Highland Gold Mining Ld Share Discussion Threads

[srpactive] 26/10/2017 14:41

The US time brings the anchor again, I
will be back tomorrow morning when they are in bed.

[loganair] 26/10/2017 09:06

monty - Basically Venezuela have little gold left in their reserves as they have sold the vast majority of it off, they also have little money left even though I understand they have the largest oil reserves in the world and are or at least use to be one of the biggest oil producers. In other words an exercise in how not to run a country.

[woodhawk] 25/10/2017 18:01

A couple more pence down and I might be tempted in again....

[montyhedge] 25/10/2017 15:46

I thought I read Venezuela sold a lot of gold to pay bond debts, may be wrong.

[garycook] 25/10/2017 14:39

srp,Keep praying.

[srpactive] 25/10/2017 14:16

Gold trying again, surely these green shoots will
get us back over $1300 soon, dyor.

[srpactive] 24/10/2017 15:25

Good pog rns, nice to see the US houses getting involved
in Russian miners, bodes very well for pog and hgm, dyor.

[return_of_the_apeman] 24/10/2017 12:40

China stopped reporting a while back, however we know what they are up to as countries, for example Austraila report sales to China :-)

[loganair] 24/10/2017 10:38

The only thing is what is China doing, as they do not announce their monthly or even yearly gold holdings, they do not sell any of their domestically produced gold and unlike Russia, China are also a big importer of gold!!!!!

[srpactive] 24/10/2017 09:40

L

Thank you as always.

[loganair] 24/10/2017 09:19

It’s that time of the month again when the Russian Central Bank announces it latest gold reserve figure.

The latest reported figure out of The Bank of Russia is that it added 1.1 million ounces (34.2 tonnes) of gold to its reserves in September, bringing the total year to date to 163 tonnes.

As of October 1, the Russian Central Bank holds $73.6 billion in gold reserves.

Over 2017 there has been two other major Central Bank buyers of gold, Kazakhstan and Turkey.

Overal Central Bank demand is up 20% this year compared to 2016.

All this is good news for the gold price. Central banks can print an infinite amount of their currencies and buy gold that is in limited and only slightly increasing supply. Hence, the only possible way forward is a higher USD denominated gold price as an infinite supply of currencies meet a finite amount of gold.

[srpactive] 23/10/2017 17:56

Gold doing nicely.

[joan of arc] 23/10/2017 17:10

A tax question if someone can help me out. I didn't realise until now but HGM are registered in Jersey and as such I do not think they deduct any witholding tax on their dividends. Does this mean they will be taxable at a person's marginal tax rate or is some tax credit allowable?

[srpactive] 23/10/2017 08:30

Interesting : dyor

Qatar’s sovereign wealth fund is in talks to join CEFC China Energy and commodity trader Glencore in taking a stake in Russian hydropower-to-aluminium group EN+, as part of the company’s planned flotation in London and Moscow next month.

[killary cunton] 22/10/2017 12:17

nice find. I own both

[garycook] 22/10/2017 05:15

See HGM has dropped off with the price of Gold.But I made a top up.If we go lower I will buy more.

[srpactive] 21/10/2017 18:33

Yes well done, I have been following pog for months, dyor.

[11_percent] 21/10/2017 10:45

Gary, good find.

[garycook] 21/10/2017 02:50

2 bargain turnaround stocks that could support 6%+ dividend yields

Rupert Hargreaves | Tuesday, 17th October, 2017 | More on: HGM POG
Photo: Roy Luck. Cropped. Licence: hxxps://creativecommons.org/licenses/by/2.0/deed.en

Trying to pick turnaround stocks can be a thankless task. Trying to select the best turnarounds, while avoid falling knives requires plenty of research and some of the time, the rewards are not worth the risk.

However, I believe Highland Gold Mining (LSE: HGM) and Petropavlovsk (LSE: POG) could be two turnarounds that are worth the risk. In fact, these two stocks look as if they could become dividend champions in the future.
All that glisters is not gold

Over the past two years, shares in Highland Gold have staged a dramatic recovery from the lows of 26p at the end of 2014. Today, the shares are trading at 154p and have risen 10% year-to-date.

Highland has benefitted from both higher gold prices and increased output. Total production for the first nine months of 2017 was 203,552/oz of gold and gold equivalent, up 6.6% from 190,873 in the first nine months of 2016. The average gold price received for the quarter was $1,280/oz, up from around $1,100/oz at the end of 2016.

City analysts expect this performance to continue for the rest of the year. Earnings per share growth of 47% is projected for the full year, followed by growth of 17% for 2018 based on current gold prices. These growth estimates indicate that the shares are trading at a forward P/E of 9.7, falling to 8.3 for 2018 — a discount to the metals and mining sector median of 10.

As well as the low valuation, I believe that shares in Highland will support a dividend yield of 6% or more going forward.

Analysts have pencilled in a dividend yield of 5.4% for this year. The payout will be covered twice by earnings per share. Historically, Highland has distributed 50% of earnings to investors via dividends, assuming this continues for 2018, the firm looks set to distribute 9.4p per share for a yield of 6% according to my figures.
Mining for a bargain

Highland looks cheap, but Petropavlovsk seems to me to be even more undervalued.

One of Russia’s leading gold mining companies, Petro has really struggled over the past five years. The company’s shares have lost 98% of their value as the business has lurched from one disaster to another.

Nevertheless, it now looks as if the firm is back on track. Today the company reported that for the first half, profit increased by 166% to $25m, and net cash generated from operating activities rose 150% to $75m.

Petro is making good progress on all of its objectives. Costs are falling and cash generation is strong, helping to fund capex and lower debt. Based on City expectations for growth, the shares are trading at a forward P/E of 8.4, falling to 5.7 for 2018.

And as the company continues to improve its balance sheet, shareholders could be well rewarded. If Petro repeats its first-half cash generation, the group will have churned out $150m in 12 months, giving an operating cash flow yield of more than 40% according to my figures. If management decided to devote just 20% of this balance to investors, the shares would yield around 10%. Not a bad reward for a high-risk turnaround.
Not for everyone

Miners such as Highland Gold and Petro, can generate huge returns for investors. Unfortunately, these returns come with plenty of risk.

If the risks of investing in the mining sector put you off, you should take a look at this opportunity from the Motley Fool. Our analysts believe that this company is one of the market's top small-caps, which could produce huge returns for investors.

To discover more, click here to download the free, no obligation report today.

Rupert Hargreaves owns no share mention

[turbocharge] 20/10/2017 22:36

Morgan Stanley Securities Ltd. (Market-Maker) holds 4.78m shares (1.47%) as of 2 August 2017

I thought Market Makers weren't allowed to hold shares, only trade in them?

[srpactive] 20/10/2017 20:13

Okay thank you, please keep posting here.

[thecroots] 20/10/2017 16:39

Just be patient. Markets are at crazy valuations. It will correct, cannot keep going higher. Just who is buying stock at elevated levels? I believe we will have some sort of correction, nothing major but then gold will rise in the back of it. Considering how much the dow has risen gold is holding up well in the grand scheme of things. The gold price of late is massively tied to the strength of the dollar and not much else of significance.

[srpactive] 20/10/2017 16:37

Yes accept all you say, but most days you see a fall at 2.30pm, that is all.

Like today.

[thecroots] 20/10/2017 16:33

Why do consistently think the US has anything to do with the share price reaction? Its not dual listed any decent investor will have loaded orders at anytime, West coast or east coast. They don't just wait until their markets open to buy foreign stock. Plus it like when I buy foreign stock I buy it with loaded orders of when their market is open.....you are deluded if you think share price movement is because of the US opening bell.