Our live Investing Matters Podcast Special which took place at the Master Investor Show discussing 'How undervalued is the UK stock market?', has just been released. Listen here.
Stanley that was the years from before the election of Pedro Castillo when Edoardo seeing what was coming sold 61.7million shares at £2 and we fell nearly 4 fold through the threatening politics and Inmaculada riot and closure threats until the regime change. Since then the mantra has change to you can always sell for more. So hold on the future is now bright especially since are also investing to replace falling output from old/closed mines. As written I have been rebuilding to the core I hold. Full of hope, lots of potential imho
Well no dividend again, but understandable as they still need to conserve cash to pay down big debts of last couple of years with the heavy expenditure on Mara Rosa etc to buy production to make up for ounces they have lost at their tired mines. About time. However IF gold prices hold up or rise and IF no more disasters political or natural, then the future looks good, jam next year but better than the last couple of years’ marmite imho
Also interesting that THS PGM basket’s biggest constituents now are, by my fallible calcs, Platinum 36% rh 31% iridium 15% and palladium only 13%. While Karo basket has Palladium and Platinum as biggest both at just over a third followed by gold 16% and then rhodium. So Karo basket has been recovering a bit faster this week. Remains to be seen if Palladiumnis a dead cat bounce or proves real
We usually have them a couple of years out, they have proved very useful over past few years enabling us to sell silver at $26+ which has been v useful when Pallancata silver so expensive to get out and prevented even bigger losses from that mine. This is a nicely electric share when it works
The RNS looks interesting though more years of jam tomorrow as they continue to invest heavily in building output back to replace the underinvested worn out mines they ended up with, however at least that huge problem was recognised, is being addressed and the future looks bright for the family and those happy to stick with the shares long term. In the meantime the gold and silver prices will hopefully help out though of course some of our output is hedged
Money man, thanks for the gentleness and being a such a gentleman, looking back through the figures you are right and maybe PGM’s have found a bottom, though a bit worse for Karo where Palladium is getting on for half I think. Also the basket is up a bit today so you are even more right. However PGM profits are down over the last couple of years along with the share price that seemed so cheap then but maybe expected this.
Money man, unfortunately the profits may fall as much as the share price with the continuing falls in PGM’s so the PE may remain around where it was. The world’s largest car market continues to increase the share of pure ev’s, already nearing 30%, even a small drop in demand for PGM’s can reduce the price a lot unless supply falls too and this is just getting worse. Luckily we have the chromium as long as this price stays up, but it seems to have halted for now while still plenty of inflation. Just as long as it doesn’t do a nickel. So the price seems fair to me for now with the Karo worry on top. It isn’t a great time to have a lot of debt and a capitalisation now just £144m. I wonder what they’ll say in the next report, they seem rather defensive now which I find a bit worrying, though all this is only my totally uninformed and unprofessional opinion as these bulletin boards are used and I certainly don’t suggest doing anything though I am still holding.
According to gold website the metal has just hit an all time high in sterling. What we need now is it for it to make an all time high ex inflation, ie in rel terms, to take account of increased costs, and bring the share price back to an all time high in real terms which is about 3 times what it is now