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...is that they will get a quote as something like Sri Lankan Sands and the opening day will go to about 15p, a 25% premium.
@Jace, dm me see reply on the other site
Random chap asking: Did you reach any conclusions as to KLK's thinking around #PAL?
Doc: Fully supportive. The fact the GM went over was somewhat strange so concluded there's a bit more going on but gonna have to wait a bit
so what has he he said I have not seen anything
Some positive commentary from Doc H on twatter. Reassuring at the least
Bored over the weekend and was looking into the Oluvil project. Have a google earth look at the harbour in Sri Lanka. Was all silted up with blown sand and - with another google - there is news that the harbour was being cleared in March this year to enable shipping access. So, that suggests commercial plans are moving in step with government support and that the CML plan to get going could swing into action pretty quickly. I wonder if KLK and EPO pulled some strings that far back? Curious. But good to see those ducks are falling into line.
I guess this all pivots on what KLK had in mind and what they’re expecting their financial return to be and in what time frame. I cannot see any logic in them washing money away on an investment which is worth ~15% of what they paid for EPO earlier this year (the 5p price). Once PML have had their 75%+ shareholder agreement given, I’m expecting some more comms on what the plan is and a reasoned timeline.
Thanks for the post, I hope you are right. I suppose whilst we are all locked in we can only speculate for now. I will be happy if don't lose money (my average is about 1p) .
Any thoughts?
Whilst we wait patiently, I've come up with a theory that we'll return with a post-consolidation value of £50m. There is some logic to my statement, which might prove to be utter tosh, but at least it makes me feel better whilst my cash is locked up!
The 132m shares have been agreed to hold a value of £15,840,000. I couldn't quite fathom the reason for that value, until I flicked back to the interim results report and the retained loss value -$46,102,000. Doing a very rough kick across from USD to a GBP value at a rate of 1.349 provides a sum of c.£34,160,000. Put them together and you've the magic £50m value. Does that make any sense on a valuation? probably not to an independent AIM company, but if the intention was to bundle and sell or part-ex it on for palm oil assets (staying within their strategy?) it might have a modicum of logic.
if nothing else, I've put something on the board to prove I'm still alive and waiting...
I wouldn't say December was a long wait tbh. Heard of other shares been suspended for 18 months plus.
Yes sorry guys I missed it , nice long wait then .... excellent :(
I thought it said in the RNS. As late as March 2021, but likely to be December this year.
It was in RNS I recall.
Shall we email the company with any timeframes for this ??
Check this venture listed on ASX #TSL with Mcap of ~£29M
https://www.titaniumsands.com.au/investors/presentations/
They have explo of the same heavy metals but north of SriLanka Island
Capital Metals located at South East
This is closest comparison I could find
There is another operator of heavy metals Iluka as well
Right, I’m going for 12 Nov as I’m an optimistic chap! I think this’ll wave through and be fast tracked.
When this comes back it will be between 40/60 p within a few weeks.....thats for a fifth of the shares you now own....The correct space...and tax loses to be accounted....whats not to like
November 23rd
I don’t think we’ve seen all the cards yet on this RTO. that $46m in deductible tax benefit has to be worth something to KLKI /EPO, they’re in this to make money abs so I fully expect another string to this bow. I personally expect us to reopen fairly quickly but with another juicy bit of info beforehand. Anyone for a sweepstake on when we’ll come off suspension?!
PS I will be 30% down on a 12p opening (and I guess some others maybe more), so I will be expecting an instant increase of at least 50%
;)
Thank you Dibs very helpful.
That would go with my initial feeling that this is a good thing to find inside the shell - medium term gain, rather than instant, but possibly large gains ultimately. Main advantage that we have got early entry, that may be more difficult for others if placing access is restricted/oversubscribed.
Will try to learn more about this company and the resource - we have at least 6 weeks to wait for more substantive news it seems.
Thank you Dibs very helpful.
That would go with my initial feeling that this is a good thing to find inside the shell - medium term gain, rather than instant, but possibly large gains ultimately. Main advantage that we have got early entry, that may be more difficult for others if placing access is restricted/oversubscribed.
Will try to learn more about this company and the resource - we have at least 6 weeks to wait for more substantive news it seems.
Pondering - whilst I would not describe my thoughts as ‘expert’ I do have my own methods to try to come to valuations (where possible). In this case I have been looking at other mineral sands companies. Image Resources is one such example I have found. In summary and very rough description, They have an operating open pit mine, profitable - decent margins, a larger resource than CML but definitely smaller grades. Current MC £113m.
My feeling is that at this stage of development for CML, with their resource and given its high grade - which is very positive - circa £20MC is fair value, certainly not expensive. We can assume the valuation will be accretive as they move along the development cycle. Also they are very likely to increase their resource through additional exploration - possibly substantially.
So I think CML looks likely to be a decent investment with say, a 1-2 year outlook. To add to the attraction we look to be entering a commodities bull market.
And from Alexios’s calculations initial £20.57M MCap. So the calculation is:
(Current total value of your shares at 0.6p) * X / 20.57,
where X is the MCap at which the market will really value this company. KLK assuming that X will be at least £172M ?earlier rather than later. I have no feel for the value of X. Interested in other more expert thoughts.
So, my simple reading/understanding (newby in RTOs).
CML have access to interesting/valuable resource - titanium & zirconium ores, garnet only 3m below the ground. They have not got to extraction & money-making status - 1M dollar loss on a turnover of nil in 2019/20. Been going a little while - interview with MF on Youtube from 2017. Listing and placing is of benefit to them.
KLK must view that this is a big "goer" to be worth at least £1 (= 5p now) in due course, without much effort...
Both issue and placing will be at 12p though (= 0.6p now).
Bits missing:
- what advantage do we have have over placing purchasers?
- will the placing shares be offered to existing shareholders specifically?
- some other simple mechanism where KLK/we benefit that I am missing?
Otherwise, it seems very interesting, but not instant champagne.