Highland Gold Mining Ld Share Discussion Threads

[penfold6] 25/7/2017 07:25

Q1 2017 was strong and ahead of expectations, so that balanced out the Q2 numbers according to VTB Capital in their research note yesterday. They retain their buy rating and a £2 price target.

To properly compare, they broke it down as follows :

H1 2016

Ore processed : 1,887kt
Avg grade : 2.5g/t
Avg recovery : 85.1%
Avg realised gold price : $1,221
Total production : 129k oz


H1 2017

Ore processed : 1,936kt
Avg grade : 2.5g/t
Avg recovery : 83.9%
Avg realised gold price : $1,237
Total production : 132k oz


49kt more ore processed, slightly lower recovery, but a higher gold price balances things out.


The key driver for the share price is clearly their short/medium strategy of doubling production to 500k oz pa in just over 2 years.

[fenners66] 25/7/2017 02:03

A lot of those production statistics are worse than last year.

Average grades and recovery rates declining.

Whilst they may have achieved a small increase in gold production overall how much more processing have they had to do to achieve that? That cuts margins , so question is has the 2.2% increase in selling price year over year offset that?

[wooster4] 24/7/2017 15:31

seems like all goldies are down today irrespective of rising gold price. Something has to give eventually.

[penfold6] 24/7/2017 12:30

'The trend' of production is up(2.4% in H1)

Q2 2016 was an above average quarterly production last year, so the numbers were skewed in that quarter.

Q3 2016 dropped off to 63,096 oz, taking into account the start of processing of lower grade at BG. BG will increase next year after installation of a CIL circuit to improve recoveries and then using the updated reserves from BG and new ore from Blagodatnoye.

If Q2 2017 stays the same, the current quarter(Q3) is going to beat last year by 3,500 oz. Therefore the trend is up.


The longer term trend is clearly significantly up, with Kekura coming online in just over 2years time, resulting in a doubling of the current production to circa 500,000 oz pa, as per company projections. With additional upside potential from Klen, Baley Hub (Taseevskoye, Sredny Golgotay), and Unkurtash

[montyhedge] 24/7/2017 12:10

The trend is your friend and it's down, going by this update today.

[finkwot] 24/7/2017 11:22

Do you actually have an argument to put forward, Monty, or is this just mood music as we ride the elevator upwards?

[montyhedge] 24/7/2017 10:59

Back to 135p at least.

[return_of_the_apeman] 24/7/2017 09:33

Not outstanding, however not bad either, in line to meet end of year forecasts. Expect they will beat full year targets but not smash them. Plenty of new opportunities to expand into neighbouring areas.

Nothing has changed since building a stake here, so I will continue to hold.

Gold continues it's run to test 1288, then new year highs

[mikkydhu] 24/7/2017 09:13

If they have managed to increase production overall when one mine was producing less than last year due to planned processing of lower grade ore (temporarily), then the other mines must have been producing considerably more than last year. So, when they are through with the lower grade ore, production overall should be very good.

[montyhedge] 24/7/2017 08:28

Disappointing.

[mikkydhu] 24/7/2017 07:51

H1 production results out. See Investegate.

[return_of_the_apeman] 21/7/2017 08:15

Gold on another push

[1tezza] 20/7/2017 09:47

Thanks ? finally it seams to be moving in the right direction

[loganair] 19/7/2017 19:08

British multinational bank Standard Chartered sees gold more likely to be at $1,300 per ounce by the end of the year than at $1,200. In a report issued by the bank this week, precious-metals analyst Suki Cooper hiked Standard’s fourth-quarter forecast to $1,300 from the previous $1,230.

“We believe prices are more likely to breach $1,300/oz than test the downside by year-end…,R21; the report said.

Standard cites several reasons for its upbeat outlook for gold: a more dovish US Fed, less likely increases in 10-year US Treasury yields, and indications that India’s new Goods and Services Tax regime will be a temporary speed bump and not a fundamental structural change for the gold market.

It’s not clear sailing for gold, the bank said, as the market can be affected by the Fed’s balance-sheet reduction, slower inflation than expected, and glitches in execution of India’s GST plan.

Standard expects one more rate hike from the US Fed this year, but anticipates that there will only be two additional rate bumps in 2018 instead of the planned three.

[11_percent] 19/7/2017 16:06

They are trying to keep the share price down, but there is buying, and I don't think they can hold it.........gold going up has helped.

[11_percent] 19/7/2017 16:05

Overseas AIM shares are very risky.

[return_of_the_apeman] 19/7/2017 15:37

Or to put it another way, if this was £2 today and paying just a 5% divi, I would still prefer to buy it rather than other gold miners who trade on 3 to 4 times PEs and PEGs

Dyor

[return_of_the_apeman] 19/7/2017 15:05

1tezza,

Confusing isn't it, low PE, high divi, producing, well run.

Value will out, I will just keep adding until it does.

Only downside for some is that it is a russian company listed on aim. Personally this does not bother me as I feel I am getting in at a discount because of it. On the plus side Russia and China are imo vastly increasing their gold assets and I feel this just looks too good not to be acquired at anything under £2.50 today.

I hold a few foreign aim companies, for example TAP, they are often perceived as more risky, each to their own, but I to well out of them

[sirhedgealot] 19/7/2017 10:04

Someone buy a few million would they..

[mikkydhu] 19/7/2017 10:04

Stock market darling
To stock market dog...
What nail-biting trading
we did before tea,
You in the market
With others and me.

The gold price, the dollar,
Abramovich, Russia...
So much gold in the mines,
But the price just declines.

Will the crimms just destroy it?
Or Maguire one day call it
right?...And will juju be here
When the bears disappear,
When goldenshare's dreams
Come true, when the dividends flow
and we're rolling in dough
And stock market dog
Turns to stock market darling?

[catswhiskas] 19/7/2017 09:37

It's a depressing stock to hold as it's gone from stock market darling to stock market dog should start to pick up when the results and dividend come onto the horizon after summer .I also think there is a seller who hasn't yet shown their hand .

[1tezza] 19/7/2017 09:26

Does anyone have an idea why HGM is trading so low ?

[montyhedge] 18/7/2017 15:57

175p here we come.