Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
So enough cash to pay the current complaints provision.
Going to be a cash call for working capital purposes coming I’d say. Thought?
A cracking Q2 over at Shanta released today. Hopefully we get an equally fab update in due course
Iron ore dropped 5% so probably reason for the sp fall
It reads to me like they won’t be persuing that arrangement following independent mine financing. I assume which is why we haven’t released an RNS
Looks like a reverse takeover in essence to get ARX listed on Canadian stock exchange - now we know how they are going to raise funds to earn in their 49% stake in dugbe.
Sounds like progress to me. Anyone else?
Thanks for your comments, I’ve put it at 1000 as dan mentioned with the higher gold price he will re-sequence the mine to smooth profitability over long term. I assume this means get the higher to reach fruit now and pick the ground height fruit again should gold price fall. If that makes any sense lol
Just updated my forecast for this rising gold price and at 1700 gold and all in sustaining cost of 1000 average for the full year I estimate pre tax profits of £42mill with ebitda around £90mill. Not bad for a £100mill mcap company. I look forward to H1 accounts and seeing how my simple model stacks up!
I think I’ll e-mail and ask.
I wonder if the banking covenants restrict a dividend?
£5mill would be a 5% yield at current mcap and I imagine would stop SC selling down. Only thing I can think of which makes sense in this high gold price environment.
What I want to know is when we will get the re-rate we deserve!
There won’t be any dividend yet, we’re extending the life on mine on yani, plus buying another asset to become 200k gold producer within 2 years. We don’t need a dividend, the capital re-rate alone should sort shareholder return and minimise interest payments.
Definitely on Taurus, the other two items will be capex and recorded on balance sheet, and subject to depreciation over time.
Just been reworking the calcs, with the AISC at 1000$ for the year, if we produce and sell 115k ounces at an average of 1600$ per ounce we will be on for $27mill pre tax profit But if spot price smooths out at say 1700$ for year. Looking at near $38mill. This allows for say extra overhead costs associated with new project at $2.5mill I.e legal and travel etc - complete guess, on the later obviously.
Anybody got any figures for comparison to ensure my model is ballpark?
It’s all in the update - staff & logistic issues. FairPlay to Dan he is doing to proactively manage and putting in an airstrip, of course the cost would rise.
As for trucking of ore, he is spreading the profitability of the mine at a time of higher prices to smooth rather than just maximising profit in short term. Again great management.
I think dugbe is a great deal, fully funded now until potential mine build. Would have been a huge cash drain. If an oil company had done this people would be going happy. partner is taking responsibility under HUM control and this lets management focus on spending our cash for LOM expansion & Small value enhancing Mine acquisitions Such as Coras. I keep buying on all the dips :)
Ps: who are all these posters slating the deal, never seen them post on this board before lol
Great news, this is now fully funded at no cost to pre mine build. Place value on that market makers!
By which time In 2 years we should be well on our way to fund our share of the build cost through our cash cow mine.
Brilliant work dan betts!
These are fantastic results. Great exploration.
We are running at another 350 dollars spot price above revenue 2019. At current spot ave for 2020 should hit 200m revenue and ebitda of 90mill as per recent broker forecast. Well done Dan! It’s a buy from me!
The government will be announcing a massive infrastructure boost come H2 via QE to inflate away all this debt. Kier should benefit by picking up even more work as a key partner. Thankfully they have got their margins under control. The need CEO and management team are doing a great job restructuring.
Totally undervalued which drill results come in for LOM extension - easily 60p by end of 2021.