Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
This has always been advertised as a minimum 5 year hold. I'm lucky enough to have had this on my radar for a while and feel this is an ideal time to accumulate a long term position. I have a strong feeling we won't stay under 60p for all that long. As soon as the current issues are resolved this should climb back up quickly. All IMO.
GLA
Wrt fees, I don't buy under £1k, normally £3k trades. That way the max fees I pay is £6 plus stamp duty, or a max of 1.1% of the purchase. For a £3k purchase only 0.7% fees. Even very large transactions incur the 0.5% stamp duty, so buying frequently or one big doesn't add a lot IMO.
I agree JTS13. I'll be making small top ups over the next year. Only started a small position a few days ago and bought 5 small lots so far. This board is going quiet which is good news. The share buy backs will take time to have an impact, but they will when volume drops off. Crazy that only 8 months ago they issued 32m shares at £1.55 and now buying back for a fraction.
GLA
Thanks Starbright. Very useful and I've also taken up a small holding there. As well as the regional diversification I like the cash position.
Here I think the buybacks will be good, once they start. I believe they may need shareholder approval?
If you read the KID you'll see that this is recommended as a long term hold, and short term volatility is highlighted. Buy low. Sell high. Personally I think this is a perfect opportunity to buy. It is just my opinion and certainly NOT advice! DYOR GLA
I would sincerely hope that the company would not embark on buy backs if there was any question over viability. I am really surprised we are so far below NAV. Agreed NAV will have fallen, but nothing like this much. Shorters will be partly to blame, and the fear they try and instil in the market.
GLA
Looking very oversold here IMO. Nice approach by the BoD to switch from dividend to buy backs. They also reckon its oversold.
I think there have been warning signs in the BESS sector, so the fall much in line with others in the sector. This may have been impacted more, by its greater visibility of being the largest. Can't see what the BoD have done wrong. There have been plenty of director buys over the past year.
I would only worry if any declared sale yesterday. Can't see that as at all likely.
GLA
That's a big assumption to make. At the half year they declared "Committed to pay 7.35p per share for 2023 despite a drop in Operational Dividend Cover to 0.63x in H1 2023, following Operational Dividend Cover of 1.32x in 2021 and 1.28x in 2022." They have plenty of finance cover to ride 2024 out IMO. However, it is just my opinion. You cannot say for definite what decisions the BoD will take. It's a waiting game.
Average dividend do far this FY is 2c a quarter. However, think we may get a base dividend of 1.5c for the next payment because Oct to December was when we had the low river levels. With the uptick in production and oil price recently you never know! At least the following quarter is now looking good. Would be surprised if dividends don't average over 2c in 2024. Yes I'm also still increasing my holding on the dips.
Been trying to fathom what could be the cause of the drop. Reckon it comes down to the news headlines being put out of income falling in 2024. Will that be the reality? Seems conservative at £77 Brent. Production also conservative. In reality we're still on a PE of around 3. I'm happy enough to have topped up this morning. Showing as a sell due to spread at the time. Why they need to use the mid price for this is beyond me. Nice to see the continued investment in production.
From latest RNS I gather a CREI holder is now also buying into API for value. Currently you can get CREI at 68.1p by buying API. Assuming deal goes through, and I can't see why any major shareholder would want to block. Looks like a good deal to me for both parties.