Yes, that's how I read it as well. I've been wondering where all the shares have been coming from over the last few weeks - now we know!
All in all, I'd categorise this RNS as corporate self-harm. Disappointing.
Johnson Matthey (JMAT) have an interesting RNS out this morning, touting their expertise in hydrogen technology and offering a seminar - remembering the key role that platinum and minor PGMs like iridium play in hydrogen hydrolysis and fuel cell technology. It's well worth a read.
Anybody know how to invest directly in iridium? There doesn't seem to be a dedicated ETF. It's one of my very long term commodity tips. (The other is phosphates for fertilizers.)
Courtesy of Nimrod on the SLP board, here's some PGM price research:
1. Heraeus makes platinum to be in surplus, in contrast with the WPIC report a couple of weeks back, which made platinum in deficit due to supply constraints. I don't know where the truth lies.
2. In contrast, all the analysts that I've read agree that palladium is in mild deficit this year, and rhodium in severe deficit.
3. Report contains interesting section on iridium and ruthenium and their potential importance to the hydrogen economy.
Even I have taken some profit here now!
Put the money in Tharisa (THS), which hasn't yet moved up in the way that SLP has, even though they are the next door neighbours and in much the same line of business.
Maybe this helps somebody, or maybe this is just my broker (AJ Bell)...
I can't get live buy quotes for Tharisa shares from my broker - this has been going on for weeks now. However, limit order buys do get processed in a couple of hours. So that's the way to go.
In my book, Tharisa is now absurdly cheap given the current PGM basket price. Much as I love SLP, the mcap of SLP should NOT be roughly the same as the mcap of THS (193m vs. 201m as I type) - THS is a much bigger operation with a longer mine life and better growth prospects. I'd reckon the mcap of THS should be at least 2x that of SLP.
Positive sentiment supports UG2 chrome ore market
The market for UG2 chrome ore ticked up in the week to September 15 on strengthening sentiment amid low liquidity, while both the domestic and imported ferro-chrome markets remained stable, sources said.
Fastmarkets’ chrome ore South Africa UG2 concentrates index basis 42%, cif China edged up by $1 per tonne to $138 per tonne week on week on Tuesday September 16.
“There has been a little flurry of activity in recent weeks and a gradual uptick in demand,” a trader said.
Sentiment increased in response to market reports of extremely low exports of chrome ore and ferro-chrome from South Africa in July and the strong alloy consumption in the steel sector, one producer said.
China imported 1.14 million tonnes of chrome ore in July, up by 44% from 790,097 tonnes in June, but also down by 16% from the 1.4 million tonnes imported in July 2019, China’s customs data shows.
“We think the market should be $145-170 per tonne on average this year so we’ll wait until we’re in that range [before...
What drill results? It's an old rock sample, that's all. (And a transparent masking exercise).
Yesterday's RNS very serious in my book. Big red flag. It bolsters Cornerstone's case for the removal of the current board.
Yes, tumbleweed here. Even though the basic case for owning these shares is getting stronger and stronger. The PGM basket price is at record highs, and there are even the first stirrings of life in the chrome market.
I'm also thinking it will take an RNS to wake the market up - first up should be Q4 2019-2020 results on about 9th October. We should have a fairly clear picture of what the annual results will look like after that.
Not sure I'd call this morning's RNS great news for investors here.
The chances of a near term company sale are definitely lower after this news. Solgold's management now have the financial resources to beat away friendly offers, and to struggle on for years with the PFS and DFS. A bidder now will either have to go hostile (always difficult), or manage to change the company's board via an EGM (also not at all easy).
So I make it that the company is actually worth less this morning, and I'd expect the share price to drop over the next few weeks to reflect this.
Don't you find it odd that management were so quick to remove guidance - even before the strike had begun?!?
It makes me think that they have other problems at Syama, and that they are using the strike as cover.
Management at Resolute are unquestionably questionable! Read the Hot Copper board on Resolute if you want some extra "colour"!
Yes, I've noticed something similar. Investing in platinum (via the SPLT ETC) is working nicely for me.
(I regard platinum as a safer play than palladium, as there is no way that its long term price can stay down at $900 given its scarcity, and the need for it in the hydrogen economy. That said, both metals work. And gold would as well.)
In effect, we're treating precious metals as a stable currency and gaining on the exchange rate as the pound slowly sinks beneath the waves of Covid and Brexit. I'm not sure how low the pound can go; it depends on how things pan out from here. But currently it's 1.28, and I'd be surprised if that isn't 5% overvalued. Maybe more.
I don't regard this tactic as an alternative to investing in SLP. Rather as a lowish-risk way of keeping money in near cash given keeping cash in sterling is not a great idea at the moment.
Hi Mr. Bond,
I've skimmed Hinderburg's short dossier, which is fairly convincing as these docs go.
Note Nikola have just issued a general denial and a threat to sue, and they have not answered even one of the specific allegations made in the dossier.
Frankly, Nikola looks even ropier than Tesla at first sight. What did the great scientist Nikola Tesla do to deserve the dubious "honour" of having these two companies named after him?
Yuan appreciation, strong steel sector support UG2 market
The strengthening of the yuan and the positive momentum in the stainless steel sector supported the UG2 and domestic Chinese chrome ore market over week to September 8, Fastmarkets heard.
Fastmarkets’ chrome ore South Africa UG2 concentrates index basis 42%, cif China was $137 per tonne on Tuesday September 8, up by $3 per tonne or 2.2% from $134 per tonne a week earlier.
Market sources reported liquidity around the current price levels after some buyers were willing to accept higher prices in the seaborne market because of the appreciation of the yuan, which meant buyers could absorb higher dollar prices.
“Although prices increased by $2 or $3 [per tonne], buyers could absorb it without losing out in their own currency,” a seller said.
Some producers were optimistic that prices would continue to rise with support from the stainless steel market, Fastmarkets heard.
“Our shipments for October are nearly sold out. Demand is good and we're confident we'll be able to conclude above $140 per tonne,” a producer said.
Bruce Cleaver, CEO of De Beers Group, said: "Diamond markets showed some continued improvement throughout August and into September as Covid-19 restrictions continued to ease in various locations, and manufacturers focused on meeting retail demand for polished diamonds, particularly in certain product areas.
"Overall industry sentiment has become more positive as jewellers in the key US and Chinese consumer markets gained confidence ahead of the important year-end holiday season, supported by strong bridal diamond jewellery demand across markets. Accordingly, we saw a recovery in rough diamond demand in the seventh sales cycle of the year, reflecting these retail trends, following several months of minimal manufacturing activity and disrupted demand patterns in all major markets. It's clear that the recovery is at an early stage and we expect that it will take some time to get back to pre-Covid-19 levels of demand."
Manipulating down the discount rate is a cheap trick to boost the nominal value of the PFS. It will immediately be ignored by all serious professionals - bankers will recalculate the NPV/IRR with either a 12% or a 15% discount rate.
Frankly, it's the kind of non-serious stunt that gives companies a bad name.
Unlucky Mine Syndrome (UMS) occurs when a series of seemingly random disasters affect the same operation over and over again. Management claim they are simply unlucky, but in reality UMS is a reflection of their incompetence.
How quick Resolute were to rescind this year's guidance on this strike news. It makes one think there might be other problems at Syama as well!