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The fund manager Van Eck has an obligation to have its fund track the value of its underlying holdings, if there is excessive demand for the ETF (as there obviously is today just look at the volume) then the manager will create new shares to try to keep the price in line. They create new shares they have to buy more of the underlying of all companies held in the fund proportionally.
It holds a lot of small illiquid names, and I would imagine some hedge fund types are front-running this trade (i.e. buying the underlying holdings knowing Van Eck has to regardless of the price)
You can track the difference between the value of the fund and what it's trading at using the following links. That the Intraday Indicative Value (IIV) is so much less than the fund value, it indicates they are seeing excess demand and are creating shares to bring it in line.
https://finance.yahoo.com/quote/%5EREMX-IV/
https://finance.yahoo.com/quote/REMX/
https://www.fidelity.com/learning-center/investment-products/etf/primer-on-etf-valuation
They are both held in REMX which is a US ETF experiencing some insane algo-driven volumes and is having to create shares, hence buy underlying holdings.
They are both held in REMX, I strongly believe this is the reason.
A US-based ETF, REMX, which holds Bushveld has been up a lot in recent days on absolutely record volume due to rumours that China may restrict Rare Earth Element exports to the US in retaliation for the Huawei restrictions. If this ETF is seeing inflows, the managers of this fund have to buy Bushveld. I would expect this is somewhat responsible for the price action.
Does anyone know which union(s) represent Bushveld's workers?
yes of course, 50% off is nothing to sneeze at!
Oh, I see what you mean now. I think we're both right just measuring different things.
On Page 13 of the presentation, Bullet Point #3: "the refurbishment capital and Mokopane development capex (US $130m) is less than 50% of the cost of a greenfield development of Mokopane
Please excuse me, this thread is due to a bug on the LSE sharechat
Does anyone here actually discuss the HOGS ETF?
Looking for ways to play the African Swine Flu
Good interview here:
https://www.youtube.com/watch?v=-3BDdvlJiBA
Shouldn't the Sibanye share price fall by something more on the order of 3.3% * 0.1 = 0.33% given that this is only a 10% dilution to their share count?
As part of the agreement, management and Amcu leadership would engage in a “facilitated, post-strike relationship building programme”.
https://www.businesslive.co.za/bd/companies/mining/2019-04-17-sibanye-stillwater-says-five-month-gold-strike-is-over/
The settlement has one other major consequence. Both sides pointed to the upcoming wage negotiations in the platinum sector. Mathunjwa said the agreement meant that these talks would be “more constructive”.
https://www.dailymaverick.co.za/article/2019-04-17-five-month-strike-at-sibanye-stillwater-gold-mines-has-ended-after-amcu-decided-to-cut-its-losses/
100notout, can you please elaborate on your concerns about Stillwater? To me this is their prized asset.
Really? But, but Who can it be now?
A long LMI short SGL strategy is not necessarily predicated on all of that. Just saying.
There's still something like a 5%+ discount I think? This is an attractive return for a "merger arbitrage" strategy, buying LMI and shorting SGL
Very cool! This is part of the "institutional ownership" Fortune has talked about us looking to attract.
There are some battery-focused ETFs in the US that I hope we get some weighting in over time as the VRFB and BE stories become better known.
Back when AIM Chaos was active on Twitter, I think he predicted BMN might acquire Red