Firering Strategic Minerals: From explorer to producer. Watch the video here.
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$102.5m t/o; Adjusted EBITDA $50.4 m
Let's not forget the $400m debt pile
It appears that the release today is a bare minimum just to meet their deadline - once again, disappointing communication from the board
1. Why is this still 'unaudited' figures? Its almost middle of the year....
2. No guidance on 2021 revenues or ebitda other than the higher utilization, which is not very useful to investors
3. Nothing on the planned capital raise.....
4. No call for investors - obviously they don't give a s**t
Looks like they are pushing to cross the 4 June deadline to make a lowball bid again.
with new interest rate LIBOR +3% on 400m is only 12-16 m, EBITDA $50m is enough to cover that with surplus more than its market value. The board also confirmed major share holder agreed equity raise. So stop worrying yourself, once equity raised, it is deep value stock .
Seanx agree. The SP will better reflect true value when they announce the successful equity raise of the $25M end of June. As indicated, to the end of 2022 they will use income to reduce the raise of the further required $50M. Were they to make a low ball offer I feel sure that they will in no way be successful unless the offer were to be in the 22-25p range.
@seanx, not worried about the underlying value. Just don't see any value unlock happening if management doesn't communicate. Its almost as if they don't want the share price to move. Its also painful to just watch this show - should get on with the capital raise and move on.
I agree - it is pretty painful to watch. Why are there no details around at the very least the plan and strategy for the $25m capital raise which needs completing in the next 6 weeks? Why no investor results presentation call for the market? Why no capital markets day since they've been in control? One would think they really don't give a toss about other shareholders, or they are just incompetent and don't get basic shareholder communication best practices. Or they are playing games. I suspect it's the latter. I suspect it's better than 50/50 chances they are just winding down the clock to the early June deadline to be able to bid again. And I suspect anything in the low 20s pence range and they would succeed. On the other hand, what do they want to achieve by owning more of the company? They already have control for all intents and purposes, so perhaps it would just simply be to deploy more capital to a high return opportunity. Who knows. If they are not playing games, then on the capital raise given the time remaining it's pretty clear it will probably be some sort of accelerated placing with some institutions (including themselves) and not a rights issue which would allow us retail investors to partake. All becomes very clear in the next few weeks!!
Total disregard for the remaining 60% shareholders, and definitely playing games. I don't think they need to wait till June to make a bid in the low 20s.....rather any bid between now and June has to be at or above 22p. So if they are waiting for the June deadline, expect it to be in the mid teens. Accelerated/institutional placing works for me, as long as it is done at higher price. Will find out (hopefully) by mid next month.
Agreed. The lack of audited results and numbers on Q1 trading is clearly designed to obfuscate the company's strengths and create doubt in shareholders minds, before a lowball bid. Remember, the board have similar company which they have explicitly said they wish to merge. How do we know there isnt a problem with trading ? The banks will have checked the books and would not have provided a better deal if theirvery large loans, relative to equity were at risk. In addition we know that a few different equipment providers are reporting 80% utilisation rates and we know that above this day rates start to shoot up.
I hope people are contacting the company to register their disastisfaction.
@sirimc - doubt there is any point in contacting the company. Probably better to contact someone from the regulatory side - but I don't see any explicit violations. Or another large institutional shareholder - ee don't see anyone making any noise as it is too small to bother with. Nevertheless with SF & friends controlling 50% of the votes (or maybe 43% these days as Horizon didnt commit to the equity raise), its tough for a major investor unless Mazroui and Horizon switch sides. On the plus side, I think merger would require an approval from 75% of shareholders, which they clearly won't get. Perhaps to get this majority, they might do a dilutive capital raise where they can 'underwrite' the offering and increase the stake. Intentions still unclear, but the tone is definitely not minority friendly. Will find out by mid next month at the latest
I feel another lowball bid coming as Mazroui ramps up their holdings
@4Corners they can offer as low as they like, don’t think they will get the votes needed to force it through.....
@ Si - i am aware of the votes situation, but the way they control the board, i just have this gut feeling that they will screw minority. To this extent, they have put Lord Rubberstamp on the board today, who is the chairman of another Man Capital portfolio company (Egypt based Integrated Diagnostics, also listed on London)
@4Corners agree but I just don’t think they will meet the threshold required to force a sale on the minority. I do think that having dragged it out and disrupted as they have, some will now be inclined to accept the circa 18p previously offered and rejected, even though GMS is in a much better position than it previously was.
Hopefully something this coming week, but the "7th June" target date to publish the annual report seems to coincide with the the 12month anniversary of the 22p transaction. Anyways, the way things are calm indicates something is up, or that all is well and taken care of :)