Sapan Gai, CCO at Sovereign Metals, discusses their superior graphite test results. Watch the video here.
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@Bucheron
Go bury yourself - please note only one r.
" BT said he doesn't believe their products are in any devices on sale today....so in my view that rules AVP out."
I believe you're referring to BT's response to a question they were asked about November's material supply. What he said is that bearing in mind timescales for processing material and incorporating parts into modules it's very possible that the product is not yet on the market.
As they've already stated they don't know the end use and who the customer of their customer is, then how he can state with any certainty one way or the other whether its on the market or not?
Ha ha ha …at least i manage to have a view and not be so irrelevant that i just criticise others but have absolutely nothing to back anything up.. But well done you calling others ignorant from the high position you are in. Very funny indeed.
Ngr
Kooba the slide pack indicated Gen 2 is guided to enter production in 2028
Think he says something different in the Q&A’s …isnt it always the way!!
2 years from the start of 2 year development plus 6-9 months scaling.
Now you mention it that would take us past CY 2026..but sure that is what BT said.
Bucheron
“Kooba what I think is not relevent.”
Agreed.
You're right "display" let's keep away from that bag of nails. Gen2 all seems to be around temperature range, so cars imo.
Kooba what I think is not relevent. I don't waste my time on such nonsense. I just make money.
-Nanonano BT said he doesn't believe their products are in any devices on sale today....so in my view that rules AVP out.
-Kooba the slide pack indicated Gen 2 is guided to enter production in 2028
More orders this year from Gen 1 and guiding BE in FY25 and mobile adoption in 2026 must all be from Gen 1
(Display has potential but let's not go down that rabbit hole....)
Kooba
Interesting so no further updates on the expected small order expected this year or how they will reach breakeven next year burning through between £3.6m to £4.8m cash a year...To get to breakeven I guess a £6m commercial order with a margin 60%+ would be needed to at least reach the lower estimated monthly cash burn rate £30]k.
Well bucheron
i am tired of reading the nonesense that the company will trade at the cash value held in the company. this is utter *******s. the market price is driven by supply and demand.
I have not suggested they trade at cash i have suggested that on a like for like basis of how they have traded for a number of months prior to the announcement of the tender then there should be an adjustment for the clearly reduced cash per share resulting from the distribution and apportioning the same EV across the remaining outstanding shares in issue.
You obvious have an issue with those workings so pray tell how you value the company post distribution…and why??
I agree bucheron but I got shot as being stupid for suggesting such a thing.
Meanwhile, Donald Trump’s LOSS MAKING Truth Social is valued at 8 Billion Dollars!!
"Based on the development timescales the expected growth is coming from Gen 1 materials into phones in 2026 and the current orders are to satisfy the development of the sensors for the mobile device rollout in 2026. "
Doesn't make sense to me. You might want a few hundred, at stretch maybe a few thousand for development, but millions of sensors?
AVP still makes the most sense, especially as they stated that they expect further low volume orders CY24, and that ties in with the AVP being rolled out into other markets reportedly starting with China.
i am tired of reading the nonesense that the company will trade at the cash value held in the company. this is utter *******s. the market price is driven by supply and demand. don't forget this traded at £2 a share once with no cash and a load of debt. so let the market decide what price people are willing to pay for the shares.
one thing i don't get at the moment is people are selling below 24 pence seems strange. however i put a purchase through a couple of weeks ago which was a big buy on the day and it was shown here on lse as a sell. so do not believe everything you see regarding trades.
LordWM
Agree its very hard to decide the best option I think for most retail investors the return of valuecat the end of the day maybe quite small and we dobt know all the plans and activities that will be used post 25th April when funds returned to prop up the share price..From which pointvI expect Cavendish to start utilising the £3m to auto buy shares at the certain trigger price probably above 19p as well as ramping up propaganda on the 60p target price..LOAM may or may not intervene moping up any 'cheap' shares. Hence current share price may not be a million miles where we land post 25th April at least for the first few weeks until Cavendish have shot their load and if no commercial deals are signed by June the share price will retrace back down to low teens based on £23m cash remaining and c.180m shares in issue. Its a real dogs dinner what to do on this one !
Bit of a brain dump having listened to the analyst call.
It's good to see some media coverage, Sky News and articles, and the analyst presentation sounds the most upbeat I can remember. They talk of further work packages this year, called out the benefits of CFQDs and the IP moat well, and mentioned mass adoption in mobiles in 2026 more than once. They're clearly working to develop a strong ongoing pipeline of new and better materials and mention that they'll apply for further patents around them.
But I still find it very difficult to see the share price going above 24p post tender offer, unless they have news in the pipeline or have an indication that major shareholders will buy more when the share capital is reduced to prop up/drive the SP. This leaves the lowly PI in a difficult position, and presents risk either way.
I was buying to average down as low as 15.69 late last year, and my average is now 27.5p. I've need invested for years and would have much preferred a divident because it levels the playing field between large and small investors.
My calcs suggest cash value of 12p after the buy back and there will clearly be some value added to for teh business on top of this, the recent 'media blitz' seems like a campaign to prop the SP up post tender. But on the call, the questions seemed to come from te hhouse brokers, I didn;t hear any big names on the call, but that doesn't mean big institutions aren't starting to look at this.
At the moment I'm thinking I'll take up the tender offer to bring down my holding and see what happens. I'll likely wait until next week though to see if anything happens before, possibly after the Investor call on Tues.
Everyone who participates in the return of capital can choose what they want to do with the money they receive. If LOAM or anyone else believes what the company is saying in so far as they will be self sustaining in 2025 then perhaps there’s a case for reinvesting potentially at a lower price to hold more shares at a lower average and with less shares in issue. Any increases in market capital will have a more positive result on the SP.
I don’t understand why LOAM need to buy back an equivalent number of shares they sold. The percentage of the company that they still hold will have only gone down a little.
BC
I agree with you here. Can’t see the “consultation” having ended with Nano leaving the biggest ii with an “out”. Neither can I see it be perfectly set up for them to sweep up given the anger of the litigation outcome played out for them (and the ongoing case between them and Hamoodi).
Predict at your peril here!
Twogood
I would say LOAM using this as a vehicle to completely exit is very unlikely, if they have been acting in concert with the upper echelons of this company as many suggest. The relationship has been too lucrative for them to give it up. I would actually be glad to see LOAM disappear but I don’t see it happening.
I would say it’s equally unlikely that they will use the tender as a massive trade. I’m not saying they won’t trade it but there’s no way they will pick up circa 40% of their holding without volumes being a dead giveaway and the SP rising as a result.
As I’ve said before something no one has thought about will probably come to pass.
Almost forgot though
' Everybody loves Nigel ' so no harm in broadcasting his intentions.
Even if Loam telegraphed their intentions, how many here could follow their play and make it worthwhile ?
The 24p is a derogatory tender offer I would imagine to most small shareholders and very risky to trade given the amount of uncertainty.
IDL70
It was the lowly 24p tender offer with its small spread over current share price andcway below the 37p placement price and the reference in the RNS that investors could apply for all their shares to be bought back which was the give away.
Meaning few retail investors will be tempted at 24p and LOAM can off load a higher percentage of their current holdings ..if not most of it and either buy back in at a much lower price or quit and run altogether, I suspect the latter, given limitations on future organic growth and as Nanonano quite rightly highlighted the secrecy the Board adopts with trading updates as we still have no idea what market, let alone end product our dots are going into, if anything, under the first commercial deal.
If it isn't AVP then what market are we going to be supplying, does it matter it they just said car vehicle market, domestic home use, entertainment, I dont get the complete secrecy unless it's a deal with Apple inc.
LOAM with their access to both the Board and price sensitive information are ahead of us all and agree the share buyback would be a perfect way for them to exit especially as Tariq Hamoodi's legal team are circling around them regarding their role and influence in the Samsung settlement debacle.
TG2D: "Now how about this as a conspiracy theory 'Stitch up 2'...."
Yes, precisely the scenario that leaves me most concerned. It's been acknowledged that the tender terms were worked out in consultation with significant investors so the 24p price must suit their objectives and doesn't suggest that they wanted to encourage large-scale participation in the tender. You don't need to necessarily assume that they have any sort of "inside" access - they may have just decided they want to get out and that 24p is an acceptable price at which to do so given that they can't normally sell at scale on the open market without influencing the price. It would be ironic if it does play out this way and, after the dust settles, we end with a SP similar to that we would have got following a dividend payout.
I guess there is still the remote chance that the tender motion doesn't pass at the GM, but this seems pretty unlikely if the major holders are behind it.
Gino
Why don't you write to each investor and ask them in turn what they will be doing the following weeks after share buy back is completed and I don't mean day one when LOAM have decided to pile back in, if they decide to, Im talking about the weeks that follow and if no news is received regarding commercial deals progressing.
You really need to stop twisting what others say..enough said your now filtered!
TG2D - I very much do understand the calculations.
But you’ve still failed to answer my question. Every buy needs a sell and you’ve not answered on which holders would possibly transact at 17p the day after declining the 24p or accepting the 24p offer. Apart from a few day traders. Let’s wait and see what happens. The story so far has been far from predictable and the smart Alec’s on this board have often been left red faced. Let’s see.