Asa Resource Share Discussion Threads

[the stigologist] 01/9/2016 09:51

Those who attend AGM should challenge Management on why this blatant misvaluation is being allowed to persist

Routes to increase transparency and improve valuation

1. Explicit declaration of intent to payout set proportion of Free Cash Flow in dividends

2. Explore divesting capital intensive subsidiaries into separate listings so valuation anomalies more clear

[the stigologist] 01/9/2016 09:45

CMCL - Mkt Cap £54m vs Revenue c. 50m = c. 1x revenue

ASA - Mkt Cap £17m vs Revenue c.$150m = c. 0.1x revenue

(NB : just broad brush numbers not taking into account currency just to make the point and simplifying the maths)

Again another indication of the plain and ridiculous misvaluation here

[the stigologist] 01/9/2016 09:40

If this thing is throwing off $20m cash a year (just from Freda Rebecca) they should start paying dividends. Even a 50% payout i.e. 2x covered would give a dividend yield of circa 40% !

Given normal companies trade on dividend yields of c.4% that just gives another indication of the ten bagger potential here (i.e. the 40% dividend yield should compress to 4%)

Note how CMCL our Zim neighbour and peer has performed despite Mugabe/Indigenisation worries because they showed they were committed to paying out rewards to shareholders, they've been hugely re-rated

[luckymouse] 31/8/2016 18:11

its supposed to consolidate here before next leg - look left

[mreasygoing] 31/8/2016 17:04

Nice volume again. Hopefully a consolidation here before the next leg up. Certainly due a breather.

[hazl] 31/8/2016 16:10

nothing goes up in a straight line as they say

[juju44] 31/8/2016 09:18

whacked on minimal volumes - ride the waves

[juju44] 30/8/2016 17:56

She wont really go without gold and crime machine will want to suppress it until Hilary gets elected

[redtrend] 30/8/2016 16:34

Interesting article on some of police joining the protests Wstirrup, thanks

Here's another article on potential USD 60bn of Chinese funding into Zimbabwe:
hxxp://buzzsouthafrica.com/mugabes-end-looms/

Reminder of the ties between Zim and China, less likely Zim will rock the boat when it comes to ASA's indigenisation plans, particularly when the smelter alone is of huge national interest and creates far more organic local content in the country than the indigenisation laws scaring away foreign investment

If the war veterans, military and police unite to protest against Mugabe, the Zanu "Youth" which are allied to Grace shouldn't have leg to stand on and far less likely of an all out civil war. Things appear to be moving fast now in Zim... Hopefully it's resolved with as little bloodshed as possible.

[doodlebug4] 30/8/2016 14:50

Had a small punt here - LuckyMouse usually knows what he's talking about!:-)

[wstirrup] 30/8/2016 13:43

And of course, this should add at least 5p to the price if it transpires...



W.

[luckymouse] 30/8/2016 12:40

Longer term chart says 4p

[mreasygoing] 30/8/2016 11:23

Mmmmm. Nice.

[the stigologist] 30/8/2016 11:01

£18m Market Cap vs Annual Revenue of > $100m+

[juju44] 30/8/2016 10:40

My initial target for completion of a double has now been reached . still looking good

[the stigologist] 30/8/2016 10:32

Serious buying pressure. Chart looks nailed on for 2p at very least.

[jailbird] 30/8/2016 09:34

It was the delayed 614k buy that pushed the bid up at 8:30am this morning I see

[luckymouse] 30/8/2016 08:53

"...second half of 2016 to be stronger"

[hazl] 30/8/2016 08:10

good post redtrend

[jailbird] 30/8/2016 07:23

Nothing goes up in a straight line to ones target price, as ppl take profits Just read the quarterly updates from now. Market will start to look ahead If the fundamentals and commodity prices remain stable or move higherTo summarise, this was a contrasting quarter for our operating mines with a net positive outcome - the fundamentals and momentum are strong. With challenging market conditions persisting in the first half of 2016, we continue to focus on short-term cost management actions as well as accelerating longer-term structural initiatives. As a result, the Board expects the Group's performance in the second half of 2016 to be stronger than in the first half and is confident of its progress for the remaining part of FY2017 and beyond."

[redtrend] 30/8/2016 05:47

Strange attitude to have if you're invested here.

My biggest losses have come from AIM companies run by white westerners who pick up their fat paychecks, promise the world and just issue equity placement after equity placement, screwing over the shareholders. Shareholders can get screwed on AIM and it doesn't matter where the Board come from.

Biggest gains over last year have come from CEY, PAF and ASA...

[the stigologist] 29/8/2016 23:23

ASA numbers look great, on about 1x EBITDA and just 0.20x Price/Sales

For a mining company earning over $100m a year in revenue it is crazy it only has a market cap of less than £20m