Member Info for workingstiff

Gold Miners are a good bet right now - but the emphasis is on bet, nothing is certain. As to which miner, it depends on what you are looking for. If you are looking for capital growth this one has great potential, but is more risky than some others. If you are looking for wealth protection - miners like HGM or CEY might be more to your taste.

Remember also that in these troubled times cash is also a good option. At least until bank interest rates turn negative, that is.

As always DYOR etc.

HGM is AIM listed, but has a market value of around £850m. It has a policy of selling unhedged.

To be fair to DTG he is not the only one expounding the cup and handle theory for gold - the cup has formed but the handle (a downturn) has yet to form. Check out some of the TA reports on the likes of FX Street, Investing.com and Kitco and you will find others saying the same. What I know about TA I could write on the back of a postage stamp, so I have no intention of trying to second guess the market on this basis. Just now, POG looks an excellent hold and a decent buy.

I guess we'll find out next month if this prediction manifests.

POG's share price has gone up 20% in two days since they decided to dual list the shares in London and Moscow. HGM take note!

Who needs dividends when the share price is kicking on like this? The decision to list in Moscow has turned out to be a brilliant idea.

It could. But the last couple of market meltdowns we have seen were earlier this year and back in 2008. In both cases gold went down with the herd initially, and then recovered, which is why I added the caveat - short term.

Dissenting voices are always welcome. Regardless of the charts a second wave of the virus in the autumn could trigger a market meltdown which would likely drag $GOLD down with it - short term. Enjoy your profits and your wine.

Makes perfect sense to me too PROVIDED they don't do something weird like take the company private.

"plus relinquish control over some of the company’s future actions. (Please see the T&C of the bonds)"

UpDownFlat - if what you say is true then - since there was no shareholder consultation before the 2024 bonds were issued - POG may have breeched both the spirit and the letter of the rules governing UK listed companies - The UK Corporate Governance Code. Here are their contact details if you want to get in touch with them:

https://www.frc.org.uk/contact-us

RB The issue of the CB's came up again because UDF trawled through the T&C's and believes the bond holders are entitled to dividends and a percentage of any new shares issued.

In all probability a deal was struck between the current management and some major shareholders to oust the previous management. The 2024 convertible bonds look like the payoff.

UDF If you are right about the bond holders benefiting from dividend payments - I take it you mean through title to the bonds rather than any shares they may own separately. If this is the case then it is very unusual. If it is the case then I would not support dividend payments. I do not support the further dilution of another rights issue, with gold at $1700 POG should be able to generate cash to meet ongoing capital and operating costs (including Temi and the purchase of refractory ore) now that the POX hub is complete. From a small shareholders perspective the best we could hope for would be share buy backs, held in treasury for the bondholders when they convert in 2024 as you suggest below.

I'd take the dividends. If Gold and the share price are still good the 2024 brigade will convert. As you have previously said there is no way we can be rid of them before then. If Gold and the share price are good the 2022 bonds can be rolled over at a more advantageous rate.

I might take the Scrip option if it was available, or even settle for a scrip only dividend option - as a way of rebalancing things, as you put it.

IRC is never going to make money. It has been a pig in a poke from day one. The sooner they get rid of it the better.

PVX - you may be right about the future, I hope you are, but you are not the first person to come along and castigate us old doom mongers, and many of your predecessors learned a hard lesson further down the track.

But as you rightly say the share performance over the last nine months has been exceptional, and this is the metric we should continue to judge them by.

Ah well.

Rustybucket - If they threatened a share issue at - say 25p - to cover the cost of buying back some or all of the convertible bonds at face value plus 50% (Kenj will have chapter and verse on whether or not they can compulsorily do that) I wouldn't be unhappy. It would either force the bondholders to convert now, saving the company 4 years at 8.25%, or sell up, reducing the shareholder dilution.

It would also mean the management would be owning up to the mistake they made last year, though.

They need to rethink the way they report in future. They effectively have two businesses now - a gold miner and a third party refractory ore refiner. We need to see the margins achieved on third party ore.

I'm surprised they booked they IRC disposal impairment, since they haven't got rid of it yet. I was puzzled by the other cost booked for the impairment reversal. I would have thought that one might have gone the other way.

My limit orders to sell will remain untroubled for the foreseeable future,

Hopefully they've got the message - NO MORE DILUTION

The results are late, April is the month to report on a calendar year close. They are holding back for some reason. It may be that things aren't as rosy as we'd been led to believe, or it may be that they anticipate being able to pull a rabbit out of the hat - such as the IRC disposal. Or it may be a bit of both. These guys are mavericks. They don't see the value of predictability, of doing the basics - reporting on time, doing what you said you were going to do, and so on.