Larry_the_Lock
02 Jul 2017
Re: 40 Million shares traded today After my post on Thursday I spent some time catching up on reading my emails and read the following. As a precaution I sold all my S African holdings including PAF. Why this has not been flagged up everywhere I do not know or maybe I am missing something? Subscribe Past Issues RSS TranslateThese Experts Just Warned On A Wipeout For South Africa MiningView this email in your browserClick Here For Free Daily Updates From Pierce PointsLots of updates this week to recent stories. With Glencore upping a bid for Rio Tinto's Australia coal assets, and Tanzanian police arresting dozens after villagers stormed gold mines belonging to troubled producer Acacia Mining. But the biggest story going in mining continues to be South Africa. With credit experts Moody's this week weighing in with a dire warning on the country's new mining charter. Moody's said this past week that enhanced financial burdens under the new code will have a devastating impact on miners. With the ratings agency saying that increased taxes and local ownership requirements will almost certainly lead to a credit downgrade for a slew of South Africa's biggest miners. That reportedly includes South32, AngloGold Ashanti, Anglo American, Gold Fields and Sibanye Gold. And a credit cut for these firms couldn't be coming at a worse time -- with most of the firms already hovering at low credit ratings, after years of finanicial difficulty in the general sector, and specifically in South Africa. In fact, a credit downgrade of even one notch would lower nearly all of these firms to junk status. With South32 likely to be the only investment-grade South Africa miner left -- and that company just barely hanging on, at one notch above junk. Moody's observed that the financial onslaught has already started for these firms -- with $2.5 billion in equity value having been wiped out for the group of companies since the new charter was unveiled. And it's not just cash flow where Moody's says miners will suffer. Under the new charter, development of greenfields resources will require miners to give away a steep 51% of project ownership to black empowerment groups. A move that Moody's estimates will make development of many near-mine reserves unprofitable. That in turn will force miners to downgrade those in-ground minerals from "reserves" to "resources". Lowering mineable inventories, and reducing net present values of many mines and development projects. All of which equals more awful news for South Africa's mining sector. Watch for a coming battle in the courts, with the local chamber of mines proceeding with legal action to stop the new code. If that effort fails, we could see South Africa production -- and financials for miners -- take a quick and steep tumble. Here's to a storm coming,Dave [email protected] © 2017 Pierce Points, All rights reserved.unsubscribe from this list update subscription preferences Email Marketing Powered by MailChimp
casabanker
01 Jul 2017
Re: 40 Million shares traded today Hello Johan,I agree that PAF should form part of a diverse portfolio but I was surprised to see that the three you have mentioned are funds and not indidividual company stocks. I, too, have moved in this direction over the last two years. I hold PIN but not IBT and CRS. I have had a quick look at them and they seem similar defensive type funds I hold such as LWDB, BTEM, SMT, BGS and RCP. I also hold a new issue, IHR, which should pay an approximate 6% dividend. For those wishing for something a little more racy, I hold Macau Opportunity Fund (MPO) which has interests in prime property in Macau and is standing at a good discount to NAV currently.Casa.
Thedarkkn1ght
30 Jun 2017
Discount to NAV .
Topalov
29 Jun 2017
Re: Finncap 31.1p What worries me is the impact of the SA mining charter. I don't know how it is going to affect PAF and wrote to the company yesterday to ask. Sold a third of my holding last week.
Larry_the_Lock
29 Jun 2017
Re: Finncap 31.1p Good buying op at these prices imho!
Andy Reilly
26 Jun 2017
Re: Finncap 31.1p JdeS - well done with your buy, BUT it has to be said the market doesn't seem too impressed with the near double share price target (so far!) It would be good if the SP did show a bit more enthusiasm, but unfortunately gold seems a bit stuck for now!
Johandesilva
15 Jun 2017
Finncap 31.1p Finncap raises target price to 31.1p from 30.9p
Johandesilva
11 Jun 2017
Friday buy 16p 3,500,000 shares£560,000
Johandesilva
11 Jun 2017
South Africa revised mining charter due South Africa revised mining charter due within days or a week and the share price as we know has been suppressed because of this. I believe either way the share price here will be strong and operations are running smoothly. I am not sure if [link] counts as part of PAF's black ownership but I take confirm in them adding because of their expertise in the country. Worth a read of the website.
Johandesilva
05 Jun 2017
Re: 40 Million shares traded today "What are the chances of nationalistion?? "---IMHO there should be no chance. However; while opposition politicians tout this to get votes, then we must add this discount to the share price and PAF should form part of bigger portfolio (ideally non gold funds such as PIN, IBT, CRS etc..).
Gooffy
02 Jun 2017
Re: 40 Million shares traded today What are the chances of nationalistion??
Johandesilva
01 Jun 2017
Re: 40 Million shares traded today I hope so the upside is:1. Highest dividend yield2. 25% growth in production through Eikhulu Tailings Project3. Eikhulu Tailings Project reducing average all-in-costs4. Major downtime hopefully behind reducing cash costs again.5. Extremely long life of main projects with No large CAPAX required for 15+ years with Eikhulu funded. No other similar sized Gold company including the excellent HGM can claim this.6. Drilling of the 2010 pay shoot7. Government investment funds buying into PAFThe downside risk:1. Government nationalise mining 2. Down time and fatalities that come with dangerous underground operations.3. Higher cost of under ground operations (hopefully offset by Eikhulu Tailings and not requiring to invest large CAPAX in replacing operations with new prospects)
Muzzletoff
31 May 2017
40 Million shares traded today Perhaps an institution is looking to get in on a fairly cheap price for PAF?
Johandesilva
15 May 2017
2010 pay shoot "...But it’s the preliminary work on the “2010 pay shoot” – so named from the time when Evander was owned by Harmony because this was one of the potential projects it identified that could be brought into production by 2010 – that has focused the longer-term interest of some investors.According to one authoritative source, “ the 2010 pay shoot was one of the key future growth projects identified when Pan African took the decision to buy Evander from Harmony. Subsequently, Pan African management seemed to lose interest in that project and allowed the mine workings near it to flood.“It’s encouraging that the company’s technical staff is now focusing on that project once more because that pay shoot is potentially large and high grade. It’s an extension of the pay shoot mined from the No 7 shaft area...." [link]
Johandesilva
14 May 2017
Surge in profitability possible There are so many factors favoring surge in profitability in PAF, especially the way it is geared and the higher costs in the past year. If PAF continue to pay half its profits as a dividend and if downtime is a thing of the last FY and gold goes could start rising again the numbers are really geared in PAF's favor for a strong rise.A great article about the latest state of play in gold mining and all in costs.[link]
