Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Price action is positive, although we’ve been trading up and down between 115 and 130 for a while now so I’ll get more excited when it moves up above 150 and beyond. Don’t think it’s anything to do with the RNS as that’s just an admin update due to the sale of the head office. I trawled through loads of documents trying to find details of all of the property sales and couldn’t really find anything specific to be honest.
That’s not really how it works though. The loss of premium that should have been paid in years 2 or 3 based on current inflation for example would then need to be made up by non fixed price customers to achieve loss ratios. so no matter which way you cut it, the 3 year fixed price product is a disaster and should never have made it through risk modelling and stress testing for inflationary impacts. Sadly it’s another case of the business blaming external factors when actually it’s there job to mitigate risk and plan prudently.
It’s like the constant moaning about regulatory changes to pricing. This has been ongoing for years, yet the business is still moaning about the impacts, at what point do people start earning their huge bonuses and start doing their jobs?!
They need to sell AICL, and then sell the home and motor insurance book and just get on with travel and the digital stuff. Selling insurance to pay down debt is the only hope for investors, other wise we’ll be wiped out.
Problem is it’s not cheap based on the profit numbers the business is delivering and the outstanding debt.
Insurance will never recover to previous levels and the ‘old’ business was built on insurance profit. The challenge for saga right now is to demonstrate how they will generate the old insurance profit from new businesses……which they haven’t yet.
We’re currently still in a place where Roger will have to loan the business money to pay the next bond if AICL isn’t sold.
If the AICL sale doesn’t go through this will tank…..time is ticking
Ok, appreciate I might be completely missing the point here, so help me! If we’re due some incredible news very soon, why are the bondholders converting and then most importantly selling? Surely you would convert and hold?
I don’t get it?
AGM was a bit of a non event, no fireworks, AICL sale still being worked on but with no timelines which was to be expected.
Most questions were asked before the event and answered separately so no real understanding of PI sentiment as no one saw the questions or answers.
Board closely managing the comms and narrative which I guess is expected based on how badly the business has been performing. Still a long way to go and not a great deal of detail on where the insurance profit is going to come from.