Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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with AIM ... ..The financing of the company is more important to keep an eye on than the initial chase for revenues.....
" The Company is on the cusp of a transformational change following the award of the Saipem contract.
We believe that this contract is the first of many that will flow through our yards over the forthcoming months and years.
Key to winning and delivering on these large contracts is the ability to demonstrate a strong balance sheet and liquidity within the Company's operations.
This placing will achieve both these objectives and we look forward to making further announcements on contracts in due course."
"not for the faint hearted" well most AIM companies fall under that statement don't they?
From what I remember of you Speedy you used to be extremely positive, thanks for clarifying I understand why you are now feeling frustrated.
We need more ships into dry dock we can not afford to have the main dock empty for months on end, ship repair is the bread and butter and without it we will starve, Now we are getting out of lockdowns I am hopeful that the ships will dramatically increase in preparedness for the cruises etc I would call INFA (now the placing is successful) a medium risk high reward play but definitely not for the faint hearted. Getting a positive outcome for the ML in the short term would be the transformational catalyst AIMHO.
Yes mcadder, I have decided to sell. Does that prevent me from airing my frustrations?
Speedy you sold out right?
Mcadder. With respect, should I quote how many previous times JW has stated when he expects the FID for IM?
No mention of the windfarm vessels in the Interims fwiw....
Hopefully they really are on the cusp of transformation in terms of real growth and meaty contracts now. Lots of upside IF they can just get the ball rolling with a few £100M plus contracts.
I know there's potential short term for the Windfarm Development vessels to come to fruition....
"each vessel would be expected to generate revenues for Harland & Wolff of between £340 million and £360 million over the 24-30 month period of fabrication, followed by additional revenues if further through-life support contracts are secured. Whilst both parties intend on executing a contract to build the vessels by the end of June 2021"
Avy, this is a company that has its own set of risks, capital and contracts, both of which are inter-linked. There is no doubt abot that. If there is no appetite for risk-taking, there are loads of other options as well.
Despite all the concerns raised, what I observe is all are pretty much onboard with the strategy in place, except for Blair, who still believes sarcasm is a highly valued art form but, sadly, it tends to sit in the crass humour zone.
The Company is on the cusp of a transformational change following the award of the Saipem contract. We believe that this contract is the first of many that will flow through our yards over the forthcoming months and years.
............especially "Scottish jobs" where government contracts are concerned.
This, from the interims, is one of of the main reasons I've invested money that I feel is worth the risk this morning:
"The Government has identified five key shipyards which it would like to see flourish via a slew of UK Defence programmes and the broader National Shipbuilding Strategy that is currently being implemented. Of the five, Belfast and Appledore were specifically named, and we believe that there is a strong desire within Government to rejuvenate shipbuilding at a national level, not only for defence / Government led contracts but also with an eye on the broader export markets globally. We have sought to position ourselves at the centre of Government policy and all our facilities are capable of delivering on these types of contracts. We believe that we have the optimum mix of capacity, capability and skill to bid for these large contracts and deliver them on time and on budget."
That alone is worth the current share price and more if it comes good. There can be no doubt that anything that looks good for Infrastrata - jobs creation through contracts - will be 'good' for the government. We just need to see the first and this SP will be history. It is a risk but a worthile one imo.
Feel free to sell your holding and move on avyererdowt, your posts are starting to come across as blatant fearmongering to me. There's no way anyone can read the multitude of recent RNS and find anything negative in them about the company's progress aside a placing (and even then, many will not see that as negative as it procured much needed cash to progress).
The company's market cap has nothing to do with IIs. Market cap is just share price x number of shares in issue. IIs generally don't care about AIM companies so I'd drop any concern for them at this point.
Not for me to comment on an individual's perceived cash and bank balance. However, the reality is that you and I would probably not be having a conversation on this BB today if it weren't for JW and his team's strategy. So naivety or otherwise, that is the cold reality.
Putting it another way, our market cap at 30p is circa 30mm. At 70p, our market cap will be 70mm. For the footprint that we have, both in terms of the physical and strategic capacities, that is still really cheap. It doesn't take Einstein to work out how valuable this company is and how easy it is likely to be for a deep pocketed competitor to make a play.
As a very astute plumber, I think you will concur.
A good summary droderick!
droderick,
"Working on a shoe-string budget" and "million pound bonuses" hardly sit well together.
INFA doesn't "own" the assets you list: Belfast is mortgaged, Appledore is yet to be paid for (cue another raise in the summer right there) and Bifab ditto, assuming the company can actually generate sufficient revenue in the first place to hit payment triggering targets - if not, then all this is moot anyway. The Saipem contract was not "won" in the true sense of the word, more re-ignited. I agree with a previous poster that the RNS announcing this "win" was spuriously-worded at best, omitting as it did details of the performance bond.
You are absolutely correct that the company cannot tender for, and execute, major contracts without substantial amounts of cash, but that is exactly the problem - win contract, need to raise more cash, rinse and repeat. It will always be one step forward and two steps back.
The only chance of survival here is public money and lots of it, paid up-front. Much as I wholly disapprove of the practice, I hope that JW is calling his old mate, Boris, and chums, applying a gun to the head of job creation and economic regeneration in deprived areas.
"Quite what shareholders were expecting from the interims for the share price to fall is a bit of a mystery to me"
Very naive Drod! Imo certain people got wind of a raise and sold out or even shorted with the intention of buying back /closing their short in the placing.
Only a plumbers opinion mind.....
Hi Drod
Do you think Arun could afford to buy some more shares with the million quid he took out the company last year?
I have been following the recent announcements over the last few weeks. My assessment is as follows:
The share price got a nice boost after the Saipem contract news but fell immediately after the interims announcement. Clearly everyone liked the former but not the latter. Quite what shareholders were expecting from the interims for the share price to fall is a bit of a mystery to me. Ultimately, this is a high growth company, there will be cash burn in the initial phases followed by a long period of stability with larger contracts kicking in. It should not be too difficult to figure that out.
Looking at the placing record, I am actually quite impressed: 2019 @8mm, 2020 @9mm, 2020 @8mm and now 2021 @10.30mm. Clearly, Infa enjoys strong institutional support even now given that this is their largest raise in the last 15 months.
The company has also gone through the ravages of Covid like everyone else. Imagine buying Belfast in Dec 2019 and three months later going into a national lockdown - you couldn't have written this. Despite that, Appledore is in the bag and so is Bifab. The largest contract in the company's history at 26.50mm is also in the bag. Strong institutional support across three placings has been demonstrated. The company probably has the largest fabrication capability in the country and is yet so heavily under valued.
Quite frankly, what JW and team have achieved till date is rather impressive. Keeping aside the dilution angle for the moment, to take a company that was likely to shut the lights out into one that owns some of the largest dry docks in the world and one of UK's largest fabrication capabilities, all in the span of 15 months, in the middle of a global pandemic, is nothing short of impressive. I suggest that we all take a deep breath here to understand what is it that we, as shareholders, now own. From a one project company to a multi asset company, each of our risks has been reduced substantially.
Dilution is an inevitable reality. You simply cannot expect the company to perform with no cash and yet bid and aspire to win large fabrication, defence and cruise contracts. I believe that Infa are already working on a shoe-string budget and making the best use of their highly limited resources. This company will burn through some cash over the next few months but I sense the tide changing. One large contract leads to the next and then the next. But these contracts do not fall into JW's lap. There is a lot of work, negotiation and effort that goes from enquiry through to execution, and this process can take months for larger contracts. If any shareholder believes that these contracts happen overnight, delusion is setting in. This constant need for news is a product of a fundamental lack of understanding of how long large commercial contracts take to come to fruition.
This stock is not for the faint-hearted, yet, if you stick with it, there is likely to be significant wealth accretion. I still absolutely bel