Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Yep, that is what was said by RKH -"We look forward to entering into fully binding documentation in the first quarter of next year."
It was Navitas that said by end of January, which I just think was hopeful thinking. All running to plan as far as I can see.
You got in a better price than I. I got 1796. Only going for 1835 as a little concerned with the trend channels converging. So hopefully will get that and then wait and see if it goes up or down after that.
I bought back into SHG this morning at 6.9p
We know the junior mining sector has had a bad start to the year but, even so, we are completely bewildered as to why the share price is at 6.75p. The last time it was at this level was in June 2019 when the gold price was $1400/oz (and inflation nowhere to be seen). There was no West Kenya or Singida i.e. no growth plans to over 200koz pa, the balance sheet was weaker and a different and much less investment friendly government was in power in Tanzania. The market was still concerned over the LoM at NLGM but here we are with even longer potential 3 yrs later. All because of one bad year in five.
Not sure if it is the bottom or not, but at this price I've bought some. Nav is about 109p so it is good value buying at 104p. I suppose a lot will depend on what gold and silver do this year. Interest rate hikes will obviously be negative for gold and silver but I don't see them being raised too much and I doubt the US will do 4 hikes in the year. Probably 3.
Nothing special in my opinion.
Good to see the costs are down but then the production levels are also down 11%. Guidance for the full year dropped from 70koz to 66-68 koz.
Liberum have a buy recommendation still but have dropped their target price to 150p from 170p.
No I’m loaded up with an average of 47p. I see no reason at the moment not to hold these for a couple of years from here. Material costs will likely stay high for 2022 but should improve gradually which ofc would add to the bottom line.
Actually I was a little surprised by the profit generated. The revenues were down £0.7m on forecast but despite the current head winds in increasing material costs SFE managed to increase their operation margins to beat the forecasts. And as they say, revenues are vanity, profits are sanity.
It is looking promising for the coming few years. A dividend is expected mid 2022 now that the company is well back on track. Liberum and Zeus capital both state SFE as under priced with Liberum giving a target price of 80p.
IC review:
Shares in Aim-traded financial software provider Arcontech (ARC:74p) have been massively de-rated since the company issued a profit warning in late November after one customer decided to scale back its market data spend and another decided not to renew its contract because it is switching to a solution in a legacy, bundled contract.
The two changes are unrelated, but in terms of revenue they account for £0.3m of Arcontech’s last reported annual revenue of £3m. House broker finnCap lowered its revenue estimates by 6 and 11 per cent to £2.8m and £2.9m, respectively, for the 12 months to 30 June 2022 and 2023.
Furthermore, the company’s incremental operating margin on new sales is around 60 per cent, so any contract wins or losses have an accentuated impact on profits. This explains why finnCap cut its current year pre-tax profit estimate by 17 per cent to £0.8m and now only expects a flat result in the 2022/23 financial year. On this basis, EPS to fall by from 7.9p in 2020/21 to 6p.
Arcontech’s strong defensive characteristics (recurring licence fees account for 93 per cent of annual revenue) had been a major bull point, so the loss of two customers has clearly undermined investor confidence. The timing is incredibly frustrating, too. That’s because the company’s small sales team has been strengthening the qualified pipeline of potential prospects, and the directors note “renewed client interest in new business projects”. Travel restrictions during the Covid-19 pandemic had made converting the robust pipeline of opportunities difficult in the near term, but as these restrictions are now being lifted then it should augur well for the company to make up the lost ground. This is still a realistic possibility in my view.
Furthermore, the de-rating has been so savage since I covered the half-year results (‘Bargain shares: On the hunt for value’, 6 September 2021), that Arcontech’s £5.4m (40.5p) net cash pile now equates to more than half its £9.8m market capitalisation. This means a business that is still making £0.8m operating profit and generating free cash of £0.6m a year is being valued on a cash-adjusted PE ratio of 5.5. FinnCap is pencilling in a current year annual payout of 3p a share, which gives a prospective dividend yield of 4.1 per cent. The free-cash-flow yield is more than 6 per cent.
The shares are now firmly in bargain basement territory and the company is a bid target as well given Arcontech’s £4.4m enterprise value equates to only 5.5 times operating profit estimates. Recovery buy.
Just looking at the chart and it broke out of the downward trend channel on Friday which would explain the jump as buy orders were taken once the trend line was broken.
Yeah I presumed an RNS came out, but no. Leaky news I imagine. Good rise on a day the markets are falling.
Just added £1100 at 92p. If this continues to drop its looking to become a takeover target. With the company becoming profitable in H2, this is likely to grow and become profitable for FY22. No debt, £4.4m cash and a £3m facility SNX are self funding. It is looking like countries are moving towards opening up more and living with covid which in turn would see more traffic to its casino side of the business. What is more interesting though is the security in the cities and how that is likely to grow. This is higher margin than casinos.
With a NAV per share of 209p and a broker target of 315p this is looking very cheap now for holding or as a takeover target.