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June 10?... Share Price??... Looking very promising???

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Not applicable
Surely after this rights issue is finalised, which was pretty much fully subscribed, the balance sheet of this company will be restored to a healthy position again? Will this therefore not lower the high levels of risk associated with the share to date??.. That said, copper is going through the roof, markets are showing signs of recovery esspecially the US, and China's demand should not drop off due to the inevitable aprectiaion of the yuan and hence relatively cheaper copper price. The copper price should therefore remian at these levels for awhile as there is also a deficit expect in fourth quarter of this year and next year??... That said, the exchange rate is unfavourable when it comes to conversions, but being offset by the rise in the copper price. That said, the only factor that has a major impact is the production of copper and cobalt... This should have in relative terms much less variation than the above mentioned factors. There is no indication of production slowing down as ruashi has still not yet reached optimal levels. Therefore, can someone pleas comment on why this share is not going to hit about R9 by about sep when the results are expected to be released??... I'm interested to read the beliefs or opinions that exists.
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4 REPLIES 4
WES
Super Contributor
I agree. Read also Garth Mackenzie article on traderscorner.co.za. His target price is R 5.
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Not applicable
I will have to go over it again - I lost interest in Metorex last year when their entire situation was touch and go. According to my notes, they have around R2.1bn in interest bearing debt, and were facing an installment of R700m this year. So the clawback offer will basically get that installment off their backs. I seem to remember calculating a target price of around R8 per share based on a PE of 13, and them hitting their production targets in 2011. That was before the share dilution though.
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Wino
Super Contributor
Not only got the instalment off their backs but also afforded the ability to re-negotiate the hedge book. From July onwards a lot more favourable. They have done a good job of re-structuring the balance sheet to the extent they can now look at developing their other prospects. On the negative side, have been unable to get rid of loss making Cons Murch and of course the ever present risk of operating in the Congo which I think will temper the share price. A R5 to R6 range should be achievable.
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Not applicable
The debt situation is much better... Siting at 1,2bn!... After the rights issue there will be a lot of cash available to the group!... So this my result in even less debt, i know some is being used for feasibility studies and so forth!... Surely, if the company achieves eps of about 45 for the year end and a fair PE of 14, that equates to around R6,30 a share with a lil upside swing due to investor confidence we could see some where around the R8 - R9 mark by september???
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