Highland Gold Mining Ld Share Discussion Threads

[montyhedge] 14/9/2017 08:15

Oh well back to 138p.

[srpactive] 14/9/2017 08:12

Bought some more, dyor.

[return_of_the_apeman] 13/9/2017 09:27

X div date tomorrow

[return_of_the_apeman] 13/9/2017 09:22

Bought some more, divi too good to miss and if they double the gold output in 2yrs as plañned these could be at £4 by then at today's POG

[meanreverter] 10/9/2017 18:56

fenner66: Your calculation of 6195 oz looks a bit off to me. I get 80 × 2.2 × 0.93 / 31.10235 = 5.091 (koz), where I have assumed a 93% recovery rate. But anyway, this refers only to a pilot plant. A full-size plant would be expected to produce many times more. The figure of $212m looks too high for a pilot plant.

[penfold6] 10/9/2017 14:01

no buy both it says. poly as more long term investment, however dividend only 3.7% at Poly, HGM is 6.3%.

article doesn't mention that the rising gold and base metal prices will also increase HGM profit, although it does mention that for poly.

doesn't also mention that HGM production will double in 2 year time(500k oz pa), so is also a long term as well as short term investment.

[montyhedge] 10/9/2017 11:59

Ok Polymetal the one to buy not Highland.

[loganair] 10/9/2017 08:26

When the going gets tough, the gold price gets going. Last week, as North Korea’s Kim Jong-un continued to show off his nuclear prowess to the world, gold rose to new highs, closing at $1,346.25 a troy ounce on Friday.

Bubbling geopolitical tensions do not just affect the price of gold itself, but also the shares of listed gold miners, many of which have risen by 10 per cent or more over the summer.

Randgold Resources, for example, the largest gold miner on the stock market, has risen almost 20 per cent since July to the eye-watering price of 8,125p.

Midas recommended Randgold in 2008, when the price was just 2,390p so shareholders who bought back then have had a great run.

The company has an enviable reputation within the industry and the price is likely to rise further, if gold gains more ground. For investors in search of a solid gold stock, this is the best on the market, even if the price is hard to swallow.

Stockpickers in search of gold companies with a little more of an edge may like to turn their attention to Russia. The country is the third largest producer of gold in the world, mining more than 2,000 tons of the yellow metal in the past ten years alone.

Government ministers are highly supportive of the industry too, hoping to increase production materially over the next decade.

But a number of large investors worry about the country and fight shy of putting their money into Russian gold miners. Their reluctance is ironic, given that most are perfectly happy to invest in African mining stocks, which have a far greater propensity to suffer from political about-turns.

For shareholders prepared to give Russian gold stocks a go, however, the rewards can be handsome, as producers try to overcome market mistrust by offering particularly generous dividends.

Highland Gold exemplifies this trend. One of the lowest-cost producers, it has three working mines and a string of future projects. It produced just over 260,000 ounces of gold last year, delivered turnover of $306 million (£234 million), a net profit of $47 million and a dividend of 10p.

The Russian rouble has strengthened by about 15 per cent against the dollar this year, which hits Highland, as most of its costs are in roubles and most of its sales are in the US currency. Nonetheless, chief executive Denis Alexandrov said at the half-year results last week he was confident of meeting full-year guidance and committed to returning cash to shareholders.

Analysts expect turnover to stay broadly flat this year and profits to fall slightly but they have pencilled in another dividend of 10p. With the shares at 157p, that puts the stock on a yield of more than 6 per cent.

Turnover and profit are both set to rebound strongly in 2018, with the dividend likely to rise to at least 11p. Chelsea Football Club owner Roman Abramovich and his cronies are big shareholders in Highland, which scares some investors. But the firm has been listed on Aim since 2002 and should deliver strong profit in coming years.

Polymetal is also focused on growth. Significantly larger than Highland, Polymetal is listed on the main market, valued at £3.8 billion and the shares are 891½p. Recent half-year results also alluded to the impact of a stronger rouble on costs, but production is growing and the gold price is rising. So the firm is set to increase turnover by 15 per cent this year to $1.8 billion with pre-tax profit rising 4 per cent to $588.5 million.

Last year, Polymetal paid out 27 cents in regular dividends plus a 15 cent special – equal to nearly 33p in sterling terms. This year, analysts forecast ordinary dividends of 34 cents, but there is the chance of another special if the gold price stays above $1,300 an ounce.

Polymetal is expected to produce 1.4 million ounces of gold this year and has invested heavily in a new mine in Kazakhstan to boost production further. The project is expected to start commercial sales next year, but the share price has been affected by fear of delay.

Polymetal fans say the firm is well managed and has a strong track record. It is chaired by Bobby Godsell, a former head of AngloGold Ashanti and a stalwart of the South African mining community.

Midas verdict: Gold exploration stocks are notoriously risky but Randgold, Highland and Polymetal are all significant producers, delivering sales, profits and dividends. Conservative investors should stick to Randgold, income seekers could take a punt on Highland and those with long-term horizons should take a look at Polymetal.

[plasybryn] 10/9/2017 08:04

Gets a nice mention in The Mail on Sunday

[zangdook] 09/9/2017 09:13

wrong thread. hop it, noddy.

[happyholder123] 09/9/2017 08:57

HNR -
TWO wells successfully drilled with abundant oil and gas in samples extracted!
Fracking and FIRST OIL next month!
Don't miss this train!

[penfold6] 09/9/2017 07:36

* IN JANUARY 2013, HGM bought 100% of the company's shares for $ 212 million and IN THE SAME YEAR built a seasonal pilot plant*

work your numbers out on the 2016 PFS - 800,000 tons of ore per year for 9 years at an average grade of 10.73g/t, producing 209,000 oz of gold per year for 9 years.

DFS to be released mid Oct.

[fenners66] 09/9/2017 00:21

"seasonal pilot plant with a capacity of 80,000 tons of ore per year. The processed ore will not be processed until the plant is launched."


By my calculations at 2.2g/t that will yield just 6195 oz

Sales at say $1300 = $ 8.053m

But recovery cost per oz at $674 = $4.176m

Leaves a contribution of $3.87m per year

From a $212m investment ??

[woodhawk] 08/9/2017 17:25

I doubt it - just a retrace - I'll be back in a few pence lower.

[montyhedge] 08/9/2017 16:34

Something wrong here.

[pitball] 08/9/2017 15:57

I know it's crazy!! Take advantage while you can I have!!

[woodhawk] 08/9/2017 15:56

Has been a good rise, so a bit of profit taking is hardly unexpected.

[breaktwister] 08/9/2017 15:36

5% drop is brutal on steady gold price

[wilco1000] 08/9/2017 12:45

If I stick around until Kekura comes online (which I plan to) I will be into my 12th year holding here

[penfold6] 08/9/2017 08:06

09/08/2017 // Construction of a plant at Kekura will begin in 2018

The first gold is planned to be produced in 2020.

September 8, 2017, NEDRADV. The company of the British company Highland Gold Mining (HGM) ZAO Basic Metals is planning to start a full-scale construction of a gold extraction plant (ZIF) at the Kekura deposit (Chukotsky Autonomous District) in 2018. This during the WEF correspondent portal NEDRADV, said the director of public relations HGM John Mann.
- By mid-October 2017, we plan to agree on a feasibility study for the project. After that we proceed to order the necessary equipment, it will have to arrive in a year. Full-scale works on the construction of the plant will begin in 2018. Start the factory and start producing precious metals in 2020, "said John Mann.
Recall that the license for exploration and production at the Kekura field on July 15, 2010 acquired the company CJSC "Basic Metals". In January 2013, HGM bought 100% of the company's shares for $ 212 million and in the same year built a seasonal pilot plant with a capacity of 80,000 tons of ore per year. The processed ore will not be processed until the plant is launched.

hxxp://biznes-gazeta.ru/?id=news.view&obj=3e40f7e19391d8f505a41fd7628b38bf

[srpactive] 07/9/2017 09:27

Dear o dear, I can see why it has been good
to be away after reading posts like 10180, actually
I have been buying more hgm and aly, dyor.

[garycook] 07/9/2017 01:21

coxsmn,Post 10160/63/65.Look back previous post Sep 4/5.

[woodhawk] 06/9/2017 23:27

I think I saw him posting on GVC the other day - it definitely wasn't ALY! LOL.

[coxsmn] 06/9/2017 23:18

Garycook, where is he?

[penfold6] 06/9/2017 09:05

john mann(HGM) speaking earlier today at the eastern economic forum in vladivostock

33:40


also at 40:25