Palmaris Capital Share Discussion Threads

[stevie blunder] 24/6/2004 08:04

Scottish coal expanding mine:



PLANS to develop an opencast mine site have secured 340 Scottish jobs.
Energy firm Scottish Coal has unveiled proposals which will safeguard jobs in South Lanarkshire.
The firm is preparing planning applications to extend the life of its Broken Cross site and begin a small-scale, one-year mining operation at Poniel South.
The company also wants to build a distribution centre, a major plant company headquarters, and a limited extension to Hagshaw wind farm, as well as a business pavilion, tourist retail outlet and hotel developments.
Professor Ross Harper, chairman of Scottish Coal, said: "We are already the largest employer in rural South Lanarkshire, employing 212 people directly and indirectly supporting more than 125 local jobs through local contractors and businesses.
"Our coal is in high demand and must remain so if we are to avoid being held to ransom by overseas energy producers.
"It is also vital to job security here in South Lanarkshire."
The company will hold exhibitions of its plans in local communities at times and venues to be confirmed, before lodging planning applications with South Lanarkshire Council in late summer.
Rigside-based Sandy McCracken & Son Ltd employs 50 staff, of whom up to 15 are engaged in transport work for Scottish Coal.
Sandy McCracken, the firm's boss, said: "We welcome Scottish Coal's plans. The area will benefit greatly from the jobs they aim to attract.
"We moved to Rigside last year to be closer to Scottish Coal's sites and are looking for more drivers to help keep pace with our expansion." PLANS to develop an opencast mine site have secured 340 Scottish jobs.
Energy firm Scottish Coal has unveiled proposals which will safeguard jobs in South Lanarkshire.


-----------------------------------

Results should be out soon, will post.


steve

[azalea] 23/6/2004 23:00

The price is starting to tick up. It could go further on the p.o.g. alone, if not to match the NAV - 15p. Perseverence should be actually producing the stuff by now.

[stevie blunder] 01/6/2004 12:51

Topped up with these this morning. A few reasons:

- Flotation of ATH next month will focus attention on Scottish coal miners



- Scottish Coal (ie Mining Scotland) are getting serious about wind power



- A study of Mining Scotland accounts reveals that the property assets are carried at the aquisition value of 1994, there should be some mark-up if re-valued.


- Although they are tied into fixed price contracts for 2004, they should get more for their coal after that, and they could announce new, higher, contract prices for 2005 and beyond, anytime.

- Anyway, I am not pushing the boat out, but I liked the comment in the Herald piece:

"The company's current operations are dwarfed by those of the rival Mining Scotland group, which has 10 open-cast mines across Fife and Ayrshire but no "present" plans to float. "

- Mining Scotland could be an attractive flotation candidate imho.

Palmaris should be higher this time next year. (Famous last words............)


steve

[bcf200] 21/4/2004 08:49

Any clues as to reason for fall?

[saloch] 22/3/2004 20:54

interims will be posted to me on 24 march according to a helpful chap at pms

[skiski] 17/2/2004 15:53

Bought a few today, chart looks firmly in an uptrend FWIW

[saloch] 17/2/2004 12:03

just put in 3.5k of hard earned cash mail article look s positive

[pacman88] 17/2/2004 11:49

SOME nosy buying helped Aim-listed Palmaris Capital, formerly Waverley Mining & Finance, rise 11Ž4p to 131Ž4p. It owns 23pc of Mining Scotland, the largest coal group north of the border, and 25pc of Australian gold miner Perseverance. Rumours doing the rounds suggest that a bullish trading update on its Australian operations will soon prompt a rerating.

58 words
17 February 2004
Daily Mail
English
(c) 2004 Associated Newspapers. All rights reserved

[azalea] 17/2/2004 11:09

Hectcorp
Was it something we said, or what you have gone and done? The rise in p.o.g. of course has helped. Hope to speak later.

[shearluc] 17/2/2004 09:59

Not sure why they always delay the transactions on PMS, also bought another 8000 @13.94 not showing, Think a lot of big trades will start to show after 10

[badabing2004] 17/2/2004 09:53

Took the plunge this am...25k at 14.75....not showing yet so will come later as a DT....looks a good opportunity to me

[gardenboy] 17/2/2004 09:02

nice rise after huge volume yesterday - could be a new closing high

[karzy] 17/2/2004 08:28

H
Dont forget that shipping rates and coal (spot) have gone through the roof and have pushed up coal prices delivered UK. See energyi's coal thread.

[azalea] 16/2/2004 22:43

Hectcorp

You have got it in one!

[richgit] 16/2/2004 12:14

Im still holding and quite content.A very overlooked share.

[hectorp] 16/2/2004 10:17

Azalea,
PMS share of build of houses near Edinburgh: Edinburgh is a boom City in house price terms, so building say 150 houses a year with their 23%? stake in the Scottish coal co, should NET profit annually of at least 2-3M sterling per year at current valuations outside Edinburgh ( ie 3-bedroom semi-villa costing around £150,000 4 bed villa £225,000 profit per house about 50% as the lasnd is already owned).
If I'm right this seriously underpins a much higher share price. I'm studying this one further .
Normally I'm not keen on gold/coal mixture stocks, but this isn't so much about the coal. Of coure the pound is too strong now that won't much help the coal side this year? But thats not the main source of future income IMO.
regds
Hector

[azalea] 07/1/2004 18:32

My previous post (which I have corrected) should have read $60, not 60% (with a good marging to spare). Apologies.

Have not checked the trades today, but a small up tick nevertheless.

[azalea] 06/1/2004 20:45

All (5/6) the indicated trades today were 'sells', yet oddly the price ticked up 0.5p and the spread has widened 11.5 -13.5p, how odd. That said, albeit holding a much reduced percentage in Perseverence, with the P.O.G. up some $60 in the last 12 months ,the value of the stake must now be understated in PMS's NAV.

With Oxus Mining share price jumping 15% within days simply on the news that it has started production, I expect no less when similar news is announced by Perseverence, which will translate into a rise in PMS's share price. I think the latter is now significantly overlooked, but the MM might just be cottoning on to that fact by widening the spread in anticipation of buyers moving in, whilst deterring sellers. That said, one must not forget the stake taken by Laxey Partners, especially if they buy more. DYOR.

[azalea] 20/12/2003 08:04

Recent actions by the PMS Board have, for me at least, given a much clearer indication as to where they are heading.

The selling of 8m (@ 14.35p) shares in Perseverence and the issuing of 5.5m new shares @ 11.875p to Laxey Partners, raising all told £1.8m, suggests to me that PMS has decided to focus on its 1600 houses project in Scotland. With smart operators such as Laxey Partners willing to take a 4.22% stake I am confident that the shares will make headway in 2004. It might well be that as the development demands more cash, PMS could sell more shares in Perseverence but at a notably higher price as gold production gets under way.

[jda] 10/12/2003 23:04

Excellent article Richgit. This should Palmaris share price out of the doldrums.

[richgit] 10/12/2003 18:22

Date : December 9, 2003



Perseverance Corporation On Way To Production at Potential World Class Gold Field In Victoria.

John Quinn, executive chairman of Australian listed Perseverance Corporation, was in London recently to confirm that gold production at its Fosterville mine in Victoria was now in sight. Quinn is an experienced gold hand having been CEO at Newcrest Mining, but he placed a big bet when he took the helm at Perseverance back in 2001 that the oxide ore, which was being open cut mined in a modest way, was underlain by a substantial mineralised system with potential to be developed and expanded as a significant gold producer. Last September he proved his point with the completion of the bankable feasibility study on an initial mineable reserve of 6.1 million tonnes at a diluted grade of 4.7 g/t to contain 910,000 ounces of gold.

The study proposed an integrated surface and underground mine and treatment plant capable of processing 800,000 tonnes of ore a year. Development will take 16 months including three months of commissioning, but Perseverance anticipates production running at an average rate of more than 110,000 ounces/year. Cash costs are expected to be US$236/oz and the total cost should be just under US$300/oz including amortisation of all capital. Based on a very tight timetable the mine should be pouring gold from the commissioning phase towards the end of 2004 and be in steady production early in 2005. Bearing in mind what has been achieved so far there is every reason to expect this target to be achieved.

The extra good news is that the company raised A$75 million by a placing and an extra A$3.5 million from a share purchase plan in October. This means that John Quinn does not have to negotiate with banks for any loans. As a result the company cannot be put under pressure to undertake a hedging programme.. Incredibly some of the banks are still insisting on hedging as part of the price of doing business despite of the strength of gold and the robust nature of most gold projects. The placement was underwritten by UBC Advisory and Capital Markets Australia and all credit for them for taking the unconventional route. Unconventional and banks are two words which rarely appear in the same sentence.

This money will fund pre-stripping of the Falcon pit, establishment of the mine portal, development of an initial decline to access the Phoenix and Ellesmere ore bodies, construction of the treatment plant and related infrastructure and all related expenses. Work is already underway on the development programme with Aker Kvaerner involved in completing detailed engineering design for the process plant. An open cut mining contractor should be on site by the middle of January and an underground mining contractor will be mobilised in the summer, or rather the Aussie winter. Another A$42 million will be required over the initial 7.5 years of mine life for underground development and exploration, but most of this will be met out of cash flow.

Now that development is underway the Perseverance team can focus on exploration in order to extend the life of the mine. There is huge potential as the company has already established a resource of 2 million ounces along a section of the Fosterville fault which is only 2.5 kms in length with drilling confined to 500 metres in depth. The lease contains 18 kms of similar mineralised fault structures along strike and there are intermittent oxide zones as well as drilling confirmation of economic sulphide mineralisation. In addition there are parallel mineralised structures to the north and south of the mining lease. These are contained within the overall exploration licence area and they stretch over 30 kms on a north/south axis.

The initial hole of the new drilling programme was aimed at the Kestrel structure which lies below the Phoenic orebody. The main overall intersection assayed 7.6 metres at 3.1 g/t gold from 522 metres depth and confirms that economic mineralisation is present. The emphasis now will be on testing for higher grade sections of this priority target. What is clear is that Perseverance controls a very extensive mineralised system and despite the fact that it is in one of the world's greatest gold producing provinces of the Victorian goldfields, very little exploration has taken place on the Fosterville sulphide system. There is a long way to go, but John Quinn's bet is paying off.

[stevie blunder] 10/12/2003 12:40

One of the more interesting things about the final results was the following statement;

"Having considerably restored the financial position of the Company over the last few years, our thoughts are now turning to the next stage of our development involving expansion. We will continue our focus on the natural resources sector"

so we can expect some corporate action in the not-to-distant future, imo.

Having said that, PMS is as depentent on the Scottish housing market through Mining Scotland as it is on the price of gold! A strange one indeed. I hold.

steve

[shearluc] 12/11/2003 08:01

Peseverance AGM available on their website - Funding confirmed / significant new mineralization found on first new test hole.

[richgit] 06/11/2003 09:13

MINING investment firm Palmaris Capital has cut its losses again after enjoying its first full year without the cash drain of running Longannet coal mine in Fife.

The company's main asset is its 23 per cent of Mining Scotland, which was forced to shut Longannet with the loss of about 350 jobs after the main shaft unexpectedly flooded last year.

The Mining Scotland holding is now worth £9.7 million, 52 per cent of Palmaris's total assets, said Tim Noble, the Edinburgh investment banker who chairs the company.

Palmaris had a turnover for the year of £4.87 million, up from £4.28m last time, and losses were reduced to £284,066 from £842,530.

Formerly the Waverley Mining Finance Company, Palmaris re-listed on AIM more than two years ago. Its shares closed at 14.5p last night, up 0.75p, valuing the company at about £18.1m

The group's second-biggest asset is a 25.8 per cent holding in Australian gold-mining operation Perseverance, which is expected to be able to produce at a level of 100,000 ounces per year. It also operates Palmaris Services division, a plant hire, security and guarding business operating in the west of Scotland acquired in 2001.

Mining Scotland this financial year made profits before interest and tax of £12.8m on a turnover of £117m, against £19.6m on a turnover of £133m, excluding the deep mine, but chairman Ross Harper refused to comment on the performance prior to the firm's AGM on 28 November.

The Palmaris figures showed Mining Scotland's total output of coal was 4.29 million tonnes, a decline of 9.4 per cent on the previous year, which the company blamed on lower coal sale prices and the strength of sterling favouring foreign competitors.