Rainbow Rare Earths Phalaborwa project shaping up to be one of the lowest cost producers globally. Watch the video here.
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Good read aye?
1. Dec 22 - Award to design, manufacture, and supply of 172 Cable Protection Systems ("CPS") to Dogger Bank C (UK). Delivery Q3 2024 into 2025.
2. July 22 - Award of integrated engineering solution, including CPS and Cable Hang-Off Clamps, for an offshore wind farm project in Japan. Delivery 2023.
3. May 22 - Award of integrated engineering solution, including CPS, for an offshore wind farm project in the U.S. Delivery 2023.
4. Jan 22 - Award to provide pipeline support and protection materials for a major subsea construction project in the Middle East. The contract award is for a value in excess of USD 10 million and is anticipated to be delivered in the Group’s current financial year ending 30 September 2022.
5. Dec 21 - Award to design, manufacture, and supply 380 Generation 10 TekTube CPS, to protect subsea array cables on the first two phases for Dogger Bank A and B. Delivery August 2022 into 2024.
6. Nov 21 - Award for Parkwind's German Offshore Wind Farm to design, manufacture, and supply TekTube CPS to protect the wind farms array cables as they transition from the seabed into the wind turbine foundation at 27 separate locations. Delivery in 2022 for full operation in 2023.
7. Nov 21 - 340 export and array CPS's for Ørsted's Hornsea Two offshore wind farm in the UK. Commissioning in 2022.
8. Sept 21 - Award to design, manufacture, and supply Bend Restrictors for the KBH02 “København02” submarine cable project in Denmark, to protect a 145kV cable system connecting the Amager waste-to-energy power plant to Svanemølle substation. Plus the supply of Bend Restrictors to protect a 70km subsea power cable connecting the 330-MW Kafireas II wind farm on Evia Island to mainland Greece. Delivery Q3 2021.
9. Sept 21 - Award from Strohm to design, manufacture and supply a subsea protection and buoyancy solution for a Thermoplastic Composite Pipe ("TCP") Jumper. Delivery Q4 2021.
10. June 21 - Award to engineer, manufacture, and supply over 250 of its patented Cable Protection Systems for four new offshore wind farm projects in China in 2021.
11. April 21 - Award to supply CPS's for the Gode Wind 3 high-voltage grid connection project at Orsted's Wind 3 facility in Germany. Delivery 2022-23.
12. Feb 21 - Award to supply CPS's for RWE's Kaskasi offshore wind farm in the German sector of the North Sea. Delivery 2021-22.
13. Jan 21 - Award to to provide CPS's to be deployed at the Neart na Gaoithe (NnG) offshore wind farm in the Firth of Forth, Scotland. Delivery 2021.
14. Jan 21 - Award to supply CPS for a contract sum estimated in excess of £4.5 million. Delivery September 2021.
15. Jan 21 - Award to Pipeshield International Limited, to design, engineer, and manufacture a subsea scour protection solution for a major quay development project valued at more than £4 million.
Be interesting to see Full year results as interim results show £3.7 Million placing in March/ £5.7 Bank drawdown:Cash in bank £5.1;
Agree, a few months ago they confirmed they had all of their covid loan money set aside in a bank account despite it not needing it be paid until October 2022 equating to £7m, an additional £1.5m in the bank as cash on top, their bank overdraft paid, over £20m in confirmed future orders and now as we’ve seen they’ve been landing and delivering more and more contracts. I personally think with covid allowing a business restructure and integration of the new acquisitions, we’ll see their best trading year to date!
What is going to happen if the deal isn't successful? (As per the RNS "will allow the company to continue with its admission on the AIM Market)
IMO the company is no longer a going concern and not in financial difficulty, so it would have no effect on their AIM listing.
There is also no urgency for a deal as they clearly have a number of collaborative partners such as DEME that they’re working with and getting multi million £ contracts with.
The putting the company up for sale or consideration to formally collaborate with others was always exploration and never a firm intention and I personally feel by doing so, control over the company would be lost. Unless a premium offer is made I can’t see how exclusive agreements will benefit the company.
That is the risk and why SP dropping fast. Cannot believe some bought at 15+ on Wednesday after JRs Pump and Short.
Following a review of the proposals received, a preferred partner has been granted a 60 day-period of exclusivity to carry out further due diligence and finalise its proposal. The exclusivity period relates only to alternate debt or equity financing proposals and, for the avoidance of doubt, does not prevent an offer being made for the Company by a third party under the framework of the Company's formal sale process.
People thinking short term not long term I guess.
We’re 2 weeks away from the end of an exclusivity review for a merger / takeover, expecting new contracts to be awarded in the new year, confirmation that the overdue payments due to the company have been collected and a company performance update amongst many things.
The SP has dropped so a massive opportunity for returns for those who are happy to sit patient.
The float sits mainly with insiders and institutions. PI’s selling now are merely handing their shares back to the institutions and reducing the public float even more IMO.
It says that on their RNS:Strategic review in June;5 months later a decision to give the preferred company another 60 days to decide to "invest in or around the Sp:Interim results show a loss:having done my research:will not invest:Good luck all
DS - Mr Bank Manager, I already have book orders of £30m a year for the next 3-5 years.. you think you can give me £50m over a 10 year period as a cash runway for staff training, business development and asset procurement purposes? Asking for a friend.
Read the accounts reports - show massive amounts of money due from clients now expected to have been paid.
Read the most recent RNS’s - show massive contracts, cash now in bank covering debts and giving liquid.
The last accounts (interim results were in June) as per my first post (£9 million bank and placing )£5.1 cash in bank:Had to pay £5 million an overpayment by a company
Yes I know, read how much money was owed to the company considering it was a clean book the year before, I believe they were owed around £17m, no reason why that shouldn’t now be collected.
You don’t want to invest that’s fair enough, but it’s only fair that other investors understand the facts.
I thought you had decided not to invest pumpky :-)
The Offshore Wind business is about to boom. Tekmar should benefit as a result
Presumably the offers of investment they received recognise this and see better times ahead.
Agree DS, I watched a documentary last night on windfarms and 1 warehouse in Denmark is dishing out 1000 turbines a year with a 10 year order book. The amount of work involved in then constructing the turbines is highly risky and requires expensive plant and machinery. The market is very niche and every contractor has their field specialism, there is no one stop shop so plenty of work for TGP.
Eventually oil and gas will be effectively finished with, just like the coal industry before it.
DS you bought at over 15p on Wednesday and now about to hit 10p so I don't think you should be giving advice. This is just another AIM P&D and as Porter stated earlier it isn't a going concern.
If 73% of shares are held by institutions who is selling?
Good question pumpky,
I've never seen so many trading RNS's on any share like those reported here...?
Some of it was me, had £60k at 15p, reduced it to £15k. I'll buy more IF it drops below 10 though!
My theory is that a ton shares will be issued at around 9p, which is the average for the past few months.
Tgp said that investment would not involve selling current shares or further dilution. We are well below the 45p at launch. Wouldn't make sense to dilute further. Many institutional investors will be badly underwater.
I read the 17 Nov RNS in a different way sebo10. I read it as we have a few proposals on the table and the one that does not require delisting from AIM and represents a strong partner going forward is for several million pounds by way of new share issuance at around 9p per share. (if DD of company assets, contracts in motion and the enquiry book stack up)
Barclays banking funds were already in place to July 2023 and taking on a large loan would put additional pressure on margins going forward whereas the participation of a global institutional investor, perhaps a big name within the industry that would immediately add weight and value to the companies enquiry book, outlook and share price would be the preferred option.
So I'm expecting dilution but into a global institutional investor looking to bring value, build relationships and increase shareholder value long term.
Of course the company could see new offers come in given the DEME/ Dogger Bank recent news and the industry push to bring new projects to fruition much faster to meet de-carbon targets etc.
That's just my thunking and I could be completely wrong...
IMO, the company is now in a comfortable financial position, with a series of contracts in progress, as well as having a number secured for future delivery on their book. Therefore the risk of any delisting is eliminated, as the company meets all its AIM requirements. There should be no reason to perform share splits, as the company will be in a position with its book and credit position to raise funds, which would also be favourable to the BOD who invested in the last raise, just my humble opinion.
I think 9p per share would be daylight robbery. They would effectively double the market cap and half the holdings in percentage terms of existing shareholders. FSPs tend to be unpopular because they can often attract opportunistic, very low offers for business assets unless there's lots of interest with people outbidding each other. I assume that any deal needs shareholder approval anyway?
I think they know they can't handle the potential amount of work they can attract, hence the route they have taken. DEME seem a good symbiotic relationship and why wouldn't they with the patents TGP have. The business is now is profitable imo, although we haven't seen the accounts to back it up, and with the cost cuttings and multiple $10mill projects. Is it really worth £7mill?. We'll see how strong the board are with the deal they do but can they convince the investor ts worth more than today's mcap. The business is on the up so I am happy to see what they can do. For what's it's worth, with the right deal a mcap of 40-50mill should be achievable IMO. Money free flowing into sector. Come on BOD's.