Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Yes contago I agree it's a good sign
What is the significance of year end selling now (as UK is 5th April for tax)
I’m hoping that is the end of year selling done.
All being well, it will lead to a strong rally into year end and Q4 trading update.
One container ship and 4 bulk carriers. Appreciate there could be deliveries but history has shown this to be a good sign.
Just because there's 5 ships at the port what tells us which ones are bringing equipment to the port and which are taken products away unless these are identified then we still somewhat in the dark
The following statement is lifted from the 2022 report.
A total of 29 ocean-going vessels visited Moma’s dedicated port facilities during 2022.
Seems there are 5 there now and a couple recently departed. Does seem very positive as you say. But without visiblity of the earlier months in Q4 hard to completely understand the potential.
That should have read buys at 430ish by Tom etc al.
Have to agree, he seemed very well informed.
He could probably have done a bit more research on insider buys a few months back at around 230ish before the divi.
I would have liked a bit more depth of understanding around the loading up of the product on to the shipping vessels from Bronach J and other [name eludes me]. But overall concur with what was said.
Moma is in total grid lock.
The last time i saw this KMR delivered record shipments and sales figures in Q4.
Prices may be a little off but KMR’s quality product suitable for both sulphate and chloride processes suggest their pricing should hold up to some extent.
I am very hopeful that KMR will deliver a very strong trading update in early January and figures indue course.
I think the guy doing the presentation did a decent job.
I would add the following:
There is absolutely no need for fresh capital. KMR is a high margin EBITDA business and any future M&A or capex will come from free cash flow.
The balance sheet is strong and the CFO Tom Hickey stated they were looking at more suitable debt facilities for the long term to remove high margin factoring and reserve capital facilities.
The distribution to shareholders through buy backs and dividends is all part of the previous capital injection where the market was in over supply, global GDP was falling and KMR got caught in a debt spiral. This will not happen again, as explicitly declared by the board.
The market is now in under supply and new mines required to supply with demand are not going to come on line without a significant increase in material prices.
Titanium has several potential new uses, including in EV batteries which only increase demand. Same with Monazite, rare earth minerals.
The share price is materially under valued, from a number of perspectives but applying Mozambique credit and sovereign credit risk is important but KMR have a long history in Mozambique and employ local skills.
The KMAD social angle is very strong and repatriates land to the local community with skills and infrastructure to develop life and commerce in the region.
Finally, my exit is for KMR to be acquired at c. £12 per share as it would take that size of offer to materially value the resource and assets of KMR.
Good luck, well done and hopefully, like me, you get the reward.
Https://youtu.be/sCwjx1TWNmg?si=fSAdYVPsiOZ8gCni
London investment club meeting Kenmare being 1of 2 presentation
I can see 4 ships today, although tend to think a few of them have been there for a few days now. Seems positive !
Yeah I had a look and that is very positive. 3 ships taking material to a paying customer.
It looks like there are 3 cargo ships there today, hope you are right !
Thanks!
Yes, there has been one or two cargo ships there most days for the past two weeks. Hopefully translates to significant Q4 revenue.
Seems as though there is more traffic at Moma today !
Nice bit of upward momentum in recent working days. I'm long Kenmare, a P/E of 2.3 and a Dividend Yield of about 12% screams buy to me.
I think a possible buyout is not out of the question...and it would surely be at a multiple of the current Share price
AAS / SGRF stated when the invested they were a long term supporter but would take opportunities to make a capital gain as is their mandate.
I was not surprised that they returned c. 50% of their initial capital and retained a significant holding. Very good business if you ask me.
According to data on ownership %
Since 31march
Aas as sold off over 5million of its shares a nd now only own 17.1% of the company
15,257583 was updated in September
Information on simply wall Street website
So they sold 25% of there holding between march and September most I presume in the buyback
AAS is the vehicle SGRF use to fund KMR.
The next few names were here long before AAS/SGRF can to strengthen the balance sheet. They all remain supportive.
The water under the bridge wiped out many, the future is not affected by the old holders but the present ones and the BOD and most importantly by world markets, supply and demand for this basic product. If there is no significant debt and =ve cash flow that leaves world markets and political risk in Moz.
Who were the largest shareholders when all this dilution happened, in the previous years?
Does anybody know about the history of shareholding?
AAS have been there for some time now so where are SGRF?
As at 31 March 2023, the Company has been notified of the following shareholdings in excess of 3% of the issued ordinary shares of the Company:
African Acquisition Sarl 20,381,795 21.5%
M&G plc 13,614,751 14.3%
FIL Limited 7,079,401 7.5%
Premier Miton Group 5,401,119 5.7%
Aberforth Partners 5,300,094 5.6%
J O Hambro Capital Management Ltd 5,002,387 5.3%
The company got caught by a market in serious over production but had to keep producing to repay debt. The dynamic is materially different.
SGRF are a new major shareholder. Several of the large shareholders remain supportive.
The key in the minerals sands market is that numerous large mines are coming to the end of life and KMR is strategically placed to supply high quality material to all customers (sulphate and chloride processes). The market is entering a supply deficit when current prices do not justify the capital required to start new mines.
KMR is a winner as long as time passes.