George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
The price of gold climbed above $1900/oz for the first time since May. Good news for gold producers like Resolute who already had generous hedging agreements in place and which are likely to have improved in the next quarterly update as the company tend to secure better put prices compared to the prevailing market price.
Reuters reports the rising gold price was further buoyed today by slower growth in U.S. consumer prices increasingly the liklihood of the Federal Reserve continuing with smaller rate hikes and possibly reversing course later in the year.
U.S. consumer prices rose by 6.5% in the 12 months to December, the Labor Department said Thursday, announcing the slowest inflationary growth in more than a year and indicating smaller rate hikes ahead by the Federal Reserve. The Consumer Price Index for All Urban Consumers, known in short as the CPI, slowed exactly as forecast by economists, after a 7.1% annual growth reported for November.
“This was the smallest 12-month increase since the period ending October 2021,” the Labor Department said in a news release.
The CPI hit a 40-year high in June when it grew at an annual rate of 9.1%, versus the Fed's inflation target of just 2% per annum. In a bid to control surging prices, the central bank added 425 basis points to interest rates since March via seven rate hikes. The Fed, which executed four back-to-back jumbo rate hikes of 75 basis points from June through November, imposed a more modest 50-basis point increase in December. For its next rate decision on Feb. 1, economists expect the central bank to announce an even smaller hike of 25 basis points. The Fed funds rate — a tool used to gauge the odds for a certain quantum of rate hike — was at over 80% on Thursday for a Fed increase of 25 basis points in February.
The dollar was at a six-month low versus a basket of six major currencies that included the euro and the yen.
Thank you for sharing all the recent developments here Rivaldo. It’s very much appreciated!
Happy New Earrr!
Hopefully we never have to deal with more than two willies!
Still waiting for that placing dogturd?
Those were unprecedented times. Global disruption stemming from Covid lockdowns..
Going forward MEGP is poised for further growth
Follow-on investment in Libero Copper & Gold Corporation
19.8 per cent. holding maintained as part of Libero's CAN$2.0m placing
Anglo Asian Mining plc ("Anglo Asian" or the "Company"), the AIM listed gold, copper and silver producer primarily focused in Azerbaijan, is pleased to announce it has made a third investment in Libero Copper & Gold Corporation ("Libero") to acquire 2.6 million new shares at CAN 15 cents per share for a total consideration of CAN$390,000 (US$289,000).
The investment, which maintains the Company's 19.8 per cent. shareholding, forms part of Libero's recently launched private placement with gross proceeds of approximately CAN$2.0 million (US$1.5 million) to be used for exploration at the Mocoa and Esperanza copper porphyry projects in Colombia and Argentina respectively. Further information about Libero's properties can be found at: https://www.liberocopper.com.
Libero is listed on the TSX Venture Exchange (ticker LBC) and owns, or has the right to acquire, several copper exploration properties in North and South America including Mocoa, one of the world's largest undeveloped copper-molybdenum resources. Anglo Asian now holds 18.1 million common shares in Libero, as well as a total of 8.9 million warrants exercisable at CAN 22 cents and CAN 75 cents per share as set out in the table below.
Libero provides Anglo Asian with exposure to significant copper resources, in addition to the Company's fully-owned projects including the world-class Garadagh resource. Anglo Asian is currently at the final stages of developing its medium-term growth strategy, culminating in its transition to becoming a copper focused, mid-tier mining company.
Anglo Asian CEO Reza Vaziri, commented: "We are pleased to make a third investment in Libero in little over a year. With an exciting range of significant copper assets across the Americas, and an experienced management team, we have the upmost confidence in Libero to develop these assets in a swift and responsible manner. I look forward to updating our shareholders on Libero's progress in the coming months."
Absolutely shameless. You've copied that post onto many gold producer chat boards today.
Lagging behind the likes of Endeavour, Yamana and Fresnillo but slow and steady gains shouldn't be sniffed at.
Good to see volumes increasing here and a likely retest of 18p next week! Commodity prices are catching a bid every time the USD becomes stuck (which is often these days).
I3E are a great little dividend play, monthly payments set to increase this year after the recently announced increase to dividend. In terms of other gold producers paying generous dividends, AAZ are a junior producer with a low P/E paying 6-7% at the current share price and then there are juniors like SHG and GDP that will pay better dividends as they increase production. All the majors like FRES, CEY, WPM and Yamana are good for diversification but not nearly as attractive as PAF.
Nobody in my investment group had heard of BEN two months ago and I know a couple of friends who refused to dip toes. They could be up 20-25% had they had the conviction to make the contrarian decision to buy against the market trend. The share looks to have swung right back into favour now. Admittedly many of us (myself included) now wish we had loaded up more over the Christmas period. Enjoying the discussion and speculative musings, there is much to be excited about and the potential catalysts for share price growth look stronger by the day.
GLA
Hounddog10 - Thank you for adding those points and on dividends I agree, a twice yearly dividend with scope for increases will be a driver. Eric mentioned raising dividends with Singida cash-flow during the last HY results presentation which gives us an earliest date for review of mid July. Given the early stage of Singida's mine life at the Interim period they may opt to delay raising the dividend until they have achieved at least one quarter at optimum production levels. We would in theory then be looking at a increased dividend in January 2024 when the FY 2023 results are due.
With regards an initial mine plan at West Kenya I couldn't find anything in the updates although following the MRE due this quarter it wouldn't surprise me if they did announce they are pursuing this avenue. The high grade, near surfact nature of the resource with a substantial portion M&I opens up the possibility of early open pit mining. This early route to production at Ramula was mentioned in the Q&A session of the HY results presentation (link to audio below).
https://www.investormeetcompany.com/investor/meeting/half-year-results-31
Q1: Is open pit mining a possibility at West Kenya to generate some early cash? if it is a possibility what rough timescales?
"What we are doing as part of the Feasibility study is we are looking at possibly bringing Ramula on as an early producer. Ramula would be an open pit operation very similar to Singida. There's a couple of reasons why we are looking at that. One is it's a phased approach and less requirement for capital. Number two, open pit mining is much simpler than underground. We believe we could put something like that into production much sooner than a larger underground operation."
To clarify the future annual cash-flow of 60-70 million dollars mentioned is NL + Singida
There are a number of value catalysts coming in the year ahead including:
- Delivering the 2023 work programme in Q1 2023
- Confirming another strong quarter production in Q4 2022 (results due in two weeks)
- Completion of the Isulu Bushiangala and Ramula Mineral Resource Estimate in Q1 2023
- Announcing completion of Singida construction and first gold pour before end of Q1 2023
- Achieving increased group production and record half year production
- Record half year revenues and forecasting anticipated record full year revenues
- Increasing mine life once more at the New Luika Gold Mine
- Reducing net debt position, turning net cash positive by Q4 2023
- Achieving 100,000 oz production on an annual basis by end of Q4 2023
The full list is much longer but I don't have that to hand. Welcome to copy and paste, adding additional catalysts to it. We are expecting future annual cash-flow from Singida of 60-70 million dollars according to Eric (link below, 2 minutes in). This interview is 3 months old when gold was trading around $1650/oz so at current pricing gold sales should yield significantly more than the low end figure Eric mentioned.
https://www.youtube.com/watch?v=F7FMByV18mw
Happy New Year all!
Gold trading at $1850/oz earlier a level not touched since June. In the same 6 month period Shanta have made small gains overall and outperformed the general market. Certain Noel-it-alls have absolutely nothing to contribute and are only here to gaslight genuine holders.
Shanta Gold are less than 3 months away from commissioning their Singida mine. They are due to report improved second half production and an a significant output increase in the year ahead (+60% from current 65koz levels). The company took out a loan facility in H1 further weighing on the share price earlier in the year. The net debt position will quickly recede after Q123 and likely turn net positive by Q323 so plenty of reasons to be positive.
Stay focused and stay humble folks :)
MMs happy to offer 9.62 which means there are still some desperate people selling way below fair value. We are due a large resource upgrade in the next couple of trading sessions and quarterly results in about three weeks time.
The gold price is trading around $1820/oz well above quarterly lows, providing a cash cushion as Shanta complete their capital investment and commision Singida in 2-3 months time with first gold pour expected by the end of March.
Nice to see us back at 25p again! Christmas come early for I3E holders :)
$1825 now :)
We also have the prospect of China reopening. Restrictions in Hong Kong relaxed further today. USD should continue to weaken next year with all these headwinds and prospect of a looming recession.
The chunky sales going through at ever low prices irrespective of the recent strength in the gold price, exploration successes at West Kenya and impending first gold pour at Singida remind me of when Shanta had a distressed seller a couple of years back. I can't recall the name of that II but they ended up dumping stock at 4-5p when shares had been trading at 6-8p a couple weeks before. Once they were clear the stock price began to recover. Assuming the same is happening here and we may see a holdings notification in the next couple of weeks
The Zimbabwe effect?
Sentiment has been shot to pieces across the sectors. My holdings in Pan African, Tharisa, Taseko, Wheaton, Endeavour and my favourite tiddler Goldplat should all be moving up under normal conditions following recent gains in commodity prices. Others like Fresnillo and Centamin are doing a little better but nothing special