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I'm pretty sure it's November and then another 7 years. And yes, they have the prime earthmoving contract for the Tungsten Hemerdon mine.
Tungsten West to pay HSP £1 million a year on 29th of November for 7 years.
Also I believe that HSP may be in the frame for a mining services contract.
Downing Strategic Micro-Cap Investment Trust plc is pleased to announce the publication of its new investor letter :-
Http://www.downing.co.uk/assets/dsmletter
Have been a great believer in this board's ability to create value. You can detect Harwood's influence in considering the offloading of HRMS. With ultimate substantial cash resources further acquisitions are possible.
Having stabilised the business post coal this company is now in an exciting "growth" phase.
Exciting times!
Yes it’s Harwood Capital’s way of releasing value. Probably sensible to plan an exit while it’s firing on all cylinders.
They’ve done the same with BBB recently.
Looks like they may be looking to sell the German business :-
"Thirdly, the Board believes that its investment in the HRMS joint venture has the potential to deliver substantial shareholder value in the next few years. The Board considers it likely that HRMS would benefit in due course from being part of a larger, more specialised business and it plans to explore strategic options for HRMS with its professional advisors over the course of the next several months. "
Great results announced this morning, with a nice dividend too and the 12p special divi from our German division to be past on for the next several years
Another great midday RNS.
HSP should see some nice broker upgrades on the back of that RNS, we also have a generous divi announcement to look forward to next week.
Well done HSP.
Things looking good for year end 2022 due to German business exceeding expectation :-
"The Board has previously commented on the very strong commodity market conditions which are being experienced by HRMS. Following the completion of the financial year ended 31 May 2021, the management of HRMS have reported a profit after tax of £13.6m, much stronger results than expected. Additionally, HRMS has secured a number of forward trading positions which give great confidence to the Board that HRMS can continue to benefit from these market conditions throughout the first six months of the year ending 31 May 2022 at least. As a result, the Board now expects that the Group results for the year ending 31 May 2022 will materially exceed market expectations.
The Group will report its preliminary results for the year ended 31 May 2021 on Wednesday 28 July 2021."
The Investors Chronicle has published a further out of hours share tip from Simon Thompson relating to Hargreaves Services.
As a plot spoiler, the new target has been raised to 450p (from a target of 350 set in January). He rates the shares as a buy.
If I've read the article correctly he points out that the results in July will give:
Dividend of 20.2p resulting in a yield of 5.3%
PE ratio of 7.5
6% below book value.
He points out the two upgrades that occurred in April and the strength of the HRMS business and concludes the article
"Hargreaves’ earnings upgrade cycle has further to run and it’s reasonable to expect massive upgrades in due course.
In the circumstances, I am raising my target price to 450p. Buy."
It's difficult to disagree.
I'm feeling quite pleased with a top up I made last week at 381.
Gordan Banham CEO gives a quick overview of business and opportunities (came out 25/5/21) :-
Https://www.brrmedia.co.uk/broadcasts-embed/60957580576c9638976d4b60/event/?popup=true
Opportunities Like :-
- Tungsten West
- Westfield + Brockwell Energy in Fife
Certainly going to be a set of bumper results. One should be mindful that of the 20p likely divi payout, 12p of that is from the German Co. Nevertheless, that 12 p looks likely to be an ongoing annual payment. Very impressive turnaround from coal!
https://masterinvestor.co.uk/equities/small-cap-round-up-featuring-sureserve-braemar-shipping-keller-and-more/
Hargreaves Services (LON:HSP) – very big profit upgrades
Taking advantage of higher commodity prices, this group is now expected to do a lot better than previously stated.
James Tetley, analyst at brokers N+1 Singer, has upped his profit estimates for the year to end-May, now going for £17.6m adjusted pre-tax profits (£4.9m).
He sees earnings rising from 19.5p to 50.7p per share, enabling the company to pay out a cracking 20p per share dividend (4.5p).
He will probably upgrade his estimates for the coming year over the next few months, or so is my guess. But first of all, we should see what the company says when its reports its full-year trading update on Thursday 3 June.
The shares, now 378.5p, are doing very well indeed and look even sexier with that lumpy dividend.
I see them rising a lot higher yet.
(Profile 29.12.20 @ 263p set a Target Price of 325p*)
Could the share price get up to NAV levels ie around £4 ?
Looks like it better than many to resist inflation.
Great midday update.
Upgrade expectations again by a material amount, very pleased.
If I remember correctly, the dividend from the German venture will be passed on to HSP shareholders.
Pushing the 3/5 year highs. Happy to keep holding here and look forward to more information coming through about the German side of things also
Well the total dividend for the current business year is supposed to be around 20p based on a transfer of dividends from the German business if they meet that you wold think the share price will re-rate upwards.
The company released an unscheduled trading update RNS on 20/4/21.
The update points out some delay regarding HS2 but I've got to say that it strikes me as being extremely positive.
"Trading at HMRS and DK exceeding expectations"
Contribution from DK "materially greater than current market expectations"
"Year end cash balances substantially higher than market expectations"
I note that N+1 Singer have updated their forecasts, however, I'm unable to access their report other than the introductory sentences. What a teaser these are! EPS are upgraded 45% from previous expectations which I think were 18.6p. A 45% increase here would give EPS of 27p for the year ending in May 2021.
It is my view that such substantial an upgrade this close to year end is extremely positive and likely to lead to further upgrades and accelerated dividend increases.
Fantastic news, any idea how much this contract worth anyone?
Love this share but wow - 5% spread, 14p, basically MMs taking all of todays 5% gain. Frustrating. Come on MMs lets have more of you dealing this share and get that spread reduced.
Just reviewed the buys from today. Between 12:56 and 13:07 the following went through: 582k, 25k, double 145k(minus sign on one), 202k and another 145k..... That's number of shares not value. Looks like something big just took a £3.7mill plus position.
This must be a good sign for the year ahead
Good new.
I must admit I am hoping for a price at or above NAV at around £4 although that may be over ambitious.
Even now I reckon Simon Thompson is being cautious. The land is on the balance sheet at cost and I am sure one can calculate an SP for the land and come up with a NAV well in excess of £4. No reason why dividend reset at 20p will not increase over the years. Having come out of coal, turned round the company and almost eradicated debt the way ahead looks positive.
Saw this morning that over the weekend ST at IC has upped his target. From 320 to 350.
Yes, land is on books at cost, but as ex industrial (eg old mining land) it will may take money to stabilise.
It's had a good week. Hopefully there will be more to come.