Pan African Resources Share Discussion Threads

[chipperfrd] 07/11/2016 08:37

Thanks Conundrum for the reminder. I need to check this out with my broker.

[conundrum] 06/11/2016 22:04

Hi Chip,

You asked to be reminded about the posts below

Dav1dc2
17 Oct '16 - 12:51 - 9137 of 9208 0 0
Gez ref. 9134
My shares are held in an ISA nominee account. Last year I tried to get some help from the broker ie a statement about numbers etc but they refused to help. They would not be involved in a tax matter they said.I obtained one of the forms but it was no good because my name as an individual is not on the register.
Could we get some discussion going about this because I suspect many contributors are ISA holders so are in the same boat.
I had thought of writing to the SA High Commissioner for advice. I do not want to leave my precious dividends to their taxman or any other.
Comments please!

chipperfrd
17 Oct '16 - 13:16 - 9138 of 9208 0 0
Dav1dc2,

I am with HL. I will try and follow up on this when I get back from my holiday. HL have been very good with keeping me up to date with the N.American tax forms so I assume they will try and help with the S.A. ones as well.

Can you keep this issue alive please until I get back in early November.
Chip

[dav1dc2] 06/11/2016 16:26

Ref 9207 . An amazing and very interesting assessment. Thanks.

[mikkydhu] 06/11/2016 15:44

.....The Uitkomst Colliery.....

At the end of March this year, PAF completed the purchase of Uitkomst Colliery, a mine producing 400,000 tons per annum of high quality thermal coal with a mine life of over 20 years( I think I have seen 22 years in one place and 28 in another). Originally the cost was to have been 200 million rand, but PAF paid 176m. The purchase was arranged when coal prices were at rock bottom.

In the results to the end of June, PAF stated a profit of 11.4 million rand for this colliery. That is about £670,000. This was just for the three months April, May, June.

Certainly, this was an opportunistic purchase - a good asset going cheap - partly a hedge against any rise in power costs, but Cobus Loots also gave as one of the reasons, "to underpin dividends going forward." So it is seen as a reliably profitable business.

Production at the colliery is currently at about 400,000 tpa. The company is looking to increase this to about 900,000 tpa. If you quadruple the profit mentioned above (to annualise it) and double the coal produced, you can presumably multiply the profit just quoted by 8. So we are looking at 91.2m rand profit. The company has also mentioned improving the productivity and economics of the mine...so, add on a bit more profit for that. Remember, Cobus Loots is an accountant.

The coal mine is said to be geographically well placed for the KwaZulu Natal market, has its own dedicated rail siding (part of the acquisition deal) and is looking to the export market.

So this asset is worth adding into the equation when sizing up PAF as a possible investment.

This is pieced together from news releases and interviews.

[chipperfrd] 05/11/2016 20:36

Thank you for the kind words Mikkydhu.

I use a valuation methodology that includes (among several financial metrics) M.I. Resources at a standardised discount to the ongoing Gold price. In the case of PAF there is quite a disconnect to it's market price which (at least using my methodology) makes it quite a standout from the average undervaluation. Hence my appreciation of your summary as this factor appears to be very unappreciated by the market!
Chip

[coincall] 05/11/2016 18:46

Interesting article and interview with Corbus regarding the Tailings Retreatment Plant and mining.



I can't find much info on Uitkomst colliery which as the article says, has more than 23-million tonnes of mineable in situ coal.

[shayadfn] 05/11/2016 14:51

Thank you mikkydu, we need more people you, much appreciated.

[mikkydhu] 05/11/2016 14:06

Cheers, chip.

I salute all your many valuable contributions to ADVFN.

[chipperfrd] 05/11/2016 13:39

Excellent summary Mikkydhu. It's all about their Reserves & Resources.

[mikkydhu] 05/11/2016 11:33

Elikhulu is the name of a group of giant tailings deposits that have accumulated over 70 years of mining, and which belong to PAF. Studies are being concluded on how to extract the residual gold from Elikhulu economically. We will be told the results at any time in the course of the next few weeks.

Elikhulu and its planned tailings retreatment plant are not just a small add-on for PAF. Cobus Loots, CEO, has called it a "potential game-changer for Evander".

When in production (November 2018), it will produce up to 50,000 ounces per annum. There are 178.7 million tonnes of tailings and the plant will process a million tonnes a month.

PAF has a lot of experience of successful management of retreatment plants (The Barberton one paid for itself in 18 months).

Elikhulu will mean a lot of extra ounces at a very low AISC.
It will have a life of 14 years.

[mikkydhu] 05/11/2016 10:49

Hello Shay,

These are some of the key figures to look at when considering an investment here:
PAF has two main mines, which are deep underground, and each mine has a tailings retreatment plant on the surface. So there are currently four sources of gold production.

Barberton Mine produces 95,000 oz pa
Barberton Tailings Retreatment plant: 25,000 oz pa
Life of Barberton Mine: 22 years
Reserves: 1.4 million oz
Resources: 2.9m oz
BTRP life of mine: 14 years

Evander Mine produces 95,000 oz pa
ETRP: 20,000 oz
Life of Evander Mine: 16 years
Reserves: 7.6m oz
Resources: 29m oz
ETRP life of mine: 16 years

The advantage of the tailings retreatment plants is that they produce gold extremely cheaply, AISC about $330 per oz. This brings down the company's overall AISC, which was $870 per oz in the most recent results.

These figures for the amount of gold in the ground and in tailings deposits are very big indeed. The tailings deposits are very big because some of them contain tailings that have accumulated over 70 years of mining.

I will post some information about Elikhulu later.

[shayadfn] 05/11/2016 08:23

Hello Boys & Girls, I'm not a holder in PAF, but srpactvies' posts on other treads have put it on my radar, hence, possibly looking to add to my collection of mining companies.

[astjgroom] 03/11/2016 22:46

Worlds going mad, no one can even work with another they may not see eye to eye with for a goal to the common good. Now trying to reverse Brexit, Trump, even he loses America is in some trouble, EU is a mess, Russia, Syria etc etc, Wtf.

[srpactive] 03/11/2016 18:38

Agree but the left always moan and sulk until they get what
they want, just look how Izzard is behaving and even Blair
and Kinnock spouting off. And as for what it has to do with
a South American is beyond me.

Maybe we can get a vote in their elections.

regards

active

[coxsmn] 03/11/2016 17:26

the law of this country has ruled in favour of those who cannot accept the result of a democratic vote, its appalling.

[coxsmn] 03/11/2016 17:13

Brexit means brexit, people need to accept the result of a democratic vote and not stand in the way of the will of the country.

[panic investor] 03/11/2016 15:38

thanks AST

Starting to worry where Gold is going now especially after today and if Hillary gets in.

[astjgroom] 03/11/2016 15:35

Panic. I have CEY. Nearly 400k shares, held since 34p. Legal case I think is almost finished, government supports CEY and even introduced a new law so rogue people couldn't challenge government contracts, should be past 'soon' then legal challenge gone by new law. Of course there's a risk, but I wouldn't hold so many if I thought it that risky. If you buy try n get £1.44+ ish, it's been bouncing off that.

[edjge2] 03/11/2016 13:48

Maybe it'll beat the AAZ, if 20 goes headed 18 but suspect gold will get an up stimulus soon. USA jobs not so good. Its vibrator batteries are gonna run out at this rate.

[master rsi] 03/11/2016 13:42

Selected to go better from this point at the thread "UPS"...

Master RSI - 3 Nov '16 - 10:16 - 75 of 78
UPS
PAF 20.125p ( 20/20.25p)

Had a good marked down today, though the gold price is only slightly lower. Order book weaker earlier is gaining pace on the bid side. Paying good dividend 0.87822p and going X next month 08 December
Good points
Substantial percentage earnings increases for next year 110% and a very low PE of 6.5, yield of 4.4%

[coxsmn] 03/11/2016 13:26

srpactive, keep an eye on Lek as its about to rocket any day now.

[panic investor] 03/11/2016 10:54

I was looking at CEY in addition to this but there is still that legal issue over there and you never know what's going to happen.

[edjge2] 03/11/2016 10:28

Pays a divi too, SA effect or no.
Petro.. POG may benefit with a gold rush to 1500, ruski busty.
Got the vibrator in, fun for the chart at present. Buzz,Buzz

[panic investor] 03/11/2016 10:26

hope so edging ! Buying a few more myself.

EDIT : Just added a few