George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
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IRR & WACC would have been used I imagine. I also assume that this would have been verified by the auditors so it can be relied upon.
I'm not sure what you are preaching however. Everyone knows that the outlook in the near term is choppy which is why why are able to buy shares at a 90% discount to this time last year. You are preaching to the converted.
My personal opinion is that a rise to 80-100p could quite easily been seen in the very short term (even if temporarily) giving a healthy profit. Risk vs reward after all depending on ones risk appetite
1. 70% of Capex spend suspended
2. Renegotiated leases with virtually all landlords
3. No Revex spend - employees on Furlough and use zero hour contract staff so can scale back and forth according to demand and days i.e Friday-Sun they increase staff, Mon-Thu they reduce.
4. Increased their cash position to keep them going to July 2021 in a closed capacity, not that it will be needed.
5. Avoided paying 4x the cost of Cineplex and will now just pay a termination fee of a meager £28m and SAVED BILLIONS.
@indepthtwins
While that may be true, every single meeting is prefaced with "we understand things are f**ked right now" in these "Unprecedented times"
RS2002 add to that major refurbishments
BODS are prepared to do whatever is necessary and they are keeping a keen eye on covid and will manage as appropriate going forwards mitigating and dealing with any risk
@indepthtwins
We've seen in other places that a solid plan for the future is more critical than anything at this point. Everywhere is reporting losses but SP are rising regardless.
CINE definitely has some additional complications but the same logic applies imo
the* point
I think you point of a lease net present value has gone over your head if you think that you can simply add the discount back on to come up with a new 'total liability' figure..
Thanks indepth still banging on about leases... what a tit!!! Troll Troll Troll....
nothing more to say!
The leases haven't been paid upfront, so their current net debt (excluding future leases) disclosed was $3.5bn (excluding leases) from $3.7bn at 31 December 2018 and $4.0bn at the time of the acquisition of Regal. So they have been reducing net debt and have shaved off $500m.
As I said, if you want to factor future leases now, let's go ahead and factor future profit, as well.
At this current SP, all of the bad news is factored in.
Thus, investors are recognising the value in their investment to take them above the current share price.
Published March 2020
Financial Highlights
· Group revenue of $4,370m (2018 Pro-forma(2): $4,657m) softer as expected compared to 2018, predominantly due to the strong comparative film slate
· Group Adjusted EBITDA of $1,033m (under IAS 17(1)) (Pro-forma 2018(2): $1,072m) and 23.6% margin, up 80bps
· Integration benefits from Regal exceeded initial expectation, with estimated run-rate synergies at the time of the acquisition increasing from $100m to $190m
· Reduced Net debt(3) to $3.5bn (excluding leases) from $3.7bn at 31 December 2018 and $4.0bn at the time of the acquisition of Regal
· Declared full year dividend of 15.5 cents up 3.3%
Leases have been re-negotiated so manipulating the figures to present 8bn debt, I may as well put down forecasted revenues of $4bn now.
Source: https://otp.tools.investis.com/clients/uk/cineworldplc1/rns/regulatory-story.aspx?cid=655&newsid=1378287
I hate to interrupt the circle-jerk that is going on in here but, it is worth being mindul that loan maturity for Cineworld is 2023. More than sufficent headroom to make it through the pandemic and see a vaccine and innoculation programme rolled out by each region of the world.
Their net debt is $3.4bn and they have sufficent liqudity to keep them going to H1 2021 CLOSED. Not that we expect that to be the case, given all territories are open except Americas which open in a little over 2 weeks.
it won't go bankrupt because a lot of creditors love a share of it.
Interesting article - maybe Bankruptcy/administration is an option.
I'm not a subscriber so couldn't read but seems an interesting article to read. Any bottom line view on Cineworld?
1st August
https://www.telegraph.co.uk/investing/shares/three-cheap-stocks-will-survive-covid-three-wont/
I disagree with them. You are going to survive, but you are going to 20p first.