Member Info for Tornadotony

https://www.scmp.com/news/china/military/article/3128388/china-us-send-warships-disputed-waters-tensions-rise-over

Its getting hot in the China Sea. NATO and Russia are squaring off near Ukraine. You do not need the internet to sell gold unlike bitcoin.

This is certainly no bottom secret share. Its in the top draw.

Polymetal now in the ISA for 2021/22. Yummy divi next month.

Brewing nicely this morning.

0.10p maiden divi on Thursday.

Just under 159. Just 2,000 shares but can average off on a dip.

Completed last year's ISA allocation. Back in up to 40% on previous. Need to get more under the new financial year ISA when I set it up. So I am pleased with no RNS and happy with lower entries.

$166M is the current enterprise value in the market.
After debts and divi the company has $20M in the bank. Its owed $26M in overpaid tax. It has at least 500,000 reserve ounces of gold available to mine out over 6 years. This is either equal to $17M x 6 at $1500 gold price= $102M or its equal to the in the ground price only of $50M. Shanta has 3M ounces in resources which have a commercial value at just $20 an ounce of $60M as an in the ground price with a 33% market discount. The company has a mine and operational mining fleet which are worth well in excess of $10M. So the company is at fire sale prices with massive discounts on in the ground prices and being rated as an explorer and not a producer at all. If it was respected as a gold mine producer stock the minima value would be 14.5p at an on-going $1500 gold price. No matter how you work this out it makes no sense at the low of 11.5p.

Half way in. Average is high 140's in the current pool.

Valuation of mine in July 2021. Share price 21p
After In- fill drilling the in ground resource gave a share price around 60p. Late summer 2020.
After COOLA resources report it was around 75p. The new patent was an intangible bonus.
China no longer exporting rare metals and rare metal price rally took us pass 100p in late December. (35% value increase in the in ground reserves and resources).
The Saltend developments took the share to 125p.
Government announced programmes spiked the share to 200p of late.
Latest RNS was cautionary and reminded us where things currently stand. So share pulling back has taken us more to where we were before plus additional rare metal price rises in 2021.

If another company was to take the whole enterprise over for themselves I suspect its above the recent high price.

Tony

Mick and fellow readers

Eventually, those buying physical gold can see when its value is not keeping up with RPI and the price of comparable assets that it could buy. Taking July 2018 as a baseline, the RPI UK rate suggests gold has a value of $1420. However this excludes on-going inflationary effects this March to June this year which take the figure to around $1470 per ounce imop. The second issue is that the M2 supply in USA is 25% higher in the last 12 months. If we subtract 5% RPI from that figure it gives a corrected price for gold as $1764 per ounce. The other thing stopping physical buyers acquiring gold is the premium they pay when buying. The premium is fully covered at $1666 gold price and we are just $16 higher tonight. Retail buyers in mass will soon happen as they know that prices can be 65% higher than the median bottom price $1764 accelerates to the top of its range $2750 ounce and then falls back to where M2 and other issues settle out. In essence how much of a bargain do retail buyers hope to achieve by waiting further when they know the M2 inflation velocity is to be increased by yet more stimulus.

Its a real and serious consideration is it better to buy 10 kgs of gold or buy a second property that is taxed to the hilt by the State and is ill-liquid and requires a huge amount of energy to look after. Chances are that gold will beat other assets despite storage in vaults costs. It could certainly beat bonds that are under yield control and it may give highly overvalued stock indicies a run for their money as well. When you do all the maths on this you begin to see when it is a good time to have gold. On top of this if you live in the UK how confident do you really feel with sterling currency with what is going on here. A lot of people are keeping tabs on the physical price of gold and when they go in it could be a stampede.

Finally gold is not bitcoin and its like saying that inflationary impacts are transitory when all the bills go up, but they never come back down and additional inflation goes on top. Both statements are misleading.

Tony

I suspect its bouncing off support. Have something to sell off on next rally up.

oops got involved (not wasn't deleted)

I can understand Daddy'sAIM concern. However, I doubt if the Angola Government and host of other individuals have not got involved in the project. I am hoping to get more in the 140's after 5th April. This RNS came a little early. Anyway I am back up to 30% of the share volume I had at 21p. If it dips during the week I can get up to 50%.

Trying to work out what the takeover value is.

The reason for gold pull back was 10 year Treasuries now at 1.72% from 1.63% which also increased USD. Its taking off because of high inflation now coming through.

You just have to look at your water bill, rates bill, electricity and gas bills, internet bills, increased insurance costs, public transport cost rises, food bills and practically any service you can think of and the 2021 March inflation figure is somewhere between 6% to 7%. The inflation is not transient either as these costs will only get higher next year. The rubbish pumped out of Bloomberg on no inflation is garbage. Anybody who can count and has brain cells can see the inflation wave is already here and how official stats on it are rigged lower than what they really are.

Camperdown I am happy to take your shares off you for 150p. Please sell out as I have my next year's ISA to open up in April and I can slot some of your shares in my account. Cheers Tony

Resistance at 162.4p
Support line at 152.8p
2nd Support 148.6p
3rd Support at 143.3p (major support) (Nothing to 119p).
38% Fib retracement 153.7p.
50% Fib retracement at 146.35p.

Results were due in second quarter for home trial. These should really come in by Easter. It would be great if we had some idea when recruitment for phase III trials may actually get completed like by end of quarter 3.

Tony

Well they certainly screwed up on Pensana when it was really cheap last year. Pensana multi bagged big time.

Tips Shanta at 31p longer term.

https://www.hardmanandco.com/research/corporate-research/2020-mining-investor-forum/

https://www.gold-eagle.com/article/gold-price-exclusive-update-126

Chan is 50% in on near cycle bottom.