The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
Nashwan and xantas wasnt there although id expect them after xantas lithium results and licence being passed with nashwan . They will be at the next presentation im sure to talk through our excellent lithium grades ....
matthew west was there along with some other holders. i think the sell off on friday was short term traders who bought earlier on in week or week previous looking for a flip on news going into to fridays presentation or the general run up due to the fact there may have been some update before that presentation.
i think sentiment has meant that we are at 0.5 instead of more like 0.8p. i think sentiment change alone could rerate this 50 percent upto 0.75 ish. with decent lithium results this could easily be 1.5 p . so a 3 bagger from here . i dont think anyones pricing in much with IGS currently either which is a big mistake .
WIthin the next few weeks, could be monday could be 3 weeks . only the company know that which obviously they cant tell us in advance.
just to add , there is probably 80 k in costs from the placing in april to take off these figures plus 6 months corporate cash burn at circa 120k. so 200 k to take of these figures below for current cash levels: still leaves around 900 k is cash currently with 300 k in potential outgoings on current deals yet to be completed. so around 600 k in cash. a very healthy cash position to be in.
I was at the meeting yesterday and can confirm the following : Current cash balance is around 850 k GBP plus there is 250k GBP in legacy stock investments which will be liquidated and added to the balance sheet shortly. Therefore total cash balance will be around 1.1 million . The cash burn is around 250 k per year and the only funds due to be paid out are 200 k once the licences are agreed on the nashwan project and 100 k on the new kalahari investment once BNR receive the requested paperwork for DD purposes. The IGS investment looks excellent and the company presentation was very professional. IGS have recently been given the green light on a contract worth 70 million USD although they are only paid part of that as the contract is spread between a number of contractors. IGS when pushed on what there payment would be on this contract would not divulge this as they where not allowed although they said with a smile that they where a significant contributor to this project . The point was brought up that this sort of news needs to be communicated to investors and shareholders and was duly noted.I fully expect going forward that with the new PR drive in place this sort of thing will be reported to investors/shareholders going forward. The lithium results are anytime in the next 2-3 weeks and personally i think they will be outstanding. Nashwan licences i would expect at any time now as well. The main issue here has been with PR and communication with shareholders. They are fully aware of the need to communicate better with shareholders and potential investors and have allocated this roll to a new member of staff who i might like to add is ex city so has the contacts and knows how things should be done properly. I would like to add that they will be communicating much more now going forward on progress via rns and vox markets podcasts. all in all it was a positive presentation and they are planning on doing more going forward to keep investors and shareholders updated . The key points to take away for me was the following : 1. Strong cash position (currently around 1.1 million GBP once legacy stock is disposed of , 850 k without) 2. low cash burn of 250 k GBP per year 3. LIthium results due any time within next few weeks ( rumoured grades higher than KODS) 4. Nashwan licence agreement due imminently 5. Share price historically low This stock for me at these levels is a strong buy and i will be adding monday. With a strong cash balance meaning no need for fund raises going forward and with the solid investments like IGS that will bear fruit in the long run and are a stable long term revenue generating investment. Add this to the potential of the lithium results due at any time and with nashwan licence news about to drop then this is a great risk reward play at these levels .Bad sentiment has left us at 0.5,without that i believe we would be sitting at 1 p ish now. sentiment will change and with decent news due this cou