Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Nah, I don't think I will be back - I am in the market for income so I out the 42.5k to work elsewhere.
I've been very upfront about how I make my living and gold is certainly a great place to be but I am just not convinced there is shareholder value here anymore. When I first bought it, I paid just over 40p on the spike and I ran it down to a average of 12.2p and in that time there has been what 2 placings and 2 lots of borrowing?. The problem is Dan and co get rewarded for a bad job because of their family business - they are not aligned with shareholders which is fine but every time they dilute it swings the risk reward further away from the PI. If they need to dilute again we as PI's run the risk of being bought on the cheap and I think that is a very very real risk here now sadly.
I got out not because I didn't think there was a profit but because I am at the stage in my life where within the next 18 to 24 months I might have enough in passive income to retire with the chunk I just took out. I think within the timeframe The potentially for the wheels to fall off here are very real and if they do stay on the risk/reward is just not worth the aggro. Id rather have the passive income at this moment in time.
I do genuinely wish everyone well, I think Ive owned this share maybe 3.5 years - it didnt work for me but I hope it works for others :)
I decided to sell at a £8500 loss on my c.415k holding.
TBH, I don't have any bad blood, I just don't have any trust in the BOD and I feel its being primed for a hostile takeover through the backdoor by CIG. It might go and multibag and I wish people luck but Id rather take the hit and move on than give more time on something that lets be realistic Dan has messed up on multiple times. Gold is at all time highs yet they need more money - it stinks.
@Bushy
The channels of advertisement have moved somewhat - social media is where it is at. Its not advertisement in the same way. So when I started the biggest gold and silver channels were around 10k followers and this is only 5 years ago. The odd channel was bigger than that. You are getting channels of 50k plus now for people just talking about precious metals. That doesnt include TikTok and it doesnt include instagram (I dont really use either but I know other new school dealers who do).
What I can say about YouTube from my own personal experience (Im on about 3.5k subs now). My audience has shifted in terms of age, younger people are interested in gold more than ever. The new ways of advertising are geared towards peoples interests on social media. There is clearly a reason why these channels are blowing up.
@Punter
I think that sentiment is already returning. I can only talk from my perspective as a coin dealer but I am finding more and more people are talking about gold - the networks are being filled up with fresh people who are enthusiastic about gold - whether or not that translates from physical to the stock market and even the junior part of the market is another matter.
What has also helped is that even though gold and crypto are on the same team, crypto stole the light until recently. Crypto is now a dirty word but gold has done its job for 5000 years...
13p being paid... not sure it will break 13p today but we shall see.
I think the market is waking up as there has been no bad news with this quarter, couple that with 2000 plus prices it could be a very tasty set of results.
I thought it was a pretty good interview and if he is right I will have to retract my comments concerning not giving him water on a desert ha
I am very optimistic about the share price in the short run. It feels like the powers to be are willing to let this drift up.
@Guvvi.
We can agree to disagree. I am not saying I am right and you are wrong but thats what I believe personally will happen. I base this off what happened during the pandemic, I bought this at just over 40p, it got to 40p because the mining sector got hot. I don't personally think the board can hit targets but I do believe they are in the right place at the right time.
We don't have to agree on the journey but Im sure we can both agree on the destination we want to be at when we get off the ride :)
Also,
I don't think this investment is about trusting the board personally - I wouldnt give Mr betts my last bottle of water if he was in a dessert and I was flying overhead to safety thats how little I think of him. BUT, I trust the world economy is screwed, I trust that by virtue of the problems we are facing on a global scale that gold will get pushed up and I trust that if I am proved right the heard mentality will push all gold miners up to obscene prices.
Its a tough one, Personally if it got to 24p I would walk away with 100k in my ISA or 6 to 7% in tax-free yield every year. It does depend on how it moves up - if it does indeed move up.
I personally think it can get to 30 or 40p, but it needs a few catalysts. None of them I believe to be down to the BOD, we need a shock to the US system such as a sharp recession which will force the market into safe assets pushing the price of gold up - we then need the media to shine on the gold part of the equities market. We also need some solid quarters in terms of output as the marginal income should be a cash cow. Combine all 3 of these and I think this stock will fly. In fact combine the price of gold and the media and most gold miners will fly regardless of quality
You could ask why I would sell for less if I believe that, Im in my early 30s - If I could walk away with 100k and invest via my ISA, added to my other Assets as a sole trader and a limited company, by the time I have unwound my position Im pretty much retired by the amount of passive income I have coming in :) Ill probably go travelling and enjoy the dying embers of my youth haha
TBH, under the board of directors you should expect them to put themselves first, they come from money and being aligned with shareholders to be frank is not on their agenda. @ Playboy, I dont think it is possible to remove them myself but I certainly think this will multibag from current prices even with them being leaches. I am under no illusion though, if this hits the pricepoint I am after I am selling the lot regardless of the prospects on the table.
@Bushy - Ive been told to take a month out for burnout grrr. The business has been flying - Success is clearly a double edged sword.
I don't often post on here but Ive been feeling super positive since the last quarterly - was slightly miffed at the share allocation to Mr Betts but I'm confident this will get back to higher levels. How high I don't know - would love to see 40p but we shall see.
@Bushy - Doesnt always work that way sadly, from experience when the prices go up like this the margins go down, the best markets to trade believe it or not are flat markets as you get consistent trade. Up markets I have to compete with every man and their dog as people want to cash in making its a buyers market, down markets turn into a sellers market if you can constantly source but usually you get stuck on stuck so have to use a rolling average
@Anon - I feel your pain, I feel we have been on this journey together. I just check my first purchase - I paid 41.9p!!! Almost had a stroke looking at it.