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Maybe that's the case. Thanks
Good news for fastjet this will rise now
I suppose so and also M&G could be still selling as no one seems to be sure whether they are out completely
I think its a positive RNS. As of yesterday funding was going to run out at the end of July and the price reflected that fact. Now FJET say funding is in place until the end of August. This allows more time for:
1. The pandemic to get under control
2. The funding discussions to restart.
I see this RNS taking the sp back to 0.020p
Happy with the RNS , good clear update
Isn't that because failure is prices in at this level, it's approximately where it's been since it's huge price crash, and apart from the recent pump and dump it's still staying stable.at that level.
Hasn't seems to be affected much by the news
I agree with you Get_rich_quick. Most of what in the RNS we already kinda know anyways.
We just have to wait and see and hope for the best. Good luck
I don't believe anyone could ask for a great deal more, given our current climate and what we know about the pandemic in Africa.
The world is still turning, and little by little shops, businesses, factories, tourism is slowly returning. How long for? Who knows, but this will gain momentum as long as controlled measures are applied to the spread of the disease.
It seems the shock wave of the actual disease is leaving Europe, but sadly punishing the West - America / Brazil.
We have been given a slight stay of execution as finances can last until August, which was pleasant to read as I image the Finance Officer has tightened purse strings, but it goes to show they can do it when they can.
And that extra month may just keep us afloat for that crucial time.
Also as important;
"discussions with the Investors Consortium in relation to the Disposal would only restart once the impact and timeline of the lockdowns in South Africa and Zimbabwe were better understood and as such have not restarted."
We all knew negotiations wouldn't start until the business restarted, and why would they want to negotiate an airline business that was about to go under, but at least we know IF the company survives, the disposal is still a viable proposition.
All in all, a positive Rns. The market may not like it, but if you do, and I certainly do, I'll be adding if this dips.
Have a great weekend all.
I agree. Nice and clear. let’s see how the market reacts, but based on the tourism figures I can’t see them being able to keep flights locked down.
DYOR
The Tourism Business Council of South Africa (TBCSA) released a statement implying that resumption of flights by September is crucial for people in the inbound tourism industry to preserve their jobs, as during the period from September to March inbound tourism makes up 60% of its overall annual revenues.
++++++++++
That’s a good govt incentive to start flights! They cannot support their economy without tourism, that’s clear from the above.
This is a good clear rns imo...finance ok now till end of august..flights due to restart 1st of august...Zimbabwe easing lockdown especially tourism which is a key driver for their economy...many companies suffering from lockdown...every reason to allow Fjet to survive...also no big sell pressure on shares...expecting a good recovery in the sp
Likeliness = lifeline ( fat finger on iPhone)
I personally do not think creditors will want Fjet to fold as all sectors worldwide are having financial crisis and the least creditors want us to loose customers permanently. Every business is trying hard to retain customers and build on their business in this testing time. Same situation for Fjet creditors, they will do everything it takes to retain customers and business to ensure Quick recovery. Fjet has two months cash resources but the going concern declaration is common practice and am fairly confident we should get back to negotiation with creditors and the consortium by end of July 2020. So am seeing a likeliness will be thrown at Fjet and we should be back to normality beginning August 2020. IMHO
I'm in agreement with Borson on this one. I have held this for a while now and this is certainly not bad news, more like transparency which is good. If some news about lockdowns easing comes and the disposal gets sorted then we have a shot. Im holding for a little while longer, 8 weeks can do a lot, 8 weeks ago we were in full lockdown, now we have lots of options and in EA short flights are essential for the wider economy (Having lived and worked in TZ). GLA
Good post Tex.
This share remains high risk/high reward.
However at least we have +1 month to get some flights going.
Tourism looks to be a key factor to zimababwes economic recovery, starting to ease lockdown.
Fingers crossed.
https://www.google.com/amp/s/www.chronicle.co.zw/partial-tourism-sector-re-opening-hailed/amp/
Gla
I think it is a clear and honest RNS and should be easy to make an investment decision on your greed / fear ratio. My glass is half full and believe the Govt will ease restrictions by end of July. If so, then the SP will rocket very quickly with a lot of people banking their initial investment on the way up. If no news by early Aug then I see a massive sell off of PIs trying to limit their losses.
I'm taking no notice of rampers, de-rampers, chartists, conspiracy theorists, evangelists etc.
Pits up to you to decide if it’s good or bad.
I think it is good. Previously we were going out of business at the end of July. Now we can survive till the end of August without raising additional funds.
What is key now is local communication of lockdown easing and flights starting.. this will allow flights to start again and income to be generated and also (most importantly) it will allow the disposal to start to be negotiated.
So in a nutshell 7 weeks to get things back on track.
Let’s hope for govt news on flights starting again! Once that notification comes then we will be in a strong position.
Remember, this share is currently priced to fail. Loads of upside if we have some luck.
Tex.
I think this is a positive. Clearly they just need a bit more time to
Definately Hold, and possibly BUY if confident enough!
DYOR, GLA
Neither good nor bad, basically we need to get flights going at the end of this month or it’s game over.....I have a feeling as we are essential to tourism the consortium will come up with the readies.
Cash Position
As at 30 June 2020, the Group had cash reserves of US$1.0 million with no restricted cash. Of the Group's US$1.0 million cash reserves, US$0.1 million is in Zimbabwe and currently unrestricted.
Currently digesting. It.
3 July 2020
fastjet, the low-cost African airline, today provides an update to the market and shareholders.
Trading Update
On 7 April 2020 the Company announced that, following the country-wide lockdowns in South Africa and Zimbabwe due to the coronavirus ("COVID-19") outbreak, it had suspended flight operations. Following extensions to the lockdowns in both countries the Company has continued to suspend flight operations with routine commercial flights currently suspended until at least 31 July 2020. The Company is performing limited repatriation flights from South Africa to Zimbabwe, approximately three flights per month. The Company intends to resume routine commercial flight operations once permitted by the South African and Zimbabwean Governments and its flying programme will remain flexible in the weeks and months ahead depending on how each respective government phases the release of its lockdown and, thereafter, on demand for seats. At all times, the safety and wellbeing of the Company's staff and customers remains of paramount importance and focus. The Company continues to assess the situation daily and will provide further updates as and when necessary.
Capital Requirements and Restructuring Proposals
As previously announced, to address its requirement for further funding to continue operating, the Company had been in discussion with an investor consortium led and underwritten by Solenta Aviation Holdings Limited ("SAHL") and other local investors in Zimbabwe (the "Investor Consortium"), in relation to the disposal of the Group's holding in fastjet Zimbabwe (the "Disposal"). As announced on 1 May 2020, discussions with the Investors Consortium in relation to the Disposal would only restart once the impact and timeline of the lockdowns in South Africa and Zimbabwe were better understood and as such have not restarted.
The Directors believe that, based on current financial projections, funds available and expected to be made available, together with the current creditor terms agreed, the Company will continue to have sufficient resources to meet its operational needs until the end of August 2020. The headroom of available cash resources, however, remains minimal and will be drawn down on during the next few months to sustain and settle fixed costs and obligations of the Company should the lockdowns and travel restrictions in South Africa and Zimbabwe be extended into September 2020 and beyond. If flight operations do not restart to sustainable levels by the beginning of September or the Company is unable to access hard currency from the Reserve Bank of Zimbabwe through repayment against the Company's historical legacy loans, it will cease to be a going concern.
Therefore, in the event that the Company is unable to find alternative solutions before 31 August 2020, then the Directors believe the Company would be unable to continue trading as a going concern beyond 31 August 2020.
So is this rns good or bad
Worth a punt in this with Solenta owning 60% of stock and also their biggest creditor no chance Solenta going to pull the plug on fastjet or big dilution.