Highland Gold Mining Ld Share Discussion Threads

[coxsmn] 24/2/2018 12:15

7%+ yield here.

[srpactive] 23/2/2018 12:23

C

Yes, ridiculous valuation, that is why I have
been buying and continue to do so, income and
yield. With the added bonus that the mining majors
have reduced debt significantly whilst paying
bumper dividends, the tiddlers will follow soon
enough, dyor active.

[coxsmn] 23/2/2018 12:07

Srp, finally heading in the right direction here.

[srpactive] 23/2/2018 11:44

l

Okay, points taken, maybe the strategic partner
has been found for the next push on, dyor.

[loganair] 23/2/2018 11:38

srp - Canada's got too many problems to be a place to invest in. My two cousins that were born in Canada and went to school there have both moved to the UK. Canada do not believe in having gold in their official reserves.

Russia has announce a few times that it is looking to increase its gold production from the current 306 tons per year to 400 tons per year which they expect to reach in the next 10 years.

It will still mean that the same amount of gold is being mined as the amount of gold China is mining is reducing at the same rate as Russia's gold production is increasing.

It is not that the US investors will ignore investing in Russia, it is that Putin will not let it happen.

[killary cunton] 23/2/2018 11:19

I don't think the yanks will be the buyers, I thinks the Russians will consolidate and maybe the Chinese.

[loganair] 23/2/2018 11:15

Putin will not let it happen.

Why does Russia need the US. In only a couple of years the US debt will be 100% of GDP while Russia's will be less than 20%. The US budget deficit is already $1.2trillion and increasing while Russia's is all but balanced budget. By 2030 China will have over 800mln people earning more than $20,000 per year, while in the US their average earnings are falling. China is opening the Silk road which goes via Russia and are now opening the Polar road which goes via Russia and Canada.

So why does Russia need the USA. The USA seem to be going backwards at a faster and faster rate, while China is moving forward as the UK did during the period 1750 to 1850.

[srpactive] 23/2/2018 11:08

kc

I did say consolidation would start and maybe it is
that, also Mr. Abramovich selling a stake in Nornickel
for £1.5bn, so anyone's guess.

dyor

[killary cunton] 23/2/2018 11:06

what's going on here then?

[loganair] 23/2/2018 10:55

If one believes the American gold reserves, then in less then 5 years Russia will officially have the second highest gold reserves in the world.

There is no way I can see that Putin will ever let US investors accumulate Russian miners or turn to the US for support....I can image Putin saying "over my dead body".....

[loganair] 23/2/2018 10:51

I think it is more to do with corruption and their threat on political power in Russia, rather than any thing to do with the good olde USofA.

[srpactive] 23/2/2018 10:42

More to do with the US list of oligarths's I would
have thought, if they are selling there will be
Chinese buyers forming a long queue I would have thought, dyor

Edit for L


dyor

[bonnard] 22/2/2018 23:18

loganair, have you seen the metrics on chipperfrd's thread CHIP? TSG does look very attractive compared with most of the companies in the data.

[loganair] 22/2/2018 21:46

I am looking at 'Trans Siberian Gold (TSG)' any thoughts or opinions are most welcome.

[loganair] 22/2/2018 21:26

Firstly the Russian Central Bank does pay the full going rouble rate per ounce for the gold, secondly gold miners including HGM incur at least 75% of their production costs in roubles.

What I really like about HMG is how it pays a good dividend out of its profits and has a remarkably low cost of production.


Often I read posters wondering why the price of physical gold is as it is:

About 15,000 times more gold is traded in financial markets than there is actual physical gold in the trading process. And almost all contracts settle in cash, not gold. This means the supply and demand for physical gold matters very little in setting the price. The gold price is therefore financialised. It can easily be manipulated by people with no connection or interest in physical gold. Or by those with the wrong sort of interest.

[srpactive] 22/2/2018 20:36

L

So based on what you say, how do you see the currency situation
effecting the year end profits?
Gold recovering well.

[loganair] 22/2/2018 17:59

80% of all gold mined in Russia is bought by the Central Bank of Russia in Roubles and in my opinion therefore the rouble price of gold is far more important than the dollar price of gold.

The Central Bank is doing this because it is a very good way for them to exchange roubles for dollars without the need of actually sell roubles for dollars and therefore not adversely hurting the rouble/dollar exchange rate.

Over the past year the price of gold has gone from 69,000R to 78,000R per ounce while the exchange rate has gone from 62 roubles to the dollar to 56. Both the rouble and the price of gold have been strengthening.

10 years ago the price was around 20,000R per ounce and even 5 years ago the price was around half it is to day at around 40,000R per ounce.

It seems to me what is far more important is the rouble exchange rate rather than the price of gold in dollars.

[stevedaytrader] 22/2/2018 17:41

SRP- I don’t think purchase is very likely- HGM a great prospect and too good for 1 owner, the Putin issue(would love to be wrong though!). Casual47- agree. Long term obviously good, I just hope with the gold price being great for Q1 so far (therefore figures later in the year ace), it remains this way and the divis will be supplemented with the “extra specials” too. Figures/financials in April18 will be very good, price will increase up to this and jump a bit as normal when they come out. Gold shortage constantly mooted at, HGM better placed than most who have money to burn but limited places to burn it. Debt is getting crazy in the US now, heard prediction today on Bloomberg ~10% downward movement on USD likely, and with TRUMP in place with his “do it all in the USA” this is even more likely. Today, more info on “less likely” interest rate hikes in the UK- Phil Hammond speaking next month- GDP downgraded etc., plus the BREXIT issues, should keep interest rate hikes at bay. I expect dollar and pound to weaken against other currencies. Gold has remained high despite all the recent issues, many expecting a big fall after yesterday, again did not happen. There is, and will continue to be, much nervousness around the world too politically which so far has not helped gold but will.

[casual47] 22/2/2018 15:52

If you look at chart movements since May 2017 then today's/recent share price movements are nothing to worry about.

If anything, the long term trend is a steady upwards. (Since May 2017 the peaks are getting higher and the bottom support around 140p has held up for nearly a year now)

And meanwhile....cherry on top: We are getting dividends which beat anything you get from savings accounts.

In summary: HGM is a great share as part of a balanced portfolio.

[bigdazzler] 22/2/2018 15:44

Hgm hovering around its 6 month lows. Price action does not look good very bearish.

[srpactive] 22/2/2018 12:39

Or take it private.

Edit

RNS stating production good and now gold recovering,
looking better, we should be alot higher than here, dyor.

[loganair] 22/2/2018 11:53

srp - Not if it makes Mr A. more politically powerful and as we know Putin places a great deal of importance to gold, far more than he does on any other commodity, except for possibly oil and gas.

Mr A. may have had to sell his stake as he may have been becoming to politically powerful.