Rainbow Rare Earths Phalaborwa project shaping up to be one of the lowest cost producers globally. Watch the video here.
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For those unaware, Sondrel showcased its ground-breaking, ultra-complex, custom chip design services at the TSMC 2024 Technology Symposium; held yesterday at the JW Marriott Austin hotel in downtown Austin (Texas).
https://rb.gy/2mhmbu
https://rb.gy/k42193
By way of information, TSMC is now the world's largest chip maker by revenue, beating Intel and Samsung. The company earned ÂŁ55.4bn ($69.3 billion) in 2023, significantly more than Intel, whose revenue dropped to ÂŁ44.5bn ($54.23 billion), and Samsung, which earned ÂŁ40.7bn ($50.99 billion).
https://rb.gy/3yd3i9
So it goes without saying that, when a tech giant (TSMC) updates its description (on its website) of one of its key partners (Sondrel), it’s prudent to sit up and pay close attention to the wording, which may, or may not, mask elements of its future ambition in the chip design space:
“Established in 2002, Sondrel has the largest and most experienced consulting team in Europe, with wide ranging expertise across all aspects of the design flow and all industry-standard EDA tool suites.”
“The company's capabilities cover the entire IC design spectrum from RTL design, through to verification, emulation and DFT to physical implementation, and include power analysis and yield management.”
“Sondrel is experienced in highly-complex digital, mixed signal, analogue, low power and wireless designs having completed over 200 designs at a range of process geometries down to 28nm, all of which were delivered right first time.”
“With offices in the UK, USA, France, Italy, Israel, Sweden, and China, Sondrel provides flexible services and methodology consulting to many of the world's leading semiconductor companies, enabling them to improve chip performance and reduce timescales and costs.”
https://rb.gy/emo16d
The key takeaway for me was this part: “Sondrel has the largest and most experienced consulting team in Europe, with wide ranging expertise across all aspects of the design flow and all industry-standard EDA (Electronic Design Automation) tool suites.”
So, what value, do you think, should be ascribed to a company with the largest and most experienced chip design team in Europe? ÂŁ3.5m?
Yes, feel free to bark the unsavoury but apt remark, “What the ….!”
And so you should. The current valuation is, quite frankly, preposterous!
So take cue from those in the know:
https://rb.gy/df8inp
https://rb.gy/hzu7q8
https://rb.gy/wux0tk
AIMHO
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I can't help but feel that offers are being made at present, but remain confidential.
Quite what will break it all out into the open I'm not sure.
Maybe frustration from the offeror(s), whoever they may be, if Curren and ROX are being uncooperative.
They may break cover, if they feel that it is the only way to gain access to this established team of designers/knowledge/talent.
Exactly the reasons ROX are going to get SND on the cheap aided by ex CEO Curren.
We dont know that yet John. Looking into ROX, they are nothing special, just a bunch of small fry ex city boys that got very lucky on one of their investments during the covid period where company prices went wild and hit bubble territory. Made about $80m overnight practically after the co they invested in hit it big with a massive series F funding round. They flipped out and hey presto, now they wear bigger boy pants.
What this tells me, is that they are not interested in full ownership at all as it is simply not their strategy. Thats why they also want a waiver of Rule 9 of the City Code on Takeovers and Mergers as otherwise, they would need to put in a mandatory offer for the company as they will exceed 29.9% of the holding. Probably why Sondrel want to go private too...it helps with this sort of bigger funding, but i can assure you they are not interested in 100% ownership. For the simple reason is that it would be too risky for them to do so. They are more like VCs.
I believe these boysies at ROX can navigate these bunch of feckless science nerds through the murky world of business and finance as curren clearly doesnt have a scooby do. They can actually help them add significant value to the business, thus help other shareholders who hold through private too.
SmartMoney1. Good post with lots of relevant info. Assuring to see insiders buying at these low levels as they will know what is really happening behind the scenes.
Trades on friday were also interesting. 4 large trades, more likely than not made by the same individual given the time stamps and similar size. Whether they were buys or sells remain to be seen, but surely if they were sells, this would have tanked the SP. Instead, it ticked up in the afternoon, so they were possibly buys.
Total traded was 5,350,046 @ 4p totalling ÂŁ214k. This is over 6.1% of the company, so someone is making moves here! Someone liked what they saw at the TSMC tech symposium perhaps?
Surely we can expect to see an RNS next week re the nature of these transactions.
Just one sniff of another interested party will unlock the chains on this one. My 15p takeover target price would soon be history...