Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
I'm happy with the RNS, cost of capital in Europe was widely accepted as around 7% before the int rate rises so 7-15% is more than acceptable in my view.
I'm going to tune off a bit now, don't expect much movement until next production updates.
Yes all seems to have gone quiet on that front, that was a big part of the push from 90p to around 150p when I first got in if I remember rightly, must admit I've not really followed that part though...
Market doesn't seem to like the general update/suspension too much, but the proof will be in the pudding (next updates) I guess!
Again to regurgitate this part of the report relating to going concern, I agree with the current overtrading comments (which they seem to have managed well), but once the receivables from the new sales start coming in after 60-90 days there really should be no problem - as the gap between forward production cost and revenues with these new volumes more than covers outgoings (assuming the %’s remain static), this is clearly stated with the 800-900T per month comment…
All IMO of course…
In the first quarter of the current financial year, the Company achieved sales of 2772 tons which represent c.70% of the quantity sold in the year under reporting and the Company continues to ramp up its production and sales with a target to achieve 75-80% production and sales on the installed capacity. According to the Company's estimates, it achieves positive operating cash flows at the corporate level at an estimated 800-900 tons of sales per month.
Agree Genghis Trade receivables are a cash equivalent, so the cash ratio looks OK to me.
If they are generating profit then low WCAP should be easily solved, be it via discounting invoices or a loan/equity.
Might be the accountant in me but did no one else find the results a bit underwhelming vs expectation?
I know the longer term outlook is good and we’re ramping up but in my mind I was hoping the update would be a bit further along in terms of capacity and EBIT to be honest
I’m not expecting a big bang tbh, well sustained anyway, maybe end the day 10% up and then over a number of months/next couple of updates creep up with further gains as they continue to deliver.
Hopefully I’m wrong though!