Altyngold Share Discussion Threads

[king suarez] 29/8/2024 23:59

Just got back from your night shift, Louie?

[researchcentre123] 29/8/2024 10:18

Trader just for your info there's a way of restructuring capital so even with these past losses, dividends can be paid - but as mentioned, I don't think it's happening. Regardless, it won't be long anyway before current profits eat up the past losses

[excellance] 29/8/2024 09:51

I'll be amazed if they pay any dividends in the near term, unless it's a special dividend post sale of assets.

I prefer them to invest profits to create a stable and reliable profit stream to pay sustainable dividends in a few years time without the need for reckless borrowing or dilution.

I do think that dilution is possible as part of some kind of corporate action and would or could solve our free float concerns, improve asset diversity, and give us a cash boost for capex expansion.

[trader465] 29/8/2024 08:46

In the UK, companies are only allowed to pay dividends out of distributable profits. Distributable profits are defined as accumulated, realized profits (including any brought forward from previous years) minus accumulated, realized losses. This is stipulated in the Companies Act 2006.

If a company has negative retained earnings, it suggests that the company has accumulated losses over time, which would mean it has no distributable profits from which to pay dividends. Therefore, paying a dividend in such a situation would be a breach of the law.

[king suarez] 29/8/2024 08:30

Agreed - I was pointing out that ALTN have the means to distribute a dividend despite having negative retained earnings. I think only a token small dividend would make sense at this stage to signal to the market that this is now a serious, proiftable sustainable business - which could help attract investors. Obviously they want (and should) maintain most of the cash within the business for growth development plans.

[researchcentre123] 29/8/2024 08:26

Whereas I agree there's a mechanism to pay dividends, in the long run I'm not sure there's a lot of point, given that they need all the cash they can get to expand the mine for now, and don't want to dilute, which if they were issuing shares then a dividend and higher share price would help. Still seems their plan is a dividend some time in the future. I'm happy to wait for the board to decide when it's a good time.

[tim000] 29/8/2024 07:40

Yes, that’s true dofmeister. Do you think that can be remedied as they go further underground and try to improve recovery rates?

[gizmohican] 29/8/2024 07:36

I believe we will only require another year max at higher production levels b4 divs are introduced, subject to any other growth plans that we are not aware about

[dofmeister] 29/8/2024 07:36

Tim, ungortunately they have never hit the grades shown in the Seki CPR. 3.6 g/t from memory. We are about 60% of that.

[louie2010] 29/8/2024 07:32

AltynGold plc (LON:ALTN) shareholders would be excited to see that the share price has had a great month, posting a 27% gain and recovering from prior weakness. Looking back a bit further, it's encouraging to see the stock is up 39% in the last year. Although its price has surged higher, given about half the companies in the United Kingdom have price-to-earnings ratios (or "P/E's") above 17x, you may still consider AltynGold as a highly attractive investment with its 4.5x P/E ratio. However, the P/E might be quite low for a reason and it requires further investigation to determine if it's justified. For example, consider that AltynGold's financial performance has been poor lately as its earnings have been in decline. One possibility is that the P/E is low because investors think the company won't do enough to avoid underperforming the broader market in the near future. However, if this doesn't eventuate then existing shareholders may be feeling optimistic about the future direction of the share price.

[tim000] 29/8/2024 07:29

I accept all that. But in the short term, the company doesn’t have access to unlimited capital and the cost of capital is still quite high. So there is a cost to allocating capital to shareholders, as well as a benefit. Clearly management recognise this as they intend paying dividends only once the business is financially robust.

[redtrend] 29/8/2024 07:15

And the only way to achieve that will be a demonstration of signficant increase in net profits and payment of sustainable dividends in line with their existing dividend policy. Capital growth and dividends are not mutually exclusive, particularly when paying out a maiden dividend.

Paying a maiden dividend will provide Altyn with huge exposure to investors and great PR / marketing.

I remember across the Caspian in Az when I was invested in AAZ, a dividend policy and consistent dividends propelled it from the lows of 10p region to well over £1. Admittedly there were myriad of reasons and debt concerns at its lows to explain AAZ languishing at that low level, but a dividend was part of the story of the shareholder friendly turnaround.

There is no way Altyn would get close to such a market cap you describe without proper dividends to reward shareholders.

Altyn in their Sept 2021 presentation stated their aim to pay a dividend in 2025. There's been 1Q-2Q of delays against their original plans, but minor in grand scheme and gold price will propel profits. In my opinion they should still be aiming for a 2025 dividend.

[tim000] 29/8/2024 07:12

Yes, clearly, I can wait. Whilst only indicative, the NPV of Seki and TS combined, published in the AR, is around $1bn at current gold prices. That’s before allowing for new projects, which seem very likely.

[excellance] 29/8/2024 07:02

Mkt cap of $1b Vs today's £48m.
We're a long way from that.

[tim000] 29/8/2024 06:52

It has to be approved by the Courts but many companies do this, I believe it’s pretty straight forward - it’s not like a contested case. I’m not averse to a smallish dividend that doesn’t constrain growth. Ultimately I want ALTN to pay good dividends, once it’s reached its targeted mkt cap of ca $1bn.

[louie2010] 29/8/2024 05:56

If this year's rally in the gold price shows anything, it is that the precious metal is no longer inextricably tied to the interest rate cycle. But that does not mean lower rates will have no impact: talk last week at the Jackson Hole symposium in Wyoming of coming cuts will give gold some extra shine.Traditionally, gold is seen as a better investment when rates are low and when other asset classes are not up to much. By this token, it should have had a dim start to 2024 given the unexpectedly strong performance of US equities, the resilience of the economy, and a delay to expected Federal Reserve rate cuts. Yet it has risen 22 per cent this year, outperforming the S&P 500, and has recently crossed $2,500 a troy ounce. 

[king suarez] 28/8/2024 23:54

ALTN also have a share premium account balance of £152.8m.

I believe it is possible they could pay a dividend earlier via reduction of capital by utilising the share premium account against the accumulated business losses.

I3E did something similar recently with a cancellation of their share premium to boost retained earnings and allow continuation of dividends. This is something they had to put to shareholders via AGM and get court approved.

I'm not entirely sure how the mechanism works exactly!

[dofmeister] 28/8/2024 23:32

Tim, I'm still interested in the prospect of a dividend in the next couple of years. The Group Co has accumulated losses of £25.6m, so these would need to be wiped out unless they undertook a capital reduction. Maybe not this year then but 2025. I see that as a big driver for capital appreciation.

[louie2010] 28/8/2024 23:29

Does that include yourself .

[tim000] 28/8/2024 19:12

Couple of minor points. From the Annual Report, unutilised taxation losses in Kazakhstan should reduce tax payments by nearly $3mn in 2024. The free float (exc shares held by the family and Freedom Finance) is 7.976mn

[busterhogdog] 28/8/2024 13:27

Such a hard life you have dim .

[busterhogdog] 28/8/2024 13:26

The answer also applies to you , that's is your problem not mine I have to read your bollucks also which means fuk you .