Post by
Power33 on Aug 10, 2022 6:23am
H1 results
Production is the key issue I see. If gaucho kue can mine 3.3m carats in second quarter, which is revised production guidance, mpvd will have 1.6m carats to sell. This will be 210m usd in sales in H2, assuming that 130usd per carat is achieved like H1. I see net bonds are 290m usd today and I would expect this to be reduced to 200m usd by year end. Taking out 50m of Desmond's junior bond, this will leave 150m of senior bonds to refinance. Desmond is a huge senior bondholder I believe so it is certain in my opinion , these bonds will be rolled over in my mind. Mpvd has been redeeming bonds in the market and you have to assume the company has a clear plan to extend them. I note mpvd is using old sales value per karat for kelvin and faraday. They should be updated by about 75pc to reflect current prices. This adds 2.5bn usd to revenue, which is 100pc owned by mpvd.Current assets of over 200m cad at end of H1 is very nice to see. Exploration seems to be going very well. I cannot see mpvd below 4 cad when bonds are extended and production recovers. They are a fantastic speculative play today at 61c.
Comment by
MDiamont on Aug 10, 2022 9:50am
C$0.11 earnings per share for a share price of C$0.61. MPVD is like a power boat tied up to a dock by the bonds. It doesn't matter the kind of good news released, it won't go anywhere until they got that resolved. Gladly, for good or bad, we have four months to get this impass out of the way.
Comment by
explman on Aug 10, 2022 2:57pm
Their cash cost per tonne and per carat are out of control. Not a positive sign.
Comment by
claymore55 on Aug 10, 2022 4:50pm
Most likely this is because of the high cost of fuel for operations.