Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
A move below 3% has to be RNSed so expect to see one in the morning.
Onwards and upwards.
Lets hope today repeats the pattern of the 2 previous days, down in the morning and up in the afternoon. Don't see why it can't be.
Absolutely FireAnt, from loss making to a profitable operation in 12 months.
For me the two key pieces of news over the next few months are the Q2 production numbers, due in about 6 weeks time, and the interims to the 1st of June. I think both will be very good.
Now that things have been turned around I think we will see a lot more marketing and Investor communications. They now have something to shout about and let's hope they shout loudly.
Looking back at the 2020 results is a waste of time in my opinion. We are all grown ups and anyone who did any research here knew they would be bad. We had low production, low copper price and a Pandemic to navigate through.
From my research we had an average copper price in 2020 of $2.85 per lb, we are now sat at $4.70.
Assuming the same production and a copper price of $5.00 for 2021 our income would be about $105m. Using the same cost base as 2020, but removing the $9m Capstone liability increase as this is a one off, would give profits of $30m.
Add in a modest increase in production and you can easily get to a annual profits figure of $40m. I am more than happy to be invested a company worth £7m (@8P) with annual profits of $4.4m.
Absolutely no stock being offered. Can't even buy 1,000 shares!
Looks like a fill or kill is the only way to buy.
I see we have 2 new Market Makers this morning.
We have 5 now listed on level 2 and I was sure we only had 3 yesterday.
"Using a flat copper price of US$4.50 per lb over the life of mine and USD CAD exchange rate of 1.250, the Minto NPV after tax using 8% discount rate is USD$265 million(3)"
So 11% of that $265 is nearly $30m to Pem and we all know that a copper price of $4.50 is conservative in this new green world that we are about to embark on.
Fantastic news this morning!
Copper now at $4.84, will we hit $5.00 this week?
Copper price hits record high as Chile gives bulls another reason to cheer
MINING.COM Staff Writer | May 7, 2021 | 9:32 am Markets China Latin America Copper
Copper price hit record high as Chile gives bulls another reason to cheer
SX-EW processing at Chuquicamata mine in Chile. Image from Codelco.
The world’s top copper producer Chile is giving bulls another reason to cheer while prices soared to an all-time high on Friday as optimism about a global rebound from the pandemic spurs a surge across commodities markets.
Copper for delivery in July ended the day up 3.2%, with futures trading at $4.7490 per pound ($10,470 a tonne) on the Comex market in New York.
SIGN UP FOR THE COPPER DIGEST
Chile’s lower house on Thursday approved a measure that would introduce progressive taxes on copper sales, potentially creating a total burden of more than 80% — or almost double that of other major copper-producing nations.
The measure, which would go into effect in 2024, still needs to be approved by the senate and could be blocked by the government in court. But if it succeeds, it could stall investments in a country where mature low-grade deposits need plenty of expenditure just to maintain output levels of about 5.7 million tonnes a year.
Related read: As China row deepens, 1 million tonnes of Australian copper concentrate needs new buyers
“This would at the very least delay any new capacity, extending the lengthy time-line to bring on a new mine,” said Grant Sporre, an analyst at Bloomberg Intelligence.
“Chile’s output could start to fade to 5 million tonnes.”
Chile’s copper export revenue jumped 69% in April. The world’s top copper producer said it had exported $4.541 billion worth of copper in April alone.
“THE COPPER MARKET AS IT CURRENTLY STANDS IS NOT PREPARED FOR THIS DEMAND ENVIRONMENT”
Goldman Sachs Group
Prices are up more than 30% this year and have more than doubled from lows in March of last year.
Click here for an interactive chart of copper prices
“Given high payments to the state, some assets would be un-investable and thus it limits the pool of mines that can make adequate returns, limiting supply,” said BTG Pactual analyst Cesar Perez-Novoa.
“No mining company is going to take risks without being rewarded.”
“It’s hard to foresee copper prices turning around amid the current bullish atmosphere,” Ji Xianfei, an analyst with Guotai Junan Futures told Bloomberg.
“Macro easing, ample liquidity and a weaker dollar continue to drive the rally, while the broader commodities surge is being fueled by bets on inflation.”
Trading house Trafigura Group, Goldman Sachs, and Bank of America expect copper to extend gains.
Steel prices across Asia and North America are also booming, iron ore is at a record above $200 per tonne as miners struggle to keep up with the frenzied pace of consumption, and tin topped $30 000 for the first time in a decade.
“The copper market as it currently stands is not
Perhaps it's time to let a few others into our little secret here?
If they have hedged Q2 production at current prices then it will be a bumper 1st half of the year.
through $4.70, now at $4.71. :)
$4.70 could be on the cards today. Quite astonishing to think what impact this is having on Minto's profits and little old Pembridge still seems to be in hibernation. Hopefully it will wake up soon.
FireAnt - My numbers are from the interim results for Jan - June 2020 which were released on the 7th of September last year.
Although they were interim results they published the realised copper, silver and gold prices which was useful and allows a good comparison for the increased copper price.
As you say, production is being ramped up and this should achieve an improved AICC and much better profitability.
Once the mine extension is agreed this will add even more to the storey.
Full production could certainly see quarterly revenues of between $40-50M and could achieve annual profits of $60-80m.
If that was achieved our share would be $7-9m per year. Not a bad income stream for a little company only valued at £6m.
Also none of the above takes into account the value of the operation should these numbers be hit. A mine making $70m a year could be valued at anything from $200 to $400m. So 11% of that is.............................................
Just been doing some very rough and ready numbers now that the copper price has reached $4.60.
From last years interims we know that revenue was $25.4m and we made an all in loss of $9.95m for the 6 months.
In the report it states that the average copper price realised was $2.32, we are now double that.
As the majority of sales are copper, I think over 80% from memory, our revenue should have doubled to $51m. If we allow a 10% increase in our cost base we would have comparative costs of $38m which gives a $13m half year profit or $26m for a full year. PERE's share, at 11%, would therefore be $2.9m.
The above clearly demonstrates that at £6m market cap we have some catching up to do to get to a fair valuation.
heading north again today, about to touch $4.6.
I see we have a few sells following the large rollover just now. As it was done at the lower end of the spread I think there are one or two who read the trades as large sells. People should not be investing if they can't read the trades!!
It would seem the market is still punishing Pembridge for the events of last year.
However I do think this is very short sighted as Minto must now be very profitable at the current copper price.
PERE was at 15p 18 months ago when copper was at $3 and we owned 33% of the mine. I would much rather have 11% of a very profitable mine than 33% of a loss making mine.
Also remember that when we dropped our equity stake we also relinquished a large amount of debt obligations.
I guess the market will catch on eventually. I can wait.
Flaberghast I am sure investors will catch on but probably when these are north of 10p.
Now is the time to buy and tuck these away.