Scotgold Resources (LON:SGZ) When I wrote up Scotgold back in November, it was to highlight how constant share dilution is ‘hidden’ from investors in the only charts available to them – i.e. the share price. When a company’s fundamentals haven’t changed, it’s the market cap that indicates whether or not its value per share has…
I promised to update on Kibo Mining when it published details of its joint venture with an adjacent gold miner to monetise its gold assets in Tanzania’s Lake Victoria gold fields – in order to add to whatever value emerges in its Mbeya coal to power station project. Hiving off parts of a company is…
Writing in the Magazine this month, Richard Gill has re-iterated his bullish view for Caledonia Mining (AIM:CNCL) after its substantial bull run. I have to disagree. While the company was an obvious beneficiary back in January of any improvement in gold – it is in the middle of a well-flagged expansion project at its Zimbabwe…
In previous articles I have emphasised the often overlooked and under-estimated, pernicious, effects of dilution on shareholders’ value in the various gold projects I’ve covered. But a higher gold price, depending on each circumstance, might produce a highly geared counterweight. So, how to balance the two? The Gold Fairy vs the Dilution Devil – who is…
The ‘efficient market’ theory held sway for quite a time in the ’90s, and for some time afterwards. It held that share prices at all times reflect all that can be possibly known about all the factors that determine their value. When you think about it, that is a pretty sweeping assumption. If there were…
A fair lot has happened behind the scenes in this still little-known situation where present shares could, in the right circumstances, multi-bag. But the market, if only because such projects are unfamiliar, is still being cautious. For background see our previous blogs from October 2015 onwards. Ncondezi Energy (NCCL) is the first of the four…
Photo-Me International (PHTM) has just announced the dividend increase for 2016 that investors had been expecting, with an 87% jump in the total (paying 6.1p to holders before October 6th, after 9.1p for the full year) including the second special dividend in two years (although it was a little less than some had forecast) on…
AIM: SXX Shares in issue: 2,295m Market cap @19p: £436m Back in March I advised not to chase Sirius Minerals, which had spiked on publication of the DFS for its planned potash mine in Yorkshire. As potentially a large, domestic, very long lived and profitable project it will, one day, loom large in the investment…
Progress of one sort or another is being made at all four of the coal to power projects (in Tanzania, Mozambique, and Pakistan) owned by AIM companies that I first described back in the November Magazine. I follow them because with extremely large project costs and investment sums at stake, against the present extremely small…
Practically all miners saw their shares decimated between 2011 and 2015. Avocet, whom I covered last week, was an extreme example. To look at Metminco‘s (MNC) chart with its shares now at 0.25p against 25p in 2011 might suggest the same. But where I think Avocet is a dead duck (an avocet, unfortunately for my…
