Rainbow Rare Earths Phalaborwa project shaping up to be one of the lowest cost producers globally. Watch the video here.
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Similar picture to last month - EU poor / UK good, but crucially the supply chains look robust I think.
Our fickle SP so far showing no real signs of response either way and I think the market is perhaps just hesitant ahead of the ECB.
This morning sees the release of the latest construction PMI reports, like the one’s I mentioned before that may have triggered some of the volatility last month.
The EU one is released at 9.30 CEST (8.30am BST equivalent), the UK one is 9.30am BST
I think they should appear as pdf links on this page later: https://www.pmi.spglobal.com/Public
Then eyes on the ECB for an expected rate cut at 1.15pm BST, the press conference afterwards likely more important.
Very interesting,Corryreckan1.that certainly makes sense, thanks.
The previous link was the EU report only, this one for the UK:
https://www.pmi.spglobal.com/Public/Home/PressRelease/1d5b06d5c76c47238c8171cb23b9ad73
Agreed, that purchase would be easily covered from existing resources.
I think the poor EU Construction PMI report on 7 May last week may have been the catalyst here. The SP started falling from the same day. The UK PMI the same day was a lot better though, and obviously the new lime businesses extend the company beyond construction, but overall the market sentiment would respond to the PMI.
Link to the report here - this will automatically download/open a pdf from S&P Global on your device:
https://www.pmi.spglobal.com/Public/Home/PressRelease/bbc758cdaa0a4ec3874fe05ead1247d3
Started: ihalliwell10, 3 Jun 2024 15:37
Last post: ihalliwell10, 3 Jun 2024 15:37
With UK & EU economy growing and interest rates about to be cut......., feels like a £1 is possible for sigmaroc here, long term holder, DYOR
Started: stargate, 3 Jun 2024 15:15
Last post: stargate, 3 Jun 2024 15:15
Technical chart on lse, weekly view on the one year, shows bearish pivot high, on 6/5/24, at 69. At present the overall chart is in a sideways congestion, and probability favours a breakout to the bullish upside. The bearish weekly pivot high of 69, is part of the current sideways movement, so a break above 69, with a closing price, would be bullish initially, with some subsequent highs at area of 70 to clear before cleared resistance ahead. DYOR.
Thanks for responses guys. My biggest holding by miles so I get twitchy now and again! Love the way it’s all going though. Should be a big rerating one of these days if we don’t get diluted!
Started: twirl, 13 May 2024 17:23
Last post: Corryvreckan1, 16 May 2024 15:56
That Cemfree buy makes a lot of sense. It's already part of their Greenbloc product so they have ensured continuity of supply by now owning the IP for it, and the cost they would previously have had for sourcing the product is also now inhouse and an offset against whatever they paid to buy the company. Plus it stops any competitors gaining any advantage and/or price hikes if they had bought it instead. Win/win :)
Https://www.constructionenquirer.com/2024/05/13/pudlo-waterproofing-brand-rescued-from-administration/
Doubt src paid much as no rns.
Started: The.Italian, 25 Apr 2024 15:53
Last post: The.Italian, 25 Apr 2024 15:53
So fidelity have taken a 5% plus stake in SRC.very interesting.
Started: The.Italian, 5 Apr 2024 15:31
Last post: The.Italian, 5 Apr 2024 15:31
I ss we have a trading statement on the 12th, presumably ahead of the agm.
Started: The.Italian, 21 Mar 2024 07:28
Last post: vigneron53, 21 Mar 2024 17:47
Mega brings her ESG experience, just when the tide is turning on this nonsense. Just my opinion but ESG and DEI are now being attacked increasingly, but I guess for now they have to play the game, given BlackRock investment.
More accurate to have said limestone quarry.
Agreed on Peter Johnson. I note that he was a CEO of Rugby Group, manufacturers of cement in Rugby, with their own limestone mine in Southam. A useful addition to the board.
Also Francesca Medda seems to have been involved all over the place with her multi-talents. Sigmaroc have highlighted her experience including in public finance, ESG and innovation, which indicates why she's joining the board.
Johnson looks like a real heavyweight.not quite sure what medda will add, but perhaps she will bring an additional perspective/dimension to the existing mix.
Started: fastduckharry, 21 Mar 2024 10:40
Last post: fastduckharry, 21 Mar 2024 10:40
The sp has dipped slightly on release of the results. Nothing to be overly concerned with. The bottom line has taken a hit from interest payments which is to be expected. Also importantly, due to the timing of the CRH deal in early Jan, more than £20m in associated costs.
Going forward, the view is that interest rates are on the way down this year. With regard to H1 and Full Year bottom lines for this year, we know that some of the CRH deal costs have already been accounted for. Plus we can expect to see increased revenues as a result of that initial deal. Throw into the mix the recent additions to the board and I'm happy to hold. That said we won't see the full benefit of the whole CRH deal and Interest rate reductions until Full Year 2025. By then, it is quite possible that the sp will have gone back over 100p.
Started: The.Italian, 4 Mar 2024 07:44
Last post: The.Italian, 4 Mar 2024 07:44
Things moving forward as expected.
Started: vigneron53, 22 Jan 2024 22:20
Last post: The.Italian, 9 Feb 2024 17:04
Very much agree with that.would be very surprising if the rest of the deal did not go through(although i accept that nothing is ever absolutely certain)
The deal with CRH is a game changer. Assuming the rest of the deal goes through, Sigmaroc look like being the largest lime producer in Europe. As I understand it CRH are committed to buying Lime from them. The price of lime is not going to collapse as it is required for the green revolution. The Sigmaroc team have done really well to negotiate this and get the deal through. An eventual main market listing would be the icing on cake, who knows, but would definitely push the sp up.
As the price of the share is rising steadily, I thought I would get a company perspective.
The information I got was that the Lime transaction that was announced weeks ago was in discussion last year.
This is when I was complaining bitterly to the company about shareholder value.
The transaction seems to have been positive with regards to inflow of investment from UK, Europe and encouragingly from the US.
Thi as appears to be prompted by the scale now achieved by SRC and a business that now has a a more balanced portfolio of products.
This overrides the concerns over the increased debt, which private investors have commented on.
They significant integration work to complete over 2 years or so and IT systems figure largely in this. They are confident that this will go smoothly.
So it seems to have the thumbs up from the institutions based on a solid business now with sufficient scale.
They believe the share price has a way to go, I hope they are right.
I am still down here but not so much now as I added at coca 44p.
Started: The.Italian, 9 Feb 2024 07:57
Last post: The.Italian, 9 Feb 2024 07:57
Pleased to see MI Chelverton fund taking just under 4% stake.
Started: The.Italian, 25 Jan 2024 08:09
Last post: The.Italian, 25 Jan 2024 08:09
Very encouraging.
Started: Troajan, 6 Jan 2024 22:39
Last post: The.Italian, 7 Jan 2024 11:06
Encouraging.thanks for posting.
Https://www.thisismoney.co.uk/money/investing/article-12933207/MIDAS-SHARE-TIPS-SigmaRocs-limestone-brick-road-lead-riches.html?ico=mol_desktop_money-newtab&molReferrerUrl=https%3A%2F%2Fwww.dailymail.co.uk%2Fmoney%2Findex.html&_ga=2.73125523.1883406695.1704580475-829466088.1679172563&_gl=1*gzli41*_ga*ODI5NDY2MDg4LjE2NzkxNzI1NjM.*_ga_XE0XLFFF16*MTcwNDU4MDQ3NC41OC4xLjE3MDQ1ODA1MzIuMC4wLjA.
Started: ShareSocUK, 24 Dec 2023 14:49
Last post: ShareSocUK, 24 Dec 2023 14:49
Bill Fawkner-Corbett, Head of SIGnet, will host a SIGnet after-meeting on Sigmaroc PLC following their Conditional Acquisition of European Lime & Limestone Assets presentation with IMC on 7th December 2023. The after-meeting will be held on Zoom to enable members to discuss the company. The meeting will be chaired to provide structure and enable all members to take part. Click here to register: https://www.sharesoc.org/events/signet-after-meeting-on-sigmaroc-plc10-jan-2024/
Last post: Silverblade, 23 Nov 2023 15:30
Prior to yesterday SRC had spent £600m acquiring businesses which had a market cap of c. £350m and net debt of £180m. The new deal will increase net debt to more than £600m. Assuming the market places a similar discount on its new acquisition to those proceeding there could be a material medium term slide in the current share price - have to hope new investors are in for the long haul and do not flood the market with cheap shares or this could get a lot worse. SB
Started: The.Italian, 22 Nov 2023 21:49
Last post: The.Italian, 22 Nov 2023 21:49
Buy recommendation from simon thompson. https://www.investorschronicle.co.uk/ideas/2023/11/22/sigmaroc-enters-the-big-time-with-1bn-acquisition/
I think this is a good deal. We gain size and reach the £1bn turnover "target". I trust the management to improve EBITDA and become an attractive target for the yanks.
However from a short term sp point of view we are headed for low 40's IMHO. After all, many of the reasons given for the poor valuation this year are caused by anticipations re falling demand, inflation and high debt costs and this deal will magnify such fears.
I doubt the short term johnies who bought previous placings care as they will have sold out as soon as they could get their greedy little hands on cash.
So the retail offer wasn't open for very long.secure message from HL shortly after 12.00 to say it had closed.pretty much par for the course in these situations,as everything is by and large pre-ordained and orchestrated. nothing to be read into it imo.
Out of interest one of my favourite apocalyptic movies from the 80's starred Mel Gibson. It was called Mad Max (MM). Deal 1 looks like we are paying a multiple of 8 for the businesses involved (745m euro to purchase a business looking to make c.90m euro ebitda 2023). SRC trades on a multiple of just over 3. The scale of debt being raised at near 15 year interest rates is significant (c.7% all in) which will be added to existing overall debt. Still 52m new share options being issued to the management team post completion will ease the pain for some. Shareholders at the end of a long line to see any return here - and from the looks of it there is more to come.....MM2 and MM3 much like the movies. Buy to build. Invest to lose. SB
Lets not forget the raise for Nordkalk which was at 85p. Share price almost 50% underwater since then
Bigboy, Ideally the share price should have increased with each acquisition. Those who took part in the 54p placing must be feeling like it wasn't worth it*, now the next placing is 20% cheaper. Perhaps that is why it has been such a laggard.
Remember that there is no dividend here, so you capital has just reduced, regardless of what you now own. I also hold breedon at a loss, and that looks like it will get taken out cheap by the Ned who has bought near to 29%.
Started: The.Italian, 18 Oct 2023 08:14
Last post: Silverblade, 8 Nov 2023 10:54
So looks like M+G have been in serious offload mode in last few weeks - north of 30m shares sold into market which would go some way to explaining the recent declines here. Why they are selling shares in a business which is trading at an ebitda multiple of 3 is known only to them - and is perhaps more reflective of funds moving into cash positions to take advantage of current macro opportunities (interest rates, bonds, gilts etc). It does continue to remind the business that shareholders need a reason to remain invested here - and they cannot overlook the disconnect from SRC's peer group - where Breedon is trading on a PE multiple almost 2 times SRC. I also wonder if some PE teams are not having a look here - the upside would seem considerable if all is as we are being told. SB
Thanks for sharing that vig - perhaps max and his team will get closer to this issue when their share options kick in big time next year - although I suspect any awards based on share price performances will be difficult to achieve irrespective of wider industry contagion so it’s the 8p earnings which will matter most. Also agree on the pain for PIs - but in reality all investors are taking a beating here despite a growing business with a 20% ebitda - and it’s those major investors who need to put pressure on the board to align interests - or they will vote with their sell buttons. SB
I asked Max if he would include shareholder returns in the next major update which will be FY. He has agreed to do that. Better discussed openly than ignoring the obvious distress this is causing private investors.
Makes you wonder how the market would react to a poor update…..although looks like polar are reducing holdings which just continues downward pressure on the price. At least an acknowledgement that debt needs addressing was included - I would hope full year results in March 24 sets out a path to address shareholder returns. SB
Happy with that.pleased to see reference to focus on de-gearing.
Started: MartMcM, 18 Oct 2023 13:34
Last post: MartMcM, 18 Oct 2023 13:34
Sigmaroc plc issued a trading update for the 9 months ended 30th September this morning. Like-for-like revenue growth was 7%, underlying EBITDA margin in the Period was 20% ahead of both the prior year and management's expectations, resulting in underlying EBITDA for the Period up 11% LFL to £87.1m. FY23 guidance was reiterated for revenue of £596.9m and underlying EBITDA of £110.2m, the latter would constitute a massive step on in profit. Valuation looks very attractive with forward PE ratio at 6.4x, PS ratio at 0.59x, the balance sheet remains in decent shape. Share price lacks positive momentum and is drifting back lower again at the moment suggesting that there is no rush to buy. But SRC is well worth monitoring for the longer run...
...from WealthOracle
wealthoracle.co.uk/detailed-result-full/SRC/821
Started: The.Italian, 16 Oct 2023 13:19
Last post: Silverblade, 17 Oct 2023 10:59
Update is a little bit later than last year. I hope it’s not because there is some other news on further acquisitions - the business needs to focus on shareholder returns imo in an effort to create some meaningful interest in its valuation which is abysmal - accepting AIM is a full scale horror show. SB
20th october last year,so perhaps soon.
Started: The.Italian, 10 Oct 2023 11:52
Last post: ingy, 10 Oct 2023 12:25
They’re going to make a fortune at that price! But when?
£265k trade @53p earlier today.from s/p movement im guessing it was a buy. "o"trade.
Started: vigneron53, 4 Oct 2023 15:03
Last post: vigneron53, 4 Oct 2023 15:03
Macro economic turbulence is impacting the UK markets and AIM in particular.
There have been enormous outflows in uk equity managers in the UK (£7bn since Jan 23 ). This means most do not have sufficient assets in their funds to buy more stock.
This is going to get more volatile leading up to the US election next year.
Seems to me that private and institutional Investors see risks in equities that is hampering long term investment.
The AIM market in particular has taken a hammering, not surprisingly as generally those companies come with significant risk. This is for sure a drag on SRC.
I can't see anything changing until after the US election and even that may not be a positive outcome.
It's the worst climate I can remember for investing for many years.
Preserving capital is always high on my agenda, but more so than ever now.
Started: JonnyGee, 28 Sep 2023 16:13
Last post: Silverblade, 4 Oct 2023 13:23
JonnyGee - I bought into the buy to build story which Max and the team have been executing well up to the point where debt became a very expensive commodity on your balance sheet. imo a business should adapt to its market environment - and when it does not there is a risk is becomes a less attractive investment which I think we have witnessed here for some time. There is no debate on the loss of shareholder value - it is significant. As for sales - overall group volume is down 3%, and EBITDA margin is also down first half of 2023. Perhaps it is all about a future exit strategy - as and when the management team secure their share options. But debt and lack of shareholder return are a huge cloud over the business with neither being addressed by management. We will agree to disagree on the issue of multiples and how it impacts on valuations - but appreciate your background is PE. One query if I may - you highlight that the company is trading at a multiple of 5.5x 2023 EBITDA. From my calculations 2023 EBITDA should be in the region £110m/115m. The current market value of the business is c.£360m. This would seem to imply an EBITDA of 3.3? A multiple of 5.5 would give a market value of c.£600m or 87p per share which I am sure would be more acceptable to current shareholders? Apologies if my arithmetic is incorrect. SB
Given some of the comments in the thread about SRC being over focused on growth and destroying shareholder value etc - I decided to dig further into the company to figure out whats happening. Some key observations:
Whilst the company has doubtless significantly upped its scale through acquisitions - with Nordkalk in particular, they have also successfully grown the top line organically as well as defended operating margins in a difficult environment.
Viz: LfL (Like for Like) sales growth was 13% in H1 '23 and 19% in 2022, with forward analyst forecasts indicating a pretty respectable CAGR to 2025 of ~6%.
EBITDA margin has actually grown from 18.1% in 2021 to 18.9% in 2022 and H1 23, despite the inflation s**tshow.
Buying companies for low multiples absolutely does NOT devalue the buying company – as a former private equity manager who has done buy and builds I can assure you that to achieve low acquisition multiples, achieve operational improvements and to achieve a higher exit valuation for the improved and enlarged whole is one of the surest ways to increase value. The company currently trades at 5.5x 2023 EBITDA, which even at the current low values means acquisitions have been accretive at the
Started: vigneron53, 7 Sep 2023 17:22
Last post: vigneron53, 2 Oct 2023 22:09
Just replied to your mail. Letting you know incase it is in the spam folder.
Hi Vigneron - would also be very interested to hear from Max if you'd care to share. My email is jmglg@blueyonder.co.uk
Hi Vigneron53 - thanks for the post. My e mail is acgt@yahoo.co.uk.
I contacted Max, yesterday following up on the share price discussion we had back in March.
I got a lengthy reply, which I don't want to share on here, but happy to share by email.
He has offered a telephone call to discuss, so maybe a small number of us could organise a Telco with him to discuss our key concerns.
Big.