Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Some clarification on cash position :
As previously indicated, working capital has increased in the quarter consistent with the ramp up in activity, with the Group moving into a net debt position in the period. Working capital is expected to peak during H1 2023, with net debt in the range $30m - $50m targeted by the end of June 2023, followed by cash generation in H2 2023, with management targeting positive cash and bank by year-end.
Trading update is now out and looks somewhat confused. On the one hand management expect to meet market expectations, on the other they state that EBITDA is ahead of management's expectations. Pretty positive feel to the RNS on the whole. We now know that the divi is 4.5 cents per share and payment date is 12 May (ex divi date April 20th).
I think mid 220's before a turn depends on the trading update I suppose. Much smaller company than 10 years ago, so less base to build on
Looking closely at the chart, I can't help wondering if we'll see 235-237 or possibly lower before this turns.
Purely on for TA reasons I dropped about 30% of my holding around 250 or so. I'm surprised it's dropped as much as it has. I had wondered whether it had gone ex-divi, but the ex-divi date seems to be Apr 20th. Not sure how much that divi is. I assume it's 1.94pence for the quarterly divi, but if anyone knows for sure please advise. I'm looking to buy back if the SP seems to be about to turn bullish again.
MSM, long looks right for the moment. SP starting to move to the upside. Took a bit longer than I'd anticipated, but I'm hoping to benefit.
what,s the next divi ?
I dont think it was the downgrade as such Stupmy. It was the results that triggered this. And we discussed here at the time it may have been down to cash flow levels. I don't think it is a worry, certainly not bad enough to warrant such a sell off.
We are due a trading statement in a couple of weeks...I would hope these concerns are addressed then.
Berenberg's downgrade from buy to hold with target held at 325p on Apr 3rd seems to have knocked confidence a little.
POO has risen and I am staying long for the time being
https://www.lse.co.uk/news/HTG/berenberg-downgrades-hunting-to-hold-rc4tjqyks07dhv2.html
Sentiment change. Was way over sold. I hope you all managed to add some
Managed to get some more around 239 on open. Not been able to buy HBR though
0PEC cutting production, surely drive this back up?
Added. Oversold. When this bounces it bounces quick and high.
I've added quite a bit here. It seems to have bottomed for the time being at least. If the price exceeds 248 we may be seeing a change in trend. Can't see any scheduled news events until April 19th. Anyone know why the SP is looking a little perkier?
Too tightly controlled by the Hunting family
could this company be a takeover target ?,, wont be cheap ?
I've entered my first position. Spread not great, so my entry is 282.
I have around 270 as being interesting. Some buyers coming in now though. Earnings on the 16th, probably won't produce negative surprises. Rig count is down, not sure how much that would affect us. I'm watching closely with the intention of buying in the near future. I think I'd risk holding this over results. I mostly don't do that.
let's get this over with - can you double bottom it for me around 270p :)
Hopefully will end up the day green on past actions. I used to trade this one very successfully.
You just gotta to hit the buy button when it goes down - 335 to 272 after results and a dividend confirmed.
Just plain wrong.
Still creates opportunities .
Agree way overdone but this stock tends to move quick in either direction. Big shake out this morning. I see Broker rating cut to £3.20 but this is not an update that deserves 20% drop . Anything under £3 is a bargain really considering the where oil investment is likely to go over next few years and also the growth the company are aiming for.
Very biddible, wonder who the seller was earlier.
What a bargain in sub 275p - waaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaay oversold.
Could go to 150p the shorters say.
Could go to £4+
or somewhere in between. Good luck all.
Sell off way overdone imo. They don't need a cash call with the new RBL... The 24.5m i think refers to this statement:
"Hunting ended 2022 with a robust balance
sheet and a total cash and bank balance of
$24.5m (2021 – $114.2m). As previously
reported, on 7 February 2022 the Group
entered a new $150m Asset Based Lending
(“ABL”) facility, which replaced the $160m
Revolving Credit Facility (“RCF”).
Given the “covenant-light” structure of the ABL,
the new facility has materially increased the
Group’s liquidity through the trading cycle and
provides Hunting with a more flexible and
reliable source of committed funding to pursue
new growth opportunities.
In our Going Concern assessment on
page 111, the Directors consider the likelihood
that the Group will require access to the facility,
or any other source of external funding, to
support our existing operations in the next 12
months."
And this is page 111:
" The Group has access to sufficient financial
resources, including a $150m secured
committed Asset Based Lending facility
(“ABL”), which commenced in February 2022.
Throughout 2022, the ABL and the Group’s
prior borrowing facility were undrawn. In early
2023, the Group will temporarily utilise the
ABL in order to fund the Group’s expanding
business. The Group’s internal financial
projections indicate that the Group is expected
to return to a cash-positive position during
2023 and consequently has sufficient liquidity
to meet its funding requirements over the next
twelve months. "
Where do you get £24.5m from? Bur don't disagree. Cash not really being generated by operations.
Where do you get £24.5m from? Bur don't disagree. Cash not really being generated by operations.