Rainbow Rare Earths Phalaborwa project shaping up to be one of the lowest cost producers globally. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Interim report due this month. Should hopefully see a material change in the p&l account.
The last NAV for the company was 40.86p, so the shares are currently trading at a significant discount.
Some good news from KCR may spark further interest here.
Trouble is the Acuity stake being unlisted, that firm's brilliant progress won't be reflected in the Drumz P&L. Instead as you allude that's driven by the legacy investment KCR as that's listed. Sooner that gets sold the better I'd say.
But any income from the Acuity investment will be mentioned in the update perhaps? (as an aside/update) to the interim report. Hope so. On KCR - I'm hoping there will be progress there (and at some point perhaps the share price might rise at KCR too).
Here's praying anyway.
There surely won't be income from Acuity - and I don't think I'd want it: with Acuity 75% owned by management and still a relatively small business I'd prefer to see cash reinvested in the business to accelerate growth than see the management taking cash out, even if a quarter of it comes our way.
With you 100% on prayers for KCR though! If I remember rightly the Torchlight option that lets them take ever more shares at ever lower prices finally comes to an end this August. Think optimist knows more but I'm hoping that if we haven't been able to sell our shares, conditions will be more favourable after that.
Phenomenonnick; it was more an update on how things are going at Acuity than anything else - it's not that I want the income from it or anything (like you I'd rather see it re-invested). I'd just like to know how it's going. THat's my one area/the rationale, if you will, for keeping my investment in Drumz. The KCR thing - we're just bit part players in that (thought Drumz legacy investment, now that Torchlight are all in, as it were). I'm just hoping that rents have risen, costs are under control and that perhaps they've sought some air-rights planning - helps increase the portfolio's valuation). I know factually that they were trying to explore air-rights (under a 'project osprey' banner, where they'd put together 5 of the portfolio - I think- as having planning potential for air-rights). It's a great way to sweat an income asset etc etc.
But it's Acuity that, for me, has the angles for growth. Unless that's a dog too. But I can't believe it is; bearing in mind that the sales guys should be all over the messages we're seeing in the paper's about the Russian hacking threat. It should be pushing against an open door, selling the service (I mean). I just sincerely hope income and profit is growing there.
The "Option Period" expires on the third anniversary of Admission, which makes it the 11 July 2022.
https://www.investegate.co.uk/kcr-residential-reit--kcr-/rns/subscription-and-strategic-agreement/201907121624304368F/
If Torchlight exercise their remaining 36m options, this would take them over the 75% holding and then allow them to do whatever they want with the company.
Either way, I expect we will have some closure by then, but I suspect Torchlight will have to make an offer to buy out the remaining shareholders if they exercise their remaining options.
Thanks both.
OOS - yes I'm sure Acuity will prosper in the current climate. Will be interesting to see what the next investment is.
Optimist - appreciate the clarification. Presumably Torchlight do want a listed vehicle, the cost of a takeover bid is pretty high, if that was their gameplan they would surely have bought the whole thing at the outset rather than construct this complicated long term investment mechanism. Either way though not long to find out now!