Member Info for RichTheNewbie

I suppose the other thing is, gold has managed to stay pretty much level so far, despite the US10Y treasury yields jumping up.
You could basically call this another sign of strength for gold as it usually heads south when the treasury rates head up (earlier in the year, when the rates were at the peaks like this, gold was hitting its lows of the year).
In fact, whether the news is good or bad for gold, pretty much anything tends to see it get an initial hit, before subsequent moves!

I think this transitory inflation claim is the only thing the Fed can claim because they really don't want to raise rates and start a vicious cycle.
A bit like the Silver nonsense recently where the LMBA claimed to have over 10% more silver in their vaults than they've now admitted. They just bluff at key times (in the latter case when silver rises looked to be gathering pace).
Everyone can see inflation everywhere, from any of us in the supermarket, to Warren Buffett reporting on his businesses.
The fed can try and pretend this is "transitory", and some of it will be, but that's just a red herring, like Boris Johnson's claim he paid for refurbishment out of his own pocket (we'll just gloss over whether someone just stuffed that pocket with money).

Rocketing back up....looks like a dodgy stops raid so far.

Unless its a stops raid.

Inflation higher than expected - gold down - go figure.....

Slift - seriously you just need to read what we're saying. You're coming to near enough the same conclusion as us, it's just your logic for the valuation of the existing shares doesn't stack up, which is why you come out at a higher valuation. Anyway - I'm off - makes no difference to me :p

They're not contradictory statements - you're still not reading properly. Slow down and try to understand it. You're arguing with something you'll agree with.

Slift - you're not reading properly. Read again.

Slift, I think you got your maths wrong, on the basis that you valued existing shares at existing prices, which they won't be when the transaction happens. If you had a company worth 100p now than then diluted by 95% at 1p then all the shares are worth 1p basically and trading resumes from there. The existing 5% don't stay worth 100p.

So instead of your:
1992m shares x 0.8p = £15m
new "proposed" 37850m shares x 0.1p = £35.35m ($50m)
Total 39840m shares (for when the shares come into the market, i.e. dilution happens) = 0.126p/share

It should be:
$50m for 95% of the fully diluted equity which means 100% of the pot is $52.632m or £37.24m (at current exchange rate).
So with 1,991,871,556 shares in issue currently. That means 39,837,431,120 following dilution.
Which means the share price equivalent is £37.24m/39,837,431,120 = 0.09348pence per share.

Or in round numbers, 2bn shares before, 40bn after. That 40bn are worth £37.24m at the transaction price. So the shares are worth the 0.0935p based on that. They might rise like a phoenix from the ashes from that price.....or not....but that's the baseline in this transaction.

Vic: Off topic from this, but in case it helps you, as I can see you were after a faster browser, try using the Edge browser built into Windows now (or download it if on old Windows).
It's based on Chrome (basically the same thing) but rather surprisingly it's actually considerably faster than Chrome (or any other leading Browser) for a lot of machines (especially lower powered ones). I used to use Chrome and switched to Edge a while ago and have never considered going back for a second.

Yeah, I prefer to buy gold miners, not gold, because gold could drop all the way back to $1700, and Shanta would still make very good money (with all the exploration upside to come etc). The peaks and troughs of how the SP performs will be up to uncontrollable factors but the company performance will reflect it in the end.
So, whilst buying/selling gold gives you the benefit of immediate rises/falls, the advantage of a gold miner is the price is a bit more volatile regardless of the gold price, but can still earn you money if the gold price doesn't rise, or even falls. If the margins are good and the company keeps making money / exploring well.

Oh. Just noticed the FTSE's down nearly 2%. That might be why. You always seem to get the odd seller on big market down days as people reshuffle/get margin called/etc. Cmon Shanta...now find your momentum.

Cheeky seller has just changed taken tack and now selling in blocks on the normal market rather than auction. You reading these boards? I need to find something else to keep my interest whilst they feck orf. ;)

No sell order anymore in the morning auction so does indeed look like that big block is done. Now come on buyers lets see if you're free to push this to the next level. Reckon it'll take next to nothing now.

ColonelDrake - I suspect it has a lot more to do with the "everything rally" still being largely in effect. So whilst POG might be rising, and the warning signs flashing on radars, inflationary or otherwise, many investors (from PIs to IIs) don't care and are still riding the everything rally (which tends to rotate between sectors on a shorter timescale than ever).

I think you've got gold/goldies being bought up slowly and steadily by some (MorningStar ownership tab for this shows a pretty wide range of IIs/Funds coming in) but what'll really kick things off (on gold stocks in particular) is when these easy wins on everything else fade out. As valuations become even more ridiculous this will happen (imo).

However currently we're still in the phase of "wow this company's numbers are 50% better than last year!" mode or "wow the economy is forecast to grow 40%" mode. Despite percentage numbers from an artificial low being the worst metric of anything you could possibly use to judge anything. Like the everything rally....it can't go on forever. Especially if they finally start to taper all the money printing pumping things up.

I'd not really grasped these UTs before (perhaps I still don't) but when you can see the orders popping up it helps make more sense of it.
I previously wondered why things often rose the next day after a big UT which wasn't at the buy end of the normal trading spread.
Having watched today, it was clear there was a block of shares for sale going into each scheduled auction, trying to be shifted.
So now, instead of thinking a big UT on the low side is a bad thing, it seems fairly clearly to me that actually what happened is buyers turned up at the end and bought up all of that remaining big sell (at a better price than they'd have got on market).

Some buys got added right at the end there to munch through all of that large sell :) (UT of over 316k)
Tune in next time for more fun and games on the order book...potentially a good morning tomorrow.

And two more bids of 25k on the buy side. So could be a UT of 163347 at 14.8p

301,279 now. Another 113,347 on the other side in auction this time. Should be another big chunk taken out of it unless things change.

Someone keeps lobbing on a block of 401,279 shares during the auctions. Someone just took a snipe at it though and bought 100k of it. Will have a look if the number is reduced later and whether it's the last of a worked sell disappearing.