Stefan Bernstein explains how the EU/Greenland critical raw materials partnership benefits GreenRoc. Watch the full video here.
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So there we have it.
Headline reported numbers were as expected – no surprises there – lack of brokered sales primary reason.
As usual lots of high % growth stats being used – which often mask actual revenue performance. Disappointingly our renewal revenues are down to $5.6m from $6.0m – missing the previously announced target to cover 100% of all costs by now.
The $1m in anticipated cost savings in 2021 over 2020 is ok - the reduction in partner payments from the settlement of london is clearly helping 2020 already. However, overheads and COG’s have both increased this half – overall costs c$6.2m in H1 (a small element of which is non-recurring).
75% of the way though our year and our broker is still unable to provide any guidance moving forward – this seems bizarre.
We still have $13m in deferred revenue i.e. money owed to the company in future years. This seems very high imo and may reflect highly incentivized sales deals with some potential risk around future recovery.
Not a single mention of the dividend word, 5 year plan or Q3 trading. Again – bizarre. No director options awarded yet; although continued accruals ($300K) for the cost of management options.
As for the tender return – I guess we probably saw it coming – there is simply no motivation to provide shareholders with an actual return. The tender return is basically another buyback – albeit at a premium to the current low share price. This way any ‘distributions’ are looking to reduce shares in circulation and increase earnings per share. £3m at 7.5p (a 20% premium to the current price) would take out 40m shares (interesting to see if any II's take part) – or 4.5% of current shares.
Interesting reference to distributing 50% of the ‘Free Cash Flow’ in 2021 and beyond – which in H1 2020 was $1.9m. Last years FCF as -$0.7m……but we did have some large cash outflows (ie $5.1m london, $3m loan repayment). Question is – is this a real distribution (dividend) or more buybacks. FCF should be $6/7m+ in 2021 imo.
We have known it for some time – but for me these results confirm that our II’s are in clear control of the business and continue to shape the business for a future sale. Like it or lump it.
Not exactly a vinegar day. Onto 2021 methinks. SB