Anglo Asian Mining Share Discussion Threads

[gutterhead] 03/6/2020 10:20

But a good time to top up. So I have.
Just breached a significant number but still don’t have as many as JB 😂

Can’t find better value and potential

[baddeal] 03/6/2020 10:12

Agreed. I wonder how many conservations bill had post results with the managers of the funds mentioned in Terropols post.

[donald pond] 03/6/2020 10:03

I hold both the Ruffer and the Ninety One (was Investec) fund. Both are very solid performers. We could do with some of that "extreme re-rating" here. That the share price is down on where it was 11 months ago while the POG is $400 higher is extraordinary. Many of our peers have had shutdowns, disputes with governments, strikes, mines collapsing, profit warnings and have still outperformed AAZ. I know I am banging the same drum all the time, but the corporate PR here is absolutely woeful. Bill does his best, but as anyone in business knows, there are 2 aspects to it: having a decent product and having good marketing. The AAZ story is as good as it gets, but nobody knows about it.

[baddeal] 03/6/2020 10:02

Agreed mf, very little volume and price fall. Stella!As you say time to change

[mad foetus] 03/6/2020 09:42

Well, whatever else, the last week has shown that share price Angel are incapable of selling AAZ to their client base (assuming they have one). Time to upgrade.

[terropol] 03/6/2020 09:29

Managers of soaring gold funds say rally far from over
By Jeremy Gordon 01 Jun, 2020
6
Comments
Managers of soaring gold funds say rally far from over
The coronavirus pandemic has driven the gold price towards all-time highs, but some investors are arguing the best is still to come for companies which mine the precious metal.

Funds investing in gold miners, often dubbed a ‘leveraged play’ on the already volatile gold price, have soared over the last 12 months. The £1.2bn Ruffer Gold fund, managed by Citywire A-rated Paul Kennedy, has been especially strong, delivering 95% over the last year.

Despite March wobbles as most asset classes sold off, gold has reasserted its safe-haven status and is trading around $1,725 an ounce, having risen as high as $1,755, though that was still nearly $150 off its 2011 peak.

That leaves the precious metal up around 14% in 2020, but looking over a year its 35% rise from around $1,280 reflects the tailwinds at work before the current crisis.

Interest rates change the game


Evy Hambro (pictured), manager of the £1.4bn BlackRock Gold and General fund, up 65% over the last 12 months, said while gold had benefited from a flight to safety amid the coronavirus pandemic, longer term trends were behind the momentum for the precious metal.


‘It hasn’t just been the last year. It’s been on pretty much an upwards trend now for several years,’ he said.

‘The things that have been correlating with the strong performance of gold have mostly been related to the decline in interest rates, principally in the US, and the vast amounts of “money printing”.

‘The thing that has always been the enemy of gold has been the opportunity cost, with gold not paying you any interest.’

Citing the Bank of England’s recent issue of negative-yielding bonds for the first time, Hambro argued that with real interest rates negative in much of the world and ‘dramatically bigger’ rounds of financial easing now taking place than previously, gold had become more attractive.

‘It’s an environment that makes gold unbelievably competitive. It’s an opportunity carry rather than an opportunity cost,’ he said.

Miners better placed to benefit


George Cheveley (pictured), manager of the £389m Ninety One Global Gold fund, agreed the ‘amount of money being printed’ meant the argument for gold as a store of value and hedge against inflation remained as sound as it had ever been.

But more important, he argued, was that wider economic uncertainty meant gold was unlikely to fall far and that miners were in a better position to capitalise than when gold previously hit highs.

‘I think it’s unlikely it’s going to fall in the next year or two and on that basis I’m happy to own the equities because I think they can generate very good profits and increasingly pay high dividends, which I think will attract a broader investor base,’ he said.

‘I don’t need gold to go any higher from today’s price. In fact, even if it fell back by $100 from here, these companies are still very, very profitable.’

In April, Newmont (NEM.N), the world’s biggest gold miner, increased its quarterly dividend by 79%, illustrating the potential for higher income in the sector.

Cheveley’s fund is up 76% over the last 12 months, making it one of the few to beat the leading gold mining exchange-traded fund, VanEck Vectors Gold Miners (GDX), which has risen 72% over the same period.

The manager said the sector was in the best shape for 20 years, in contrast to 2011, the last peak for gold, when companies made some ‘crazy’ decisions in terms of acquisitions.

‘We sit here today with these companies with low debt levels, the highest margins we’ve seen in years and increasing returns to shareholders. Particularly this year, you compare that to any other sector and that’s pretty remarkable,’ he said.

‘We’ve got strong management teams. Costs have been brought under control,’ he added.

Additionally, less than a tenth of annual production around the world was hedged, Cheveley estimated, meaning increases in gold’s price go ‘straight to the bottom line’ of miners. The low oil price, reducing fuel costs, is another positive.

Hambro also emphasised the improved profitability of gold miners in contrast to their position in 2011, when ‘ you saw rapidly rising gold prices but at the same time you saw gold shares underperforming̵7;.

‘That is because costs in the sector were rising as fast if not faster than the price of gold was rising. In today’s environment what we’re seeing is a completely different situation.’

Gold funds shine
Fund Year-to-date total return (%) One year total return (%)
Ruffer Gold 40.6 95.1
Ninety One Global Gold 26.0 76.0
Charteris Gold and Precious Metals 13.7 71.9
BlackRock Gold and General 25.6 64.6
Quilter Investors Precious Metals Equity 24.7 60.7
Smith & Williamson Global Gold and Resources 22.6 60.6
Junior Gold 20.5 56.4
Merian Gold & Silver 6.8 53.7
VanEck Vectors Gold Miners ETF (GDX) 24.0 71.5
FTSE Gold Miners index 27.1 77.0
Source: Morningstar

Consolidation has become an important theme among gold miners. The merger of Barrick Gold (ABX.TO) with the formerly London-listed Randgold Resources at the beginning of the last year, has led to two dominant players in Barrick and Newmont. Both have significantly outperformed the wider sector over a year, with their shares up 112% and 93% respectively.

‘If you’re buying one of these index funds now you’re basically buying two companies that make up half the universe,’ said Hambro, referring to the FTSE Gold Mines index.

The index tracked by the GDX ETF caps the weights of the two giants, although even then Newmont and Barrick account for 14.5% and 13.1% of the portfolio respectively, well above the 10% limit for individual stocks that applies to active fund managers running gold mining funds. Hambro described this as a ‘huge hindrance’ to performance comparisons.

Both he and Cheveley, however, emphasised consolidation had also provided an opportunity, as it was allowing smaller and mid-cap miners to snap up some of the assets offloaded by others, in addition to the possibility for share prices across the sector to catch up with the giants. This is the area both manager are now focused on.

The strongly-performing Ruffer Gold fund had more than half of its exposure to companies worth less than $1bn at the end of March. Smaller miners can trade at discounts to larger peers, which can lead to extreme re-ratings if gold does rise.


From Citywire

[pogue] 03/6/2020 09:29

Here's one I found yesterday, its a way of killing CV19 on surfaces, still early doors for it and am not sure how to invest in it, its taken from an engineering magazine so not concerned about making money lol, but worth keeping an eye on and also seeing how there are so many products and services coming out to deal with CV19



A handheld device that emits ultraviolet light to disinfect areas possibly contaminated by coronavirus is now feasible, according to researchers from two Japanese universities and the University of Minnesota.

UV radiation in the 200 to 300 nanometer range has been shown to destroy the Covid-19 virus and make it incapable of reproducing and infecting.
While widespread adoption of this approach is currently in demand, it requires UV radiation sources that emit sufficiently high doses of UV light..............

[pogue] 03/6/2020 09:10

Busy day today in CV19 bingo, looks like ODX are getting close to the design freeze......




Significant progress in development with design freeze expected in June
Omega (AIM: ODX), the medical diagnostics company focused on CD4, food intolerance and allergy testing, notes the Press Release issued today by UK Rapid Test Consortium ("UK-RTC") on developing a COVID-19 lateral flow antibody test ("COVID-19 Rapid Test") that can be used by people in their homes.
As announced on 9 April 2020, the Company signed a Memorandum of Understanding ("MOU") with Abingdon Health Limited, BBI Solutions Limited, CIGA Healthcare Limited, in conjunction with the University of Oxford to form the UK-RTC in order to jointly develop and manufacture a COVID-19 Rapid Test as part of the Government's five pillar national testing strategy for COVID-19.
As lead partner of the UK-RTC, Abingdon Health Limited has been developing the COVID-19 Rapid Test and the Company notes the significant progress made to date in such a short period of time. The Company's role as a member of the UK-RTC is unchanged in that it is providing development support where required and will provide volume manufacturing capacity of the COVID-19 Rapid Test once design freeze has been attained by Abingdon Health and they have successfully transferred the manufacturing protocols to the Company.
Omega will provide a further update once design freeze of the COVID-19 Rapid Test has been reached, a key milestone that the consortium hopes will be attained in June.

[fozzie] 03/6/2020 08:50

Results out at HUM

[bumpa33] 03/6/2020 08:46

taken some back here...

[bumpa33] 03/6/2020 08:30

avsome1968 - yes, it hit my stop loss, right where it is now. Trading here at 25% discount to US closing...!

[fozzie] 03/6/2020 08:12

I think we live in a very beautiful but probably under appreciated country. I hope more people investigate all our beautiful places this summer rather than trying to get on planes to fly abroad. I have to whisper it quietly but I have rather enjoyed lockdown, it's been like a retirement trial run and I have loved it. Big question is can I make enough money trading/investing not to have to work?

[avsome1968] 03/6/2020 08:07

Fozzie


Not too far from you i do a lot of cycling go places like robin hoods bay ravenscar down to places like hornsea stunning views.

[pogue] 03/6/2020 08:01

Fozzie
water your lawn, a friend's house in Scottish borders burnt down couple of days ago when the lawn caught fire, all done in an hour, quite common according to the fire brigade fires start due to sun through glass etc. Family all safe.

[pogue] 03/6/2020 07:58

Succulently put Brasso

[fozzie] 03/6/2020 07:58

US indicies up again last night and rose strongly toward the close, this despite all the rioting. Nasdaq not far short of ath which I find truly amazing. Seems like a very quiet morning rns wise. I can almost hear my garden sighing with relief as we have lovely gentle rain falling in North Yorkshire this morning.

[avsome1968] 03/6/2020 07:53

Did you sell MPH Bumpa ?

[brasso3] 03/6/2020 07:52

The oil price and the S&P have priced in a lot of hope. We may be a few months away from reality.

[wanobi] 03/6/2020 07:52

fair point pogue, cheers Wan :-)

[bumpa33] 03/6/2020 07:51

Anyone familiar with Primary Bid might raise an eyebrow at the type of clients they’re getting recently compared to those of a few years ago. What it says about the state of the mkt could be telling...

[pogue] 03/6/2020 07:51

wan
the problems is very little supply has been removed permanently hence everyone is ramping up production to the same over supply situation we had pre shutdown, Saudi wants to keep the cuts in place but the rest of them are not and some don't even both to comply so we will quickly go back to oversupply especially since demand is weak so I think this is a spike into the optimism of what might happen rather than what is reality.
Oil will rise no question but I think it will fall back later.

[wanobi] 03/6/2020 07:50

aha, yes, BRH, cheers Wan :-)

Braveheart was notified on 2 June 2020 that Trevor Brown, Chief Executive Officer of and a person discharging managerial responsibilities ("PDMR") of Braveheart has sold 3,092,057 ordinary shares of 2 pence each in the Group ("Ordinary Shares") at an average price of 22.19p per Ordinary Share. Trevor Brown now holds a total beneficial interest in 4,983,877 Ordinary Shares, equivalent to approximately 15.89 per cent. of Braveheart 's issued share capital.

[bumpa33] 03/6/2020 07:47

Nice from REAT, not nice from BRH, MPH 24/25 pre mkt, big volume over the water last night - eqv 12.5m shares.

[wanobi] 03/6/2020 07:45

as far as I can see pogue, most countries around the world are coming out of lock-down,,,, way too early from a health perspective in my humble opinion,,,, but, as people start to travel, right now they will be using their cars and not public transport,,, also the number of flights are increasing, plus all this medical equipment I see being used once and then thrown away is manufactured using petroleum products etc etc,,,, that's my best attempt at an answer for you :-) Cheers Wan :-)

[gold finger 1] 03/6/2020 07:38

What you need is patient.
Gold will rise over time,it may fall before it does,this is being said by all the so called experts,but what they say makes sense.

The dollar is now starting to lose it value,its taken a while to start but its started.

The main markets will turn down at some point also, but not until reality shows that they are massively over priced to their earnings.

So now i will make my personal case for AAZ.
The main one, price, this has been in a price range for one year.you can buy today at almost the same price as a year ago.
But in that same time frame gold has risen over $350 an ounce.
In that same time frame we have had very good and interesting updates on the Exploration Programme. Not to mention we have reported record profits and are debt free.

So ignore the fact that the gold sector has risen massively in this same time.
For me this is a screaming buy at these prices. At the worst a hold.
But NO never a sell.