Highland Gold Mining Ld Share Discussion Threads

[loganair] 25/9/2018 11:37

Over 50% of US GDP growth have been the Trump tax cuts and repatriation of money which has basically gone into share buy backs, not invested in productivity, which in turn accounts for over 70% in the rise of the earnings of large American companies.

[casual47] 25/9/2018 11:04

Interesting article on Abramovich

[coxsmn] 24/9/2018 20:01

Today's Telegraph,

"
WORLD ECONOMY

Central bankers warn of slower growth and rising debt

By Tim Wallace

SURGING risky debts, rocky financial markets and signs of a growth slowdown threaten to strike the world economy at a time when central banks have little ammunition to fight back.

“Further turbulence” is on the way as markets are “overstretched, financial conditions are too easy and debt, globally, is too high”, warned the Bank for International Settlements (BIS), the global forum for central bankers.

The OECD and credit ratings agency Fitch has cut its global economic growth forecast and economists fear a recession could strike in 2020. The risks identified by BIS analysts differ from the financial crisis, which was characterised in large part by excessive bank lending. BIS says debt on the capital markets is now pushing up lending.
"

[stevedaytrader] 24/9/2018 16:08

Agree Loganair and also Casual.

[fizzypop] 24/9/2018 15:55

146p being tested - looks promising. Anyone trading around this level?

[loganair] 24/9/2018 15:11

Barrick is buying Rand and offered $6bln to form New Barrick Group and it seems to me a lot to do with cost savings rather than any thing else.

HGM is lucky being one of the lowest cost gold miners.

[casual47] 24/9/2018 14:44

I expected consolidation but as in the 1m+ oz pa big beasts taking out the explorers/juniors/medium sized miners. Didn't see the randgold-barrick one coming....

[stevedaytrader] 24/9/2018 14:41

Interesting and good for my rrs holding albeit small- there has been talk of consolidation in the industry in the past 6 months- maybe this is just the start- we shall see- don’t forget the fed rate rise this week which should already be factored into to gold price which has been pretty much oscillating within a 1190-1210 range for a while much to the annoyance of gold shorters who are losing on guess he wrong way and getting hit with commissions.

[casual47] 24/9/2018 12:54

Will be interesting to see what the effect of the Randgold-Barrick merger will be. I can't see them going on an acquisition spree so soon as a lot of energy will need to be spent to complete the merger practically so they can benefit from the efficiencies it can deliver. Then there's also Barrick's need to pay down debt and getting the Chinese involved with their (probably) ailing tier 2 assets.

So then the question arises, who are the ones who will pick up the baton to consolidate existing mines and buy exploration assets?

[coxsmn] 24/9/2018 12:46

where did Srp go?!

[thecroots] 24/9/2018 12:06

Cl1nt1

You're quite right, when ADVFN says its a PE of 34 - That's it- I'm done - no need for further investigation, it's already too expensive for me - a strategy that has served me immensely well over the 20 years in the market.

Too many times burnt with High P/E

But thank you for your kind words and wisdom. It has further strengthened my ability.

[loganair] 24/9/2018 11:57

Just heard Randgold and Barrick Gold are merging to form the biggest gold mining company.

[loganair] 21/9/2018 14:44

The Russian central bank has just released the latest figures for its August foreign exchange reserves and reveals it has added a further 1 million ounces of gold (31.1 tonnes) to its reserves that month, bringing them to 2,001.1 tons.

[cl1nt1] 21/9/2018 07:30

Its AAZ not AAX and it seems the limit of your 'researching' is going to the financials page on ADVFN.

[thecroots] 20/9/2018 19:47

Regarding AAX - Nope. Not interested at all in researching a company with a current PE of 34. Enterprise value already priced in.

I could Never but anything that's already that expensive - if I was to buy and the price rise the PE would be even worse.

That said, beautiful rise this week for holders - but not for me.

Good luck to all holders though.

[stevedaytrader] 20/9/2018 16:55

Well, I got my 145, albeit a day later than I thought- shame it dropped back into the 44's- fingers crossed for tomorrow.

[casual47] 20/9/2018 10:40

Chaarat has loads of Oligarch connections so they just might be able to pull off this ambitious M&A plan (perhaps even some of the Oligarchs have some hand in it):

*The Chaarat CEO is Artem Volynets, formerly of Rusal/EN+, and former right-hand man of Oleg Deripaska. Artem was appointed director to Norilsk this year to represent Oleg on the board so still very much connected to him.

*Chaarat recently appointed an independent director, Robert Edwards, who has been a long time associate of Evraz/Abramovich. Like Artem he was appointed to the Norilsk board, but to represent Abramovich/Evraz.

*The Chairman and largest shareholder (30%+), Martin Andersson, made his money and reputation with Brunswick Investment Bank which was one of the key players during the post-soviet era when all the state owned assets were flogged off. He has his own links to various oligarchs e.g. Sergei Popov and Andrey Melnichenko. (Martin was a 10% shareholder of MDM and a director of SUEK)

[casual47] 20/9/2018 10:35

As there are quite a few experts on the Russian mining sector here I hope you'll forgive this crossover post:

Chaarat Gold, which I hold, have published their M&A "wishlist". Anyone have any ideas what the Russian takeover targets could be?

I was looking out for HGM but it doesn't quite fit (I thought perhaps HGM was target #6 "Russia 285k oz", but HGM had a guidance for 2018 of 265,000-275,000)

Bolt-On Acquisitions (location + expected 2018 gold/gold eq. Oz production)
Target 1 Russia Far East 40k oz
Target 2 Russia North East 55k oz
Target 3 Caucasus 150k oz
Target 4 Caucasus n.a.
Target 5 Kazakhstan 50k oz
Target 6 Kazakhstan 30k oz

Transformational Acquisitions (location + expected 2018 gold/gold eq. Oz production)
Kumtor Kyrgyz Republic 450k oz
Target 2 Russia 475k oz
Target 3 Russia 225k oz
Target 4 Central Asia 450k oz
Target 5 Russia 170k oz
Target 6 Russia 285k oz

They don't necessarily have to be whole companies, can also be the acquisition of a mine belonging to a bigger outfit. E.g. there is speculation that the first acquisition that is expected to be finalised in November is the Kapan mine belonging to Polymetal. (Which makes sense as Poly have been selling off assets recently and the Kapan mine is not core for them)

[cl1nt1] 19/9/2018 15:48

i suggest you do some research

[thecroots] 19/9/2018 12:50

AAZ has a PE of 34 - No thanks!!!!!!!!!!

[casual47] 19/9/2018 10:10

We're now only 3.5% down YoY.

Compare YOY:
POLY -24%
CEY -30%
RRS -35%
ABX -39%
HOC -33%

I think we may be trading around 140-145p for a wee while until we see the remainder of the sector catch up.

[cl1nt1] 19/9/2018 08:51

Guys any of you had a look at aaz recently.
They've just gone debt free and throwing off loads of cash and just announced an interim divi of 4% and on-going divi of 25% of Free cash flow.
The management really are topnotch and don't be put off by the recent rise as it really was obscenely undervalued and there production growth to come.
The AAZ BB is very informative as well.

Edit - forgot to say as you don't mind Russia it is an Azerbaijan gold/copper miner.

[stevedaytrader] 19/9/2018 08:38

Ftse up, dollar remains a tad weaker gold up, fingers crossed 145 break today

[stevedaytrader] 18/9/2018 21:08

The pound has been gaining against the dollar the last few trading days up until today when it retracted a tad - long may this continue

[casual47] 18/9/2018 19:58

My 141p bottom, breakout to 145p projection wasn't completely off the mark!

Further upside will probably depend on general sector/gold price. HGM has held up better than most and has been solid last few days. I suppose one reason why it may hold back a little is that at some point the price for HGM could become too good compared to other equally deserving goldies who are still lagging and thus providing an opportunity to redirect funds into.