The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen 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.
Sotolo, to be fair the current share price is still up 5.45% since the share buyback was announced. And as Pedobull mentions below, a total buyback of $5m is currently just 2.3% of the total share value. Peel Hunt have until 21st Feb 2025 to complete this so if they spread it out over April 24-Feb 25 (11 months) then it is $455,000/month.
But overall fantastic news and a clear signal by the Company.
Interesting that the CFO below mentions "capital discipline" a couple of times so we are not going to have the minimum 15% NPAT dividend policy change dramatically and he mentions we are still working on the "necessary third-party financing" for the first phase of Karo.
Today is the last working day of HI so the final part of the PGM Fair Value calculation will be based on todays PGM basket. Fingers crossed for a good Q2 production report in April!
Have there really only been 2 share trades in THS in London market today, both over 5 hours go nd before 9am, talk about thinly traded, the buyback should have quite an impact!
Would be good if dividend payout could be doubled to approx one third of profit after tax -but need to consider capital commitments -especially in relation to Karo (although looking at loan finance)
Agree very good move and will go part of the way to correct chronic undervaluation. With the restructuring last year of BEE portion and simplification of ownership, with this continued undervaluation in comparison to Net Profit After Tax (NPAT) and Free Cashflow (FCF), they really need to look further at the Dividend Policy.
I know they routinely pay 17-18% of NPAT, but a 15% NPAT dividend policy should be updated to be more attractive to investors. CAML and ATYM both have 30-50% FCF dividends. BHP has 50% payout of Underlying attributable profit at every reporting period. Without deep diving CAML and ATYM's respective definitions of "FCF", this is bit more flexible than NPAT, so THS could always have a say 20-30% NPAT or 30-50% of FCF, caveating that this is subject to M&A, capex opportunities etc.
Good move -should help the shareprice as market free float is not all that large -hope no change in minimum dividend payout
Good news although at a market cap of £166.51m a $5m (£4m) buyback is approx 2.5%
At the annual general meeting (‘AGM’) of Tharisa held on 21 February 2024, shareholders approved a special resolution authorising the Company to undertake a general repurchase of ordinary shares up to 10% of the 302 596 743 ordinary shares in issue at the date of the AGM.
Tharisa is dual listed on the Johannesburg and London stock exchanges. The Board believes that the Company’s shares are trading at a significant discount, having been negatively impacted by the PGM commodity price environment while not reflecting the strong co-product contribution from its chrome sales.
The Company has appointed Peel Hunt LLP (‘Peel Hunt’) to manage and carry out on-market purchases of ordinary shares as principal on both the Johannesburg and London stock exchanges, up to a maximum amount of US$5 million (the “Repurchase Programme”) (excluding associated expenses).
Tharisa is committed to capital discipline and believes that a share repurchase at its current valuation supports this.
Michael Jones, CFO of Tharisa, commented:
“We have maintained our strict capital discipline throughout the commodity cycles and believe it is opportune to allocate capital to a share repurchase programme to the benefit of our shareholders and reflecting our firm belief in the prospects for our company. While the PGM commodity pricing environment is challenging, chrome prices have remained firm reinforcing the strength of our co-product business model. The Karo Platinum Project is a multi-generational resource and, while maintaining capital discipline, we continue on the road to delivering the necessary third-party financing to deliver the first phase into production.”
https://www.sharenet.co.za/v3/sens_display.php?tdate=20240326073000&seq=5