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GW - they had to issue the RNS to be compliant with AIM rules on reporting and not providing an update on the two key open points would have been a sure confidence dasher.
Stating that the visa/handover issue should be resolved in Nov. if they actually don’t have a clue would clearly be a mistake and would drag them back in terms of credibility, but time will clearly reveal all. I would like to believe that the new open and honest approach is also part of the fresh start.
Totally agree it’s an opp to average down, which I do with as I’m currently over 50% down.. again...
On a positive note, the trade volumes so far today don’t show anything more or less than normal - which is a very reassuring thing. Could have been carnage at 8:00 and it wasn’t.
Let’s see where we land at the bell!
GLA. Thank Gd it’s Friday...!
T
The problem is it's just another RNS that demonstrates lack of real tangible progress. There are always mitigating reasons and at times it comes across as yet another excuse. That's been our issue for some time and the market therefore has no confidence. It's almost another false start, although we know it should just be a matter of time before the handover completes.
The H1 financial results were always going to be a bit, how shall I put it, challenging but my view is they are already priced in. It wasn't difficult with the weather and Q2 lockdown to foresee that we would make a decent loss again on operations.
But, what's really changed between the update from 6th October and this morning's RNS in terms of other things? That's three and a half weeks and we're heading into the unknown now as far as weather goes. These delays, for whatever reason, are just making our operational life as a company more complex - we confirmed the ILTL handover in the summer - almost five months ago (first week in June?).
We're not yet building that market confidence back - that's the key and until we get some tangible positives and real numbers, I think we'll just be up and down around this 0.04ish level with an occasional spike, or drop. But I do see that as a positive for those either reducing averages or trading down their paper losses. I can see a nice spike when the news of ILTL handover finally lands, so there's an opportunity at these levels.
T72, agree, the results are no worse than expected under the operating conditions this year. The delay in the handover is a not unexpected nuisance but will happen and when it does everything will start to fall into place (handover sometime during November????) It is obvious from the RNS that contracts/customers will progress on completion of handover .
The X factor is the TZ gov. Tanzania is pretty desperate for a reliable and substantial energy supply, coal is the answer, the need for coal isn't going away. The coalition for energy supply will need a reliable source from all the suppliers TZ will need to make a move in that direction.
I would actually say it's more positive than usual!
The RNS was factual and didn't appear overly jam-tomorrow-ish:
EDL have put in place a structure that will take us forward. The hold-up with visas would appear to be an ILTL issue, rather than an EDL failure - and admin delays are more than credible under the current COVID circumstances.
no different to any other day..
Handover news and Lind resolution asap hopefully