Member Info for catonahottinroof

Just got my notification from Interactive Investors. Seems like I don’t need to do anything else, though they don’t know when the Tamboran shares will arrive in my account. Anyone else with Interactive Investors- please check your own notification, in case I misinterpreted or yours is different. I’ve already completed a W-8BEN form, so just waiting for the Tamboran shares to arrive now.

I have just contacted Interactive Investors as the Corporate Action isn’t showing on there yet. They are aware of it, but have a question about it. They expect it to be available in the next couple of days. I have competed the W-8BEN form which was straightforward.

Does it say what will happen to the cash part of the transaction and the cash on FOG's balance sheet?

Well, we’ll have to wait and see how it pans out, but at last there’s something to be hopeful about. It’s onwards and upwards from here towards my 6p break-even after only 10+ years. Still, today’s RNS brought a much needed smile to my face.

The SP has been at or below this level since mid November without prompting any sort of sustained buying. So what is different today? Maybe there is a share tip around that I haven’t seen, or maybe someone knows something that I don’t. Whatever the reason, it is surprising to see so many buys, especially as it has had little impact on the price. Let’s see what the production update brings, probably tomorrow.

You are right FK1, Cat is very happy. If this continues, and covid permits, may see you again at the AGM. I would hope for some cashew nuts if we get there.

Given the delay between global prices and the price we sell at, I expect we’ll be making good use of the storage tanks, so I expect to see lower sales this month as stock is held whilst selling prices are still rising. It could have a substantial benefit to our profits. If 5,000 tonnes are held to get an extra $200 per tonne, that would add $1 million to our bottom line.

It all seems to be coming together at the moment. High palm prices (CPO and PKO) coming into high season and cashew production starting up. If we can get some decent volumes through and an improvement in extraction rate, this share could really rocket. At these prices, farmers will surely be keen to harvest as much as possible. Also the trees grown from seedlings supplied from our nursery over previous years should be coming into production, Just bought another 65,000 this morning. The business should be generating great cashflow, to fund expansion or pay down debt.

Good trading figures again and looking forward to a profitable high season coming soon if the CPO prices continue at these levels. Bought another 45,000 shares in 3 tranches this morning on the drop following the reported small delay in the start of cashew production. I have had the start of January next as my expectation for the start of cashew production so a small delay, whilst disappointing, is not a problem to me.

An updated presentation was due to be posted to the company website on the morning of the AGM. It may be just me, but I can’t see it. Does anyone know where it is on the website? Last years is showing.

Tells me all I need to know about the quality of management of this company and of how they view retail investors.

FK1, I have bought a lot in order to average down and had intended to sell part of those once it reached my average price (6p). I am revisiting that in light of current CPO prices and the imminent start of cashew production. I would certainly hope we can get into double figures next year if we see some increase in CPO production.

Personally I would be disappointed to see the dividend reappear any time soon. With high levels of debt and opportunities to diversify, I would far prefer that cash was used to reduce debt and/or diversify before dividends were resumed. Of course, if the existing mill goes to full production and cashews are successful, then that would be a different matter...

FK1, my thoughts are that FFBs produced on company owned land were in relatively small quantities, but probably due to plants being immature. However as they mature they should contribute a reasonable amount. Even if they only produce 10 tonnes of FFB per ha, that should generate about 20,000t of FFBs and hence about 5,000t of CPO. Yields should be above 10t of fruit per ha at maturity with fertiliser,
The fertiliser programme was yielding little as it was a small trial at the time of the last AGM we attended, 2 years ago. Smallholders may feel more inclined to spend on fertiliser when CPO prices are high, so we may see a benefit in terms of volumes from the current high COO prices, albeit a year later.
I feel quite optimistic about next year, but I have said that before.

I haven't had time to look at the numbers in detail, but a few things come to mind. Gross profit %s were much higher a few years ago. Things that are likely to have affected this are (1) PKO prices have fallen significantly - these sales are high margin as they are like a by-product of CPO production i.e. there is no additional cost of goods, only production costs (2) DKL seemed to achieve sales prices higher than market rates in the past, whereas FFB purchased would have been based on market rates (3) higher volumes processed increase margins as some costs are fixed.

Darien, I think you should check your numbers.

I have a Bed and ISA trade which should go through today for about 313k shares, to protect my hoped for future profits!

A pretty good set of figures and it is good to get regular updates at this time. Particularly pleasing is the improvement in extraction rates, as this extra goes straight to bottom line profit as margins improve. The only negative for me is the sales figures being lower than production. Holding in stock is great when CPO prices are on the rise, but not now they are falling. Overall though, pleased with the update.

My wife and I have Bed & ISA'd some shares today - 125,000 on one and £3k value on the other. Just thought I'd let folks know as the trades may look a bit odd otherwise. Good weekend all.

Agreed LeMajor. Given the rapid rIse in CPO prices, they could easily make an extra €100+ per tonne. With 8,000 tonnes (if I remember correctly) of storage capacity, this could add nearly €1million to the bottom line, buying low and selling high. I'm not too concerned about the low Q4 figures. A decent H1 is what really matters along with CPO prices holding up.