Chers Bozzy, always good to get another opinion or two. |
The way I interpreted it Tag was, the divi will remain above target 30-50% free cash flow while there's no need for cash in the business. If they identify an acquisition (seems they're very fussy / diligent on getting something which will add value for shareholders), they might divert the dividend towards paying for that.
In the short term, 9p per 6 months seems a safe bet. Anything which changes that ought to add several pence to the share price if/when announced. |
Anyone have an opinion on what Gavin Ferrar had to say about the sustainability of the dividend. Obviously to cover the current dividend level they are using a significant amount of cash flow (around70% I think) and to me, he didn’t give a full throated support of maintaining the divi at its current level. He did say he expects production to increase once the current capex projects are completed but not sure this will increase cash flow sufficiently to get divi payments back towards the current policy of 30-50% of cash flow paying for it.
I already have a decent holding here at around £2/share so looking at potentially averaging down. |
Thanks for that zho. Very decent presentation. I learnt a lot about the Kounrad project - the fact there's no actual mining going on, and therefore their copper costs are ridiculously low at $0.78 / lb. I'd love my own business buying stuff at 0.78 and selling at 4.10 !! |
Last Thursday's Proactive presentation: |
Yes well I don't think there is any such a thing as "green", but I was referring to the political context.
We will have to disagree and wait and see what happens :-) |
Matty bhoy
According to Friedland Nickel is not a green metal, he should no as it was Voisey Bay that really made him. The Scotland stuff will never become a mine, the environmentalists won't let it happen. |
I am inclined to think that the drag on the price is the question where future capacity comes from, and at what price. |
“ Selling at the Low buying at the Top is the biggest mistake you can make.”……..obviously. But unless you have a Time Machine you don’t know where those prices are. Im not saying that now is a good time to sell for holders, it’s just a good time for me and my portfolio. |
I noticed a big sell for 158k around 10am. That could be the seller out fingers crossed. |
Selling at the Low buying at the Top is the biggest mistake you can make. Seen it all before and I’ve done it. Like I said it’s a very well run company which makes good profit and pays a good dividend. I’m looking for a good bounce back above £2 over the next few months, there’s at least a pound profit from here with the fundamentals alone. |
I bailed yesterday. Still think it’s a good company but the share price over last 6 months doesn’t lie. Would certainly look up get back in if momentum returns. |
I picked up a few more today at 156.8. Unfortunately that only reduces my average to 209!
I just hope these are not cheap for a reason. |
That's a good call for me 2603, I have added also today because its near 1 & 3 year lows.Over 11% div, good company and is part of my div dogs portfolio, I normally add to these companies when nearing 1 year lows.Good luck with your investments. |
This has to be the most easiest buy in the market today, it’s a very well run company, no debts, high dividend with cash in bank and it’s at a 4 year low. I’m deffo buying more from today until end of year. |
Most likely cause of the recent falls is one or more large seller combined with the poor conditions on aim currently. Of course the recent copper price has not helped.
Quite by chance there is an article on Stocko just published. Here is a salient snippet.
"The poor share price performance may have actually created somewhat of an opportunity for the patient value investor. A price-to-earnings ratio of 6.8 is below the historical average of recent years, and a price-to-free cash flow of 7.7 is particularly enticing too. Given the weak momentum, but strong quality characteristics and attractive valuation, Central Asia Metals is now classified as a ‘Contrarian217; pick according to the StockRanks Styles."
I bought some early this week which was clearly a bit premature. But in the long run its likely to end up being a decent investment. GLA |
The sector is not looking good at the moment because of China stimulus not working as hoped.
Also as its main copper production is based in Kazakhstan, there is some risk due to its proximity to Russia.
So any uncertainty has a negative effect to any stock share price. |
Why the relentless selling from £2? |
CAML will be presenting at a Proactive ONE2ONE investor forum on Thursday 14th November from 17:45 onwards at The Chesterfield Mayfair Hotel (35 Charles Street, Mayfair, London, W1J 5EB) |
Relentless fall here. Small consolation is that other Cu miners also getting battered! |
As I understand most of Kounrad copper is sold to Turkey. Turkey seems pretty allied to Russia so could Russia be sourcing copper there? UK has just announced a load of new sanctions including some on Kazakh entities and others that help supply the Russian industrial military complex. CAML are not on the list but I wonder if this could be causing some weakness here? I could of course be barking up the wrong tree but was just a thought....Https://www.gov.uk/government/news/uk-strikes-at-heart-of-putins-war-machine |
Same here Spawny100, I have a selection of 20 shares in my portfolio: financials, miners, industrials, investment managers and I've just run down the list looking at 50 day MA and only 6 of the 20 aren't in a falling trend. So it's nothing specific, maybe it's something to do with having a government that would give Milliband a job turning the clock back to the dark ages. He couldn't run a bath. |
Something doesn't seem right here. But then I feel much the same about most of my UK shares the last month or so! |
 2603, I have to differ with your view that CAML should move to the Main Market and would be interested in your reasons why you think it would be better served.
My reasoning is as follows:
1, Although it's listed on AIM, it uses the SETS trading service which enables brokers to place an order on the order book, if you wanted to use a broker who offered other than execution-only trading. You will see trades shown as AT, the same as institutional trades where trades are between just two parties.
2, For online execution-only trading you can still use the market makers retail service which will quote a price and show on the LSE as an off-book trade.
3, Having this alternative to a small number of market-makers gives a smaller spread most of the time but liquidity via a market maker as a back-up. So I don't agree with your claim of manipulation being a problem peculiar to AIM which would improve on the main market.
4, The costs of a main market listing are considerably higher because of the extra rules and regulations I believe and these costs would have to be born by CAML |
2603 it's a balancing act isn't it? On one hand if a share price is always strong, there's never an opportunity to buy. On the other, being on AIM perhaps reduces a company's credibility and therefore its share price. How many main market £300m+ cap companies are paying a sustainable 10.6% dividend?
It might drop a few more pence, but assuming no nasty surprises with production numbers my money's on 170 being a good entry point. 10.6% annual divi and potentially 10-20% capital growth in the short term. |
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