Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
On CMD, with barely more than a month of the year left, RR stated that "Current trading is in line with expectations and guidance for 2023 reconfirmed," so I don't expect the results tomorrow to deviate significantly from guidance.
Just a quick message about the change of focus I've seen as an employee of RR through local team comms since Tufan's arrival. Management are putting more focus on work that will extend engine time on wing for Trent 1000 and XWB products and maximise profits such as component life extensions and on cost reduction modifications, in addition to the obvious work on safety related modifications. Locally within my team, the resource allocated to future projects has been reduced, so it seems that Tufan is aiming to maximise the profits from existing products to pay for future innovation (and to pay down the debt of course.)
It's possible that he sold out before he started to post negatively about the prospects of RR SMR adding any value to the RR share price, and following the continued rise has lost interest. People generally post on this site in alignment with their position on the share, i.e., holders post positively while those looking to buy cheaper or actively shorting post negatively
Lyndon69 they used to have an industrial trent installed in Montreal as a backup generator (and maybe still do), maybe that's what you were thinking of? Probably not so much of an advantage since they sold that part of the business to Siemens though
RR intend to recover cost inflation, including energy costs, through operational efficiencies and increased pricing. It's stated in the trading statement of 2nd November:
"Many of our long-term contracts contain inflation-linked pricing clauses based on standard indices for energy, materials and wages that help to mitigate cost increases. We continue to manage the current energy and raw material inflation risks through supplier agreements and hedging policies. In October we agreed a 6.5% wage increase and additional £1,500 payment with UK represented staff, reflecting the substantial cost of living increases our people are experiencing. We aim to recover cost inflation though operational efficiencies as well as increased pricing. Supply chain pressures have led to higher levels of inventory, but we do not expect this to affect our ability to meet guidance and remain focused on delivering good cash conversion."
Looks like we might be about to break out of the downtrend going back to the highs of early November 2021. If the sp closes above about 90.6 today, and if we get further gains tomorrow then it's confirmed and I'd expect to see over 100p in the next week.
I'm sure that if anyone on here knows the source of fissile material currently used by RR Submarines they would not share it due to UK gov classification. I think it's safe to assume, however, that they are not reliant on a hostile state for a critical element of the UK nuclear deterrent programme. Also, if you google "world's top sources of uranium" you will see that Russia is 7th
I don't think Ultrafan development has been scaled back, but it's definitely running later than planned. That said, it's only a technology demonstrator at this stage, so once testing is complete it will be shelved until a suitable new airframe comes along. I know a few people working on that project, and last I heard they were busy after a bit of a pause. Might have a bit of a catch up next week
While your investment in Easyjet may well pay off, and I hope it does, I just want to point out that RR are definitely not working on a "hydrogen engine" for the narrow body market. They are doing some early development research on hydrogen combustion technology. When RR enter the narrow body market it will be with a variant of the Ultrafan engine, and more likely fueled by SAF than hydrogen.
Edward75, if you take the Kintbury capital short position of 0.78% (which is 0.0078 when expressed as a decimal), with a quoted value of £5024.93M then MCap x 0.0078 = 5024930000, so MCap = 5024930000 ÷ 0.0078 = 644,221,794,872
RR are aiming to run the Ultrafan Demo engine on 100% SAF before the Farnborough airshow in July. Should generate some nice headlines, but not sure it will provide any support to the SP in the short term. The engine has no practical value until a suitable new aircraft project is announced by Airbus or Boeing, but offers a glimpse of the potential for this share in the medium to long term.