Member Info for Tornadotony

TSAE
Its a false comparison with £6M company (bluerock) with say £240M enterprise value company.

If the building works all go to plan it should not make any difference. I presume the idea is to reduce an additional zero error when executing buy or sell orders as the more zeros that have to be typed in someone somewhere will by a 1/10 less or ten times more than they wanted and the same on a sell order.

The company had no problem doing placings sub 10p. Any future placing at a higher price consolidation might reduce the share price depending on circunstances. The issues that could cause it would be a cost overrun because of higher inflation. The company has de-risked quite a bit of this and the project allowed some contingencies. The other risks are that building gets delayed or the company raises funds to start building a second mine earlier than planned. I suspect the third possibility is remote over the coming year. The second risk is par for all mining construction projects and the inflation risks will impact regardless of consolidation. If we do get an effect because of consolidation is unlikely due to fundamentals but for other reasons.

Slater

The rates can go higher. I still feel HOC has a lot of good value to hold up well despite the rates move. As for gold, there is a point where folks want to get out of FIAT currencies and hold far more precious metals and they will thank the hedge fund sellers and buy the metal. Unlike crypto gold has a store of value that has a long history. Tony

https://www.gov.uk/government/speeches/climate-change-is-a-global-challenge-and-we-must-deliver-together-to-tackle-it.

I will keep a check on IMF to see if the World Bank and their organisation are doing anything. Hopefully, V at Pensana is doing it as well.

PS stop bickering you lot and do some research.

What happens after the high grade is mined out in 2022. The company has done advanced stripping and building up ore for the new mine this year. So the new mine circuit is likely to produce between 16,000 to 24,000 in 2023 and increases to 32,000 the following year. The Tanzanian assets are graded at around 3 g/t on what remains at Luika etcetera. A lot of low grade ore was cleared away. So the mine plan gives a prospect of some improvement over 2021 and is more likely to match the high end of 2022. So 68,000 +24,000 = 92,000 high end for 2023 low end at 84,000 if they choose to have one quarter using low grade ore as in 2022. If they can mix the ore better and maintain average grade at 3g/t then the 100,000 ounce target comes into play. If they have very high gold prices they can use up some of the lower grade deposits earlier and keep back some better grades for more challenging times and have the reliability of longer running assets.

Whatever happens, the company has a very good strategy for future development. They are showing a lot of sustainability. If they get the Chile asset into development they would be a major producer. Somehow they need to transport ore mined to a better location for processing with adequate water supplies that do not impact on the community with the Chile asset or get water to it by a pipeline. It needs a lot of creative thinking how it may be done, perhaps using a desalination plant with other companies with some Government support. Once mined in Chile the plant continues to supply water.

Nothing untoward in the report that I could see. Helping 2,000 farmers as well.

The company has higher production and far lower costs in H2 of this year. We finally complete a huge investment next month with a solar farm removing 16% of diesel cost in production by very early July. The company has 5.2M reserve ounces of gold at Sukari with in the ground value of at least 50.8p per share. The company resources were quoted for a $2,000 ounce gold price and so if 20% is removed to be in line with with $1800 per ounce it would deliver at least 20p in the ground value. Cash in the bank adds another 17p. I therefore conclude the current pull down in price is approaching below value of gold in the ground and money in the bank valuation. I topped up at the close and will see how this plays out. A similar pattern is emerging for many other gold miners. The UK currency has also dropped substantially of late and probably may have improved yield for UK holders. A case of looking pass the short term for what appears more promising later in the year.

Trading 18p above the in ground mineralisation on reserves and resources at 2020 minus depletion since then and cash in the bank ignoring Libero value and all the new properties of at least one on stream in H2 at $1600 gold price per ounce.

Last two years 1st week of July to qualify and end of July its paid. Dividend not declared. Depends what they earn 2nd quarter.

I am glad you guys took my comments in the humour it was intended. The key message for everybody is to have plenty of cash in your portfolio. Whatever anyone says about cash, its a great asset and especially now. I hold as much cash as I have invested in equities and it has been that way for 12 years of investing. Last year I had a breakeven year after an 8 year winning streak. We all have a losing year or two in a long term investing and trading and believe it or not that is a good thing as you manage risk far better in future. If investing was easy everyone would do it and we are all a fairly rare breed of people. It takes intelligence, skill, courage and risk tolerance. Not everybody has those qualities. Finally you need resilience to overcome mistakes or simply a loss on the risks we take. Good luck to us all and enjoy the weather. Off to watch some cricket. Tony

MJM3 and Eloro, sell up and take the hit and make money elsewhere. Life is to short to be unhappy with your lot. You have one life and so make the best of it. If you do not like the story anymore its not a prison and you can sell up and go. The rest of us have the choice to either wait and see what happens or trade the pants off on Pensana and get as much free carry as we can or get a low as average as possible. Please sell your Pensana shares and crash the price so that we can buy some of them cheaply like 72p or lower along with institutional investors. All the best for the weekend , I am counting on you to give cheap pensana share prices by close of play on Monday and I hope you won't let us down. Tony.

The first quarter results already bagged have been great. The current gold has not changed since the first quarter. Silver is down a little but nothing to justify an 11% drop in valuation when the stock was already hammered down sharply. The company will have a few weeks where the production and sale prices are below the mean and sometimes they become far higher. This is another sub 10PE stock earning a packet with net cash and a good divi. Another baby thrown out with the bath water. When its discounted it takes courage to buy.

£23.5M is cash in the bank and it trades at 5.4 PE. Guess what, the market maker has discounted it further. At this rate it will soon compete with Polymetal PE rates.

JTD

Exactly why I have taken a position. The company is under the radar and it is a case of taking positions and just waiting. When it turns it will be quick. It can shoot up 40p in 2 or 3 days. Tony

Not any more.

I bought more as I thought the share was already smashed up.

OOps through not trough

Thanks jointhedots. I agree this is undervalued. A key element for me is that all the energy is from the grid. It is not some diesel on-site consuming mine. Unlike so many other miners the infaltionary impact is likely to be more manageable. The company like several others I hold is going trough its nadir in production volume. All it takes if 4 x10,000 share buys and this share is back at 110p. The share register is so tightly held it has very little free float. The company is going to hopefully up-grade the 2022 production forecast in June. There is a strong potential here for a positive surprise. Now is the time to buy.

The daily chart has a rising support line which is being hit by the sell side. If this breaks HZM goes back down below 7p which although is a buying opportunity it does not make a lot of sense. Alternatively it goes higher as production of the mine develops in line with all its plans which many here expected.