Highland Gold Mining Ld Share Discussion Threads

[borisjohnsonshair] 17/12/2018 14:36

What is this drop about???

[fizzypop] 17/12/2018 09:20

In for more at 143p with divi due 20th.Dec.

[stevedaytrader] 17/12/2018 09:20

Rrs down half as much and hochs also hit

[zangdook] 17/12/2018 09:18

I topped up but I checked that there hadn't been a correction announcement first.

[stevedaytrader] 17/12/2018 09:16

Normally pretty good at predicting things, but this looks like one of those weird ones we get with this stock- divi announcement and up we go, then before the ex date down it tumbles out of nowhere - will keep hunting but i suspect it’s another of the mystery drops

[zangdook] 17/12/2018 09:16

Maybe people are reading this sort of amazing journalism

[casual47] 17/12/2018 09:10

Whatever it is, there's quite a bit of volume behind it.

[stevedaytrader] 17/12/2018 08:56

Any ideas why the big drop today- simply disappointingly bizarre

[loganair] 14/12/2018 09:39

Brexit is important to many shares and effects sentiment. When it comes to HGM the exchange rate is very important which is being effecdted by Brexit.

[stevedaytrader] 14/12/2018 03:19

The brexit thing has got many more people interested in politics, exposed politicians to reveal what they’re like, but has also polarised many people refusing any compromise- the more we know the better of we are, or maybe not- I guess every human is individual and this whole process has emphasised this. For those interested in politics it is a very interesting time whatever views you hold.
Now back to HGM, fingers crossed for rise or consolidation today.

[borisjohnsonshair] 13/12/2018 19:24

Hard to say as they are liars

[le0nard] 13/12/2018 15:55

disappointing response to good news

[chipperfrd] 13/12/2018 13:15

loganair,

It has been an excellent rise since Dec14.

My best price was 23.9 so IF we were to get a 16p total divi that would equate to a yield of c. 68% on that position!

Plenty of other positions at higher prices of course, but even so it has been a great share to own. Long may it continue to be so!

Chip

[loganair] 13/12/2018 11:34

An interesting read...


How much gold does China have? A lot more than you think by Dominic Frisby:


Today – as we like to do every couple of years – we consider all the gold in China.

Next time the international money system comes under stress – and that time may not be far away – where the gold is, and who owns it, could be of great importance.

The world’s central banks have been stocking up on gold
You may think gold is an antiquated asset, irrelevant to a modern digital world. China clearly doesn’t. Since the global financial crisis, China has been accumulating gold at a staggering pace.

The implications are considerable.

There are going to be lots of numbers in this piece, so to anchor you with some kind of perspective, let me give you some of the major figures.

Total global central bank gold reserves stand at just below 34,000 tonnes, which is roughly 20% of the 175,000-or-so tonnes of total above ground supply.

The US is the world’s largest owner with 8,133 tonnes. That number works out at around an ounce per citizen. Precious metals analyst Nick Laird reckons that if you add private and institutional holdings to this official 8,133 tonnes, there are 26,000–27,000 tonnes in the US overall.

Below is table of central bank gold holdings, Using World Gold Council table of central bank holdings the UK sits proudly at 17th, two places below Kazakhstan and one above Lebanon.

Central banks, by the way, have increased their buying this year at the fastest rate since 2012. They now account for around 10% of annual gold demand.

The People’s Bank of China (PBOC – China’s central bank) announces its gold holdings every five years or so. The current stated figure is 1,842 tonnes.

So that’s what they say they have. Now let’s look at what they have accumulated. We’ll start with what they’ve mined.

In 2007, China overtook South Africa to become the world’s largest gold producer, mining 276 tonnes. Last year it mined 430 tonnes, about 50% more than Australia, the world’s second-largest producer.

China now accounts for around 15% of total annual global gold production. But here’s the thing: China keeps all of the gold it mines. It does not sell a single ounce abroad.

As well as keeping all of the gold it mines, since 2010, China has ramped up its gold imports. In 2014, it overtook India to become the world’s largest importer, buying gold from Hong Kong, Switzerland, London, Australia and Singapore.

It is hard to get precise figures as many of these trades are over the counter, but Hong Kong does provide them – and they are astonishing. Between Hong Kong imports and Chinese gold production, China has accumulated more than 10,000 tonnes of gold since 2000.

Meanwhile, all the gold that enters China must be sold via the Shanghai Gold Exchange (SGE), and it is possible to get numbers for SGE withdrawals since 2008. These take the grand total of imports and production to 14,111 tonnes.

There is also, to add to this number, all the gold that was in China, whether as bullion or jewellery, prior to 2000.

So how much gold does China really have?

Not all of the gold that makes its way to China goes to the central bank, it should be stressed. Indeed, China has encouraged private accumulation of gold.

Quite how much is falling into domestic hands is hard to quantify, but Bron Suchecki of the Perth Mint, studying gold flows, argues that China aims for private citizens to accumulate 55% of flow – with the remaining 45% going to commercial banks and the Chinese central bank. Even if half of that 45% goes to the PBOC, then their holdings are likely to be higher than the stated 1,842 ounces.

However, as precious metals analyst Koos Jansen argues, the PBOC does not buy all its gold from the SGE. It goes elsewhere. There are several reasons for this.

The SGE sells its gold in yuan and the PBOC prefers to use dollars. The PBOC likes to buy 12.5kg bars, which do not trade on the SGE. The SGE has stated that only consumers buy gold over its exchange – although in practice that doesn’t seem to be the case.

The PBOC does not like to disclose all its gold purchases, which on the SGE it would have to do. It prefers “monetary gold” which does not require disclosure on customs reports. The PBOC prefers an OTC (over-the-counter) market such as London, to an exchange such as Shanghai (less disclosure required).

What’s more, as Ross Norman, CEO of Sharps Pixley, tells me: “There are other state agencies apart from the PBOC, which buy gold – there’s the State Agency for Foreign Exchange, China Investment Corporation (the sovereign wealth fund) and the military, for example.

“And they all often use other means to the SGE to buy their gold. There’s the London Bullion Market, other market makers and banks in London, there are the Swiss refiners, a lot goes through Dubai. This is all official gold one way or another, but the real numbers are obfuscated and unknown.”

Norman continues: “The PBOC’s figures can be whatever they want them to be. In all probability, it’s much higher than officially stated. My guess is that they gave that figure of 1,842 tonnes to be high enough to get credibility with the IMF to satisfy its criteria to be included in SDRs (the IMF’s international currency basket), but not so high as to issue any kind of challenge to the US.”

Jansen concurs, estimating official Chinese holdings to be around the 4,000 tonne mark. That would make it the second-biggest owner of gold after the US.

Jansen’s grand total of all the gold in China now stands at around 21,021 tonnes.

Norman, who works at the coalface of bullion dealing, thinks it’s even higher than that. “So much gold has been making its way to China without being declared. It really wouldn’t surprise me to see official Chinese gold holdings above the 10,000 tonne mark.”

That’s an extraordinary number. It would mean that China has more gold than the US.

China’s official gold holdings currently amount to just 2% of its foreign reserves. 10,000 tonnes would equate to 11% of foreign exchange holdings. That’s about the international average. In those terms, 10,000 tonnes is not such an extraordinary number.

But there is no way China could declare that it was holding 10,000 tonnes today. It would cause enormous disruption. First, it would send the gold price a long way higher – which it won’t want to do while it is still accumulating.

Second it would cause untold disruption in the forex markets – a yuan backed by gold could strengthen significantly. China doesn’t want this just yet, either – it wants the yuan low for trade purposes. Meanwhile, it has an extraordinarily large US dollar holding in its foreign exchange reserves. I rather expect it wants to protect the value of its holding – at least for the time being.

But third, and perhaps most of all, to declare that it had more gold than the US would be a direct challenge to American supremacy, almost a declaration of war. China’s not ready for that. Not yet, anyway.

[loganair] 13/12/2018 11:23

If the Dividend turns out to be 16p will mean a yield of nearly 40% on the price I paid a few years ago for my HGM shares.

[garycook] 13/12/2018 10:53

This is a 2nd Interim dividend.So if and when the Final is declared in end of April at at say another 5p.That makes 16p Divi for the year and Yield of 10% at 160p.Great news.No wonder HGM is up over 4% today.

[fizzypop] 13/12/2018 10:47

Well I was going to sell as this approached 160p but then the extra divi was offered which goes ex-div on 20th. Not that I'm complaining.

[bo doodak] 13/12/2018 10:05

Going to be quite an attention grabbing jump in yield going forward if/once quarterly is confirmed

[stevedaytrader] 13/12/2018 09:54

Hmmm , couldn’t figure it out, but dumped ted baker where I made great short and bought more here just after opening, love the divi

[zangdook] 13/12/2018 08:58

ok, the dividend policy announcement was a year ago to the day on 13/12/2017, but I don't think it really explains today's announcement. It says

"The Board may recommend the distribution of additional cash on the balance sheet through increased or special dividends should those funds not be required for capital expenditure or debt repayment."

However today's announcement is not about an increase in the regular 6-monthly dividend, and there's nothing about it being a special dividend, which suggests that it may be a regular thing. That leads to my question, are they moving to quarterly? or is this a one-off, and if so, why not call it special?

I have five pages of spreadsheet to update so I'd like to know :-)

[zangdook] 13/12/2018 08:48

You don't remember where they said that? I've been through the last few months of RNSs. Was it to be a one-off or a move to quarterly? I have to redo my spreadsheet...

[stevedaytrader] 13/12/2018 08:20

it’s on rns now- a while ago they said there would be an additional dividend - which is ace this is 0.05 per share

[zangdook] 13/12/2018 08:12

Do you have a source for that information? I would have thought it would be flagged somewhere. It's a pretty major development but I haven't found anything. And do you know if they're moving to quarterly dividends, or is this a one-off?

[borisjohnsonshair] 13/12/2018 07:32

It's additional

[zangdook] 13/12/2018 07:16

A January dividend? Is this just re-timetabling or are they moving to more than two dividends a year?
They call it "second interim" but I seem to recall they did that anyway instead of designating one as "final".