The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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Smalleyus what embarrassing questions did you ask or move?
So far, so good :)
I was most impressed with the webinar. All shareholders should listen to the 50+ minutes. Brian came across professional, personal and detailed, where he could be.
I took Q1 sales as an outlier and Q2 fell in line with sales expectations based on the Ukrainian conflict.
Expansion of Arupua is not planned nor easy to achieve. The absolute max output will be 320kt, unless a significant duplication of infrastructure takes place.
They will use Arupua to grow synergized products, initially limestone then phosphates, without having to dilute share holder value.
The lead time between a sale contract and ultimate payment can be a seasons growing cycle.
Different buyers have different purchasing/borrowing and price needs.
Both Volume and sales pricing is rising.
Profit margin is about 75%.
Q3 is anticipated to continue to be the largest sales/production period.
I congratulate all those who bought in at the 9p level, unfortunately I failed to act but my portfolio is already heavily weighted on HMI.
cut the prattle, listen to the webinar.
If you factor in 320k tpa at us US$60 per tonne you see where this can go over the next 18 months!!
No amount of finished product storage capacity will enable wet ore to be put through the m/c.
If they do use wet ore, the through-put is severely reduced and product is out of spec.
They didn't confirm 320ktpa could be achieved.
At 320k this is a cash cow so expanding beyond that will be easily achieved and still pay a dividend , and if limestone online then even better.
He said they would need no further capex to take opps to 320k tpa once the additional cover/shed is completed. Thereafter it would probably mean creating a new circuit, so basically duplicating what they have now if they wanted to raise production further above 320k ....at a cost of well over $1m
They couldn't confirm they could reach 320ktpa, more CAPEX would not help.
So what is the real plant capacity?
They're opening up 'larger faces of the mine' to get at the 'dry stuff', in the dry season? Doesn't make sense.
Smartarse - such a clever person they spend hours posting on a BB of a company they have no interest in and think is badly run with no outlook.....and then you question others opinions....perhaps you should get your own house in order before pulling to bits everything this company does. It's getting embarrassing!
You're correct, I should have said 'a similar arrangement', but that still doesn't mean the resale centres are working for nothing.
I don't trust the Harvest MD, that's my opinion, so if I did partake in the webinar I would only ask questions that I knew the answer to anyway. Otherwise I would end up like you?
And you don’t know that distributors will take 30% of kp fertil sale either! If your so bothered you should have turned up to the investor meet and submitted your questions. That would involve giving real name and email though ha
You don't know that!
If there were any half decent questions asked at the recent webinar you might think differently?
Vast majority will be sold direct through our own sales team. That was the whole reason for expanding the sales team the past 2 years.
Plus the margins on the small 25kg bags are excellent. Ramp up in sales will also be as result of farmers from previous years coming back for more in bigger quantities. Not a lot of time would need to be spent with those existing customers, leaving plenty of time for our sales team to build new relationships with new farmers.
correction - orbia.ag
Verde K-forte current price is R$1029.00/t delivered if bought direct from Verde.
It is also currently R$1029.00/t delivered if bought through one of the distributors - same price/t!
Their distributor receives ~30% discount (estimate from accounts) - i.e. a price reduction.
KPf... will do exactly the same, or do you expect Kpf... resale centres to work for nothing?
One of Verde distributor 'oriba.ag' also has a Verde agreed additional discount days with a further price reduction applied for orders placed on that day.
Smalleyus- that's how business is conducted in the agricultural sector.... including the UK. The more I buy, the less per tonne it is and if I pay upfront I get it cheaper than longer term. This is why HMI have a marketing/ team of reps negotiating such deals....as we do in the UK. This company has a solid foundation now and looks like we'll see rapid growth. Only regret is we don't have a similar product in the UK!
I did'nt think I would have to elaberate, but.. the same priciple is gererallu used accross all sales channels
Moving on.
So how much trade is push through the discounted 'resale centre' route and do the resale centres also offer discounts.
Verde do!
Really pleased for you, well done and keep up the good work.
ref smalleyus
I am a commercial contracts negotiator myself, a commercial sale/contract is mainly negotiated on price where larger revinues are involved from that buisniess transaction makiing a "negotiation" well worth while and is within the best iterests on the company.
Offering different prices to different customers sounds very much like someone is receiving a price reduction and I would guess those complaining about different pricing would be the resale centres/customers/distributors.
It was a crucial bit for me, Mike.
We needed to hear positive cash generation, we now need it confirmed in a set of results.
1st half cash will also include final payment from some of last years sales. To be up approx $700,000 aud in the first half this year compared to $1m aud loss last 1st half is a massive turning point though.
Agree Swingy, he handled it well. It's a shame there were so many awful questions, as it did detract away from some more important issues that Brian/HMI could/should address.
Nice to see a positive move from that brief sub-9p level. I still insist that a £50m+ m/c is realistic in a reasonable timeframe.