Highland Gold Mining Ld Share Discussion Threads

[stevedaytrader] 23/10/2018 10:16

Gold up a lot, but overall ftse is keeping us down- interesting times...

[casual47] 23/10/2018 09:51

It's interesting information, but on its own it's useless.

The more interesting question is what one should, practically, do with this info.

That's where the nub lies.

[chipperfrd] 23/10/2018 09:14

loganair,

I agree with your earlier posts regarding UK house prices v Gold as an indicator of real inflation (ie fall in purchasing power of the Pound over time). It has certainly worked out pretty closely with my own experience of property ownership.

Using the inverse of the Compound Annual Growth formula it can be shown that gold (in £) from 1971 to current has averaged a growth of +8.8% pa.

The same maths for silver comes out at an average growth of +5.9% pa.

For comparison purposes I kept an Excel copy of a comparison list (Goldcore 21/7/17) for UK household items from 1973 to 2017.


1973(£) 2017(£) % MultiplierPint of lager 0.14 3.59 2464% 25.6Loaf of bread 0.11 1.03 836% 9.4Apples (kg) 0.28 2.02 621% 7.2Pint of milk 0.06 0.43 617% 7.2Sausages (kg) 0.58 4.89 743% 8.4Butter (250g) 0.13 1.46 1023% 11.2Carrots (kg) 0.11 0.65 491% 5.9Sugar (kg) 0.11 0.68 518% 6.2Coffee (100g) 0.28 2.95 954% 10.5Dozen eggs 0.33 2.02 512% 6.1Flour (1.5kg) 0.15 0.82 447% 5.5Diesel (litre) 0.08 1.18 1375% 14.8Ave Det House 16,980 345,833 1937% 20.4Gold (Toz) 34 942.7 2673% 27.7 Average of household items 883% Pound 1.00 0.08 -92%


Chip

[loganair] 20/10/2018 20:25

The Russian central bank has announced yet another increase in its gold reserves in September – this time it has added a massive 37.3 tonnes to the gold in its forex holdings and means it has added just short of 200 tonnes of gold to its reserves in the first 9 months of the current year which represents an increased acceleration in its reserve increases over the prior few years

Important note: All gold purchased by the Russian central bank is purchased from gold mined in Russia and paid for in local roubles.

[fangorn2] 20/10/2018 12:04

Interesting article gold side...

These ten mines will make money even if gold price falls to $550
This article by Vladimir Basov may be of interest to subscribers. Here is a section:



These Top 10 lowest cost gold mines are all below all-in-sustaining costs (AISC) $550/oz level and will prove profitable – even if the price falls 50%.

Mining Intelligence looked at costs at primary gold mines and found 10 operations that would still make money, even if gold halves in value from today's levels. AISC metrics has been taken as a basis of comparison and ranking.

Since the World Gold Council (WGC) published a Guidance on AISC in June 2013, which introduced a transparent standardised production cost estimation metrics intended to be used commonly by the global gold industry, a majority – yet not all – of the leading publicly-trading gold producing companies successfully adopted WGC’s recommendations and implemented AISC to their official reports.

AISC metrics provide a more comprehensive look at mine economics than the traditional "cash costs" approach that many companies may interpret arbitrarily – and it includes such important expenses as overhead outlays and capital used in ongoing exploration, mine development and production.


Eoin Treacy's view
All in sustaining costs are certainly a useful metric for addressing the prospects for any mine. However, when we address the list above what we are presented with are the lowest cost of production mines but they are mostly the legacy properties companies started with before they had to spend more money to acquire additional properties which generally do not have the same attractive cost structure.

[stevedaytrader] 19/10/2018 17:35

Thanks Loganair- what do think it means for hgm? Good finish to the SP, enjoy the weekend and you too Casual47.

[loganair] 19/10/2018 09:53

Partly why the price of US Treasury's are falling and therefore their Yield is rising and is also causing a rise in corporate debt yields.

[casual47] 18/10/2018 22:10

Then who is buying all the american debt?

[loganair] 18/10/2018 22:00

The Central Bank of Russia has continued getting rid of US Treasury bonds in August. The share of Russian investments in American debt is getting close to zero.

The reason is not only about politics and US sanctions against Russia, a broker at Otkritie bank Timur Nigmatullin said. The US Federal Reserve is hiking interest rates, which makes American bonds cheaper, he said.

“A further sale of US Treasury bonds by Russia will most likely be compensated by buying gold and opening short-term deposits at banks,” he said. The share of precious metals in the country's foreign reserves has reached a record 18 percent, closely approaching the share of dollar investments.

India and Turkey have followed Russia's lead. Turkey has dropped out of the top-30 list of holders of American debt, while India has been liquidating its investment for five consecutive months.

[stevedaytrader] 18/10/2018 16:52

Strong end to the day- fingers crossed for a hit to the 150 by close of play tomorrow.

[ken tennis] 18/10/2018 14:38

I make it 8.4 imperial ton this is based on 275000 oz of gold.
I have no idea where you get 0.4 cu mtrs, as a Cu mtr of concrete weighs 2400 kg this makes AU 7 times heavier than concrete to be the equivalent of 0.4 cu mtrs

[coxsmn] 18/10/2018 13:03

Very happy with the results.

[dr know] 18/10/2018 12:39

I make it 15.6 cubic feet.

[fizzypop] 18/10/2018 11:21

The Company affirms its forecast for total production of gold and gold equivalent of 265,000-275,000 oz for the full year.

I make that about 7.5 imperial tons or about 0.4 of a cubic metre or 11 cubic feet but unlike gold my maths is a little tarnished.

[stevedaytrader] 18/10/2018 08:03

Q3 2018 Operating Results
Thu, 18th Oct 2018 07:00

RNS Number : 4446E
Highland Gold Mining Limited
18 October 2018


HIGHLAND GOLD MINING LIMITED
18 October 2018


Q3 2018 Operating Results


Highland Gold Mining Limited ("Highland Gold" or the "Company", AIM: HGM) today reports its operating results for the three months ended 30 September 2018 ("Q3 2018").

HIGHLIGHTS

• Production at Mnogovershinnoye (MNV), Novoshirokinskoye (Novo) and Belaya Gora in Q3 2018 totalled 74,826 oz of gold and gold equivalent, an increase of 4.4% from 71,767 oz in Q3 2017.

• Total production for the first nine months of 2018 ("9M 2018") was stable year-on-year at 203,747 oz of gold and gold equivalent compared to 203,552 in 9M 2017.

• Aided by higher grades, MNV surpassed 2017 nine-month output, more than making up for lost ground after operating at reduced capacity in the first quarter of this year.

• Belaya Gora production was steady year-on-year as higher recoveries and grades offset slightly-lower processing plant throughput.

• Novo output was lower in Q3 2018 due to lower recoveries and grades, while work continued on the planned mine expansion.

• Average realised gold price during the quarter of US$ 1,206 per ounce

• The Company affirms its forecast for total production of gold and gold equivalent of 265,000-275,000 oz for the full year.

[uknighted] 17/10/2018 19:33

JPM Holdings 3.99%

[stevedaytrader] 17/10/2018 19:08

No surprises so far- usual hawkish tone.

[stevedaytrader] 17/10/2018 15:59

Haha haugtonhoney. All- FED mins out shortly, expect some movement in gold price and dollar, fingers crossed for the tone of "dovish", although I doubt this as the meeting was held a few weeks ago before the recent drops in markets...

[haughtonhoney] 17/10/2018 14:20

And pray tell me, where can you find an interest rate that equals or exceeds inflation whilst safeguarding the original sum?In fact, where can you invest nowadays and achieve a REAL return?

[casual47] 17/10/2018 11:36

A good example of the inflation issue / risk with gold miners: 20 years ago the gold price was below $300/oz yet today some miners are struggling to make money with gold at $1200/oz.

So yes, physical gold is an excellent store of value. Gold miners.......Not so much. (Barrick Gold share price in 1998: around 20, today: 12.75)

[casual47] 17/10/2018 11:33

No probs Fangs. I think most (non-millenial) people would struggle to get through 1GB a month so not sure unlimited data is all that.

[fangorn2] 17/10/2018 11:27

Thanks for the comments re Mobiles Casual.
I'm with Vodafone - unlimited GB, Unlimited texts, unlimited calls. Samsung 6
Dont use my allowance at all so thinking of trading down.
Especially as I have a Samsung 6, 5, 3, and a crackberry tucked away in my drawer now!
I certainly don;t need anymore phones

[casual47] 17/10/2018 11:20

Also re. Gold vs gold miners:

While cash "loses its value" it will also do so in terms of cash needed to pay the cost to mine. So the non-inflationary effect of gold is offset to an extent for gold miners by rising inflation (and in developing countries especially as they are playing catch up to the developed world in terms of salaries etc).

[casual47] 17/10/2018 11:13

Regarding gold miners being a different kettle of fish compared to gold....I suppose this is why miners are unloved:

-Huge up-front capex needs years before any kind of return when there just isn't the kind of cheap money sloshing around that there used to be

-Country risk of where assets are - political and economic stability, corruption, local communities, nationalisation, surprise taxes/charges, ...

-Management risk - bad management, vanity projects, fraud, ...

-Operational risk - studies vs reality, collapsing structures causing dilution of g/t, health and safety, environmental damage, ...

Etc etc

You can easily find examples of each the above happening to UK listed miners in recent times