Half year cash position of £100m equals over 8p per share, half the market cap,
so the 2 mines which produce revenue of £260m, Faberge and the stake in Selibolo Platinum are valued at less than £100m or 8p per share.
Co bought back 1m shares at 345c, 15.2p, on Friday so that is a floor for the share price, I believe the other line of stock was bought by Armira Capital, a London fund.
First half production of premium rubies and emeralds was in line and Faberge sales were satisfactory.
Weak diamond prices and softening luxury goods sales worldwide has seen the shares drift back but coloured gemstone prices are at near record levels.
Conclusion, the strong cash position will lead to further big dividends and the share price is absurdly cheap. |
Seller cleared hopefully |
Very high volume in SA today |
Being objective the only reason here can be Mozambique but ok so adjust to a p/e of 7 or 8 but not 4! Short sellers have far too much hold on UK markets.
Barclays P/E 3.5, L&G P/E 6
What's the excuse there?
Other miners: Pan-African P/E 4, Sylvania Platinum (cash adjusted) 4
If American listed at least double the UK share price |
I agree that PE ratio of 4 surely can't go on indefinitely, especially with earnings looking so solid going forward and such a high dividend yield. Nice to see Faberge building nicely as well. Noticeable step up in marketing recently. Should be another very valuable / profitable arm of the business before too long. |
Looks like a seller cleared in S Africa and it may well be that the Company bought back the shares but we will not know till Monday morning. |
16p paid.
Not sure how a p/e of 4 can be justified but so many UK listed stocks like this; on the US S&P they would be 3x the share price here. |
Shares in S Africa now back to the level company will buy back stock.
Mozambique situation improving daily, maybe the market thinks gemstone prices will
fall with diamonds but there is a disconnect based on limited supply. |
So update on Monday.
1p interim dividend? |
Trading at a discount to the JSE equivalent price again as the pound has weakened. |
Thanks for the info Saracen. They've scheduled operational update for 2 weeks today (31st July). Do you think they'll release info on wash plant / production rates then? |
It's certainly intensified since last week, moving ever nearer.https://www.caboligado.com/reports/cabo-ligado-weekly-3-9-july-2023 |
hxxps://www.voanews.com/a/many-of-mozambique-internally-displaced-fear-returning-home/7178230.html
Good news
Authorities say violence has declined in recent months because of support from foreign forces, mainly Rwandan and southern African troops.
That, said Mariana Camaroti of the Red Cross in Mozambique, is allowing some people to return home.
“Since the second half of last year, we have observed that thousands of people have started to return to their home villages in Mocimboa da Praia, [and] Mueda,” said Camaroti |
Rand has strengthened
Should be trading at least 0.5p higher |
Awaiting the decision on the new Ruby washplant which should treble production and pay for itself in 18 months. That is the catalyst for the share price |
What's going on now then? JSE action not good today... |
Update in a couple of weeks?
Any more auctions before then? |
150 miles away at least. The army is based on the mining camp so no risk to production. |
Yes but the share price keeps dropping.
Into the 15's again! |
Excellent news from Mozambique
hxxps://www.msn.com/en-gb/news/world/mozambique-security-residents-return-to-northern-region-as-situation-improves/vi-AA1doTRV?ocid=entnewsntp&pc=U531&cvid=8caac8ad97e04b47b7ce03e11bcaeeb5&;ei=24 |
On the face of it that is good news. |
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