Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Haha! I'll be happy with GBP 1 as well! Bring it on!
AG1989
Having a proven 2m+ oz resource base would imply a valuation of GBP 500-600m. Analysts have a price target equivalent to a market cap of GBP 900m. My estimate is based on Pure Gold Mining in Red Lake, Canada which recently had its first pour and will enter commercial production soon. It has 2.1m oz in Measured & Indicated and 0.5m in inferred resources. There are a number of factors which determine the valuation such as grade, AISC, etc.
The value of the company is not driven by the value of the gold in the ground as there are operational costs in drilling, extracting, processing and refining the ore. Moreover, investors will look at the NPV of the free cash cashflows during the life of the mine, which in turn drives the market cap.
Hope that helps clarify things.
Agreed Tom.
GBP 1.25 would be an absolute bargain and even I will also look to back up the truck then. In the meantime, I hold 1.2 million shares at an average of 47p and I'm not planning to sell any of it until PUR eventually gets taken over by a major in by 2025. By then I expect PUR's market cap will be multiples of its current level. PUR will be a multi-million payoff for me!
Something to remind everyone on this board about the future growth potential of PUR:
https://pronews.us/first-gold-pour-positions-pure-gold-for-future-success/
Mousekewitz
Welcome to the ZNWD forum. I'm also a shareholder of Tirupati and bought in on IPO day itself.
Graphite is another key component that will be required by EV manufacturers. However, China controls the graphite market but a lot of it is not produced in a carbon neutral manner. So it will become more important for OEMs to source non-Chinese graphite produced in an ethical and environmentally safe manner.
I also own WWR in the US, which is the only shovel ready graphite deposit in the US. Companies like Tesla will need to source locally produced battery grade graphite for its Giga Texas and WWR is the only logical choice. Same thing happened with Piedmont Lithium last year. DYOR.
This is an article about Cornish Lithium's latest activity but I wanted to point out one key aspect in this article:
"Batteries will at first be allowed to have up to 70% of materials from countries outside the EU or the UK. From 2024 onwards, however, that requirement will tighten to 50%."
https://www.mining.com/cornish-lithium-granted-rights-for-offshore-exploration/
The EU needs all the local lithium source it can get its hands on.
This is an article about Cornish Lithium's latest activity but I wanted to point out one key aspect in this article:
"Batteries will at first be allowed to have up to 70% of materials from countries outside the EU or the UK. From 2024 onwards, however, that requirement will tighten to 50%."
https://www.mining.com/cornish-lithium-granted-rights-for-offshore-exploration/
Based on the above, ZNWD will become a mine in due course. The EU needs all the local lithium source it can get its hands on.
This is an article about Cornish Lithium's latest activity but I wanted to point out one key aspect in this article:
"Batteries will at first be allowed to have up to 70% of materials from countries outside the EU or the UK. From 2024 onwards, however, that requirement will tighten to 50%."
https://www.mining.com/cornish-lithium-granted-rights-for-offshore-exploration/
Based on the above, ZNWD will become a mine in due course. The EU needs all the local lithium source it can get its hands on.
TDT
There will always be advocates on both sides.
Why did those economists decide to strip out property prices in 1983? The reason is very simple. House prices tripled from 1970-1980 during the period of stagflation and they just wanted to bring the CPI number down. Having a roof over your head and "being the master of your own castle" is one of the most basic necessities. Instead they stripped property prices out and replaced it with rent. I'm sure homeowners and wanna-be homeowners will disagree that house prices have increased in line with CPI over the past 4 decades.
Another key point which is conveniently omitted from CPI numbers is inflation in asset prices such as the stock market. All the liquidity has inflated asset prices to record levels but for some reason, none of this is taken into consideration when calculating CPI.
As an investor in real estate and the stock market, I have been blessed and seen my wealth grow exponentially but for people who are not in this fortunate situation, telling them annual CPI is 1-2% when they are struggling to put food on the table or trying to buy a house is utter nonsense.
Atlantic57
I agree we should not listen to the gold bugs and their $5-10k price prediction. Having said that, I am confident gold will break its previous all-time high once inflation kicks in later this year or next year and this will last for years. The amount of fiscal stimulus that has been injected in the market in the past 12 months is simply ridiculous and more will be needed to keep the global economy going.
There is a crypto mania ongoing which is partly pulling money away from gold but that will eventually calm down and we will see more buying pressure come in.
Thanks Ezhik.
Here's hoping ECR will turn into another GGP or PUR. :)
Atlantic
If your reference to inflation is looking at official CPI data, then I'm afraid you are very naïve. CPI numbers have been manipulated for decades by central banks in order to keep the number as low as possible. John William's Shadow Stats offers a more accurate picture of the real inflation rate.
http://www.shadowstats.com/
It's not a free website but the short story is that if central banks kept to the same calculation for CPI as they did decades ago, the actual CPI is closer to double digits. Central banks have continuously removed key components over the years.
George Gamon explains this very well. Have a listen to this video. I think you may change your opinion about what we refer to as "inflation".
https://www.youtube.com/watch?v=SIh7SKj05po
Hi All,
New ECR shareholder here. I've been following this company for a while and finally decided to jump in today.
Look forward to the start of drilling soon at Bailieston soon.
Tom
I don't think we should be concerned with the gold price on a day to day basis. We know this is one of the most manipulated commodity through futures contracts on the COMEX. What I am certain is that we are in a commodities super cycle which will last for years and the trend will be up.
With the Democrats now firmly in control of both the US Senate and Congress, I expect massive stimulus bills to be passed and hence a high likelihood of higher inflation (or potentially even hyperinflation) in the coming years. I read about the terrible stagflation experienced by the west in the 1970s. For those of you like me who were not around then I highly recommend you read about this phase in history. Gold will be one of the instruments investors will flee to when this happens.
Jeffus
That's what the market makers do when they smell blood. You can easily sell shares at a lower BID than normal but you can hardly get all the shares you want at the ASK. It's difficult to try and buy more than 20-30k shares. Moreover, the spread between BID and ASK was 6% earlier today. Talk about daylight robbery.
The gold price is expected to hit $2300+/oz by the middle of the year just when PUR will be in full commercial production. Management couldn't have timed things better. Assuming an average gold price of $2100/oz this year, that's a huge $1300/oz in operating profit. Assuming 60k production this year equates to $78m in operating profit. This number increases to $130m as the company ramps up production to 100k oz p.a. by 2022-23. With an EV of c. $800m, the company is trading a forward multiple of c. 6x operating profit and c. 8x P/E. All the figures I am quoting are in USD. That's cheap if you ask me when you see the likes of Newmont trading at 20x P/E.
Damn it! Who moved the price up? I wanted to buy more at 140p. :(
Gold is now trading at $1960/oz and PUR is down 3%, what a joke?
Whoever bought up at 140p, lucky you!
Market makers are having a field day. They are happily marking down the share price with the gold price on the up this week. Rinsing away all the weak hands.
I never expected the share price would drop so low after first pour. It may be time to load up even more. Buy on dips for those who have excess funds. I'll free up some cash elsewhere and reposition it here.
GGP dropped from 27p to 20p and then look what happened. :)
Atlantic57
I tend to agree that the share price did not react like many would have expected. My gut feel is that we have seen quite a lot of profit taking from those who invested in early 2020 or before. This is not too surprising if you understand the Lassonde curve. I think it's worth having at the link below:
https://www.visualcapitalist.com/visualizing-the-life-cycle-of-a-mineral-discovery/
We will eventually have old investors taking profit. This will likely be retail investors. Once PUR enters commercial production and generates revenue / profit, we are likely to see more institutional investors jump in. Many such investors cannot invest in loss-making companies. This will likely lead to a rotation in the shareholder register.
I added some more shares yesterday at just under 150p and will keep adding on further dips. Now that we had First Pour, this project is significantly de-risked and PUR will likely report an increase in resource base by end of Q1 2021, which should warrant a higher valuation. As such, I am comfortable adding more shares at this price level. DYOR.
Sanlorenzo
I completely forgot the company does have an OTC listing.
Given its market cap, I would expect it'll uplist to the TSE main board in Canada and also hopefully the NASDAQ or NYSE similar to the bigger caps like Equinox, MAG or First Majestic.
In any case, it looks like the company will be doing more promoting to investors in the future based on the extract below:
"Chris adds complementary skills to our management team at the right time as we look to broaden awareness within the investment community and build out our corporate growth strategy.”
Some fair points indeed. It could be a combination of those factors.
What I would like the company to do is to list in the US, which is something management is still not considering. Quite odd as most Canadian miners have a dual TSX / OTCQB listing to start with. This would help increase liquidity in the stock.