The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
I agree. There is no bottom in the share price until finance is sorted.
Then the only thing that will save it will be a higher gold price and good gold recovery after that.
"Its like reading your horoscope on the way to hospital after being hit by a bus."
BAHAHAHAHA
The charts couldn't look worse.
The share price has broken down below the downward pointing wedge pattern and must reclaim the pattern for it to be a "false breakdown". This will likely only occur when the company announces financing has been secured.
Then the share price will be in the hands of the gold price and how well they can mine the ground.
https://www.tradingview.com/x/T2ZQhHjq/
The RSI is the most oversold it has been in the companies history and suggests a bounce is coming soon, however if financing is not forthcoming, this will keep tanking and the company will be bought for pennies.
This share price needs to recover and fast.
The bottom should be in.
https://www.tradingview.com/x/VsNV2vxf/
The major low of 25p from 2020 is acting as support and the share price is currently in a bullish downward pointing wedge.
However, if the share price breaks below 25p, that will be a really bad sign in which all bets are off as to whether this survives or not.
If the share price can remain above 25p and eventually breakout of the wedge, the share price and the company will recover.
However the new management have ALOT of work to do to help this happen and the gold price will have to rally somewhat.
I have just bought at this level...because why not. In for a pound in for a penny.
But I'd recommend you don't be the house on this.
Glad to have topped up here at 36.5.
This share has been disappointing, however with a rising gold price and the ramp up expected to perform better over the coming months, i'm optimistic Pure Gold will not disappoint going forward.
(Translated)
Continuing with the dialogue between the Government and the mining companies that operate in the south of Ayacucho, the Vice Minister of Mines, @JChavezCresta
, and representatives of the PCM held separate meetings with the companies Compañía Minera Ares (Grupo Hochschild Mining), Sami SAC and Apumayo SAC.
The meetings discussed the technical situation of the Pallancata and Inmaculada (Ares) operations; Breapampa (Sami SAC) and Apumayo. MINEM guaranteed mining licensees strict respect for the legal framework for mining operations and investments.
Government and company representatives agreed on the need to join forces to promote more sustainable mining, respectful of the environment and with greater social commitment.
This will rocket in the morning.
When fake breakdowns in share price occur, they are usually followed by a strong reversal. We may actually end up higher as a result of all this, as the uncertainty in the governments approach to Hochschild has now been exposed and it is clear they can't really stop this train.
Silver bull run will help.
The message is clear. Don't panic captain Mainwaring!
So in reality, she is powerless to close the mines without regulatory approval. Furthermore the share price has taken her words as gospel, therefore we are severly undervalued.
The share price will recover in the coming weeks as her bull**** is realised.
I just feel sorry for those that sold at 70-80.
So the dividend reduces to 3.5% instead of 4.6%. If that keeps the mine open i don't think anyone would complain.
It's only good news if the current president and prime minister are powerless to move unilaterally.
If they have to receive approval from congress to make any major changes to the current order of things, then fine, but if they can just say "we're closing these mines for environmental issues" and congress can't stop them, they HOC have a problem.
I do think its just a way of squeezing the miners for more contributions to government funding. Scare them ****less with closures, then a $25m pay off doesnt seem so bad, if you see what i'm getting at.
It's their congress which passes most of the important legislation and that is split actually with a right wing majority.
The prime minister is a women, the president is a man.
And in the coming bull run for silver, HOC will make so much money that these "environmental" taxes will be shortly forgotten.
So it's likely that the PM doesn't know what she is talking about and has made a rash statement regarding closure. Remember this is an incredibly incompetent government that is in the process of potentially being ousted through the impeachment process that Peru has available.
Last week, Vásquez announced in Ayacucho that plans will be made to close four mining units in the region. In addition, it had indicated that there would be no exploration or exploitation expansions. Last night, the Deputy Minister of Mines, Jorge Chávez Cresta, denied the premier and assured that mining companies can request the extension of their closure plans, if they consider it pertinent.
Because the miners are fearful for their jobs. They are already protesting.
It's good news that they are meeting with the PM now, as it will likely be the case that they donate 5% of profits to help maintain the environment. Either way HOC won't shut down most of its operations the SP will likely skyrocket back up.
Seems like you want that to be the case.
They won't close the mine.
The outrage from this has been palpable already. This to me suggests the PM has miscalculated the public opinion on this and will probably reverse course quite significantly soon, with a deal.
Castillo had to walk back alot of his initial ideas because the response was so bad.