Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
Interesting history, it seems this guy has no scruples and certainly no allegiance to shareholders makes me wonder why this unsavoury character has found a home at JSE.
Excellent results today EBITDA up over 90% says it all, healthy bank balance and a good opportunity to reduce net debt to lower levels while high oil prices persist.
Confident the acquisition of MPNU will conclude, if it does it will triple production mind boggling.
The pipeline export route is welcome news from a security viewpoint, plenty of activities going forward with a minimum of ten well for 2022.
Moving out of high cost fields to focus on other opportunities.
Full year production 50-54k boepd, capex $160m.
Yes it is a great deal, the timeline shows how long it takes to get these deals done, it wouldn't be surprising if further deals are on the go right now for an increase in ownership of this asset as a small percentage ownership doesn't fit with their previous business model, nice to see the market respond in recognition.
Even though I am generally negative about our management, in fact justing thinking about the tender offer raises hackles, all that money thrown away we should be sitting on a cash pile with the sp at least 30% higher I am not down about the asset, or prospects.
Private equity must be rubbing their hands at the way this company is under performing, if not outright shorting it driving down the sp for the sting, let's be honest if an offer came in 30% above our closing price today it would probably be considered even though it should be laughed at.
With markets heading lower a recession probably on the cards we are ripe for a low ball offer and I have very little confidence in our board who if it was in their interests via a continuing role of some sort would recommend it imo.
I am suggesting that yes demand will decrease but I also see current worldwide production decreasing across the board due to processing costs, the new production due online delayed due to market conditions that would not be a suprise.
So as unlikely as it seems on day like today when the dust settles I can see that it is possible for a deficit to appear in the market.
This is dependent on the new forecast production not coming online when expected I think it will be delayed, figures revalued then the reality hits we have a shortage.
One thing is for sure, if there is no money to be made from Cu then it doesn't bode well for rest of the economy.
So they reckon copper supply will outpace demand over the next two years, depending though on new supply coming online, interesting as interest rates rise and next one in a couple of weeks expected to be 1% maybe production will not hit the highs that is expected via the models run by the forecasters.
I am suggesting this fall in the copper price is not being driven by overproduction or a glut in inventories which are at reasonable levels compared to the historical trend however the market is pricing in a recession.
https://www.mining.com/web/global-copper-supply-to-outpace-demand-next-year-says-rbc/
Hindsight is a wonderful thing, there have been opportunities to get out here at a much elevated price than we currently have, we had the mystery sell off a while back, yes we knew about increasing electricity, we knew about a falling copper price, we knew about inflation and costs on the rise.
So ATYM might be well managed and is improving things were it can eg the solar plant, however external events have got the upper hand at present China lockdowns however it's a difficult decision whether to stick it out or sell, the only consolation I can see is volumes are low we are financially sound the drop is exaggerated on a generally downward few days for the market.
Results as expected due to the vessel maintenance hitting the shipping supply.
I could suggest we always miss opportunities to shine deliberately but I think that would be giving to much credit to those in charge.
We have our next major expenditure staring us in the face, a de-sliming plant added to the floatation units, only thing is we are behind schedule something should have been happening now, otherwise that will be the reason for guidance being reduced or not met, I can see the excuses now.
Would a switched on management do any better than our current board who have the ability to make a world class asset average.
Hi RedRoy,
Thanks for the feedback, seems like we are tracking the gold price lower rather than issues at the mine, nice to know they are also looking at improvements to what operationally has been a successful ramp up into sustained production.
We can't complain on how things are going as it seems everything is being addressed whether drilling to extend operations near mine or our opportunities in Senegal and Burkina Faso funded by our success at Segilola.
Only sp performance is a dissatisfaction at some point the market will hopefully will rectify that.
Interesting comparison the only thing I would add is both have managed to increase their financial health during weakening commodity prices, (not for Chrome) both have management's who know their markets and run their businesses accordingly.
SA seems to be discounted unfairly imo as a place to do business when as far as PGMs are concerned it's a world leader.
Another solid update in uncertain times.
Solid update today and we get mentioned first off in today's VSA morning miner.
https://m.soundcloud.com/user-596578261/5mmm-20220712-084357-meeting-recording
Typical AA shenanigans if I was a KIST shareholder which I have been in the past I would be rooting for him, a great deal for them if he pulls it off, however from our perspective it doesn't come close to reflecting our worth, the only good is that if some other suitor is hiding in the background they might feel obliged to show their hand, let's be honest here KIST will not be the only one running the rule over us with our cash pile growing by the day and lowly sp by comparison.
A late RNS appeared the Q2 update which is the reason for the rise in Canada it makes for pleasant reading.
23,785 Oz gold produced
Aisc maintained $850 - $950 per Oz
$14.5m paid off the debt facility
Guidance 85k -100k Oz
6MW of generating capacity commissioned using all Nigerian sourced oil/gas
Those are the major talking points more information in the table regarding amount of ore mined etc.
Well if any of us were beginning to doubt operations here that update puts that fear to bed, great update well done to Segun and his team.
Interestingly UK vehicle production increased for the first time in ten months recently, although still well down on pre co levels, at the same time this last week news out in the US is saying a glut of semi conductors is on the cards instigating a crash in chip makers prices.
We also still have issues with supply chains however with news of increasing production, more availability of chips which was a huge issue fading we only have the recession and other supply chain issues to worry about.
It looks as though PGM demand should remain steady at current levels.
https://www.motortrader.com/motor-trader-news/automotive-news/uk-car-production-first-time-since-june-2021-30-06-2022
Excellent news to see production has restarted with a temporary repair and the full repair will commence shortly, the company stating there is no threat to the environment.
I have read some posters saying possible structural damage to vessel would need weeks and if unlucky months to put right, then the regulator would be difficult and strict impling JSE would not be back in production any time soon,
All I can say is the management have worked round all the issues and got us back in production in a short period of time, and in time we will get the full details.
Well done the JSE management team, incidents and accidents will always occur it's how a company responds that matters.
I was listening to VSA morning miner and they mentioned Altyngold had just announced its results $18m profit mcap $36 it's in Kazakhstan, it looks interesting if you like undervalued gold miners, Kaz though a friend to Russia in today's world is something to note, a quick look over at their board I see retired banker is fan, one to add to the list for further investigation.
https://www.investegate.co.uk/altyngold-plc--altn-/bus/final-results/20220627070000Z1206/
Price activity here has been a little lacklustre lately but it seems as with Altyngold the problem lies in the story not being known and the company not pushing it.
Thought it might be of interest I am not invested.
Are you spreading fear porn?
You could of referenced the paragraph below or linked the article.
NOPSEMA has issued a prohibition notice to ensure production is not restarted until it is satisfied the structural integrity issues have been rectified and risk of further spill has been mitigated.
https://www.energyvoice.com/oilandgas/421668/jadestone-hit-with-stop-notice-after-oil-spill-incident-poses-significant-threat/