Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
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baffled by the share price reaction even if its only 7m shares so far! someone is desperate to sell or this is being manipulated
There is good news, good news and more good news!! Then some more good news!!!!!!! Do the maths on next years profit!!!!!!!!!
We will be very rich my friends!!!!!!!!!!!!!!!!
They are explicitly pointing to a 40% uplift in day rates on new contracts. That’s just a really beautiful figure, up there almost with my wife
The reason (only reason...) the SP is slow to respond to what is very good update is the overhang of placing shares 3p that has to be churned before any material rise.....any further decent news will help to accelerate that inevitable process....as such,like I said before any material rise will not be before sometime next year.
Hold or better add in the current price for handsome rewards in not that far distance...IMHO.
GLA.
Looks like the rocket exploded at take off......something is seriously wrong with this scrip
16.6p equity per share. This looks way undervalued, imo.
Excellent news throughout! Would be disappointed if this doesnt hit 5p today
“The Group is also currently assessing if secondary alternatives to the equity raise exist to prevent the issuing of warrants if the second tranche of equity is not placed by the end of 2022. This initiative is supported by the opportunity to significantly reduce leverage levels, through improvements in underlying trading results driven by the positive outlook.”
?Strong pipeline of long-term contracts currently being tendered.? ? and continuing commodity strength consolidating likelihood these contracts are realised :)
Indeed. Many people believe they see the future. Libor will multiply. Indebted companies will fail. GMS will go to zero.. the world will fall apart….. but then on the other hand .. :)
Debt is what’s holding this back, it’s a dirty word, looking forward
An interesting day when there are more chats than number of trades :)
"....should the net debt/EBITDA ratio fall below 4x before December 2022 then the warrant and PIK conditions fall away". This is from the panmure gordon report, got more detailed views on debt and how the second raise may not be necessary. We can debate if they hit those ratios or not;the odds are in favor of GMS at the moment.
@luke - agree with you on the illumination comment, which is why i keep wondering why this hasn't moved and what is it that I am missing.Personally don't think the risk is libor creeping up or a capital raise.
Those who believe that they see the future so clearly seek no further illumination and thus the black swan remains concealed.
On the contrary, I’m very happy to discuss your musings. You stated that a 2% rise in libor would significantly erode the bottom line progress at GMS. I have demonstrated to you that this perception is very much not “on the money”, because the $7m increase in the interest charge is not material in the context of a $50-60m increase in the bottom line. If you now want to change your scenario and multiply the rate of libor many fold then yes, of course, that will have a significant impact, but of course - is of much lower probability than a 2% move. I think we are all “on the money” in believing that an unprecedented multiple rise in interest rates will be bad for indebted companies, but I’m not sure the point is all that illuminating, with respect.
It is always telling to receive a "with respect" response for it is an indication that one's thoughts are right on the money.
I took 2% as an example.
This could as well read 6% or 8%,for the days of "cheap" anything, including money, might be drawing to a close.
Those who are already uncomfortable with their level of debt will become ever more so, for I believe they/we are about to be held to ransom.
Just musings btw so no need for anyone to become aerated.
With respect, another 2% on libor would add $7m to the interest charge. In the context of EBITDA moving from the $50m region to the $100m region, and free cash flow moving from zero to about $60m pa, I do not think $7m is really that material. This is especially true when the market cap is currently little more than 1x that free cash flow.
Interest rates , alongside inflation, are already on the rise and seem likely to continue in an upward trend for an extended period.
2% added to LIBOR,or whatever amended base might in future be chosen, would significantly erode any potential progress for bottom line profitability and thus GMS's ability to pay down bank debt.
Nevertheless, the share price could well move up 50% or so as 2021 draws towards a close.
I’m still waiting for the rocket to lift off, must be burning through some fuel sat on the launch pad still. They won’t renegotiate the debt until the debt restructuring conditions have been met from the last one with another raise of $50m. These are the conditions and it’s solely to pay off some of the debt. The banks are still in control here.
The point is we do not know at what price they will raise, and you will likely have to own the shares to participate. MCatee is right - they are likely to annualise over $80m EBITDA in H2, and given the market continues to strengthen, there is the the possibility of $100m+ into 2022. It don’t take a lot of nous to work out if that is the case, both demand for the shares and associated rights to participate will be very high, and the current 4p a distant memory. And this is all predicated on the view that the issue goes ahead, which is not a certainty in the event the debt is renegotiated or refinanced on better terms.
So you don’t think that they’ll raise $50m before 31/12/22 as per the debt restructuring conditions?
When you then think the whole company is only valued at 40m by market, amtech is not the only fool out there
EBITDA for 6 months was $26.5m with estimate EBITA for whole year of $67m. That means EBITDA in second 6 month of 2021 is $40.5m. If that is repeated next year (2022) the EBITA generated from 1 July 2021 to 31 Dec 2022 will be $121.5m. As depreciation is not a cash expense after the now reduced interest of $20m, there will be substantial cash generated to pay down the debt! 4 Corners, tell Amtech that he is talking out of his but
What misinformation, they will raise more funds end off.
Won't convince you to stay, but I suggest that you refrain from writing misinformation. Good luck
Yep, same as before, they need to pay a total of $75m off the debt by the end of 2022 with staggered funding rounds. Covenant is if they cant raise it then warrants will be issued, either way dilution inbound. By how much nobody knows, but revenue of $100m and cost of sales always around the $70m mark they’ll be raising funds alright. So I’ll stick my funds elsewhere that will bear fruit quicker than here, good luck, see you all next year sometime.