Ryan Mee, CEO of Fulcrum Metals, reviews FY23 and progress on the Gold Tailings Hub in Canada. Watch the video here.
Here is a list of different investment companies with their current discount to NAV and if they offer a dividend yield:
Princess Private Equity Global - discount (13.1) - yield 4.6
Apax Global Alpha Global - discount (12.0) - yield 4.9
BMO Private Equity Trust Global - discount (14.8) - yield 3.7
Deutsche Beteiligungs Europe - premium 14.9 - yield 2.0
HarbourVest Global Priv Equity Global - discount (16.6) - yield 0.0
HgCapital Trust UK - premium 1.4 - yield 1.2
ICG Enterprise Trust UK - discount (16.0) - yield 2.0
NB Private Equity Partners Global - discount (18.5) - yield 2.9
Oakley Capital Investments Europe - discount (13.7) - yield 1.2
Pantheon International Global - discount (15.8) - yield 0.0
Standard Life Private Equity Trust Europe - discount (15.5) - yield 2.6
Symphony International APAC - discount (44.3) - yield 5.4
Peer group average - discount (13.7) - yield 2.4
A few years ago, they paid the Clinton Foundation close to $500K to get legal/political support to solve the issues in India. Clinton's are gone, the money is gone, and the Company has still the same legal issues in India. The new legal advisers are just an additional cost block which is not necessary - you can't win in an Indian court.
No = you have no mind?
No = can you prove the opposite?
Yes = management has been burning money of investors for years - management compensations were paid all the years, even when they failed with delivering
The failure to reinstate the Bhukia licence should be the final warning sign for any investments in India. The local court's judge, as they like and foreign investors were cut off. 13 years ago, the excellent investment story for a precious metal project in India. Later the spin-out of the West Africa exploration portfolio in Aforo Resources - which is bankrupt today. Then there was the story with Anglo Saxony. Now, after all the failures to deliver, again West Africa prospects. With the current market cap of £ 14 million and only $ 1.6 million on hand at the end of March with such a track record of realizing projects = everyone can make up his mind.
Most closed investment vehicles trading at the LSE have a discount to NAV, and some are more significant, up to 40 per cent others smaller, like a few single digits. The reason is the portfolio composition or liquid tradable positions, or non-listed private equity holdings. Some investment companies take measures to reduce the discount to the NAV by buying back and redeeming their shares or starting to pay a dividend. It is also a question of communicating with investors and paying a broker/analyst to write up a good story. Then, investors can gauge what to pay for the share a premium for the story/of the unlisted holdings. The current discount of about 1/3 is correct, taking into account the illiquid trading patterns. The market makers are visible what they have in orders in the pipeline. Like today, 10K at 11.5p bid - 30K at 13p offer = they have no buy orders on hand and a seller. If someone pays up 13p for 30K, the offer is probably gone, and the bid would move up to 12p, The same is, if someone hits the bid and sells 10K at 11.5p, the bid would probably move down to 11p. Just to explain how these market makers work. They have no interest to take a position on their own book - therefore limited trading liquidity, only when orders are on hand.
As soon as artificial imagination comes into gold mining shares - FRES will fly.
There is no market depth in share trading and most trades are generated by algo-machines.
So far most results of gold miners were not great as expectations moved higher. To top those high expectations - hard work. These companies can not pump hot air in their accounting like most other famous outperforming stocks - mining is real stuff. You can only sell what you mine & you have the costs - nothing else.
A hard standing for value investors at the moment - but cost inflation is not only hitting mining companies. Everywhere higher input costs are eating into profit margins as most industries/manufacturing can't pass on the price increases. Investors and market are ignoring to have passed another earnings peak like we have seen in the secon half of 2019, just before the pandemic was the right excuse for the erosion in profits.
I would still prefer to own FRES or EDV in London instead of the Russian names.
FRES management is not very communicative and they failed to deliver in the past years. The delay of Juanicipio and higher costs to build the mine with MAG Silver. MAG shares outperformed FRES by 30 per cent since April valuing the company with £1.3 billion, compared to FRES with £6 billion. Penoles still controls 75 per cent of FRES share capital, leaving the free float at 184.2 million shares = £1.5 billion.
Below my four posts with facts, TheThinker!
For sure, it will take a few years to develop this mine, but certainly, there is some value in the ground. As everywhere spending on discoveries of new resources were cut (today mining companies act more like a finance institution), it could develop to a bigger thing. Just imagine if a real deep pocket miner comes in and drills more than a dozen drill holes at once.
The geology speaks for LS, investors have to be a bit patient
IMAP mentions a total enterprise value of around €450 million for Almina. In Baco's Montepio annual report, you can find the valuation measurements to arrive at th €67 million on page 241/242. The bank received in 2020 a dividend of €1.7 million.
https://www.imap.com/en/article/2021/imap-portugal-advises-caixa-economica-montepio-geral-on-the-sale-of-its-19-equity-stake-in-almina-holding/
IMAP is pleased to announce that IMAP Portugal (Invest Corporate Finance) acted as exclusive financial advisor to Caixa Económica Montepio Geral (“Banco Montepio”) on the sale of its 19% equity stake in Almina Holding S.A. (“Almina”).
Banco Montepio, one of the largest Portuguese banks, sold its equity participation in Almina for a total consideration of €67 million, corresponding to a total enterprise value of around €450 million.
Founded in 1844, Banco Montepio is the oldest Portuguese financial institution, currently managing over €17.9 billion in assets. The completion of this operation enabled Banco Montepio to effectuate its plan to reduce non-strategic assets and increase capital ratios.
Almina is a leading mining company operating in the extraction of pyrites, sulphides, and other ores in Portugal, including copper, zinc and silver. It also has lithium and tin exploration activities. The company’s core facility operates the second-largest mining site in the Iberian Pyrite Belt, the main metallogenic province of the European Union. In 2019, Almina generated more than €130 million in revenues, and an EBITDA of c. €43.5 million.
The IMAP Portugal team, led by Gonçalo Vaz Botelho and Pedro Benites, acted as exclusive advisor to Banco Montepio.
In Ascendant's press release of 9th June, the combined M&I resources is 14.75 million tonnes & Inferred 10.17 million tonnes.
The silver grades at Aljustrel are 53.1 g/t (P&P), 53.6 g/t (M&I) & 48.4 g/t (Inferred)
At Lagoa Salgada the grades are in the North Zone 64.0 g/t (M&I) and 38 g/t (Inferred) & in the South Zone 18 g/t & 19 g/t respectively. The lower silver content in the South Zone is compensated by the higher copper grade.
Because Almina is a private company, it is difficult to get some details on production or resources. In the Investor Guidebook of Wheaton Precious Metals (WPM), published in September 2020, we get some details. WPM holds a stream on the silver in the Zn&Pb concentrate which is mined. WPM shows a 2-year average silver production of 1.242 million ounces. Proven & Probable silver reserves and resources with 15.5 million tons, M&I resources 17.0 million tons and Inferred 14.0 million tons. I think, we can assume the tonnage is equal to the resources of zinc/copper equivalent measures.
https://econews.pt/2021/07/01/banco-montepio-sells-19-stake-in-almina-for-e63-million/
Banco Montepio sells 19% stake in Almina for €67 million
ECO News - 1 July 2021
The bank led by Pedro Leitão has sold its stake in Almina, a mining company in Aljustrel.
Banco Montepio sold its 19% stake in Almina, a mining company in Aljustrel. The operation resulted in a gross cash inflow of €67 million but will have no impact on this year’s results.
In a statement sent to CMVM, the bank led by Pedro Leitão said that the deal will have a positive impact on its capital ratios, “estimated on a pro forma basis at the end of the first quarter of 2021, of 7 basis points in Common Equity Tier 1 ratio and 9 basis points in Total Capital ratio, in both cases reflecting the decrease in risk-weighted assets, while the impact on net income for 2021 was neutral.”
At stake is the sale of 9,500 Almina shares, equivalent to 19% of the mining company’s share capital, with the bank not revealing the identity of the buyer. It only said that “the completion of this transaction materialises Banco Montepio’s strategy of continuous reduction of non-strategic assets and represents one of the measures to increase capital ratios as set out in the Funding and Capital Plan.”
Banco Montepio, which is almost entirely owned by Associação Mutualista Montepio Geral (AMMG), recorded losses of €16 million in the first quarter of the year.
I have to correct your figures 1 + 2.5 million US$ divided by 1.3770 US$/£ equals 2.54 million £ or 63 per cent of the current market cap. Your general assumption is correct, but as long there is not a better communication and care taking of shareholders you will have alway too many shares when it trades down with no volume , and not enough when it spikes up.
We can discuss here for- and backward, week by week – as long as the communication from the management to investors is not improving – the share trading reflects the missing communication.
Probably most important as a yield stick, Ascendant shares traded at the end of March at 18 cents & three months later at 24.5 cents = a gain of 35 per cent!
MAFL traded at 10.75 pence at the end of June at 11.5 pence = a gain of 7 per cent – a stellar underperformance!
Today, with a sale of 500 shares, you bring down the MMS bid side by a whole pence! Forget to buy a sizable amount on the offer side of 11.5 pence.
With the recent payment of one million Dollars, something for shareholders could be done, i.e. paying out a quarter of that amount to shareholders would result in half a pence dividend = generating some cash flow on the holdings. If shareholders would be happy and reinvest the dividend, that could create some buying of up to 1.5 million shares.
The sale was sanctioned by one of the state secretaries, and EDM backpedalled in 2018. The 15 per cent stake stayed with EDM. The sale was even published in the 2017 annual report of EDM. EDM holds the stake as a carried interest = they have not to invest in the current exploration work. When Redcorp has a feasibility study (FS), EDM can dispose of the stake. Otherwise, I assume they would turn to be a partner of the project and have to pay up for all costs arising after the FS is done.
Therefore Redcorp owns 85 per cent of LS, and Ascendant can acquire up to 80 per cent of the LS project = MAFL will hold in the worst case only 5 per cent of LS. But when Ascendant fulfils its targets to increase its stake from 50 to 80 per cent, a feasibility study has to be prepared.
MAFL will have the option to renegotiate the repurchase of the stake with EDM. Indeed, there will be a specific value for the project if it would go into construction/production. But the price will include a lot of components of past work/expenditures that will reduce the price tag.
From today’s valuation point, the option agreement foresees another payment in June 2022 of one million US$ to give Ascendant 50 per cent of the LS project. Just six months later, another payment of 2.5 million US$ is due, including the feasibility study (FS) moving Ascendant to 80 per cent of the LS project.
I don’t know how expensive is a FS, but Ascendant has to invest more money till next June into exploration. If they want to reach a valid FS, they need to drill a lot from now on to increase the resource base to make LS economical.
Today Ascendant has 95.9 million shares outstanding and 21.3 million options outstanding (many at 0.30 c$ from the previous financing). The market cap is 23.5 million c$ for the current 25 per cent stake in LS and paying up all the above – £ 13.7 million = a 5 per cent stake = 680’000 £, just on today’s values.