (ICSG) said on Wednesday.
https://www.xm.com/au/research/markets/allNews/reuters/funds-sell-copper-as-technical-picture-deteriorates-andy-home-53656571
There is no doubt Caml fcf has been hit, however in H2 there won't be the $7m Kaz withholding tax to pay weighed to H1, so hopefully production will be up a little to meet guidance improving revenue., I expect divis to decrease as it's a factor of fcf , as it stands expecting H2 to be better than H1.
The ideal time to add would be commodity prices increasing, interestingly although China is mentioned as weak demand I came across some info stating iron ore imports to China are as normal so steel demand there is the same but in the West they have decreased so if they are building stuff in China perhaps the demand for our metals will firm up.
Being in lower cost producers offers us some good protection as others will now be struggling with debt, inflation to wages combined with fear of a recession driving lower commodity prices which if looked at over a 5 year period hasn't happened yet.
Imo Lead Zinc and Copper are holding up well over that time span.
We have no debt reducing capex next year and a good divi which I see continuing, if the market wishes to mark us down therein lies an opportunity.
Copper concentrate forecast to be in surplus until 2025, smelter changes at sux year highs usually increase when there is ample supply and decrease when supply is tight.
https://www.xm.com/research/markets/allNews/reuters/china-smelters-keep-q4-copper-guidance-price-at-sixyear-high-53647734