focusIR May 2024 Investor Webinar: Blue Whale, Kavango, Taseko Mines & CQS Natural Resources. Catch up with the webinar here.
Mike, what do you reckon the PGM aisc for the big 4 is, how much do they have other metals ie anglo, imps, sibanye, nord nickel (which says it all) and what is ours. Presumably they have deep pockets?
Thanks again, Mike for your informed knowledge and courtesy in sharing it, much appreciated
Ps nice to see Rh bounce this am off that $4000 line in the sand on the same day as the figure, let’s hope it is more than a bounce of a cat…
Yes it was good cash flow despite chromium production being slightly down, but these results are from when the basket averaged just under $1700, so with the basket now down by near $400, this quarter will be very different. The company has been talking up PGM prices all through this fall quoting the analysts’ concensus which has been invariably wrong. The truth is no one knows, but I have reckoned down though I don’t know if rh has found its $4000 floor or the alternative of sub $1000 will happen . So nothing here to affect the share price looking forward other than a bit of disappointment on chromium figures, and Vulcan production, which we know about from Phoebos’ last presentation, but market may not have clocked, and increasing China chromium stocks as demand falls. Still we are much better than SLP!
Basket down again to just over $1300 per expectation so now becoming loss making, Karo around $1250 and would be rather more loss making. On chromium that will hopefully save us does anyone know the difference between SA Cr2O3 which is down from a top around $307to $287 with just a a small slip this week, and SA HC Ferro Chrome 50% which has fallen from a top of around $315 to around $245, a much bigger drop, and another 2% this week. Which of those two is how important to our profitability or stemming our losses? Thanks
Moneyman last thing Tharisa should do is a buy back; they need to do the opposite and conserve cash for Karo imho
Moneyman I think the current share price assumes that PGM’s will fall further and make losses for THS as ICE market share falls, and chromium fall further in face of Chinese slowdown. If either of these doesn’t happen and outweighs the other, the shares should rise, if not may continue to fall. It logical forward view if not necessarily right
Thanks so much Dave, Hochschild management is either very unlucky….or……. It doesn’t bode well for Inmaculada permit if they can fail so easily with Aclara. I wonder if Bustamente was pushed by the family? They must be pretty worried despite having sold such a large chunk at near treble todays price, seeing what was coming….
Paul. Gold was up about $2100, costs were much lower back when I said in Aug 2020, when share price was a fair 230p (with profits near 3 times higher than now) that if this continues “With rising gold I raise my fair price of Cey from 230 to 240, I may have to upgrade my earlier 250 by sept and 300 by Xmas. “. MAY have to. Well the facts changed and as Keynes said “when the facts change I change my mind, what do you do sir”. Costs are a stunning 50% higher and gold 10% lower, so profit per ounce down from maybe $1200 to $450. We all non plus ed and wrong footed apart from maybe Mr Decker by the unforeseen wall collapse and all that ensued. Since it happened I have been sadly pretty right. Let’s hope costs begin to fall!
Just Google YouTube sharesoc Tharisa, or this might work https://www.google.co.uk/search?q=youtube+sharesoc+tharisa&ie=UTF-8&oe=UTF-8&hl=en-gb&client=safari#fpstate=ive&vld=cid:7d3b8df4,vid:mc6dhCWd5Zg
Slp down 7% today, they deserve to fall faster than us without the chromium to help pay for PGM losses
They only need to give workforce notice of when they will stop being paid. The company have made it quite clear there is no legal cover for operations to continue and they could be told to stop anytime now if not repermitted
Moneyman and Mike, well I just reinvested ÂŁ10k of the dividend back in Tharisa at 70p, it may go down a lot further but ultimately should be worth more plus when I get this gloomy it is normally an encouraging sign
Yes apart from Chromium demand is rising and never predicted chromium prices would fall. however, PGM demand looks very much like it will be lower, esp rh, when Karo comes on stream tho maybe you are right and despite that PGM prices will have recovered with wars mine closures and the unforeseen reducing production, or biggest ever economic boom meaning despite Bev taking increasing market share, overall market grow so fast that ICE doesn’t decline.
Moneyman. Did you listen to Phoevos latest presentation, Vulcan has sadly not worked as promised and will likely never do as expected, so the recovery figure will only rise a little from here. Still better than nothing as should end at 80% recovery. This quarter should be good, it is the forward guidance that might be a bit problematic for the share price. Ian I just don’t trade as I seem to get it wrong so I just hold for the very long term and in the very long term this is one of the best managed mines plus as Moneyman says it is currently a great chromium/PGM mix though Karo will reduce the chromium importance
Tornado slightly disagree on the reason, I think it is because real interest rates are rising again, now around 2% in the USA on the 10 year TIPS, the norm for calculating, and many investors see this rising further putting pressure on gold. The whole sector is down on anticipation of this, though investors may be right or wrong predicting the future, but that is what markets do
Well Professor Tharisa post weekly figures on Twitter every Monday. I think this week must have been wrong as Mike suggests at $1523 for Tharisa and $1335 for Karo, so maybe you are thanking the corrected price posted on Tuesday which was over $100 lower? I for your info made it $1409 and $1301 yesterday and I make it $1372 and $1287 today. Whatever it is dire, as I have been posting for over the last year, and to many’s annoyance, this was very foreseeable, never believe what you read from analysts as have vested interest and also probably don’t know the share as well as us, covering so many. We seem to be accelerating towards capitulation, and I still see rh halving or more as the price overshoots. On the plus side rh is now only 30% of tharisa basket and 15% at Karo, with platinum now being biggest at Tharisa, good, and Palladium at Karo, not so good. Also goodish is other miners will be driven out of business, while hopefully we should survive especially if China has a stimulus and chromium turns back up again to cover PGM losses and Karo investment, and maybe if we mothball Karo, which as someone else pointed out here already has a negative value in the share price, becoming increasingly negative by the day and still needing a lot more of our cash, plus of course cutting the dividend. However once we are out the other side, which will take a few years, we could be considerably higher albeit with lower dividends en route. Just to add I am a long term holder not a trader or shorter, I tell it as I see it and even tho share price may halve I feel too late for me to get out and if I sell the turnaround will happen immediately! I know others of you continually see a PGM turnaround but with ice production falling, why till world production falls? Please don’t shoot the messenger