It was interesting today, I was just getting off the phone
with a trader about the gossip of today when we had been discussing BG Group.
Then in my inbox, Malcy is well ahead on the news with the sale of $1b, albeit
I dare say my "gossip" has had VAT added down the food chain to me at
the bottom, as my figure is $1.25B. So kudos to Malcy for being ahead of the
wave…
For some years I have been holding Sylvania Platinum (SLP),
yes I have been short as its wise to protect your position. Its one of my
largest equity positions so please remember that as a bias, albeit its fair to
say I do not hold back even if a holder; this position as a % of portfolio has
been diluted from near 14% down to around 0.5% of the entire. Predominantly as
I shifted from listening to crap about the positives of companies on AIM and
being significantly short across the market (generally 80% on average.)
SLP’s news is positive today, SLP
Q4 Results. I’d not go as far to state ‘very or extremely’ or encouraging.
Notwithstanding the Strikes in RSA (Republic of South Africa), it’s been a
positive, however nothing should be claimed as a result of management
organisation as the tailings were predominantly fed from mines not affected to
the same degree as the majors (AAL et al).
In comparison to the previous quarter production was up 17%
to a record 15,435 ounces (Q3: 13,185 ounces) the fifth consecutive quarter of
continuous growth for the Company's operations (albeit there has been a decline
in the targets consistently for near 3 years.).
One would have some cheer in reading that the EBITDA
increased 17% to $4.66 million for the SDO (Q3: $3.98 million), however if one
strips out Group Level costs there does not remain much benefit for
shareholders. The Group level costs and functions / roles of certain parties
questions the needs for these costs, which if removed would promote the
possibility of a quarterly in arrears dividend to shareholders.
The bottom line increase in cash, up 10% to $5.3 million as
at 30 June 2014 (Q3: $4.8 million);even after the ZAR20 million (approximately
$1.9 million) for the Grasvally prospecting right in the quarter is positive.
Of significance in terms of Corporate Governance would be to question whom
owned Grazvally prior to the acquisition, was this a related party or
significant shareholder transaction. The licenses / prospects used to be owned
by SamanCor,, however there is no disclosure.
You could argue it’s the bottom for SLP, with a bit of luck through
the Strikes in RSA, SLP could be on the turn. For myself, I’m not sure why I
hold at these levels but everyone loves a dog in their portfolio.
Following on from yesterday’s commentary on the Indonesian
situation, one can take some hope from Freeport McMoRan (FCX-NYSE) in their Reports Second-Quarter and
Six-Month 2014 Results whom “are
encouraged by our discussions with the Indonesian government toward reaching a
near-term agreement to enable resumption of PT Freeport Indonesia’s copper
concentrate exports.” What’s good for one is good for them all. (Please see
page 5 of their announcement regarding their MoU.) The restrictions have
clearly had some impact on FCX, with the deferral of significant shipments of
copper and gold. It could soon become exciting for commodity markets!
Its best to ignore the Aquarius Platinum (AQP) update,
having been significantly short on the company, I don’t rate the assets. Those
being long clearly like to gamble…beyond what could be said as “higher risk
exposure.”
For Leggie, United
Carpets Preliminary Results for the year ended 31 March 2014 shows a
glimmer of hope…obviously the capital reorganisation bodes well for the company
(note my saracasm).
"Shocker for Facebook" as well Reports Second Quarter 2014 Results...having been trading it for a limited time and amateurish research by me, I'm calling it right, however wouldn't want to be long any more! It was an interesting discussion about "duplicate profiles" to enable gaming on Facebook which would correspond with the increase in the likes of Candy Crush et al. Apparently parties are creating 2-3-4-5 profiles to enable themselves to obtain 'free' lives rather than paying for them. Similar to other games that entice parties to invite their friends. When this bubble pops will the advertiser realise their market is reducing?
Atb Fraser
Was expecting some coverage on Kingfisher Fraser. Seems it was in the bag from the prelims. Well done indeed & caught me on the hop!
ReplyDeleteUnless I'm mistaken I put it as a separate piece JP. So perhaps wait for it to come through, I'm not sure how it works. Yes was rather contrary to most people out there. Who'd have thought me as a contrarian haha!
DeleteFraser- just back from other duties, so just catching up.
ReplyDeleteNice call re Kingfisher- I use Toolstation for some of the cricket club stuff and B&Q are clearly being caught out by these nimble low cost players. Their Nottingham store is just a few hundred yards from a massive B&Q shed and they have picked off a lot of their trade business.
Re UCG- yes, a curate egg today, with divs pretty much promised via the cap reorg and the portfolio is looking better but they are still subject to the UK economy and int rate incs next year so Im glad I took half off the table at 11p earlier in the year but I will hold the rest long term as they still look cheap on most parameters.
Re CAML- that KAZ restructure reminds me that CAML are working on the site of an old KAZ mine. I guess the volume isn't significant to these global groups, but the CAML costs make the New KAZ look marginal and so much better value. Im also waiting for the Copper Bay news, which I feel could well be v significant over the next few months.
Re NOP- why sell those UK assets to UKOG for £1.5m when Im pretty sure IGAS would have taken those prod stakes back alone for a v similar settlement plus they wouldn't have had to take a 1.3rd in shares either. They must have been v v short of cash. A great piece of value destruction by the NOP board- well done guys :-))
Cheers. The Leggie
Fraser- The FCX conf call transcript re Indonesian paragraph is below-
ReplyDeleteOur copper and gold sales volume were below our April 2014 estimates, primarily as a result of the deferral of exports from Indonesia, which reduced copper and gold sales by approximately 150 million pounds of copper and 240,000 ounces of gold during the second quarter. As indicated in our press release, we expect to complete an agreement with the Indonesian government immediately which would enable export to resume immediately.
That seems fairly immediate, but lets see. :-))
Cheers. The Leggie
Busy today- news from Egypt that they are planning to clear the fuel payment arrears by 2017- more positive news for BG given their assets and involvement-
ReplyDelete"Oil and gas producers in Egypt are set to see accelerated repayment of arrears from the authorities. A report in state newspaper al-Ahram claimed an agreement has been reached with oil and gas companies that will see arrears totalling US$6bn paid in full by 2017 – which would be faster than otherwise anticipated"
I will let you get back to that G&T now. Cheers. The Leggie