Short term there's share price risk. Europe could go into recession. US rates could keep going up. Chinese growth might stall. And/or this upcoming report due may well disappoint. But it's just noise and sentiment from institutional buyers looking 12 months ahead. I don't care about it as a retail investor. I almost hope we do report poorly. I hope shares drop to 0.50¢ when the report is released
If the shares go down a meaningful amount, I plan to buy more. And each healthy, 6 monthly dividend payment reduces my purchase outlay. Meanwhile, S32 is also buying back shares, which increases EPS and makes each share more valuable.
We hold high quality, low cost assets that are essential towards decarbonisation; which is all our political parties and the media can talk about -- not just in Australia but the US, Canada, UK and Europe. They're obsessed with it.
The amount of base metals required for decarbonisation is insane. Shortages are assured as EVs, wind and solar requirements put impossible demands on the world's copper, aluminium, magnesium, etc. suppliers -- exactly where S3W is positioned. The lead-time for new mines is ten years plus. The same environmentalists who push global warming theories are often opposed to new mines, reducing supply as demand increases -- which it certainly will. It's a perfect situation for us. And a situation the general public hasn't awakened to. They're focused on lithium batteries and wind farms.
My thinking is that as long as one does not panic-sell during weeks or months of share price weakness, and instead uses that weakness to accumulate more, one will do very well. So do not worry or fear about the result. Let the market be your servant (as far as S32 goes) rather than your master, as Warren says. We're not invested in ZIP or RedBubble here (thank goodness), where a good result really is critical. If we play the long game and ignore the likes of Goldman Sachs, Morgan Stanley, etc. this is a great space to be in. What better place to have some money invested than as part owner of a business selling critical decarbonising metals
Good luck to you mate.
By the way, I'm quietly confident of a good, BHP-type result!
S32 Price at posting:
$4.19 Sentiment: Buy Disclosure: Held
(20min delay)