Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
Thanks for the link Barnyrubble.
While the article could be viewed positively, I hadn’t realised they have a number of projects it has taken massive write downs over the last 5 years. While any professional services company can get it completely wrong on a particular project, you wonder if there is something fundamentally wrong when it’s more than one project. My average is 174p but the sp is indicating either the sale of the BE unit isn’t going to happen at the current price or there are massive further write downs coming down the pike.
“I’m sure Turfan will be best chef at the Kebab shop but when it comes to Fish and chips will he be available to fry the fish before he burns it .”
Metom, your post @ 15.26 made me laugh. Lightened the mood today.
Igor
Great explanation, you have explained it much more simply than I could.
The smoke and mirrors come part comes from, how, so desperate they were to show a profit last year they took a FX profit of £280m and this year they are taking taking a paper loss of £1.6b on FX. It will all be legal of course. That’s why the city traders have the edge over PIs with the time & knowledge to read the accounts in huge detail and figure this stuff out.
They are doing a real ‘smoke & mirrors’ job on their accounts.
Looks like all last years profits came from the sale of old spare parts in Defence generating a £45M profit and a one off FX revaluation giving a £270M profit. This time we a H1 loss of £1.6B … equivalent to the full proceeds of the IPT!! While it’s currently a non cash item relating to marking FX contracts to market price, the actual losses will drop on to cash flow as these contracts expire, unless FX rates move back in their favour. If so then net debt remains close to current levels and that probably means another Rights Issue.
It’s a great company but just goes to show how risky/difficult it is to run a big, complicated engineering business.
Love the star track reference ….
On a beach?? … more likely he’s got a promotion at the Russian troll farm
And all those ppl who were recommending his posts, amazing
Well at least the Russians are keeping rr defence division (and MTU) in serious profits!!
Dazpink, free cash flow is £587m not £1.1b, and increased orders are meaningless if they can’t turn a profit on them. Underlining revenues are only up marginally which means that H1 2021 must have had the kitchen sink thrown in and last years profit massaged to calm the markets at the time. I’m shocked by the results. Looks like JPM were right.
It is surprising so many people are obsessing over the IPT monies. The deal is done, the money is coming at some point, an adjustment will be done for any additional IPT profits in the interim and as per usual, we are just awaiting the bureaucrats (Spanish national & regional, no doubt working from beach, who make our lot seem super efficient!). But in reality the proceeds (after converting from euro to sterling) may not have much impact on the Balance Sheet as we could have burnt through loads of cash gearing up for SRMs. Taking on a 1,000 engineers and building new factories doesn’t come cheap. So what? Unless you are trading the short term peaks and troughs. Don’t stress about the short term, it’s a great company. It could drop to 50p in the autumn if these is a market crash but, for me that’s an opportunity to top up on the cheap. Red_inky has got it consistently spot on for me. Don’t get depressed over the sp if it don’t rocket after the results, we are in a bear market, an uncertain world but be delighted you have shares in a thoroughbred!
cw1966, no need to get so excited. It is just an alternative view to your own.
As you may be aware, the UK (recent unprecedented FBI & MI5 joint press conference warning on China being the greatest longterm threat to our economies and security) also are very weary of the Chinese. The visit is a prod and pushback against them. They have broken their agreement on HK with the UK, are making outrageous territorial claims in the South China Sea, are supporting Russia in their land grab in Ukraine, are 're-educating' millions of Uyghurs and suppressing free speech. Unfortunitely I am not one for appeasement and believe you have to stand up to them, no matter the near term economic cost. And this visit is certainly getting their attention. IMV they will not escalate it to any military confrontation. Not sure how it helps Putin? It may weaken China's support for Russia, if the West negotiate a new view on Taiwan. I suspect this is the plan all along.
It is interesting ... White House hasn't publicly told Pelosi not to go! The visit was originally planned in the spring but she caught covid so postponed. China's rhetoric wasn't as aggressive then. Yes I agree, at 82 this is her's last hurrah but then what a perfect person to send. And she is getting great support from both republicans and democrats for her visit. I think the WH have given her tacit support while publicly saying the US military don't advise a trip at this time. She'll take the blame if anything goes wrong (and has nothing to lose) while winding up the Chinese. As I say I think it is a clever move.
Personally I admire Pelosi going to Taiwan and I believe it is a clever move to counter China's backing of Russia. Message being, you unofficially back Russia invading Ukraine against the West, well we will stir it up in your backyard. EU also planning to send a delegation to Taiwan later in the year. Will keep China on its toes! And they are not ready to start a war over Taiwan yet.
“ My point is not that he may have an equal amount of capital in other shares (which actually makes my point even stronger) nor whether it's wise to have all your eggs in one basket (it is not of course). My point is that anyone with 700K cash to invest in a company does not read forums like this one where every Tom D and Harry say whatever.”
Contrarian, I think botbot is genuine and should be given the benefit of the doubt until proved otherwise. I am not a premium member but did anyone check his trades he flagged up this morning? I think this would be a good idea before ****ging him off. And while there are some questionable people on here, there are many that go to the trouble to post really useful information, views and links.
Convb
Interesting post, thank you.
Maybe not all bad then for the sp if he is there to trim costs. Pity to see it broken up, if that is what’s planned but rr., despite its extraordinary IP and engineering prowess, still struggles to turn this all into consistent long term regular profits. I had a look at their trading record over 10 years and it’s all over the place. Only being following it two years so don’t know the full history though.
Golly music, it’s like you’re a mind reader.
First Lloyds - this share is a mystery to me. I’ve now come to the conclusion that you consider all the research, make a logical decision based on that … and then do the complete opposite! While I’ve made decent money from the low 30s and have taken profit along the way, I’m at a loss to understand why this is not back to pre-covid levels, given the better balance sheet, buybacks, dividend etc.
Despite the odd questionable post from Falky (and the unfair abuse he sometimes gets on here), he always seems to have a good sense of where the Lloyds sp is going. My average now is 46p (unlike some, I don’t carry forward past profits to lower the average price on my current holdings) and I’m very positive about the risk/reward with Lloyds despite the looming recession, but I can see Falky being proved right, this will see 39p again. Lloyds is not a growth company, is getting into a business it doesn’t know but appears to be low risk, cash generating machine with an attractive yield.
Politicians - you are absolutely right. Too many ‘professional’ politicians with no business experience! I include Rishi is that category despite him working at Goldman Sachs. To have allowed the unbelievable fraud to occur with the £50k loans is truly one of the great financial scandals this country has seen. They are frantically trying to minimise it’s true scale (despite having substantial increased their estimates 3 times now) and will delay the truth for years, hoping we will not remember it was under Rishi’s watch. This coupled with the non-dom status of his wife and him retaining his US green card (you are obligated to file a US tax return) is completely the wrong message for a chancellor of the exchequer to present. While all legal under UK laws, it’s like one rule for the elites and another for us.
Hi musicman
I voted remain; on balance it was a close call (60/40). The majority voted leave and I completely accept that. Unconscionable lies were told by both sides but now that it’s done, we all need to stand together and move on. The EU have behaved appallingly since, determined to punish us so no other eu country would dare leave. Well now that’s got my goat up and I am determined we make a success of it. There’s no going back (unless you want/like being humiliated). The UK will take years to adjust to its new status and to show the benefits but at the end of the day, a country with a rich history of entrepreneurial spirit and global trading will always have the advantage over a federalised EU who can’t agree on anything. Example - despite the extraordinary lengths the EU went to, to damage the City, they haven’t a hope because, instead of forcing through a single competitor city, country self interest has scattered financial services between Frankfurt, Amsterdam, Paris and Dublin. The strengths of the City are it’s huge concentration of talent and English, the world language of business. While many uk businesses moaned about leaving and struggle with the new paperwork/bureaucracy, successful businesses always adjust and in time will find a solution and make a success of it. It’s war now but with any luck France with force through their stated goal of changing the language of the EU institutions from English to French, lol.
Lots of people on here debating the record exports to the EU but I wonder how many have actually read the link posted about it earlier?
It is misleading to use this headline to either support or deny the success of Brexit as the article goes to great lengths to say a substantial part of the increase is down to us exporting vast quantities of LNG to the EU we just imported from Qatar. Not sure how long that will go on for nor how much it supports British jobs or taxes?