Highland Gold Mining Ld Share Discussion Threads

[loganair] 26/9/2016 10:54

Russia’s gold sales in China are set to expand as VTB Capital boosts sales and Sberbank PJSC prepares to enter the market, chasing demand in the world’s biggest consumer of bullion.

Sberbank CIB plans to register on the Shanghai Gold Exchange and eventually to sell up to 100 tons (3.2 million ounces) a year, according to an e-mail from the investment arm of Russia’s largest bank. VTB Capital, a unit of the second-biggest lender, is targeting sales of as much as 20 metric tons of gold in China in 2017, Sergey Nenashev, the bank’s head of precious metals, said by e-mail. Sales may reach a rate of 100 tons a year near the end of 2018, he said.

Russian banks, which act as intermediaries between the country’s gold producers and the market, aim to tap into Asian growth. Rising incomes and few investment options in China are driving demand for gold jewelry, bars and coins in China. In July, Shanghai Gold Exchange volumes almost doubled from a year earlier to 1.7 trillion yuan ($255 billion), figures compiled by the bourse show.

Banks have been looking at China for a while as it’s the “largest ultimate, paying customer” for gold, Sergey Kashuba, head of the Union of Gold Producers of Russia, said by e-mail on Tuesday. This year, they may ship several tons of gold to China in pilot sales, he said.

If Sberbank and VTB each will reach their targets of annual sales of 100 tons to China, that would account for about 5 percent of the world’s global gold supply, based on figures from the World Gold Council.

With India and China buying up almost 60 percent of global gold output, “our current strategy is to be the preferred partner for the official domestic importers into these regions,” Nenashev of VTB said. The lender buys 70 to 90 tons of gold in Russia each year, and 50 to 90 tons on international markets, he said.

Traditionally, Russian miners sold metal to local banks, primarily Sberbank, VTB and Otkritie, to avoid export costs. The country is the second-biggest gold producer, with output of about 290 tons in 2015, according to the Union of Gold Producers of Russia.

“We believe that the macroeconomic environment will stay supportive for gold and expect the metal to trade above $1,250-$1,300 per ounce in the mid-term with risks skewed to the upside," Sberbank said.

VTB Capital has a more optimistic view for 2017, forecasting an average $1,450 an ounce. Gold has risen 26 percent this year to $1,342 an ounce.

“Any drop below $1,300 per ounce should be viewed as a buying opportunity,” Nenashev said.

[wbodger] 26/9/2016 10:53

Yeah, mistake corrected

[eeza] 26/9/2016 10:50

A div of 11.25p & a yield of 10% implies an share price 0f 112.50p

[wbodger] 26/9/2016 10:41

Not to be picky (well, yeah, alright, being bloody picky) but a rise of 3 pence on a starting point of 2 pence is not a 250% rise but a measly 150%. 150% rise in Interim Dividend.

Not shabby at all.

Let's hope someone asked the question 'do you expect to also raise the Final Dividend by that same percentage?' 4.5 pps for FY-2015 would become 11.25 pps for 2016, which is a dividend yield of about 8%. (post edited, originally miscalculated as 10%)

[garycook] 26/9/2016 07:23

Fantastic results.Profit up,Cost down,debt down,and an Interim dividend increase of 250% to 5p payable on 21/10.Goes XD next Thursday 06/10.This should fly today.Maybe 10%,taking it to 150 IMHO.

[srpactive] 23/9/2016 18:36

Confirmation, that hgm has now been proven to be
a solid growth stock with income ( that will grow
with earnings ).

dyor

regards

active

[wilco1000] 23/9/2016 17:45

So not expecting too many surprises

[wilco1000] 23/9/2016 17:44

With the exception of a possible increase in the divi I can't really see too many unknowns in the results on Monday, we know the average price of gold for the past year, HGM get just over 90% of that and costs should be relatively predictable

[chipperfrd] 23/9/2016 16:48

It is clear what the market is expecting on Monday!

[dilbert dogbreadth] 23/9/2016 16:42

Yes good luck all.

[srpactive] 23/9/2016 15:14

RNS: Results 7am Monday. Cannot wait.

dyor

regards

active

[fangorn2] 23/9/2016 11:44

Polymetal slides as shareholders sell stakes

Shareholders PPF Group - through Fodina - and Staroak have announced their intention to sell an aggregate of up to 26m existing ordinary shares in the company by way of an accelerated bookbuild.The current ownership interests of Fodina and Staroak in the company's issued ordinary share capital are 16% and 4.5%, respectively.



"All I can find..."

[srpactive] 23/9/2016 11:38

Good positive comment on paf in the IC, same sector
same gold price, hgm will get a very good right up next week.

dyor

regards
a
ctive

[pixi] 23/9/2016 11:26

Bought some more this morning.

[srpactive] 23/9/2016 11:05

Yes a placing to raise funds for an acquisition.

You would need to bid between 170 - 200p to land hgm
with the sector doing so well and gold rallying.

Not that I want hgm taken over mind.

dyor

regards

active

[scottishfield] 23/9/2016 11:05

Not yet disclosed I bieve, sorry can't be more be more helpful

[dilbert dogbreadth] 23/9/2016 09:42

thanks anyway. at what price?

[scottishfield] 23/9/2016 09:40

Not presently I'm afraid, but have it on good source. Sorry

[dilbert dogbreadth] 23/9/2016 09:38

do you have a link please scottishfield

[scottishfield] 23/9/2016 09:31

Placing at Poly

[dilbert dogbreadth] 23/9/2016 09:30

sure if there were rumours about hgm they would be up??

[srpactive] 23/9/2016 09:21

Looking back at the history of Polymetal, they having been busy on the
acquisition trail every year for the past few years but not in 2015
or this year so far, so they are due one.
In 2012 they bought one company
In 2013 they bought two companies
In 2014 they bought one company.

Now on the ftse 100, they need growth to keep the city happy, hgm
would be a very good bolt on.

dyor

regards

active

[srpactive] 23/9/2016 08:43

Are Poly about to go on the acquisition trail?

Maybe that is why the hgm results have been moved from Wednesday to Monday to
possibly allow for any announcement to worked out over the weekend and announced to
coincide with the results. Now Polymetal are on the ftse 100, they will be wanting
to ensure growth continues.

dyor

regards

active

[dilbert dogbreadth] 23/9/2016 08:20

Anyone know why poly has been marked down so much this morning?