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Smith found it online so it has to be unquestionably right. Such is life now - we are all going to be treated to the ramblings of an idiot. Every post from anyone will pretty much be responded to with his version of the Tlou strategy. Gosh I wish I could say we are all in for a treat.
Well actually we are - a long mindless irrelevant gibberish treat.
I wouldn't pay too much attention to simply wall street as far as I can tell it's all computer generated which won't take into account things like the Hydrogen / Carbon jv. That should make TLOU profitable before the 3 years mentioned.
My yahoo/SimplyWallSt stuff, says we won't be profitable for at least 3 years - better than the 5 years we have talked about re BPC.
The consider that negative.
If they checked back far enough, they'd realise TG does not intend to make a profit at all - all profits are to be ploughed back into the business for an indefinite period.
Once we have an income to plough back , the sp won't be a concern most of us (maybe! some will not be satisfied, even if they are happy). I'll be happy once dewatering completes, beyond there it will be all jam!
Yep whizzer Colm was a bit previous to say the least .. by let’s look forward .. just as a footnote when I first invested back in 2016-17 I thought this project would take 7-10 years to see good returns whilst i didn’t expect the share price retrench to where it is now .. let’s hope for a speedy move forward with the share price creeping up as the project derisks and progresses !
The risks link referred to previously ..... (LSE may remove this link - they do not support ceratin rivals publications ) ....
https://simplywall.st/stocks/au/energy/asx-tou/tlou-energy-shares?blueprint=1737244&utm_medium=finance_user&utm_campaign=conclusion&utm_source=yahoo#executive-summary
.........
So, Should We Worry About Tlou Energy's Cash Burn?
Tlou Energy appears to be in pretty good health when it comes to its cash burn situation. Not only was its cash burn relative to its market cap quite good, but its cash burn reduction was a real positive. While we're the kind of investors who are always a bit concerned about the risks involved with cash burning companies, the metrics we have discussed in this article leave us relatively comfortable about Tlou Energy's situation. On another note, we conducted an in-depth investigation of the company, and identified 7 warning signs for Tlou Energy (2 shouldn't be ignored!) that you should be aware of before investing here.
Of course Tlou Energy may not be the best stock to buy. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks that insiders are buying.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Simply Wall St
September 8, 2021·4 min read
We can readily understand why investors are attracted to unprofitable companies. For example, although software-as-a-service business Salesforce.com lost money for years while it grew recurring revenue, if you held shares since 2005, you'd have done very well indeed. But while history lauds those rare successes, those that fail are often forgotten; who remembers Pets.com?
So should Tlou Energy (ASX:TOU) shareholders be worried about its cash burn? In this article, we define cash burn as its annual (negative) free cash flow, which is the amount of money a company spends each year to fund its growth. The first step is to compare its cash burn with its cash reserves, to give us its 'cash runway'.
A company's cash runway is calculated by dividing its cash hoard by its cash burn. As at December 2020, Tlou Energy had cash of AU$3.0m and no debt. Looking at the last year, the company burnt through AU$2.7m. That means it had a cash runway of around 13 months as of December 2020. That's not too bad, but it's fair to say the end of the cash runway is in sight, unless cash burn reduces drastically.
Because Tlou Energy isn't currently generating revenue, we consider it an early-stage business. Nonetheless, we can still examine its cash burn trajectory as part of our assessment of its cash burn situation. Notably, its cash burn was actually down by 58% in the last year, which is a real positive in terms of resilience, but uninspiring when it comes to investment for growth. Clearly, however, the crucial factor is whether the company will grow its business going forward. So you might want to take a peek at how much the company is expected to grow in the next few years.
Can Tlou Energy Raise More Cash Easily?
While we're comforted by the recent reduction evident from our analysis of Tlou Energy's cash burn, it is still worth considering how easily the company could raise more funds, if it wanted to accelerate spending to drive growth. Issuing new shares, or taking on debt, are the most common ways for a listed company to raise more money for its business. One of the main advantages held by publicly listed companies is that they can sell shares to investors to raise cash and fund growth. By comparing a company's annual cash burn to its total market capitalisation, we can estimate roughly how many shares it would have to issue in order to run the company for another year (at the same burn rate).
Tlou Energy's cash burn of AU$2.7m is about 9.1% of its AU$30m market capitalisation. That's a low proportion, so we figure the company would be able to raise more cash to fund growth, with a little dilution, or even to simply borrow some money..........
Whizzer, I think Colm was as naive as the rest of us at that time. We had little reason to doubt what the Govt was saying (putting the RFP fiasco down to an administrative error) - we all know different now - let it lie please.
I'm sorry if the filtered one already provided a link to the RNS but others may have him on filter , so it might help them.
Just like to add to my last comment that when you have the management making comments like Colm’s famous one, you can’t help thinking we must be close but then we all know how that turned out! So it’s not just my timescales that are out it’s also the management that have given us false hopes at times that have to shoulder some of the blame as to unrealistic timescales! Anyway hopefully we can plough on ahead and get connected to the grid in the NOT TO DISTANT FUTURE!!!
I think most long term investors here winni would have thought that we would be much more advanced than we currently are! Not just myself!
Whizzer I think you are guilty of unrealistic expectations.. You should have taken into consideration the culture, the place and the the ambition of project. Before putting timescales in your investment
It reads to me like they are just going to build the 10MW, not 2MW scaling up to 10MW as was previously intimated.
Agree with the Mamba licences Appi, we know that this is the Project area that would be used for Orapa if we were successful with the tender.
Let's keep all the options open.
Whizzer & positivity - in the same sentence - lol
Winni I’m always happy, it’s always been about progress for me and we should now see lots of it!
All moving along nicely.
Looks like the full 10MW will be sold to the BPC but more than happy with that.
Let's get that finance agreed and the TL contractors mobilised..
All looks good ... now needs to go full steam a head... Sensible to use dept for the first stage as the share price should rise considerably as the project gears up to production and thus revenues. It will then be a different proposition ...HOPEFULLY! even MR Whizzer will be able to see some positivity here now!
The quarterly report out today is now showing all Mamba licences as current until 2023 - also the Lesedi ones they were waiting on.
Also the comment about funding would suggest the first part of the funding will probably be debt.
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From the July quarterlies we were waiting on 2 Lesedi PLs up for renewal, and the 5 Mamba PLs expired last month. I guessing these are held up like everything else, but wondered if any of the regular correspondents with the company had any news on these before I inquire myself. I know we are not likely to do anything particularly with in the near future - but nevertheless it's important information and it would be good to know the situation. Hopefully they'll udate us in the next quarterly report