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If they were offering millions I might be concerned but it's 250k max at full offer 3p online
What's wrong with a company that is probably now the best it's ever been I am new to here but find your comments unusual
Once again a short visit to a price below 3p.....
And Once again quick rise......
Some healthy demand to buy at this level, wonder š¤ why......
GLA.
Short shake, 3.1p to buy now.
Lovely use of emoticons but your spelling not so good, it's their not there
Anyone buying this pile of š š© needs there head examining
I presume thereās a big delayed sell that hasnāt been printed yet as there are only two small trades showing atm.
Anyway, Iāll be adding.
Because they delay such small traders such as 250k you never know what is going on 5 market makers have dropped at 8.17am, now there has to be a reason or is it a shake, has 1-2 big sales gone though. I always wanted to know if the mm's can see other mm big trades instantly or are they delayed for them too ??
Big shake this morning, with a huge spread.
Buying opportunity.
It was overwhelmingly positive.
The $10mill is the very lowest it will ever be and even in the first year it is highly likely to be in excess of this.
This is based off old embarking passenger numbers which will inevitably gone up. It also excludes new routes like the x2 non stop to Qatar, further Air France and likely flights to UK via BA. UK has the 3rd largest population of Congolese outside of DRC so its a huge market and the next inspection is November which should then allow BA to fly there thanks to WSG.
So i would be surprised if there is no uplift in the initial $10mill quote and in a few years with the addition of domestic and cargo i can't see it being less than $30mill. It is a truly transformational contract and being able to buy right now at around 3p is a joke.
If they take on domestic airports for internal flights, pax is 2-3 times that of international flights.
Freight is said to be double pax revenue.. (unconfirmed just notes on the private twitter group.)
Future Potential in DRC is current income a minimum of $10mil revenue x 4 ..
International pax growth very likely , improved security means more airlines will fly to DRC.
15 live MSC in discussion. some advanced, one very advanced. Expect to sign at least 1 more in 2024. PF feels the DRC contract gives great credibility and will encourage other African countries in discussions to step up.
Things are certainly looking a lot brighter here than they were a month ago.
Just listened to the first part of the call. A few points i noted, Iām sure mikes already covered but maybe offers corroboration.
āOpex/capex covered by revenue streams, very profitable from day 1ā
They Will require some initial funding to start up. A number of options available.
āOur preference is debt financing, discussions under way to do that, we will announce in due courseā
He wont completely rule out a future equity raise, āit would be foolish to do thatā ( commit to no placings in future)
WSG believe that this contract as it stands should add 10p onto the SP. If we take the low at 1.4p thats a value of 11.4p before any future growth in DRC.
They are very surprised at the current low Sp.
The opportunity for growth in DRC is vast. Internal flights are the main travel means given DRC is the size of western Europe. If they take on domestic airports it will be much bigger than international. They cant take on until international contracts under way.
Freight contract another huge growth area.
Ive not got to the questions section yet. Will try and finish it later.
Rise ON funding news rather than INTO I suspect.
My take away is that this is stupidly undervalued. I totally understand why (lack of delivery for years), but it does give a potential for some cheap shares.
Potential $10m+ annual profit vs a Ā£10m mcap. Something has to change!
Great summary Mike. Thanks hugely. It all sounds very positive. Sounds like SP should rise into funding news and once thatās sorted then the brakes should be off.
Likewise, the domestic passenger traffic, which is circa 2, 3 x the international travel. The domestic airport that WSG will operate, is the domestic airport that the DRC president uses.
The tax that WSG will collect will be circa $25/pax and will be made up of a part share of an existing tax, and a new tax of circa $12/pax.
The $10M revenue quoted is not reliant upon the passenger figures and the speed of the roll-out.
Air Quarter have just announced an increase in their provision from 1 to 4 flights a week.
PF believes that Air France are looking to increase the frequency of their flights to the DRC.
The British Government are also looking for a British Carrier to commence direct flights to DRC. However, for this to happen the security structures in place need to be improved. The Statutory body responsible for assessing airports make annual inspections. The next inspect in the DRC is November of this year. It is possible that the initial enabling works that WSG will have carried out by then would allow progress to be made on this.
MH confirmed that the operational set-up costs are inclined to be fixed costs and an y increase in pax traffic goes to the bottom line in terms of profit. It was clear from the discussions that the management believe there is the scope to considerably increase the contract value over the next few years.
This is MY take on that discussion, but I would suggest that a natural growth in international traffic, the add-on of freight traffic scanning and picking up a proportion of the domestic traffic, then $20M could be on the cards in 4 or 5 years.
Given enough time, PF may look to do several interviews over the coming weeks.
WSG have a conservative 10p/share value against the DRC contract based upon the existing contract structure.
Hope this helps.