Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
What a great set of figures, far exceeding my expectations for Q4. Sets us up nicely for 2018.
TT - who are these "immoral pump and dumpers" that you are referring to?
TT, you are spending a lot of time posting on here. Reading your posts, they are all negative. Why are you bothering? If I were to think the same way as your posts, I would never invest here - irrespective of where the SP was. If you want anyone to take your postings seriously, I would suggest a bit of balance. Otherwise readers like me simply assume that you are trying to talk down the SP in order to buy in cheaply.
Just thought I'd counterbalance the previous post. Nobody is expecting a good q4, so that is unlikely to impact the SP imo. If we have a normal season, I would expect H1 production to be well ahead of any previous year's figures, which would have buyers coming back to DKL in numbers. I don't really expect 20p soon, but a rise back to the price of recent share issues (13.25p) is entirely possible in the next few months. With a bid for the company, of course, a larger number is possible. Some posters are looking to buy cheap and are unduly negative imo. The management here are not poor. I can say that having met them at AGMs. There have been some external issues, which have affected results. Management has taken steps to remedy them quickly and cost effectively. It is easy to sit on the sidelines and criticise. Completely risk-proofing a company is never affordable, and particularly in a start-up situation. As this business has matured, it has become more possible to mitigate risks. I for one am looking forward to 2018 with confidence.
At least the Buys outweighed the Sells.
I'm in today as well Rugs. Thanks for the tip.
Hi Phil, I agree it would be frustrating in the Norpalm deal isn't done now, but if they can't do it at a good price with the land issues sorted, I'd be happy to see them walk away from it. That would be a sign of good management. The directors have plenty invested here and wouldn't want to jeopardise that. Nice to see a decent sized buy today.
FK1, it would be nice to have some positive news to stop/reverse the downward momentum here. Not sure what can be done in Q4, until we get back into high season. Some director buying, even relatively small amounts, could possibly help. I take comfort that the steps were taken to increase the mill capacity. I can't see why the company would spend on this upgrade unless they saw the prospect of an imminent return on it. It wouldn't surprise me at all if we see a step change in production in H1. Figures for the last 2 years have been held back by well documented problems, but if we have a clear run in the high season, we should see a strong rebound here. CPO prices are holding up well, hopefully they will carry through into next year. One thing we know about management here is that they do learn from past issues and take steps to de-risk the business.
Welcome aboard a-2-b. I too think this should be great next year. This year has been poor, yet we are still looking at 2million profit. We were told that in q2, production loss due to problems at the plant was abot 3,500 to 4,000 tonnes of CPO. Add in the additional PKO and it probably would have added 1m profit extra. Q3 and expected low production in Q4, possibly down in total by at least 4,000tonnes due to unusual climate connditions - say another 1m profit. So in a "normal" climate year, with no breakdowns, profit would have been 4m. Going forward, with new plantings reaching maturity, we can expect growth in production and profits. DKL has been selling about eur 1m of plants p.a. from its nursery, which will likely add to future FFB supply. All IMO - this share has a bright future.
Had a 25,000 share top up this morning. I'm expecting low production figures for Q4, but think that is now in the price. A decent season next year should see the share price grow from this low point, imo.
Couldn't agree more, Rivaldo. Keep it up, it's much appreciated.
It is always good to get a balance of views, some positive and some negative. Personally, I always take with a huge pinch of salt postings from onyone whose posts are exclusively either positive or negative, as they usually have an agenda imo. We have been lucky on this board to have a number of knowledgeable posters who identify both the positive and the negative points about DKL. Long may that continue.
TT, it seems pretty good to me. Even if it is only one month, a 6 month payback works for me. As earlier plantings mature, I expect that the benefit here will be over more than one month.
What a great low-cost update to the plant. Can't wait for peak season production figures next year!
Hi TT, I really don't think that the company would falsify reported figures. I have been to 2 AGMs and have found the board to be open and professional. My suggestion would be to contact Lincoln Moore (I think his contact details are on the website) if you have any such concerns. I have always found Lincoln happy to communicate (when he is legally able to do so).
TT, thanks for your recent posts. You clearly have knowledge in this area. I understand what you are saying about customer advances and cash, but do you know why customers pay in advance? Is it because they don't have the storage or something similar? If so, it would perhaps be more reasonable to net off stock against customer advances. It seems to me that all transactions have taken place apart from recording the actual sale and the physical transfer of stock.
Philpot, I am looking at HL which shows the trade time at 16:10, but here on LSE it is showing a morning trade as you said. I suspect you, and LSE, are correct.
The trade I am looking at was timed at 16:10 for 91,000 shares.
Nice to see the price back up to 11p. Those who have bought at close to 10p today will probably look back on today as a good day!
I suspect you are right Philpot. If so then we are now getting some buyers back in. Someone just picked up 250,000 shares. It could be a PI or maybe management or II, taking advantage of the price drop. I'm sitting on my hands today, as I can't afford to add more, but still comfortable holding here. Given the nature of our business, we will get down times like this. If the harvest is poor across the region, we may even be able to negotiate better terms for Norpalm.