George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
Only follow Hunting at the moment but considering entry if sentiment has now turned. It has looked oversold for a while and perhaps today's upgrade will reignite demand here.
"This order, again, breaks Hunting's record for the largest single order received for the Group's OCTG and premium connections and supports management's belief that international market sentiment remains extremely strong as governments and countries address the challenges of energy security, the development of domestic supply and post-COVID economic recovery."
"Hunting's successful run of significant OCTG and Subsea orders since H2 2022 demonstrates that our technology and global footprint is well positioned to deliver significant growth in the medium term. US market activity remains stable and with the orders received for China, Guyana, Brazil and now India, Hunting continues to see a strong growth profile given our standing and recognition with major energy companies, coupled with the strong international market sentiment being reported in many regions."
Well no surprise there are a couple of feckless posters on here posting gibberish and looking to squeeze the last of the weak holders out.
Pan African's production guidance for this year has only been reduced by 12% (approx) from what was previously record high guidance levels. Now guidance is set just below what was produced in 2020 (179,457oz) which is hardly the end of the world especially with gold sales in Rand achieving the highest prices on record!
2024 production forecasts of 178,000oz to 190,000oz are conservative according to the latest interview with much of the uncertainty coming from Eskom, which is why the company is heavily investing in renewable tech. At Elikhulu their solar photovoltaic renewable energy plant is already providing electricity cost savings of $145,000/month. AISC at the mine were $947/oz (H1 FY22: $937/oz) – one of the lowest cost gold producers in South Africa.
Group production costs revised up to $1,350/oz are being skewed by lower group production but also the Barberton Sheba and Consort Mines which are temporarily higher than the prevailing gold price. These are being addressed as indicated in the last presentation so I wouldn't expect AISC to remain this high in 2024.
For the income investors among us the dividend is not currently at risk. Based on the share price today it's offering a not too shabby 7-8% yield.
The debt on the balance sheet is set to fall away very quickly from here! Stellar update, ahead of schedule, hot commissioning into early commercial production next quarter.
Statement by Stuart McDonald, President and CEO of Taseko;
“An average realized copper price of US$4.02 per pound in the first quarter helped to drive our strong financial performance. Production in the first quarter was 25 million pounds of copper and 234 thousand pounds of molybdenum. Copper head grades for the period were on plan, averaging 0.22%, but production was slightly below plan due to unexpected mill downtime and operational issues with the primary crushers.
Mining advanced deeper into the Gibraltar pit which is the sole source of mill feed this year, and waste stripping ramped up in the new Connector pit. Initial tons of oxide ore were also mined from the Connector pit and have been placed on leach pads for future production when the Gibraltar SX/EW plant restarts. We have decided to defer the in-pit crusher move until the spring of 2024, to coincide with planned work on SAG mill #1 to minimize concentrator downtime.
In the first quarter, we increased our effective interest in Gibraltar to 87.5%, after acquiring a 12.5% stake from one of our joint venture partners. The transaction closed in mid-March and provides immediate 17% growth in our attributable copper production. Additionally, the five-year deferred payment structure allows Taseko to focus our financial resources on the construction of the commercial facility at Florence.
In March, we filed a new technical report** for the Florence Copper project. The report includes updated capital cost estimates based on detailed engineering and recent contractor and vendor quotations. Operating and sustaining capital costs have also been updated, and refinements have been made to the operating models based on the Production Test Facility (“PTF”) results. The project has been significantly de-risked in recent years and has an after-tax Net Present Value (8%) of US$930 million using a long-term copper price of US$3.75 per pound. The EPA permitting process continues to advance and we expect a favourable outcome in the coming months. We are ready to start construction of the commercial production facility as soon as the final Underground Injection Control permit is issued.
Considering global economic uncertainties, copper markets remain remarkably stable and continue to support a healthy price of about US$3.85 per pound. Demand for our product remains strong and the long-term supply / demand fundamentals appear to be favourable. In the short-term, we continue to maintain our price protection strategy, which provides a minimum copper price of US$3.75 per pound for most of Gibraltar’s production for the balance of 2023. Our original production guidance of 115 million pounds (+/-5%) for 2023 remains unchanged.
https://www.tasekomines.com/assets/docs/Q1-2023-Earnings%20Release.pdf
Taseko Announces At-The-Market Offering
May 3, 2023 – Taseko Mines Limited (TSX: TKO; NYSE American: TGB; LSE: TKO) (“Taseko” or the “Company”) announces that it has entered into an equity distribution agreement dated May 3, 2023 (the “Equity Distribution Agreement”) providing for an at-the-market equity offering program (“ATM”) with National Bank Financial, Canaccord Genuity and Stifel GMP and their respective United States affiliates (collectively, the “Agents”).
The ATM will allow Taseko, through the Agents, to offer and sell from time to time in Canada and the United States, through the facilities of the Toronto Stock Exchange (“TSX”) and the NYSE American LLC (“NYSE American”) such number of common shares as would have an aggregate offering price of up to US$50 million.
Sales of the common shares, if any, will be made in transactions that are deemed to be “at-the-market distributions” as defined in National Instrument 44-102 – Shelf Distributions and an “at-the-market offering” as defined in Rule 415 under the United States Securities Act of 1933, as amended, including sales made by the Agents directly on the TSX, the NYSE American or any other trading market for common shares in Canada, the United States or as otherwise agreed between the Agents and the Company. The Company has applied to the TSX and NYSE American for listing of the common shares that may be issued under the ATM and sales will be subject to the receipt of the required stock exchange approvals.
The common shares sold under the ATM will also be admitted to trading on the London Stock Exchange.
The ATM will be effective until May 26, 2025 unless terminated before such date in accordance with the Equity Distribution Agreement. The timing and extent of the use of the ATM will be at the discretion of the Company. Accordingly, total gross proceeds from sales made under the ATM, if any, could be significantly less than US$50 million.
The Company intends to use any proceeds from the ATM for its general corporate purposes, which may include (i) capital expenditures for the Company’s Gibraltar mine, (ii) expenses associated with the development of the Company’s Florence Copper project, (iii) expenditures on Taseko’s other projects, and (iv) general corporate and working capital purposes.
Lots of tiddly dividends beginning to add up now. At 133p the yield must be around 7-8% now?
"If Allied Gold IPOs at the mooted $1.2 billion valuation, that would equate to around $18.6m of shares for CAPD, i.e more than 10% of CAPD's m/cap by itself, and a nice $10m+ profit over the $7.7m valuation in the 2022 accounts."
If that is the case, very well spotted! Were Capital's holding previously illiquid? Still a net gain of $10m following the completion of the IPO wouldn't be insignificant for a company of CAPD's size
https://www.globenewswire.com/news-release/2023/05/11/2667358/0/en/Allied-Gold-Corp-Limited-Allied-Merger-Corporation-and-Mondavi-Ventures-Ltd-Announce-Binding-Letter-of-Intent-for-Business-Combination-and-Financing-for-Minimum-Proceeds-of-US-300-.html
Bankrupty - "$2050 and currently at $1987 is about a 3% drop off an all time high....."hammered" is not 3% imo"
Believe you meant 0.3% drop? Agree with your analysis, gold is holding up well considering how more 'stable' investments over recent years, particularly property prices, are now performing and suspect there is more pain to come.
Assuming gold trades below $2,000/oz Shanta will still produce inflation beating figures this year thanks to Singida coming online.
If the Board do decide to increase the dividend closer to 4% I suspect many investors would add to their existing holdings at the current price level. It could help to stir interest it what otherwise appears to be a forgotten share. Incredible value offering right looking forward 8-9 months to year end results.
Favourable fundamentals will out, recovering well these past 2-3 weeks. Premier African Minerals has done 100% in 6 months so unsurprising interest is growing here :)
One can only hope. It does feel different this time with USD in retreat, banking crisis deepening etc
bonker99 - lining up a number of buying opportunities for tomorrow open, hoping for a slow start here but there are so many cheap goldies about right now! Do you have a top 5?
Angelis - Mali has been in the same state of 'civil war' for the past five years. Throughout that time there has been military backed coups, Western military has pulled out in favour of Russian backed mercenary group Wagner (arguably more effective at killing jihadis and quelling dissent), surrounding African countries placed an embargo on the country making it harder to export... None of that has stopped Hummingbird from producing. You only have to look at Sudan as an example to see how easy it would be for another state on that continent to collapse. Arguably Mali is safer than many given it's military run the south with the support of ruthless Wagner group. As with all African based investments there is a degree of risk that anything could happen, there is no such thing as a safe African based investment.
Imagine thinking any mine located on the African continent is without risk..
There is risk attached to ALL of these companies, even majors like Centamin that have operated for years. Do people not understand it's why their market valuations are permanently discounted in comparison to peers based in North America, Western Europe and Australia.
Holding all the aforementioned for sake of clarity, more of this than HUM but still enough to enjoy the recent correction and long may it continue!
Taseko Mines announced updated economics for its 100%-owned Florence Copper Project at the end of March.
"The technical work completed by Taseko in recent years has been extensive and has de-risked the project significantly. The PTF operated successfully over an 18-month period and provided a valuable opportunity to test operational controls and strategies which will be applied in future commercial operations. In addition, a more sophisticated leaching model has been developed and calibrated to the PTF wellfield performance. This detailed modeling data, along with updated costing, has been used to update assumptions for the ramp up and operation of the commercial wellfield and processing facility."
Project Highlights:
Net present value of US$930 million (after-tax, at an 8% discount rate)
Internal rate of return of 47% (after-tax)
Payback period of 2.6 years
Operating costs (C1) of US$1.11 per pound of copper
Annual production capacity of 85 million pounds of LME grade “A” cathode copper
22 year mine life
Total life of mine production of 1.5 billion pounds of copper
Total estimated initial capital cost of US$232 million remaining
Long-term copper price of US$3.75 per pound
Stuart McDonald, President & CEO of Taseko, stated, “Despite global cost inflation in recent years, the Florence Copper Project continues to demonstrate robust economics and remains one of the lowest capital intensity copper development projects in the world.
The operational experience and technical information that we gained through the PTF testwork has been invaluable and we’re well positioned to build and operate the commercial-scale ISCR facility. The new Technical Report includes updated capital cost estimates based on detailed engineering and recent contractor and vendor quotations. The main cost increases relate to construction labour and wellfield drilling costs which impact both initial and sustaining capital costs.”
“The inflationary environment we have been in has also driven copper prices higher. With a lack of new mines being developed today and copper’s critical role in the global energy transition, the long-term price outlook remains very attractive for copper producers.The low-carbon, low impact production method at Florence Copper is expected to make it a preferred supplier of green, low carbon copper in the US domestic market. With procurement of long-lead items well advanced, we are ready to commence construction of the commercial facility following the issuance of the final UIC permit in the coming months,” Mr. McDonald concluded.
https://www.tasekomines.com/investors/news-releases/taseko-announces-improved-economics-for-its-florence-copper-project
60 days chart of both gold and silver are uncanny and equally beautiful
https://goldprice.org/
Shorteverything - Similar to many other gold producers in the past week then? CGH, PAF, HUM, AAZ, WPM, HOC, CEY, RSG .. all following the same trend. Which goes to show this isn't a 'Shanta issue' but more a sector confidence one.
No. Simply a distraction from what is actually happening. Singida is on course to generate $20 million revenue this quarter. What exactly would extra funding be needed for?
Oh disregard that post, those figures and indeed LSE's update list doesn't appear to be working.
Operational Update for the six months ended 31 Dec 2022
https://www.investegate.co.uk/pan-african-resources-plc--paf-/prn/operational-update-for-the-six-months-ended-31-dec-2022/20230130070000PD6A5/
“Pan African has again delivered an excellent operational performance, achieving record gold production in excess of 108,000oz for the Current Reporting Period. This exceeded the expected 105,000oz announced in the Group’s December 2021 production update... The reduction in the Group’s net senior debt to US$23.9 million represents a 60.1% decrease relative to the outstanding net senior debt at 31 December 2020, notwithstanding the payment of a record final Rand dividend for the June 2021 financial year."
For an idea of last years output, average gold price and average AISC see the link below. Pan African are throwing off more cash than they ever have done!
https://www.lse.co.uk/rns/PAF/provisional-summarised-audited-year-end-results-mmho6ygpxo0lf2g.html
Indeed for anyone who missed it
In conjunction with CAML’s 2022 annual results, the Board proposes a final 2022 dividend of 10 pence per Ordinary Share. This brings total dividends (proposed and declared) for the year to 20 pence (2021: 20 pence) which represents 47% of free cash flow. The final dividend is payable on 23 May 2023 to shareholders registered on 28 April 2023. This latest dividend will increase the amount returned to shareholders in dividends since the 2010 IPO listing to $299.0 million.
https://wp-caml-2023.s3.eu-west-2.amazonaws.com/media/2022/12/CAML_AR22_WEB_FINAL.pdf