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I messed up.
I created a separate email-address for this email in order to remain anonymous.
However, now after checking if I got an answer from Simec, the site is now asking me to confirm my identity using a code they sent me via SMS.
The problem: I didn't give a valid number. That means I am now effectively locked out of said email-account. Unable to check whether or not and what SAE writes back..
Keltickilla may I point out to you that they did a switcheroo here?
Basically, they decided that the company is now worth so little, it's better to give away their old options and switch them for better once. Let's say... a strike-price of 1.15p?
Wouldn't it be nice if we all could just grant ourselves a much lower average? I am at 4.5p and I have to pay for this with hard earned money.
Seeing management making such a move TWICE within 12 months is too much.
How did they earn this? How does this match with the stocks performance? How is this in our interest?
I was able to accept the first grant which was already over 7% of the company.
Management is already in the green. They already see +20% in return as their strike price sits at 1.15p. Should management achieve a share price of 11.5p, then the'll receive a nice bonus of £300,000 to £500,000 already.
That's pretty neat and should be enough incentive imo to work towards this and hopefully even more some day.
However, all I see and fear now is them taking 15% of the company, waiting for some proper valuation in their perspective, only to sell their stock right back to us.
Yes, I want them to have an incentive to increase the value of the company, but with a strike price at 1.15p and now another at 1.5p, still down 99% since their IPO, how is this justifiable in front of existing investors?
Imo the simple solution here would have been to set a higher strike price. Their grants are not even tied to any other performance metrics whatsoever..
Let's just see where this SP goes and hold out on judgement. I'm giving them until the 3rd quarter to show big moves within the company before I rage. I think we all know the SP is way underrated by now, and with all the good news and moves since the big drop out, it seems that this share is being held back in some shape it form. It's financing issues are less, it's USK prospects since the call in, have improved and it is now a more diversified business exploring opportunities at home and abroad. I feel like the business has turned a corner and not without hard work. Maybe the staff do deserve their rewards when looking at the business just 3yrs ago to what it is now. I'm holding back on judgement. I will be interested in their response to the very well written letter though.
Fortunately you wrote them, for I thought of it too. But I would have been the last to be polite. I´d rather dropped the bomb and shout them to death. What a pathetic, immoral bunch of Nachtkappen, morons. Each time a shady, dobious "company" fails those criminals are taking their assets and rats are deserting the ship. FO! Criminals! What a measly politic maneuver to credit those who should have been prosecuted and beat themselves up. FO! Bunch of lurdans.
To whom it may concern,
I hope this message finds you well. I am writing to express my sincere appreciation for the ongoing efforts at Simec Atlantis Energy (SAE) and to address a matter of concern that has recently come to my attention.
As a long-term investor in SAE, I have been closely following the company's performance and the recent decisions related to share grants to management. I understand the importance of incentivizing and retaining key talent, and I want to give the benefit of the doubt that such decisions are made with careful consideration.
However, I cannot ignore the significant impact these share grants have on existing shareholders, particularly given the fact that many of us have experienced a substantial decrease in the value of our investments. Since SAE's initial offering, shareholders have faced a decline of almost 99%, which raises questions about the appropriateness of diluting our ownership further.
I am reaching out with the hope of gaining a better understanding of the rationale behind these large share grants and how the company perceives them as appropriate in the current context. While I appreciate the need to reward and retain valuable team members, it is essential for shareholders to comprehend the decision-making process behind such actions.
I kindly request an explanation that outlines the company's perspective on this matter, taking into consideration the concerns of existing shareholders who have witnessed a significant erosion of value.
I firmly believe in open communication and transparency, and I trust that you share these values. However, if my concerns are not adequately addressed, I feel compelled to bring this matter forward to the Financial Conduct Authority (FCA) for further review.
I appreciate your attention to this matter and look forward to your response, which I hope will provide clarity on the company's perspective and decisions.
Thank you for your time and understanding.
Best regards,
a concerned investor.
Generally speaking, I am in favour of business's incentivising themselves for the greater good of all. However, in this case, I have to agree with the commentsso far.... the timing of this RNS leaves nothing to be desired by us investors. The previous dilution has done nothing to truly incentivise the BOD to provide shareholder value. It feels like this is a case of feathering one's own nest at the cost of shareholder value. More to come about this I suspect. Sigh.
Here is what ChatGPT answers after asked if this kind of dilution would be mention worthy for the FCA:
"Yes, the significant dilution you described, especially without a corresponding increase in value or performance, could be a matter worth bringing to the attention of the Financial Conduct Authority (FCA). In your communication with the FCA, highlight the specific details of the share grants to management, the extent of dilution, and the potential impact on existing shareholders who have experienced substantial losses.
Be sure to provide any relevant supporting documents or references to the company's filings that detail these actions. Emphasize your concerns about the fairness, transparency, and alignment with corporate governance principles, especially if there is no clear rationale or performance justification for the large share grants.
The FCA will assess the information you provide and determine whether there are grounds for further investigation. Keep in mind that regulatory bodies aim to ensure the integrity of financial markets and the protection of investors, and they take such concerns seriously.
If you're unsure about how to present your case or need additional guidance, consider consulting with a financial or legal professional who can help you articulate your concerns effectively."
This does not feel appropriate. It would be an entirely different story if the strike price was significantly higher. It's unacceptable that they grant them another big slice of the company like that. The first grant was already hefty but I was able to accept it knowing this should motivate management. But pocketing even more shares at a strike price THIS LOW is absolutely inappropriate given how many investors are way, way under water imo.
no you are right, they should not be getting any shares because they have not increased any shareholder value!! shareholder value has gone since 15p+ so this is a ******* joke
This is what ChatGPT had to say: https://chat.openai.com/share/b9e92ec9-2e11-4ef0-a239-b0d79c0c48b0
It looks like the board of directors can do that only of they deemed it "appropriate" - whatever that means. However, it also said that shareholders have the final say and that this should be something that would require a vote during a GM.
Somehow I feel like these meetings require way more attention from us..
Tiny addendum:
The total number of shares will reach 843.15m once these grants are vested. 120.05m, the number of shares management granted themselves, represents 14.24%.
Don't get me wrong, long term incentives are important, but in the past 12 months, management has granted itself a total of 120,048,803 shares.
This is over 16% of outstanding shares (approx. 723 million)!
Once these shares are vested, we, the existing shareholders will have to endure yet another 15% dilution and that without any guarantees that management won't just sell their shares the moment they have access to it!
Somebody correct me if I'm wrong, but this is money taken straight out of the pockets of existing shareholders.
And it's not money that will be used to build new turbines. It is bonus money for management.
Simec will emit even more shares once the company requires more money.
I'm sorry, I thought last year's grant is already the long term insensitive which is already plenty should the stock reach that juicy £100m marker cap aka 10x or +1,000%.
But now seeing an even larger packet going in their pocket, without having created ANY value for shareholders as of yet, is an absolute joke in my opinion.
Here are the numbers:
Shares outstanding: 723m
Grants last year: 55.26m
Grants this year: 64.79m
Total: 120.05m
120.05/723.1 = 16.6%
6th of April 2023 they already implemented long term incentives. At that time I was already a bit skeptical but tbh..I rather have a financially motivated team than the other way around.
The company work at has plans like this as well.. but I have to vest my shares over 4 years and I can't just grant myself more shares as I see fit etc.
They've already put out almost 8% last time..
https://www.lse.co.uk/rns/SAE/grant-of-options-csop-and-ltip-k85o93rxi9f9iiy.html
Not sure if I like this
All im going to say is we better see some positive moves on the SP by 2nd/3rd quarter at the very latest or perhaps us P I's should attend the next meeting and start asking serious questions and make moves toward the BOD and it's actions. The jury is out and conferring at the moment.
97% availability is indeed very impressive..
What I do not understand, however, is why not build a bigger array? MeyGen has proven the tech, so has the 500MW turbine. Why scale up so little?
I wonder how these things are conducted. If Proteus was able to build these turbines at a lower price, given large enough orders then, at some point, they must become a financially viable option.
Let's not forget that there's CfD money coming.. at some point we have to see the price go down further.
If Japan was to buy more turbines it would only help.
Https://www.oedigital.com/news/510528-tidal-energy-turbine-comes-ashore-in-japan
Don't know
Am I over-reacting here?
Well, yes. And I am absolutely all in for giving employees long term incentives like that. However, most existing investors currently have an average way above 1.5p. My average is 4.5p and it wasn't cheap to get there..
Seeing the C-suite grabbing shares at a ridiculous price ... two times in a row .. is something I can't say makes me particularly happy.
If anything, then Cs have been incentives to keep the share price as low as possible as long as possible s.t. they can get grants like this.
It feels like stealing from us existing investors who have skin in the game for years now..
The other way to look at it is that if they do get upward trajectory then they gain too.
I think Mr Reid's allowance is about £70k at 1.5p
I guess at least now we know why they didn't release any significant news yet. Now they have a lower strike price of 1.5p ... must be nice.. ffs...
Yes, this will incentive them to work for the share price to raise, but how does this incentive them to hold their shares beyond 10, 25, 50p ...?
I finally made peace with the fact that I'll probably not get out with significant gains. Instead, I'll be lucky if my investment makes any gains at all.
And today I read that management presents themselves another care package? They already received options with a ridiculously low stroke price of 1.15p and now, basically a day after the got off the hook from their creditors, management decides to gift themselves yet another huge chunk of the company?
Did they literally just grab into my pocket and took another 10%?
What.
The.
Hell?
I'm just curious. I currently own 368,000 shares or
100 * 368,000 / 722,810,000 = 0.051%
🤣🤣🤣
Never thought much of Minesto's kites tbh. Maybe I can't imagine it but I can't see a future for kites roaming around underwater..
I just used them for comparison because at first glance the companies seem comparable in size and sector. Even though they are using fundamentally technologies.
As you said, people lost plenty in SAE in the past. The company might struggle to rebuild this trust and find new investors. Steady progress will be key here. The past years have been disappointing but I genuinely believe now that things may actually turn for the better.
Patience remains the key for us existing investors. In for the penny, in for the pound. 100p that is 😅