Blackrock Com Share Discussion Threads

[davebowler] 23/2/2011 14:03

CYN is at c.17% discount to NAV

[hazl] 01/2/2011 12:28

l like this brci

[davebowler] 01/2/2011 12:27

At 28 Jan its NAV is 152.40p a 2% premium yet CYN is on a c. 14% discount to NAV

[davebowler] 19/1/2011 11:14

Price of 160 but NAV 17 Jan at 154.22p ,a 4% premium , whereas CYN is at a c.10% discount to NAV. So, investors could get 14% more assets for selling this and buying CYN

[davebowler] 21/12/2010 10:44

NAV 151.05p

[praipus] 08/12/2010 14:33

Another to consider is DCL at a 14% discount.

[davebowler] 08/12/2010 13:49

At 147.56p Including current year income the NAV is now close to its price, but CYN is still 10% below asset value and a better performer.

[davebowler] 19/11/2010 09:44

This article mentions three of CYN's strategic holdings - precious metals , uranium and rare earth metals.

Global opportunities - Shining a light on the gold story

* Story by: Ed Bowie
* Magazine: InvestmentAdviser
* Published Monday , November 15, 2010

Gold has been a top-performing asset class in the past decade and this trend is set to continue. There are very few global market opportunities as compelling right now as the junior gold explorers and miners.



Gold remains 35 per cent below its peak inflation-adjusted price of a little more than $2,000 per ounce, which was reached in January 1980. At this time gold and gold equities were estimated to have represented approximately 26 per cent of global assets. Today, following the equity bull markets of the early 1980s, this has now dropped to less than 1 per cent.

If gold holdings were to be increased to just 2 per cent (less than one-tenth of historic norms) a total of 85,000 tonnes of yellow metal would be required. This, however, represents more than 30 years' production.

It is estimated that total historic gold production - and therefore the amount of gold currently available to the market - is 165,000 tonnes. This means that if stacked in one place, the gold available today would create a cube with sides of less than 25 metres. Of this, 52 per cent is tied up in jewellery, with the remainder being held by central banks, by retail and institutional investors and with a small proportion in industrial uses or being unaccounted for.

The most significant demand for gold typically derives from the jewellery sector - an industry very sensitive to movements in price as well as seasonal effects. For example, gold purchases soar in the lead up to certain religious festivals in India (the largest market for gold jewellery) and in the Christmas period in the US.

Central bank holdings amount to almost 1bn ounces, close to 20 per cent of gold currently in circulation. Western nations typically hold larger proportions of gold as a proportion of their financial reserves, although some developing economies have been increasing their holdings. Indeed, following a decade of being net sellers of gold, central banks are becoming net buyers.

The retail investment market, which is approximately a quarter of the size of the jewellery market, has also experienced strong growth over the past decade. The introduction of exchange traded funds (ETFs) has had a dramatic affect on the ability of investors to access gold, without the costs and issues associated with owning, transporting and storing the physical metal.

The world's largest gold ETF, SPDR Gold trust, has grown from less than 10m ounces five years ago to almost 45m ounces today, with a doubling of the holdings taking place since the onset of the financial crisis in mid 2008.

As frequently cited, gold is no-one's liability, meaning its value cannot be eroded by the credit worthiness of its issuer. The latter point has made gold an excellent wealth preserver; retaining its purchasing power over long periods of time, and acting as a safe haven during times of social and economic crisis. Gold is arguably benefiting from a perfect storm at present; with investment demand being driven by both fears over the deflationary and recessionary impacts on the credit worthiness of sovereign states, as well as the potential for significant money supply induced real inflation.

Currently the reported unmined gold reserves on mining companies' inventories stand at approximately 1.5bn ounces - less than 30 per cent of total historically mined gold or 18 years of global production at current levels.

Discoveries of new resources have declined steadily in the past 25 years. The net result means current production levels are only sustained from older or lower-quality mines, where operating costs are typically increasing as the assets are mined at greater depths or lower grades.

The discovery cost of gold is set to increase dramatically, as will merger and acquisition activity, over the next 18 months. Junior miners will be acquired by major and mid-tier companies in order to replenish their dwindling reserves, as well as improve the quality of their resource base.

The fundamentals for the gold market are robust and will remain so for the next 2-3 years. High quality gold equities offer the best means of gaining exposure. While the gold price has gained more than 25 per cent over the past 12 months, operating costs at gold mines have only grown a fraction and therefore operating margins and asset values have increased significantly. Furthermore, investors in successful junior gold companies will benefit from the growth of the companies' resource bases and production profiles.

In addition to gold, platinum group metals are expected to perform well on the back of increasing autocatalytic demand and the fact 60-70 per cent of these metals come from South Africa, which presents a supply side risk due to potential labour and energy issues.

With demand for clean energy increasing, the price of uranium should also perform well. To ensure continued competitive domestic supply, the advancing economies seem likely to impose tariffs on the import and export of commodities. India has already imposed of a 5 per cent duty on iron ore exports and China has restricted the export of rare earth elements which are so crucial to green and high tech sectors.

Ed Bowie is investment manager of Altus Resource Capital Limited

[davebowler] 11/11/2010 11:14

This is at a 1% premium whereas CYN is at a 10% discount and has been a much better performer.

[davebowler] 05/11/2010 15:04

At 137.64p Including current year income (undiluted) XD its at a premium whereas the better performing CYN is still at a 9% discount.

[davebowler] 29/9/2010 10:45

I think people are overpaying here -its at a premium to asset value .
I favour this as a higher risk alternative;CYN as its on a 17% discount to asset value.



Look at the relative charts;

[munin] 01/9/2010 19:32

Re: "Issue of Equity" announcement ....

Maybe there are good reasons, but presumably, the most important one, is that a bigger fund, means bigger fee income.

[washbrook] 16/9/2009 11:54

I notice the stock is up 5p today ,gold ,silver ,platinum and palladium having a good day.
The Us $ index is also weak.

[kiwi2007] 02/4/2009 12:03

Good Call Mr.Washbrook :o) I hold all three and BRCI is up just 5% and the other two 15% since your post.

[washbrook] 08/3/2009 11:00

BRCI looks overvalued compared to BRWM and CYN

[aleman] 06/3/2009 14:57

Much better Chinese PMI numbers - output and orders positive.



Chinese, Russian and Brasilian stockmarkets up again as bull markets continue. Shame US and UK can't keep up.

[aleman] 04/3/2009 11:45

I've bought back a small holding. All these infrastructure stimulus packages around the world are starting to lift commodities again and bull markets are appearing in Chinese and Russian stockmarkets amongst others. I particularly like Chinese infrastructure stocks.




The Shanghai Composite Index closed 6.1 percent higher. Copper futures jumped by the exchange-imposed 5 percent daily limit in Shanghai on optimism demand may pick up in China, the world's biggest consumer of the metal.


The official manufacturing index climbed for a third month in February, signaling that the world's third-biggest economy may be edging closer to a recovery.

While manufacturing contracted for a fifth month, the PMI is up from a record low of 38.8 in November.

Output and new orders expanded for the first time in five months, today's data showed, evidence that the stimulus package may be taking effect. New loans jumped to a record in January as the government pressured state-owned banks to lend.

"China will pick up in the second half of this year as the stimulus package" begins working, Vivek Tulpule, the chief economist at London-based Rio Tinto Group, said yesterday in Canberra, Australia. Rio is the world's third-biggest mining company.

[werock] 13/2/2009 18:52

i had annual report from blackrock last week. the dividend for this year is estimated at 5.40p. normally they pay out more than expected div. even if we take 5.40, that still yields 7+% at current share price.

[washbrook] 09/2/2009 13:45

buyers return

[washbrook] 07/2/2009 08:42

The 3 I.T commodities CYN,BRWM and BRCI

Share price performance since 31.10.08 to 5.2.09
N.A.V performance since 31.10.08 to 5.2.09

[twiz999] 03/2/2009 15:16

These!

Seem to be rising steadily.

[badtime] 29/1/2009 00:19

Hmm..these or cyn..hmmm

[washbrook] 24/1/2009 10:31

Got the 2008 Annual report for 2008 .