focusIR May 2024 Investor Webinar: Blue Whale, Kavango, Taseko Mines & CQS Natural Resources. Catch up with the webinar here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Possibly the major client stopped buying for a year, because allegedly Clovis Hooper (who runs SMG) and his daddy, sold nearly 37,000 tons of magnetite belonging to Brenda, to an SMG (SML) customer at a discounted $40 a ton, after which time Cobre sales have slumped.
The new customer? The major client is the historical client that stopped purchasing for over a year. (last RNS is, as usual, poorly worded as it states 'the new major client')
The new client wants 5k-7k tonnes a year
The prospective new customer wants a size similar to the historical major client, but SMG cannot cater for all of that offtake at once, at the moment and so are trying to work out how to phase in this new clients supply.
I don’t want to burst anyone’s bubble, but that 10p target thing has been online since about 2017
They would have done that at rock bottom, not now.
Troutisout
Good points. Agreed earlier receipt of cash is better for several reasons, in particular one being SML's high annual cost of capital.
My point about payment from a major customer was based on the new customer not the old. I had Manganese Bronze's experience with London taxis in mind when I wrote it. ( Major customer didn't pay, forcing liquidation, at which point the major customer bought the business for a song.) Check out the nationality of the customer both for MB and for SML....
If news imminent the BOD won’t be able to buy but once the news drops a buy from the BOD would show the commitment and belief they have in the plan .
The BoD need to get more news RNS or mainstream or social media, to capitalise on the gains of the Cobre news. How about a chairman’s buy? Show us you have confidence Alan.
As the significant client you refer to has been the major client for SML for a long time now, I think we are safe knowing they pay for their shipments.
More important is how they can accommodate the other potential major client, this year and increase the delivery for all clients for the future, as I would prefer they gear up and sell the stockpile in larger quantities in a shorter period of time, even if that means the earlier end of the Cobre cash cow. They need the revenues over the next few years to get the other projects to fruition (which they haven't been able to do on the shoestring revenues of the past year).
Even so, watch out for a rise in debtors on the balance sheet.
Are you trying to improve your social status Fira, Mrs Bucket/Bouquet style :-o
The significant customer has paid "payments from the major client have commenced with a fourteen-day billing cycle".
Fira2011, Did you get banned by LSE? They have deleted all your old posts.
Quick question, why did you wait until now to set up a new username and start to comment on SML again?
By the way you might need to catch up on the Newsflow, "Clovis will see himself right"
I just hope the significant customer, CAN pay, and DOES pay.
Just needs new volume. Someone tweet something.
The recent podcast would suggest 50% margins with existing buyers. The most SML ever sold in a quater was c.30000 tonnes back in 2018. Makes you wonder how much the prospective new client are looking to order
"Discussions also continue with another potential new client that is seeking large volume shipments. However, recent arrangements with the major client and the additional new client may impact our capacity to fulfil a large order."
Certainly is, tomorrow is the mid point of Q1, if there are several bits of news to come in Q1, they should start to appear soon...
Least its a buy....
You couldn't have timed that better....Commentator's curse?
Nice little bit of consolidation at mo, nothing much few more buys than sells...
Hi Zulu, I only managed to transfer my IG holdings to II and gave up on transfering my barcalys holding once I had spoken to Barclays and been assured that they can sell my holding on tsx when instructed to do so
I'm still holding there btw. back on topic I'm also hopeful that I can 10 bag here on SML, well at least the ones I topped up at 0.01. I think if the other large client signs a contract and we get to the order levels seen in 2018 then 1p+ is possible. Long (probably understates just how long we have waited) awaited positive developments from Leigh creek or Redmoor can take this way way above 1p.
Hi Davidious
Sorry to go off on tangent but as Valeura Energy no longer on LSE... did you ever have any luck transferring out of Barclays to II. Been waiting 5 months so far...seems to be Barclays are the issue.
If the Financial Times reports an analyst offering a 12 month target price of 10p from 0.28. I will have some of that.
I would hope JP knows something about the future of the company: he’s our MD.
We can but hope. After listening to recent podcast John Peters does seem to know something. Let's wait and see.
Ha ha, I saw that on another BB, it is clearly wrong unless you can confirm which analyst that is? The rest of the info pertains to 2012/13.
If there is a forecast available now, it would at a push be 1p, but not 10p...
Let's first see what news they can bring to the table that John Peters seems so excited about...