Member Info for the_shareminator

Otho - On the point of dividends, surely this is the ideal environment and time for HUM to consider annual or biannual dividends. If not now (with gold trading at $2000/oz, net cash position, $30m EBIT/month), why in 24 months?

I presume the Board intend build the company's cash position and fund the new mine capital costs with debt. It is generally how mining companies operate, increasing the equity within the company. Maybe Dan opts to fund it out of cash-flow like a maverick but I'd wager he has more sense than to do that.

The loss of £18m for the year ended 26 April, down from a profit of 2.3m the previous year includes non-cash impairment charges due to Covid-19 of £19.5m (goodwill and store asset write-downs).

Revenue rose to £225m from £217.5m in 2019 and 37 new shops were opened in the year taking the total estate to 534 stores.

The closure of all of The Works’ stores in the first seven weeks of this financial year drove sales down 26 per cent in the 17 weeks to 23 August. Since the reopening of stores, sales have been “well ahead of the board’s expectations” and should begin to grow as we lead in towards the busy Autumn period (back to school, Halloween, Christmas).

Very positive heading into Tuesday. Silver futures have been flirting with $28.5 throughout the day.

Reminder: All three of Hochschild's mines are open. Inmaculada and Pallancata have been ramping up to full production these past few weeks and are now operating at full capacity (assuming no change to recent operational statement). San Jose in Argentina has been operating since April and is expected to be back to full capacity by the end of September.

The average price received for silver during H120 was $16/oz. Assuming a low end $24/oz average across the second half it results in margins (gross) rising approximately 150% and that's ignoring the fact output will be higher.

Market valuation of £1.25 billion is set to double. My best guess is within the next 6-8 months with gold trading up $2400/oz and silver in pursuit around $50/oz

Half Year Underlying EBITDA up 96%
Gold production up 24% - Revenue up 33% - Net Profit after tax up 32%

Highlights for the six months to 30 June 2020

· Gold production of 217,946 ounces (oz) (H1 19: 176,237oz)
· Gold sales of 212,668oz at an average gold price received of US$1,427/oz (H1 19: 176,294oz at US$1,275/oz)
· Revenue from gold and silver sales of US$305m (H1 19: US$229m)
· Underlying earnings before interest, tax, depreciation and amortization (EBITDA) of US$107m (H1 19: US$55m)
· Net profit after tax of US$36.3m (H1 19: US$27.5m)
· All-In Sustaining Cost (AISC) of US$1,020/oz (H1 19: US$828/oz)
· Syama Underground operations returned to full capacity with sulphide processing recoveries increasing to 80% in the June quarter
· Mako Life of Mine Plan (LOM) updated increasing gold production by 39% and adding two years of mine life
· Refinancing successfully completed through equity raising and new low-cost, flexible syndicated debt facility
· Ravenswood sale completed with total proceeds of up to A$300m
· Cash and bullion balance US$88m, listed investments US$35m and promissory note A$50m
· Comprehensive COVID-19 response plan implemented while maintaining full year 2020 production guidance
· FY20 Guidance maintained at 430,000oz at an AISC of US$980/oz

It's being reported pigeons have now taken over the government of Mali. They are calling it the coo of the century.

Incredible swing. Nothing has changed though except the Fed are adopting a kind of 'flexi-flation'. Excusing short term volatile price movements and targeting 2% average inflation longer term. No clear indication of what 'tools' they will use to tackle growing unemployment trend or weakening economy but rates look set to stay low for longer.

Only reason to be bullish about the Dollar is if there are deeper recessions across Europe and Asia. Dollar just gone negative again..

Trading update for the 17 weeks to 23 August 2020

· As anticipated, primarily reflecting the impact of the closure of all stores for the first 7 weeks of the financial year, total sales were down 26.0%.

· Stores reopened in a phased manner following the lifting of Government restrictions in the UK and Ireland from 15 June 2020.

· Performance since the reopening of stores has been well ahead of the Boards expectations with overall LFL sales increasing by 0.7% in the 10 weeks to Sunday 23 August.

o Store LFLs are currently tracking at a high single digit decline with growth in average transaction value partially offsetting lower transaction volumes.

o Online performance remains strong with sales levels more than double last year's in the same 10 weeks.

· Further investment made to increase online capacity to support sales over the peak Christmas trading period.

· Profit impact from lower sales partially mitigated through the successful execution of our refocused strategy; including higher product margins (reflecting reduced promotional activity) and careful cost management. Support from various Government schemes (furlough scheme and business rates relief) have also provided mitigation.

· Net debt position significantly better than initial expectations following the stronger trading performance and careful cost and cash management.

· Improved liquidity through £7.5m of funding via the Government's CLBILS scheme and an extension of our RCF expiry date to September 2022.

TheWorks.co.uk plc the multi-channel value retailer of gifts, arts, crafts, toys, books and stationery, announces today its preliminary results for the 52 weeks ended 26 April 2020 (the "Period" or "FY20").

Financial highlights

· Revenues grew 3.5% to £225.0 million (FY19: £217.5 million), with growth both online and in stores, despite the significant impact of COVID-19 in the latter weeks of the financial year.

· Pre IFRS 16 adjusted EBITDA for the year was £10.8m (FY19: £13.9m), albeit with the adverse trading impact of COVID-19 in the period estimated to be approximately £3.0m.

· Reported loss before tax for the period includes non-cash impairment charges resulting from COVID-19 of £19.5m, relating to goodwill and store assets, which have been treated as adjusting items.

· Despite a very positive performance since the reopening of stores in mid-June 2020, given the continued uncertainty presented by COVID-19, it is not yet possible to provide specific guidance for the financial year ahead and the Board will not be proposing payment of a final dividend for FY20.

2.5p soon

Gold futures rising through $1980/oz
Silver futures are rising through $27.8/oz

Nicely done! The share price has been oversold and as posted previously forward looking results didn't warrant further weakness.

The Fed just announced the U.S. central bank will continue to seek inflation of 2%

"Our revised statement reflects our appreciation for the benefits of a strong labor market, particularly for many in low- and moderate-income communities, and that a robust job market can be sustained without causing an unwelcome increase in inflation," Fed Chair Jerome Powell said in prepared remarks for a speech explaining the changes.

With the U.S. economy in a deep economic crisis and just months before Americans vote in a contentious election, the Fed's new approach is both an acknowledgment of fundamental changes in the economy that began well before the coronavirus pandemic, and a map for how the Fed plans to conduct policy in a world where weak growth, low inflation and low interest rates are seen as here to stay.

The Fed's transformation of the way it manages monetary policy should result in it keeping rates lower for longer than previously expected. Next meeting will be mid-September and then the day after the election.

Some people still posting here about sub 200p prices about to miss the boat..

There are no closed mines. Inmaculada and Pallancata are ramping up now and expected to reach full capacity by end of August. San Jose in Argentine has been operating since April and is expected to be back to full capacity by the end of Q3 (September).

The Inmaculada and Pallancata mines were stopped for 11 weeks from 16 March 2020 with operations resuming on 31 May and 1 June respectively whilst the San Jose operation in Argentina stopped for six weeks and resumed on 27 April with a phased ramp-up process which reached 70% capacity during June.

Media outlets are apparently spreading lies or 'fake news' about a three year transition. Today the military denied this and reiterated their intention to move quickly. Interesting comparison with the 1991 overthrow and 1992 elections. This very much looks to be a repeat of that event rather than the 2012 coup.

https://www.rfi.fr/en/africa/20200825-mali-junta-denies-three-year-transition-plan-with-military-government-keita-goita-cnsp

Average price received for silver during H120 was $16/oz so evening assuming a 10% pullback, averaging $24/oz in the second half, that's an increase of 50% in revenue and approximately 140% in terms of margin (gross).

The only major headwind is the rate of infection in Peru which might cause temporary closures in the coming months. The Dollar is unlikely to strengthen against precious metals while the FED continue to pump hundreds of billions of dollars into the system to prop it up.

Price comparison exercise.

Silver has only traded higher than $20/oz in the past five weeks. For most of that time it has been trading above $24/oz.

HOC had been climbing quickly prior to silver breaking above $20 following news of mines reopening in Peru. It was trading at current levels 240-250. HOC then ran another 30% and silver ran 50% to recent highs. Silver has fallen back but remains 25% higher than it was trading five weeks ago. HOC has given up all it's gains.

Compare with the silver chart on the daily
https://www.kitco.com/silver-price-today-usa/

Resolute Operational Update

Resolute Mining Limited (Resolute or the Company) (ASX/LSE: RSG) continues to monitor the political situation in Mali and notes that Bamako International Airport has reopened and that the Company's supply lines to the Syama Gold Mine (Syama), located in the south of Mali on the border with Côte d'Ivoire, are open and secure.

Resolute confirms the Company's operations at Syama are continuing as normal with no impact to production or to the safety and security of employees and contractors.

https://www.youtube.com/watch?v=qVFta1n8-PY&pp=wgIECgIIAQ%3D%3D&feature=push-fr&attr_tag=B2bOx8mExI1CdVmt%3A6

Nearly up 300% from recent lows.

https://www.erce.energy/graph/uk-natural-gas-nbp-spot-price

https://www.aljazeera.com/news/2020/08/talks-africa-mediators-mali-coup-leaders-enter-2nd-day-200823192326728.html