The Lemon Fool

Can anyone translate that for me? What is a gold and silver concentrate?

Bouleversee wrote:Can anyone translate that for me? What is a gold and silver concentrate?

This explains it. I presume they are separate, not mixed.

https://www.mgsrefining.com/blog/2017/0 ... centrates/

I'm considering taking a small stake in Polymetal (POLY). The price has fallen back quite a lot this year and based on the financials it now looks attractive. It seems to me the main negative is the company's almost total reliance on Russia and Russian-related production sources. If Russia does invade Ukraine next year, how will this affect the share price? On the one hand it would create huge worldwide political/economic issues, which can often send the gold price soaring, but on the other hand there could be very negative implications for trade with Russia.
Any thoughts from long-time followers of this stock?

Y

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i like miners , but hold them in IT's , mainly BRWM.

i hope the managers will know which way the wind is blowing better than me , and adjust weightings accordingly .

I agree that BRWM is a good way to allocate part of a diversified portfolio to the mining sector. I've held BRWM and BERI in my SIPP for several years and they currently make up all of my allocation to the natural resources sector. However, the cash in my SIPP has recently built up through some bond calls/tenders/maturities/sales and hence I'm looking to replace with yields of over 5.5%. I've also got a bit of room in the SIPP for a small allocation to more speculative holdings. Polymetal may fit the bill for yield and speculative capital gain. I will have plenty of room to double up if there's a sudden sell-off due to Russian aggression towards Ukraine and/or other countries along it's borders.

Y

yieldhog wrote:I'm considering taking a small stake in Polymetal (POLY). The price has fallen back quite a lot this year and based on the financials it now looks attractive. It seems to me the main negative is the company's almost total reliance on Russia and Russian-related production sources. If Russia does invade Ukraine next year, how will this affect the share price? On the one hand it would create huge worldwide political/economic issues, which can often send the gold price soaring, but on the other hand there could be very negative implications for trade with Russia.
Any thoughts from long-time followers of this stock?

Y

I think that almost all their mines are in the far East. How effected would they be were a bigger conflict in the Ukraine to break out? Or am I being naive?

Matt

Matt I am not sure what you mean by the far East. Their mines are in Russia with many in the far east of Russia not in the Far East as usually meant. The fact they are in Russia still means they could be affected by political fall out from a Ukraine conflict such as sanctions but I continue to hold for recovery.

everhopeful wrote:Matt I am not sure what you mean by the far East. Their mines are in Russia with many in the far east of Russia not in the Far East as usually meant. The fact they are in Russia still means they could be affected by political fall out from a Ukraine conflict such as sanctions but I continue to hold for recovery.

Yes. I did mean far east as in far Eastern Russia. You'll right perhaps they could still be effected by the Ukraine impasse. Wonder if that's part of the reason the SP is somewhat depressed as of now. However the yield is great.

Matt

I assume the hammering that Polymetal got today, (down 7.25%) was because it is a Russian company and the fear of it being affected by sanctions or other implications if Russia invades the Ukraine; as I certainly don't see it as a tech stock!!

"Not another one!", said Doris. SMT also nosedived today and all my construction shares likewise, everything being blamed on the Ukraine issue. We just start to tame one adversary when another one rears its head. When is something nice going to happen?

I lost my nerve and sold out yesterday afternoon. Up 4% this morning.Ugh.

I'm out too but happily got out even this morning. I can't see things going well for any business with Russian interests in the near to medium term since it is apparent that Putin really does mean to put a puppet government in Kiev whatever it takes and that will lead to inevitable sanctions if not a limited war. Let's hope he doesn't try the baltic states next.

But it's fantastic yield for any of you HYPers. Also POLY have a pretty good balance sheet don't there.

Personally I think it's sabre-rattling. Surely at the worst it's just going to result in Russia bleeding more of it's finances, like they did in Afghanistan in the '80s, as large amounts of covert money will be funnelled into bolster the Western-leaning Ukrainians.

The problem, IMO, will be that now the US has been distracted by Russia, it's entirely possible that China will take the opportunity to make more moves into Taiwan.

Matt

We should think ourselves lucky that the current US president is sane. I imagine that the Ukraine would be in much more trouble if the previous autocrat favourable chap was in power now.

Matt

TheMotorcycleBoy wrote:But it's fantastic yield for any of you HYPers. Also POLY have a pretty good balance sheet don't there.

Personally I think it's sabre-rattling. Surely at the worst it's just going to result in Russia bleeding more of it's finances, like they did in Afghanistan in the '80s, as large amounts of covert money will be funnelled into bolster the Western-leaning Ukrainians.

The problem, IMO, will be that now the US has been distracted by Russia, it's entirely possible that China will take the opportunity to make more moves into Taiwan.

Matt

Indeed, - current yield c 8.16%

On topic re. POLY+Russia+Ukraine risks:

UKRAINE
The calendar spread for benchmark Dutch gas futures with deliveries in March and April reflects traders' expectations about the level of inventories at the close of the winter depletion period.

The March-April spread has narrowed to a backwardation of just 8 euros per megawatt-hour from 45 euros in the middle of December, consistent with the much more comfortable inventory outlook.

The spread would likely have narrowed even further but for the dispute between Russia on the one hand and the United States and its NATO allies on the other over Ukraine.

The spread incorporates a low but non-zero probability the dispute will escalate and threaten the flow of pipeline gas from Russia to Europe.

https://www.reuters.com/business/energy ... 022-01-25/

(Buying gas/energy stocks sounds like a half decent hedge against further drops in LON:POLY)

As there don't seem to be any Mods about currently, note this thread is about Polymetal, a Russian gold miner, and is on the Metals & Miners board, (not the geo-political discussions board )

Hi

Bearing in mind that Polymetal operates mostly in Russia and Khazakstan, with the immediate crisis, sanctions imposed against Russia and possible retalitary action by Russia to those sanctions. Are people holding or selling?

Polymetal are slightly up as I speak but this may be a selling opportunity if people think that the revenue stream could be seriously hit.

I personally have sold but this is not to suggest that you should.

What do we think?

As I understand it, the sanctions carefully avoid raw materials, especially fuel. No, no, no - that would hurt us more than them! Gas is actually still flowing to Europe, through Ukraine, and lots of cash is flowing in the opposite direction. Same for Swift - how'd we buy all this Russian stuff without Swift?

IMHO, you've done the right thing in selling, regardless of the economics. If I was Ukrainian, I'd be applying my own sanctions by blowing that pipeline....

https://www.bloomberg.com/news/articles/2022-02-24/biden-spares-russia-s-crucial-energy-exports-from-sanctions

Well done, Chris. As usual, I didn't sell and am now sitting on a 75.6% loss whereas at one point I was up around 100%.

Is it likely that this company will get appropriated by Russia or taken over for peanuts? I really don't know what to do at this stage other than sit on my hands and hope that Putin sees sense though I wouldn't put money on that. Or should I grab the £3420 that's left before it's too late? It was doing very well and paying good dividends till Mr P. ruined things.