Member Info for Billyboy2fromiii

Morning gallini,

Please can you give me your take on.....

The Group has now received orders for Chill products totalling more than US$2.0 million. This follows previous announcements issued on 17 May 2021 and 1 July 2021 of combined sales totalling US$1.34 million and US$0.72 million respectively..........

Do you agree the received orders of $2m are indeed the $1.34 and $0.72 already reported on 17th Mat and 1st July. The statement is poorly worded and could be read that the $2m follows the other two orders. I do not think this is the case personally and thing total sales stand $2m. I know you are a genuine holder here so am interested in your thoughts, please.

BB2.

So only 500 stores added to the 2,000 stated as at 17th May, not the 3,500 as previously stated.

To me, that reads that no additional orders have been received since $0.72m stated on 1st July. Am I reading that correctly?

Much of that update was previously known and very little actual new info. TW and the gang on the other site will have afield day with this. Must say that I am disappointed. I wasn't expecting a great update but I do not think that can really be deemed a proper quarterly sales report. Or am I missing something?

BB2

BB2

Chill products stocked in approximately 2,500 multi-state retail outlets

schedule of previously announced 3,500-store rollout modified

The Group has now received orders for Chill products totalling more than US$2.0 million

s

https://www.lse.co.uk/rns/ZOE/business-update-7iziiodr6ej9lh3.html

I will let you discuss........

BB2

Weathergeek,

As stated previously, my post was certainly not to compare the two Companies.

It was to highlight that (in my opinion) it is all about Chill (and to be specific Chill in the States) that will dictate the share price here, certainly in the short term.

I now hope that we get the promised quarterly sales report as a separate RNS as soon as possible.

My understanding is that the Results do not actually need to be published until 30th September.

BB2

Hi Gallini,

Friday 24th September ???

BB2

Fred,

While we wait for the RNS to drop, perhaps you can use your obviously well-researched, superior knowledge of all things Chill. Please inform us all as to the rules as regards the display in UK stores of Chill smokes along with the UK taxation rules of such products.

Hopefully, your input should provide valuable information for fellow investors. I do assume you are well researched in this area?

BB2.

Weathergeek,

Just for clarity, the 2,000 store total includes Boots (198) , H&B (838) and three others including Ocado (individual numbers not disclosed)....

The post was not to compare the two Companies but to show getting Zoetic CBD products into UK stores is unlikely to be a game-changer. Hence, we await Chill quartely sales report to get much needed confirmation of US sales progress.

BB2

Morning all.

Always wise to keep an eye on the competition...

Love Hemp have issued a trading update this morning....

20 Stock Keeping Units in high street retailers, 198 Boots stores, 838 Holland & Barrett stores, total over 2,000 stores in UK yet annual revenue to 30th June 21 only £4.31m. Mcap approx £6m.

Just shows that getting CBD products in national UK stores does not automatically generate multi £m revenue.

Seems to frank up my personal opinion that the future success of ZOE is all about the smokes and pouches. The current uncertainty regarding the tax status of the smokes in the UK needs to be considered, as this could significantly affect UK profitability. So for me, the future success of ZOE is currently all about smokes and pouches in the States. Let us hope for good news when quarterly sales update is provided. Let us hope that expectations do not exceed reality.

BB2.

Dorfan,

May I ask what PGM production figure you have used in your calculations, please?

If you re-run these calculations with production at say 50,000 oz, how does that change your figure?

BB2.

Morning,

Why are people referring to "Results" ??

We are due a six monthly operations update (which has no set date for expected release). Audited Results due in November.

BB2.

Hi,

I must admit that I feel more comfortable knowing that we have a COO overseeing things. Even more comfortable knowing that he is currently "on site" especially as the rainy season has previously caused us problems. I am very hopeful that Anthony can successfully steer us through H2 and meet annual projections for both production and AISC.

A very wise (and imo much needed) appointment by DB.

BB2

Hi twogoals,

I too would prefer no equity raise. However, I am not ruling out a possible equity raise (possibly as a condition of the loan i.e. HUM having so much cash already available rather than the promise of cash coming over the next 18 mths). I am just considering all eventualities rather than banking on no equity raise. Perhaps this is part of the reason the sp is currently not climbing. Hopefully, we will know soon and (with uncertainty removed) the re-rate can begin.

Good luck, BB2

Hi,

I personally think you are both underestimating things. Firstly the total cost to built, which may well have increased over the last year or do due to inflation etc. Secondly, there is no way (in my opinion) that DB will take risks by trying to virtually every spare penny of cash we will have to minimise the loan. Should he do that and we encounter a problem (rainy season, COVID, unrest etc) and our revenues as below expectations then he will be blamed for poor management. Personally, I am expecting the maximum loan available with hopefully the rest from our present and future cash. We do need to consider that if the build costs have increased (time has elapsed since first RNS re this acquisition) then there is still a possibility some equity may now be required despite the initial loan and cash (no equity) comment. In fact, was it actually 100% specified as no equity raise originally (can’t remember the wording)?

Just my thoughts. I am keeping open mind presently in order not to be too disappointed should the finance package not be quite as many are expecting.

Thoughts anyone?

I did top up yesterday with two £5k buys despite the above!

BB2

Bellers,

Just wanted to say well done. Very impressive to get orders for 10 cartons plus some gummies. The split (in favour of mint) also reflects feedback that I have received.

BB2.

Morning,

Good RNS, imo.

Production ytd of 47,275 (22,781 + 24,494 with avg AISC $1440 (1,494 + 1,386 = 2,880/2).

So to meet minimum production guidance of 100,000 at higher AISC guidance of $1,350 , H2 production needs to be 52,725 with AISC of $1,260. Using Q2 avg realised gold price of $1,802, would give FCF of $28,576,950 for H2.

To meet maximum production guidance of 110,000 at lower AISC of $1,250, H2 production needs to be 62,725 with an AISC of $1,060. Using Q2 avg realised gold price of $1,802, would give FCF of $46,541,950. for H2.

So, if we hit the (maintained) 2021 stated guidance, then FCF for H2 should be between $28m ad $46m.

The AISC for Q2 dropped by $108 compared to Q1 on the additional production of 1,713oz. On that basis, an additional 1,868oz avg production per quarter for Q3 and Q4 should shave off an extra approx $117 off AISC which brings it to approx $1,269 (1,386 - 117). So if we hit minimum 100,000 oz, then AISC should certainly be lower than the higher AISC figure of $1,350.

Looking better here, just need to make sure the expected 2021 production figures (weighed towards H2) are delivered.

Good luck all.

BB2.

Morning,

Good RNS, imo.

Production ytd of 47,275 (22,781 + 24,494 with avg AISC $1440 (1,494 + 1,386 = 2,880/2).

So to meet minimum production guidance of 100,000 at higher AISC guidance of $1,350 , H2 production needs to be 52,725 with AISC of $1,260. Using Q2 avg realised gold price of $1,802, would give FCF of $28,576,950 for H2.

To meet maximum production guidance of 110,000 at lower AISC of $1,250, H2

Morning Vas,

Again, thank you for the post and link regarding TAAT.

Obviously you have been jumped on regarding the Mcap of this direct competitor…

However, as you stated this podcast is a very good listen for any ZOE holder. Very open and informative about their product and marketing strategy. Interesting comments regarding rate or re-orders and also the margin differential compared to conventional cigarettes.

I note that this podcast was dated five months ago. Interesting if there is anything more recent?

I must agree though, the name TAAT is hardly inspiring. On that score, certainly 1-0 to Chill….

Thanks for your research, keep interesting up.

BB2

Morning Vas,

Thank you for your post at 15.19 on Sunday with the link regarding the Kingsley Wheaton (CMO of BAT) interview.

Admittedly, this interview dates back to February. However, there are some potentially important quotes in there which clearly shows that BAT are in the process of transforming their business model into “consumer spaces beyond tobacco….”.

The fact that no-one has commented on this post and only one “recommendation” seems a tad odd to me.

I assume that all holders here have already read the article and listened to the podcast. If not, I would suggest it is a good read/listed for all ZOE holders.

In my opinion, too early yet for the likes of BAT to be sniffing (as per too early for Institutional Investors to be investing) but certainly a possibility for the future.

Perhaps those that have jumped on you for your subsequent post regarding TAAT should ask themselves why you would post such a link if your intentions were as they believe!

BB2

Obstando,

Don’t worry. I will go through it with you in greater detail over our beer at the next UK chill launch. Perhaps we can have an hour together before we are joined by Tobler and Fred.

Happy weekend to all (genuine) ZOE shareholders.

BB2