Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Down to Earth,
There was a change in accounting process at the end of 2021 which effectively meant sales carried over to Q1 2022. There has since been two price rises to increase the bottom line. Traditionally, the buying period has been in the second half of the year. I don’t see a problem meeting the sales target… it’s the profit that counts
downtoearth - we benefited from a February surge as the price increases worldwide were hitting and good to see 47k for what is normally s slower period for sales, last year q2 was 17.8k tons for q2
Was an initial surge due to Ukraine way. Q3 is traditionally the busiest quarter of the year
Another plus is the amount of tax losses sat in the business. Huge pile of tax credits!
Why have the sales dropped from 70,000t in Q1 22 to 47,000t in Q2 22? Surely it should be going the other way?
20% of cost of sales - Depreciation and amortisation
Mix of people trading at the moment some sellers on accounts and buyers on current sales figures
Factor in$US 80 per tonne at 170k tpa and you start to see how under valued this company is!! PS Apparently I'm very near on $80 per tonne sales price for 2022
taverham , you will have seen those in last years accounts - we have significant growth from there
I was thinking of buying in here until I saw just how much is spent on directors fees and travel expenses. Without those this would be a gold mine!
Surely $60 then? Factor that into figures at circa 170k tpa!!
This company will be printing cash going forward
Gota, if that was the case we’d be seeing a forward p:e valuation right now of £1.20 per share. I think Chique’s 80p is more reasonable given the transient macro conditions.
I agree but if we can see a good road ahead with 25% increase on last year I see the rest as a bonus, if market remains tight due to energy costs which I think it will then we should see another sales price uplift in 2023.
The good thing is that we are building up what will be an accelerated loyal base due to economic conditions faster than we all thought.
Excellent post. I actually think the 2022 per tonne sales price will be significantly higher than 25% considering globally fertilizer prices have increased 200-300%. I'd expect per tonne at US$80 Minimum which would support the 10% per unit value of KP fertil against convention fertilizer which is still circa $1000 per tonne.
At first glance for accounts pretty much as expected , an accounting loss and they have included impairment of over 3M
Sales price at end of year approx 57 AUD with a cost of approx 14 AUD
For this year y/e 2022 with the sales price uplift on 2 occasions we should now be selling easily for a 25% uplift on this figure which will give us a sales price of 71.25 AUD and revenue on 200,000 tons of 14.250,000 AUD
Cost per ton of 14AUD I would imagine will drop as they have advised that greater volume will bring a reduction in cost of sales.
So profit for 2022 should be in the region of 9.5 million AUD and approximately 5 million GBP
This should support a share price of around 40p
If we use these figures for a forward PE on sales of 300k tons then we are looking at an AUD profit of approx 15 million and a GBP profit for y/e 2023 of approximately 9 million.
So this year we really should be seeing the benefit of a forward PE of around 80p , if we assume sales of 300k in 2023
All told I am feeling quite comfortable with the figures.
This is just a first glance and am still digging into detail
What are you on about? That's 2021. Apply a new pricing regime and about a 100/120% increase in sales and you see a significant jump in revenue for 2022! Achieved price for 2021 was much higher than I'd expected. We could easily be selling for US$80-$100 per tonne this year!!
Sales of $AUD 4.8M =£2.82M, am I missing something here? Is there more production planned to ramp up sales? / Or is that it, maybe a bit more tonnage?
165% increase in Q2 2022 sales year-on-year to 47,339 tonnes (Q2 2021: 17,854 tonnes)
-- 340% increase in H1 2022 sales year-on-year to 117,539 (H1 2021: 26,726 tonnes)
-- On track to exceed 2022 sales target of 150,000 tonnes
-- Demand for organic fertilizers like KP Fértil(R) continues to surge amid supply squeeze
-- Focus on domestic fertilizer production continues to increase in primary market, Brazil
https://www.londonstockexchange.com/news-article/HMI/sales-update/15518525