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Disappointing margins at the moment. My slightly RTG view for the next 12 months is that Copper prices will return to $4 quite quickly. The AISC will hopefully fall to $3 by next July when Solar Power is commissioned and a $1 margin per lb is good to warrant a market price of £4 using a six year cap factor (my workings!). And thats without ELIX.
DC, they paid a dividend of 41.3m, on Free cash flow for 2021 of 114.3m. That's 41%, pretty well halfway between their policy range (for 2022 onwards of 30% -50%. Agreed the messaging was opaque, but think thats a signal that 40% is par for the course.
Page 17 of the Financial Results presentation (transaction bench marking) is the most telling for me. On the basis of the price recently paid for MATSA the premium paid versus ATYM was 161% base on reserves and 219% based on Resources (ex Valverde). Thats a very large potential uplift even just based on Reserves.
When i asked Atalaya what was the point of sending the forms in if the shares and held by nominees, they replied
"It’s a numbers game. The company needs shareholders to send in their tax forms so that it can demonstrate to the Cyprus tax authorities that a significant percentage of the shares are held by non-Cyprus residents and consequently they can withhold the tax."
So the message is please send in your tax forms regardless of how you hold the shares.
Here is the response I had from HL today:
"However, I have contacted the company directly for further guidance on the withholding tax exemption for Nominee holders and they have recently got back to me with the below statement:
"The Company is seeking further clarification from its registrars in Cyprus as you quite rightly point out it is difficult to reconcile individuals with the nominee. I am hoping to get further insight on this and will pass it on as soon as I can.""
It means that erris resources pay a dividend to existing shareholders; rather than getting cash as normal they get erris gold shares instead.