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I'm not a holder but thought about it last week but didn't like the inevitable suspension looming.
The company does have a decent pipeline but that is in the future. In the here and now it has a market value of £37m per this site. This is dwarfed by the figure used in the 24 June RNS Trading/Funding update where the figure of £150m is used in the exploration of funding operations-equity raise. This clearly stated that the company was looking for up to the £150m by a mix of fund raise/interim finance.
Why then would any buyer look to pay even 8p with substantial funding still needed. The suspension gives them time to formulate a low ball offer and basically say accept it or we refuse to support the fundraise etc in which case the company goes under and they can pick it up even cheaper but have to go through a lot more legal bumpf.
Do we think an update will be with us this week?
Anyone else notice the suspended price has changed from 8.7p to 9p? I wonder why that has changed over the weekend? Any thoughts?
Yuri,
I dont think you are an investor in this company! All you statements are extremely negative. Let me tell you one thing, this company is on a growth path and not planed to make profit. How long made Tesla losses ? Long, to the point it scaled with model 3. Even before model 3 drive Tesla to 1 trillion dollar mcap, the company was already worth 30-50B $. This is going into an offer and takeover.
1. shorter are ****ting daily now in their pants
2. Who locked in makes good money
3. Who sold last week … missed the fun
GLA
SS - blind rejection without offering alternative option to finance operations might end very badly, it's rather like shooting own foot. Delays in project delivery may lead to contract cancellations and loss/write-downs. Without financing (as the say "bridge finance") project delivery in-full and in-time is in jeopardy (base interest rates are on a raise, risk premiums are spiking). With required financing company will not necessarily get above break-even (net) point (due to overhead/office costs). Debt financing is expensive in current environment (it will have to be secure, would require significant collateral to back it up) considering risks. Financing it via equity raise will be highly dilutive (and will take longer time, first rig should be finished this year as per plan and second in jan-23).
I'm not sure how flexible they are about reshuffling financing between projects by suspending ones and stream-lining others.
IMO - they do have a very short time to pull this off (I guess 3-4 months?), as already mentioned - existing shareholders might not be very happy with the outcome and whoever comes with cash package might benefit significantly.
A huge benefit for the buyer from Middle East - the dollar / gbp exchange course is amazing low.
Last year 28 oct 21 , when we raised money and ask was 32p a share we had an exchange course of 1GBP = 1.38$ and now the exchange rate is 1GBP = 1.21$. Assuming they hold their money in dollar he has already a nice tailwind to acquire Lamprell.
32P would be nice !!!
GLA
Imo any bid below the last year's capital raising price will get rejected, for multiple reasons though the main ones being the assets of the company and the size of the order book. At this price he will still get a bargain, and by taking it private there will be an end to this ridiculous farce about funding where placing have been oversubscribed one month and then not achievable the next. Lamprell is a strategically important company for both the UAE and Saudi Arabia and the sooner this matter is settled the better.
I’m expecting minimum bidding price from 12p to 15p
Why on earth would you trust these automatic calculators?
As for offers - it might be worth double-checking RNS history regarding this case, since this RNS on 24th has collapsed the price from 22p into 4p-5p range:
"...Blofeld's proposal in respect of the Possible Offer is at a very significant discount to the prevailing share price and any acceptable offer would need to include an interim funding solution or bridge financing. The parties have been in discussions for more than two months but have not reached agreement on the price or conditions of a Possible Offer..."
Thanks H.H
Sorry for errors I just realised, I had no glasses and auto corrections... GL MJ
I use to support some of my trading decisions Simple Wall Street, a web which put into prices details about companies. I found about LAM that 6 of 5 brokers say in their report that LAM is significantly undervalued. The current valuation is £0.09 but according their grocers when they put all prices together the valuation should be £0.53... hopefully we will see at least half of it..
https://simplywall.st/stocks/gb/energy/lse-lam/lamprell-shares#valuation
Have a good weekend all, after a very eventful week!
Onward to Monday ;)
Sold some on 30th according to 5th RNS
Schroders bought in as well
it looks that way :D
This board been suspended too? Very quiet, suppose nothing to talk about really :)
Hi All,
Look like we all here now locked in for a couple of weeks. Just looked into both bidder and just share my findings and thoughts:
1.Blofeld Investment Mgmt. Limited
They bought around 29 Sep 2021 the 25% they own till today.
https://www.londonstockexchange.com/news-article/LAM/holding-s-in-company/15164279
The SP on google show on 29 Sep 2021 a price of 33.75P.
2. Sami Al Angari which bought just last week in and had a max price of 8.5P / maybe average of 6P even for his 19%.
So now we have 2 Investment companies will fight about the way forward. The SP on google this morning shows 9P with MarketCap of £37.4M.
I can imagine that we see min a SP of 17P as offer where rather bidder 1 loose 50% of its original invested money or bidder 2 will make 150-200% profit.
This will go into take over offer now in the coming days
GLA
As well as In April, it signed an early stage deal to fabricate 200 turbines for floating wind farms to be installed west of Shetland. That must have some good profit in it?
Yuri, do you work for one of the bidding companies by any chance? The sell-off at Lamprells was massively overdone especially given the recent contract pipeline in the Middle East. Any offer must exceed 12.5p and probably much more.
Company is in troubles and is not profitable, can equally be picked up for cheap by bidders (if in the end after checking with CFOs for financials it really becomes plural), as paying high price may not be justified from investing perspective.
It will have to be high enough to satisfy more than one major shareholder. I suspect people will be surprised how high it is and those who sold since last Friday will be kicking themselves.
Apart from their liquidity challenges..
Let's not forget what the company was actually consistently loss-making over the last 5 years,
if this continues then existing equity (around 100m left) will be wiped out in just 2 years,
even if they raise additional equity - say 50m, it will just buy them another year,
unless they really find a way to make profits (as they say - getting away from low-margin legacy projects).
No rush then:
"The Company intends to request a restoration of the listing of its Ordinary Shares on publication of the FY21 Results. The Group continues to work closely with its auditors to ensure that the FY21 Results are published as soon as possible. This is expected to be before the end of Q3 2022."
Could be another 3 months before publication and the resumption of trading........