Added further to my #HGM holding today. The company has maintained full production throughout Covid saga and at 300k oz production and AISC $791, it looks really good value at $1,800 gold.
Dividend could reach 10% this year.
Rock solid outfit.
As can be seen from the enclosed graphic, very low cost.
With Kekura on the horizon for a 2023 start and 500k oz total production.
Given concerns over the world debt bubble, for me its an excellent portfolio member of mine. #HGM
(1/5)
Today's #HGM RNS ;
"The average 2020 realised gold price was US$ 1,723 per ounce in the second quarter and US$ 1,655 in the first half of the year."
2019 generated $138m in net cash flows @ 300k oz and $1,395 ave. realised gold price.
(2/5)
H1 2020 "production was 125,347 oz of gold and gold equivalent"
"affirms its guidance for total production of 290,000-300,000 oz of gold and gold equivalent in 2020."
"Dividend policy sets a target minimum payout of 20% of
net operating cash flow before capex"
2019=44%
(3/5)
Current SP at YTD ave. gold price, will for me achieve a min dividend of c. 7-8%.
For me an excellent recurring return as production begins to increase from next year, with the ultimate goal of producing 500k oz by 2023.
(4/5)
Centamin currently achieving 480k oz @ AISC $150 higher than HGM @ 300k oz production and is trading at nearly £2.2BN MC debt free.
HGM currently £838m with £192m debt.
So already c. min £250m cheaper on like for like basis, based on 2020 forecasts for AISC and production
(5/5)
HGM is no 10 bagger but is a rock solid performer in this elevated gold price environment with solid future valuation gains on the horizon.
Am happy to keep take c. 7% dividends whilst the company builds up to that 2023 valuation inflection point at Kekura.
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