As a mineral exploration company, we are operating in very difficult times. The resource sector is still extremely depressed with new finance for exploration projects in short supply. Nonetheless, we have been successful in raising (subject to shareholder approval being obtained at the General Meeting) additional capital to carry out the limited but important next stage in the delineation of the full potential of the Mt Visi target. We are confident that applying our rigorous exploration methodology has led us to the verge of a discovery and we look forward to better times ahead."
"Following this further share purchase and the resultant wholesale changes to the shareholder register of LSR, the Board of Thalassa intends to engage with the Chairman of LSR as soon as practicable, with a view to reviewing and changing LSR's investment policy approved in July 2013."
$20m last reported on the balance sheet. Majority of cash held in dollars so post brexit sterling value of cash has increased. £1.15m spent on buybacks (best way to return money to shareholders and esp when shares undervalued). WGP settlement bought in +$750k. DS has stated in annual report that he is looking to deploy cash into other cheap assets. AoA were amended so DS can do this. As shareholders we should want DS to redeploy the cash. He is by background an activist investor (a mini Carl Icahn). He is IMO a Grahamite. There is no such thing as a bad asset. Only a bad price. Anything becomes interesting at the right price. At current price the c/o is valued at net cash with WGP, stakes in PML and the REIT all thrown in for free. Lovely jubbly.
IMO more like a pensioner trying to work out what to do with their savings - nowhere safe that gives any sort of return. So, yes, diversify, why not?
LSR does look pretty safe, with property minus debt giving a NAV well above mcap. And now with a 15% holding, maybe they can lean on the LSR BOD to speed up their declared disposal plans, to release the value.
well they did say they were 'diversifying' lol, maybe they really are awash with cash, investments, share buybacks, legal settlements, what next ? maybe a special divi for the suffering shareholders.....
OK, in the interests of lively debate, here's why I've invested.
I hadn't come across THAL before, but noticed the RNS and subsequent SP drop on Friday. So I did a quick, and admittedly superficial, analysis. My thoughts were, in no particular order :
1. The PML investment does look like a bargain. On paper the £400k is immediately 'worth' £700k. Yes, yes, I know it doesn't really work like that, but at least the PML SP didn't plummet as might have been expected (in fact there's only been one trade since!)
2. Chairman holding 15% of shares - always a good sign. But not foolproof, as I learned to great cost with Sula :(
3. NAV high relative to mcap - very Grahamite. Whether that's still true - well, we'll know later this month.
4. SP obviously impacted by the low oil price, but that won't last forever. And shares in a gold miner might even act as a bit of a hedge.
5. Results due soon, so if they were really awful, I'd have expected a profit warning before now. So my guess is they'll be OK-ish.
6. Share buybacks rather than dividends make good sense, as they avoid the dividend tax.
So anyway, I'm in for ~£5k.
BTW, Papua New Guinea is thousands of miles from Africa!
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