Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Thanks JK400 for the update. I've now listened to it and think it is a better format than previously with V ox. It comes across as more serious and more likely to inform. Hoping for a decent production update for Q3 soon.
For me, this is the main problem with holding shares here. We know with certainty that there has been at least one undeclared holding in the company i.e Biopalm, and oro ably more. We have therefore no knowledge of if or when they have sold any shares, so it is impossible to determine the extent of any share overhang out there. It was brought up at the AGM about the undeclared Biopalm holding, but so far there has been no declaration or upate on the Dekeloil website, which has disappointed me. The company has many positives to recommend it, and I remain a committed holder, but this failure to declare holdings emphasises that this is still a small, AIM company.
I think it was being recorded today, so presumably airing early next week.
Totalnew, I think they said that one possibility was to bring in an equity partner at project level, in other words a joint venture similar to how Ayenouan started. This would make sense in Ghana and also possibly at Guitry, as the cost of going it alone would be prohibitive I guess. The results look positive to me. Based on previously reported product sales, the total sales figures have been boosted by over €750k of nursery sales. This is good news as it is improving the plant stock of smallholders to improve supplies in future. Finance costs looked high initially to me based on the level of debt and an interest rate of 7%, so I presume that the additional cost (circa €200k) relates to share issues reating to CLN repayment and/or buyout of the balance from our JV partner. Hoping for decent Q3 production update soon. Sales should be good as we had stocks at the half year for sale in the quiet season at good prices.
Just bought 20,000 at 11.2p. Thanks for the tip Rugs.
And yet no real impact on the SP. I guess we may see a large late-reported buy coming in as well.
We shouldn't forget that the management here are highly incentivised by the structure of the option scheme. As I understand it, they have already received 25% of their options, whilst the remainder vests in 25% increments over the 5 years of the scheme, only when the Share Price reaches the milestones of 8p, 10p and 12p.
Weapon7, I guess people get bored waiting for news. For me, it seems like a great opportunity to get in at the beginning. This is almost like a new company, with new management, new financing, lean cost structure and a manufacturing set up geared strongly for growth. The business is making only a small loss, even at these levels of production. It isn't too difficult to see good profits when new orders come in, provided they stick to their pricing model. Given the history of the company under prior management, I can't see current management repeating the mistakes of the past. There is good institutional support here and, with very few shares in the hands of small investors, I can see this share ticking up quickly when we get some good news on orders. IMO a strong buy at these levels.
Pretty much as expected. Net cash on balance sheet. Good level of interest from potential new customers, as the operation ramps up in Ethiopia.
I've just bought another 200k shares today @ 2.34p, although showing as a sell. I see this as a great opportunity. The company is largely debt free, has a solid supportive institutional investor in Miton, is gearing up operations for growth and has stripped out costs and old management making it a lean operation. Once Ethiopia is kitted out for expansion (we now own 100% of the operation there) we should see revenues increase. The pricing model being adopted now means that additional revenues should translate into improved profits. Strong buy IMO.
Good to see CPO prices back avove $700 on Abidjan.net again.
I presume this is Miton taking some of their dividend as shares, which is a vote of confidence from them. I'm hoping to see the interims mid Sept, as last year, followed by Q3 figures mid Oct, to keep the newsflow coming. Whilst it would be nice to have an announcement soon on Norpalm, I can imagine how difficult it may be to clear up the land ownership issues that Norpalm have in Ghana before completing the deal. Not something that will happen quickly I guess nor something to be rushed
I don't know what the AIM rules are, but most companies seem to RNS in advance, then RNS each day that shares are bought back, giving details of quantities bought and prices paid.
Mine arrived shortly after 9am, so no complaints with TD.
FK1, as you say, TD don't offer the Scrip facility, so I was unable to take it up. Still, it will be nice to have the divi cash on Monday. Have a good weekend.
Good to see the CPO prices rising again.
Still no sign of Biopalm being shown on the list of shareholders, despite being told at the AGM that this would be corrected. Disappointing.
The 150,000 shares trade @2.62p today is my buy, though it is reported as a sell. I've taken the opportunity to average down at this low price. The last RNS hit the shares, but as far as I can see it is a delay only. Once the company is set up for higher volumes, I expect a significant rebound in the share price. With a market cap of only £8m, there is plenty of upside potential here.
Philpot, my understanding is that, all being well, the dividend next year would increase by 10%. As it was 500k this year, I would expect it to be 550k next year. Anything they wish to pay out above that would probably be paid as a special dividend. The company needs to ensure that their dividend policy is sustainable, and given the expansion plans for Guitry and potential acquisitions, they may wish to put funds towards that instead at this stage of the company's development.
FK1 - good to meet with you and Rugs again yesterday. It was an interesting meeting and you have summarized it well, as usual. On Guitry, my understanding is that DKL will initially set up a nursery there, as already announced, whilst assessing how much product is likely to be available from local smallholders. A mill will be then built to accomodate the expected product from smallholders (perhaps 15,000-30,000 tonnes pa). The land can then be planted, which will take 5 years or so to produce fruits in quantity. The mill can be expanded in time. This will be an expensive process, and will require a partner. Given the ethical way in which DKL has operated, finding a suitable partner should not be a problem. The mill can be expanded in time to accomodate the increased volumes. The large area of land at Guitry, once planted, will be a very valuable asset in the event of someone looking to buy DKL. The only thing I would add to FK1s excellent summary is that the company is looking to add further storage as it is extremely beneficial in high season, allowing best prices to be obtained. The cost of adding storage is relatively small.