Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
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If it was it would have by now. It has a future after cash call. Think 2p will be the call, but can get to 6p quickly.
Things have changed since November as big chunk of cash has been absorbed by their own admossion, however that is not the end of it they have lowered revenue forecast after a week.We will find out soon either way.
* they wouldn't need
" And needs to raise it through placing.What I dont understand is why did they let shareprice get this low and not raise it around 6 "
I suspect they would go for a book build , but ..you don't go and say what price you want it at ....such as 6p..... you get told what price investors will pay..... a begging bowl can make few demands
Thye did say in November they would need more cash but if so would look for non-equity....and if so.... they could look for a loan against the contract revenue ...but the interest rate wouldn't be so kind I wouldn't have thought
They also said in November the raise gave them £3m contingency...so..they may have that to fall back on.... but the raise looked very tight against all what they still had to do for phase 2 and 3 kit out
Just do a £2m placing at 2.5p and move on with increasing capacity.
Outlook
We are maintaining sales guidance of £23m for the year ending 31 December 2024. However the scrap problems in particular have absorbed a sizeable amount of working capital and cash. The Board are assessing options to address this short"
How can you say no cash is needed as I am curious to find out about "options that board are assessing"
Newgrange, I'd be interested in if you have any info to support your comments or if you're simply suggesting that you've bought at a much higher level and now wish the company was worth a lot more. I understand you're feelings but anything to back up your comments would be helpful.
Someone else mentuoned a shareholder visit in the last few days. I can't see the company announcing anything formal so suspect anyone can knock on the door and ask for a tour from the comment but if you can expenditure this would be helpful for.the rest of us to understand.
Lots of useful comments on this forum which is great.
For disclosure, I bought in at 6p but sold again as it dropped to 5p but can see that if sales targets are some of the other issues are resolved that this company could move into a stable position, it does feel like more cash will be required though although very little has been said. GLA
And needs to raise it through placing.What I dont understand is why did they let shareprice get this low and not raise it around 6.This company needs minimum 5 millions and that would dilute existing shareholders heavily.
Look at those 4,988 buys.
Someones in
All buys coming in. Value to be had here. GLA
This has been tipped previously by Tom Winnifrith (ADVFN).
DYOR
T/O possible at these levels.
Selling way overdone. Rerate upwards now in progress.
How much below 1p?
Will say a lot if Hargreaves Hale completely sell out ...
https://www.hargreaveaimvcts.co.uk/
What investor visit? Who was visiting the company yesterday?
"The numbers are worst case"
yes..but they cannot afford to be in that situation....as they need every £ to invest in the phase2 completion and phase 3 kit out and working capital .....any fall back will put the timetable behind IMO
The current contracts means they really cant afford any timetable slip ups , and any loss of time on phase 3 opening will hinder new contracts beyond the current ones
£400m order book? "(£390m)\* This is based on the directors' expectations, their understanding of the relevant OEMs production plans and estimated demand for discs and it takes into account the expected lifetime revenue"
" £300m prospective contract pipeline"
So its directors interpretation and a 'prospective' pipeline, i.e. not an actual sales pipeline.
BUT
"We are maintaining sales guidance of £23m for the year ending 31 December 2024"
"projected FY 2024 range of £17.5m to £22m sales"
Also
"Quarterly capital repayments will commence in the first quarter following the completion of the availability period."
"The remainder of the £44m capital investment programme will be funded from free cash flow as the Company moves into profit, still expected during 2024."
Fingers crossed aye? No mention of actual profit as yet. The pipeline isnt being converted yet, but this will obviously depend upon getting the new capacity up and running asap.
This could turn around but it is almost certainly going to need some cash as has been discussed. With the loan facility available for capx the placing is going to be needed purely for working capital purposes, including paying off the loan. In which case its got to be at a large discount.
Crazy times-£400m order book and I’m told the investor visit yesterday was fine.The numbers are worst case which is sensible given previous disappointments
** the main raise was to build more factory units on the site to cope with increased orders.
"Are we talking about a zombie company here? One unable to survive without regular infusions of cash?"
They've had contracts with most of the supercar manufacturers and impressively the US Army. There has been no regular infusion of cash here via raises. Yes, there have been raises but not excessive ones.
If memory serves most of the management team bought a hell of a lot of stock at around 50p a while back.
"Does anyone know why this 'scrap' issue is causing such a profound impact on the profitability"
Its ceramic. ceramic is massively expensive & they appear to lose a lot in construction. thats all i can assume
"the market has totally lost trust in management's ability to deliver."
They have admitted just how amateur they are , unfortunately...using shareholder money in a "learning" scenario
Glad I never bought in, although seemed an interesting product
The current SP is just investors showing their discontent and indicating they want more in the RNS about the cost implications of the scrap problem
I see SCE has been around a while - it's not a 3-year wonder like Saietta was - but I don't think it has ever made a profit in all of that time. Are we talking about a zombie company here? One unable to survive without regular infusions of cash? Well, in this macro climate the party's over. Today's share price reaction says the market has totally lost trust in management's ability to deliver. Not a good vibe. I'm starting to doubt management can turn it around.
Does anyone know why this 'scrap' issue is causing such a profound impact on the profitability of the operation? Would have thought it was a marginal cost consideration only.