Highland Gold Mining Ld Share Discussion Threads

[investor73] 07/7/2020 16:14

Most UK listed gold miners have not responded to the gold price rise yet. It's just matter of time before they do IMO. HGM seems very good value at the current price.

[investor73] 07/7/2020 16:04

Gold rising.

[loganair] 07/7/2020 08:56

This $1,785 Resistance level came from Cornerstones chartist - we'll see how good and accurate he is!

He went on to say there are no more Resistance levels until the November 2011 all time high of $1,924.

[return_of_the_apeman] 07/7/2020 08:08

Loganair

Gold closed at 1786.17 on 6th July, believe that was a breach of the 1785 resistance level you were looking for :-)

[investor73] 06/7/2020 21:35

ft.com
Gold miners glitter as spot price nears 9-year high.

Gold miners’ share prices are soaring with the value of the precious metal, while increased dividends are helping push these stocks higher still.

The spot price of gold has risen 17 per cent so far this year and is closing in on $1,800 an ounce for the first time in nine years. The commodity, commonly treated as a reliable store of value by investors, has benefited from nerves over the spread of Covid-19 and the outlook for global trade — and rock-bottom yields available on other haven assets.

Gold stocks have done even better, however, up 23 per cent this year as measured by the NYSE Arca Gold Miners index. Standout performers include Canada’s Kinross Gold and Barrick Gold, and US-based Newmont Corporation, all up at least 40 per cent so far in 2020.

The primary market is also vibrant. Recent share sales by South Africa’s Harmony Gold and Polymetal, a London-listed miner with assets in Russia and Kazakhstan, were completed in double-quick time, with the books covered in 20 minutes, according to bankers working on the deals.

“Macroeconomics is playing a part: gold has reasserted its status as a safe asset,” said one banker involved in the $200m Harmony deal. Given the favourable backdrop for gold — safe instruments such as US government bonds are effectively paying investors a negative return — analysts and sector specialists reckon gold and gold-related equities have further to run.

“With swelling central bank balance sheets, and rates in the US and most major developed economies close to or below zero, we see the macro backdrop as supportive,” said James Bell, analyst at RBC Capital Markets, in a recent report.

At the same time, big producers have also started to crank up returns to shareholders. The total per-share dividend of the five biggest gold miners has risen from $1.50 in 2015 to $3.20 in 2019, according to UK-based asset manager Ninety One.

Bullish fund managers think there is further to go. George Cheveley, a fund manager at Ninety One, said the outperformance “isn’t substantial when you consider the tailwind” from lower oil prices and weaker currencies in producer countries, compared with markets where the metal is sold. “We would expect them to do even better and deliver strong returns.”

Last year, “all-in” margins — which include exploration and other general and administrative costs — for a group of big gold producers tracked by RBC exceeded 10 per cent for the first time since 2012. Mr Bell thinks the miners can achieve 20 per cent this year on this metric.

The banker on the Harmony deal said investors were attracted by the stock’s higher “leverage̶1; to rising prices than can be gained from gold-tracking exchange traded funds. The idea is that a higher gold price on a fixed cost base can drive up corporate profits quickly.

[casual47] 06/7/2020 14:42

I don't think the govt voided the payments - the rent/mortgage owed will still need to be paid. There is nothing wrong with a mortgage holiday if it helps managing temporary cash flow issues.

[gary1966] 06/7/2020 14:34

loganair,

I would question whether people are in difficulty or opportunistic. Being invited to not pay their mortgage for three months has probably proven to be too tempting for many in this debt filled world we live in. Many shops that have continued to trade throughout the lockdown refused, unjustly, to pay rent just because the government said they could do, not because they needed to. Just an indication of the mindset of people around the globe. Personally I take great pride in having continued to pay my mortgage despite being offered a three month holiday from doing so.

[loganair] 06/7/2020 14:22

Yardeni Research - We are in a Melt-up at the Tail end of the 2009 Bull market and its looking more and more like 'Party like it's 1999.'

Fed "No asset being left behind" - Fed is forcing people to Sell Bonds and Buy shares.

Interpreted by Yardeni - Fed saying today they do not want the 10 year Treasury going over 1%



In the UK, 2mln have taken out mortgage holidays, shows how many are in difficulty as this money that these people haven't paid on their mortgage for the past 3 months still has to be paid at some time in the future and until they do so they are still being charged interest on these missed payments.


At some point in the future all this is going to implode and implode very badly.

[investor73] 06/7/2020 14:15

New gold rush is on as investors and central banks hoover up bullion.

[loganair] 06/7/2020 13:58

I do not know how many companies are on Yelp in the USA - the latest figures from Yelp of companies that have permanently closed:

35% of Retail
55% of Restaurants
23% of Beauty

45% of all companies on Yelp have now Permanently closed which is up 4% from just 2 weeks earlier.


Bank of America said this morning that due to Covid 19 4mln to 7mln jobs have been permanently lost in the USA = a massive amount of consumer spending has been lost and over 75% of the U.S. economy is consumer spending.

[loganair] 03/7/2020 10:17

Dalio - Fed and other Central Banks having negative interest rates = A Desire for these banks to have Ownership of the assets = Not Free Markets..... BlackRock - this is very positive for equity markets.


Dalio - Free Market capitalism - creates Efficiency, Growth & Productivity.

We're not even at the end of the beginning, we're still in the beginning of the beginning when it comes to the economic impact from Covid 19

[investor73] 03/7/2020 09:58

Q2 operting results should be announced in a couple of weeks time. Last year they were announced on 19th July. GLA

[loganair] 01/7/2020 20:20

Chantico Global - The worlds major central banks have dropped a money bomb which will effect the price of gold for years to come - a tail wind from here.

[11_percent] 01/7/2020 14:31

That was quick...…...silver entered the 18.30 - 18.60 danger zone.....and got whacked down.....as usual.

[loganair] 01/7/2020 12:22

Westwood Capital - c8mln low paid jobs have been eliminated permanently in the U.S. which is going to leave an unemployment rate in the high single digits by the end of 2020.

If not careful the monetary support the U.S Government is giving may leave them with millions of Zombie employees as well as 1,000's of Zombie companies.

[investor73] 01/7/2020 12:05

Q2 operating results should be released this month. They've been releasing them in July in the recent years.

[loganair] 01/7/2020 10:59

J.Hambro GFG Alliance - People need a solid currency = Gold with Copper and Iron Ore are the commodities to be in.

[kennyp52] 01/7/2020 09:35

HGM lagging badly behind CEY which is unusual . Maybe need an RNS to push this up ?

[return_of_the_apeman] 01/7/2020 09:24

Thanks for sharing investor73

Income Statement: 31/12/2019 31/12/2018 31/12/2017 31/12/2016
$ (Millions) $ (Millions) $ (Millions) $ (Millions)
Revenue: 395.39 311.15 316.68 305.9
Operating Profit / (Loss):161.48 109.19 102.2 69.36
Net Interest: -1.97 -1.77 -2.54 -5.04
Profit Before Tax: 158.73 108.25 100.32 66.23
Profit after tax : 177.79 56.08 65.86 47.91

Think is will be higher than $300m as gold sold in RUB, equivalent average gold price in H1 in USD would be $2,100 according to my calcs

[loganair] 01/7/2020 09:12

I understand the last resistance level before the November 2011 all time high of $1,924 is a close above $1,785.

Once buying pressure has broken through a close above $1,785 its blue sky all the way to $1,924.

How along the $1,924 level holds, the buying pressure may push the price of gold straight through or may range trade around the $1,900 level for several weeks as has happened so far every time the next resistance level has been reached.

[investor73] 01/7/2020 09:07

Forecast production for this year around 300,000oz. Cash cost of production at around $600/oz and aisc of around $800/oz, HGM is likely to make $300m trading profit according to my calculations.

[return_of_the_apeman] 01/7/2020 08:49

I expect he is only saying that as pog closed just shy of 1,785 in the last session

Gold already at 1,788 today, so his prediction might be proved wrong on the very first day of July :-)

[11_percent] 01/7/2020 08:43

My only reservation on this going up is that Martin Armstrong is calling a high for gold June......not sure I believe it.....but you got to note it.

Anyway......we should be North of £2.70......