Welcome back

We're doing something new here today. Sit back, enjoy a drink or your commute with this first episode of Stock Savvy.

What is Stock Savvy?

A series where we examine individual stocks on the JSE with expert guests, mentors and maybe even AI.

In this show, we dive into the company's fundamentals, including its revenue drivers, management, bullish and bearish cases, valuation, and more.

PAN AFRICAN RESOURCES 101

• Pan-African is a South African gold company. They are listed on the JSE and are about an R8.8 billion company and they are also listed in London.
• Their mines are mostly in Mpumalanga.
• Two sorts of mining that they do?
• Regular underground, going deep underground and taking gold out like that.
• Tailings operations. It's essentially where they take those mine dumps, put it through a more modern process and then take, get gold from those old mine dumps. They get about 0.3 grams per ton, which is pretty amazing when you think about it.
• They produce about 200,000 ounces of gold per year. So a lot smaller than your big boys like Anglo Gold Ashanti and Goldfields and so on.

REVENUE DRIVERS

Charl elaborates on the five revenue drivers he sees for PAN. It's similar for all mining companies or most mining companies that I'm familiar with.

1. What is the price of gold? Meaning the price in Dollar vs gold’s price in Rand.
2. What is the exchange rate? The Rand dollar exchange rate.
3. How much gold they produce per year?
4. How cheaply can they do it? What it costs them to take the gold out of the ground.
5. How long can they keep this whole show going? Is it five years or the mines are going to be depleted after five years, after 10 years, after 20 years? That's obviously very important.

And then for each factor, Charl tries to track what's happening to those over time. And that informs his decision to either buy more Pan, keep the Pan’s that I have, or maybe take some off the table.

How does PAN perform given the 5 revenue drivers?

Give the episode a listen for the Charl's insights.

Crypto: Gold vs Bitcoin

I think what you will see in future, if I had to guess, is you'll see Bitcoin behave a bit more like gold. Fairly stable, slowly increasing over time. That's probably a store of value. The one reason why I would favour gold as a store of value is that I think the history of trust is much longer, but that’s not a reason why bitcoin cannot do the same.

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⚠NO FINANCIAL ADVICE / DISCLAIMER⚠Nothing in this video should be seen as financial advice. Everything stated is for educational and entertainment purposes. Only opinions are expressed.The Information on this podcast and provided from or through our content is general in nature and is not specific to you the user or anyone else. You should not make any decision, financial, investment, trading or otherwise, based on any of the information presented in this video without undertaking independent due diligence and consultation with a professional, professional broker or financial advisory.#finmeup #marketupdate #finance #stockpicks #investing #stockmarket #jse #personalfinance #financialfreedom #stockwatch