Pan African Resources Share Discussion Threads

[srpactive] 03/12/2016 19:54

Very good post indeed, it has been said a couple of times
that af production costs are very low. Interesting post
on hgm also another of mine.

dyor

regards

active

[mikkydhu] 03/12/2016 14:46

A look at PAF's AISC:

In the September post results presentation, the company says this of Barberton:

"The Fairview 11 block and the BTRP (Barberton Tailings Retreatment Plant) allow Barberton Mines to operate profitably in the event of a severe gold price downturn."

This is because this mine has a very high grade deposit and because the BTRP has an extraordinarily low AISC. So Barberton produced 113,281 ounces at an average AISC of US$694. That is over half of PAF's gold production.

Evander produced 73,496 ounces underground (more expensive) and 18,151 from the ETRP (cheaply). The Elikhulu retreatment plant, if it goes ahead, will add about 50,000 at an expected AISC of US$650. So, looking ahead to 2018 when Elikhulu would come on stream, PAF would be producing a total of about 250,000 ounces a year, of which 181,000 would be at an AISC of US$694 or below. That is just under three quarters of its gold.

That is a remarkable safety margin.

[dt1010] 03/12/2016 12:51

yes. the old administration is going to make it as hard for the new administration as possible by raising rates. but they only do so marginally due to too much debt and not enough wage inflation. a small increase in rates will not affect the attractiveness of gold. trump's policies will take a long time to take effect.

The trump trade is done.

Gold and silver have been hammered.

A rate increase is priced in, IMO.

Personally though I think there's a good chance the Fed won't act.

Trump HATES Yellen.

[melody9999] 03/12/2016 09:08

So what is people's view on a US interest rate rise then - do we think that the gold price is already discounting an increase?

[dt1010] 03/12/2016 07:46

I know it is a move to 24p and that is easily achievable in less than 9 months. But it would still be a superb result given the sums involved.
HGM I bought this week too, though with gritted teeth as I was watching it at 40p.
I bought more HOC too.
I think we will see a good move now in PMs and their miners.

[srpactive] 02/12/2016 16:35

I am expecting that improvement in 6 - 9 days.

Look at hgm.

dyor

[dt1010] 02/12/2016 15:43

Ditto but I expect a 40% upside in that time on capital.

I will be monitoring it though.

[basem1] 02/12/2016 14:51

I've bought for the yield today and will hold for 6-9 months at least. 4.9% yield inc costs and stamp duty. Very nice, I'm going to remove it from the monitor so I'm not tempted to trade it.

[dt1010] 02/12/2016 14:18

No comment!

[srpactive] 02/12/2016 14:08

It has at 11.00, 1.4m.

[dt1010] 02/12/2016 14:06

Nice. I just bought mine here. Not yet showing ;)

[srpactive] 02/12/2016 11:05

a 1 400 000 trade at 18p timed 11.00.

£252000 is a lot of money.

Report?

[srpactive] 02/12/2016 10:41

And it will be up as priced in, you do not have to be
a genius to realise the out going administration will
do as much as possible to make it difficult for the
incoming.

dyor

[azalea] 02/12/2016 10:34

The U.S. jobs data will determine the Feds decision on U.S. interest rates.

[srpactive] 02/12/2016 10:13

Rise priced in, more about Sunday in Italy.

dyor

[azalea] 02/12/2016 10:07

Mid month we shall see what the Feds does with interest rates.

[srpactive] 02/12/2016 09:56

Look at hgm a gold miner moving higher along with gold.

What is paf doing?

dyor

[srpactive] 02/12/2016 09:55

Message to board.

====================================

impartial
ɪmˈpɑːʃ(ə)l/
adjective
adjective: impartial

treating all rivals or disputants equally.
"the minister cannot be impartial in the way that a judge would be"
synonyms: unbiased, unprejudiced, neutral, non-partisan, non-discriminatory, disinterested, uninvolved, uncommitted, detached, dispassionate, objective, open-minded, equitable, even-handed, fair, fair-minded, just; More
without favouritism, free from discrimination, with no axe to grind, without fear or favour;
informalon the fence
"the referee is obliged to be impartial"
antonyms: biased, partisan

Translate impartial to
Use over time for: impartial

[srpactive] 02/12/2016 09:36

hgm rising nicely along with gold.

dyor

[chipperfrd] 01/12/2016 16:42

Thanks for the video clip gold panda. I like the cut of Niel Pretorius - but I don't have any of their stock!

[chipperfrd] 01/12/2016 16:32

That is my assumption.

It is one thing to order a few sovereigns online. Quite another to find a few TONNES of the stuff with a ready seller.

So far in 2016, by my calculations, the comex has had to re-stock c. 156 tonnes gold and 2,018 tonnes silver - and there is still the rest of December to go. And likely the same (or more) needed for the LBMA to meet withdrawals.

I bet someone had to pay a good premium on the prevailing paper prices to get that stock from a stretched market. So stretched that the move on cash in India may well have been aimed at shrinking their gold market for a while. Very coincidental that Mondi launched his own 'war on cash' on the US election day!
Chip

[johnrxx99] 01/12/2016 15:43

Many thanks Chip. Out of interest, if players have to buy physical to satisfy withdrawals is it fair to assume they will have to pay more than their paper price?

[gold panda] 01/12/2016 15:38

chip, what we really need is a physical shortage. When prices go down and I feel the urge to sell, I always play this genius interview with DRDGold CEO Niel Pretorius



from 1:40 "The gold that's being carried on a central bank balance sheet is dangling from the ears of a lady in India... and you know it's being turned into little gold elephants in China"

I feel better each time I hear it. The key reason I like PANAF is because of the long LOM. It's incredible to have a LOM of over 20 years, most new projects I see are for 7-8 years. So this company can withstand a storm in prices and the management seem to really known what they are doing. Remember all the fire they took from analysts and shareholders for the Uitkomst Colliery acquisition? That mine brought a profit of 11 million rand in the June quarter alone and that is before the recovery of coal prices. Not bad for a ZAR 150 million purchase, on track for payback of less than 3 years

dyor

[chipperfrd] 01/12/2016 14:01

john

Not all of them yet. But the nearest ones of import are:

For gold Feb17 at 844 tonnes
For silver Mar17 at 19,667 tonnes

But this is a never-ending cycle - at least until we get some sort of physical price discovery - which is reasonable to expect one day, however far ahead that might actually be!

So contract levels will vary as the year progresses.

But there is a bit of light at the end of the tunnel as actual physical withdrawals are increasing and have to be replaced from the world market at physical prices.

Based on the recent growing importation levels of PMs to the UK and the USA, it does look like there may be a degree of desperation creeping into these paper markets. But we will see if they can keep the 'wheels spinning' for yet another year!
Chip

[srpactive] 01/12/2016 13:52

Good post, such a shame, although after such a mark down,
I am sure it will have its turn again.

dyor