“Ratio of share price-to-free cash flow among senior #Gold #Miners…still hasn’t caught up to the gold price…more room to run” for #miningstocks $GDX $GLD

“The price increase, combined with capital discipline among the larger miners, is generating a bonanza of free cash flow while mergers could spark share gains among smaller players, according to five precious metals fund managers interviewed by Bloomberg.

“After more than $20 billion in mergers and acquisitions among large-cap miners last year, small and medium-sized companies could be next, providing another reason to buy.”

See the whole piece on Bloomberg here:

https://www.bloomberg.com/news/articles/2020-01-15/gold-s-rally-seen-plowing-on-lifting-already-monster-cash-flow

____________________________________________________

MasterMetals
@MasterMetals

http://bit.ly/30vaEnh

from @MasterMetals http://bit.ly/38eilkC on January 16, 2020 at 01:25AM

“Ratio of share price-to-free cash flow among senior #Gold #Miners…still hasn’t caught up to the gold price…more room to run” for #miningstocks $GDX $GLD

“The price increase, combined with capital discipline among the larger miners, is generating a bonanza of free cash flow while mergers could spark share gains among smaller players, according to five precious metals fund managers interviewed by Bloomberg.

“After more than $20 billion in mergers and acquisitions among large-cap miners last year, small and medium-sized companies could be next, providing another reason to buy.”

See the whole piece on Bloomberg here:

https://www.bloomberg.com/news/articles/2020-01-15/gold-s-rally-seen-plowing-on-lifting-already-monster-cash-flow

____________________________________________________

MasterMetals
@MasterMetals

http://bit.ly/30vaEnh

from @MasterMetals http://bit.ly/38eilkC on January 16, 2020 at 01:25AM

How Awesome was Anil #Agarwal’s @AngloAmerican Adventure

The FT’s DD breaks down the trade:

In our article, we explain that Agarwal has made about $500m in gross profits on the trade. BUT, that is before the substantial costs required to service the instruments involved in making the stake happen. Coupon costs alone will have totalled about $300m since he first put on the two legs of the trade.

And we’ve learned that Agarwal is likely to reveal that he is up about $100m from the overall project. We assume that means a hefty chunk of the remaining $100m will be headed to the folks at JPMorgan.

Agarwal’s trade strongly resembles an equity collar, which DD’s Rob Smith and Arash Massoudi explained last year has become a hot money spinner for Wall Street banks looking to make money from deep pocketed clients. In short: collars do not come cheap.

In short:

• Agarwal just spent an insane amount of time and energy to correctly pick a stock that soared 80 per cent in two years, but due to the use of an exotic structure may have only made profits equal to his bank fees . . . yikes!

Read the whole story here: https://www.ft.com/content/53b77de8-af35-11e9-8030-530adfa879c2

bit.ly/MasterMetals

https://on.ft.com/2Y9CGXn

from @MasterMetals http://bit.ly/2OnH2WG on July 27, 2019 at 07:33PM