Hot share tips and all the big AIM exposes from the City's most-connected reporters
By Malcolm Stacey | Tuesday 12 September 2017
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Hello Share Shooters. As Uncle Tom has been urging us to buy into gold, I thought I ought to increase my holdings. He rightly argues that gold is undervalued, given the top currencies, like sterling, the euro and the dollar, are all under some kind of pressure.
Also, if the stock market has a severe correction, as many analysts fear, then shares in gold miners will probably rise in counterpoint. So today I offer for your further investigation the firm of Polymetal International (POLY). This is a company which is actually growing. It’s expected to increase turnover by 15% in 2017. That would give a figure of $1.8 billion.
Polymetal is not one of those miners which merely looks for the yellow metal. It produces it in quite large quantities. Large amounts for gold, that is. Nearly one and half million ounces is the expected haul for this year.
Registered in the Channel Islands, it’s part of the Footsie 250 and is also listed on the Moscow stock exchange. It’s the first Russian-founded company to be listed on the London exchange. Its gold comes mainly from Russia, you see.
Profit before tax is up to $588.5 million. Those of us who struck lucky with Dragon Oil will know all about the rather eccentric politics of Kazakhstan. Polymetal has invested heavily into mining in that former Soviet Union country and wanted to start making money out of its key project there next year. This venture may be delayed a bit, though. There is also the worry that its costs must be paid for in roubles, and that currency is currently stronger than usual.
Yet, the City appears to like this gold miner more than some of its rivals. There is, for example, some high respect for its chairman, Bobby Godsell, former head of Anglo Gold Ashanti. So if you think, like me, your gold interest is a bit on the slight side, this one could be worth a look.
See you in the Punter’s Return.
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