Member Info for chilting

Yes, it just proves - expect the unexpected and stay positive - a lesson for us all.

On a balance of probability it has to be said that things will end badly for existing shareholders if new equity is issued.

But that doesn't mean that it will - we could for example have ICL and Yara with their backers both wanting a slice of the action.

There is now very firm evidence that the market for polyhalite is very strong - with demand far outstripping supply to the extent where ICL don't even offer an NPK fertiliser containing polyhalite because they knew that couldn't meet demand.

All fertiliser companies will want to use polyhalite - SM may have failed to raise funds with bonds but equity partners with rich backers give many more options so the game isn't over yet.

illbetabuck
We simply don't know at the moment - its all speculation - but you make a valid point.

You need good clarity when you average down - if it isn't there forget it - but it is still an excellent way of building an investment - especially in a growth company that will by its nature be subject to dilution - but timing is critical.

Tex2374
That's assuming 50% dilution - that may be over optimistic - we simply don't know yet - that's why its not a good idea to average down yet.

Aubrey
All those factors will influence the SP going forward but I think to start with using the £1000m market cap and the dilution rate will give us a rough guide of how much SM is worth.

Appychap
Sorry, I wasn't clear - that would be where the SP went to initially as a sort of restarting point - it would hopefully move quite quickly on from there - but that would depend on if the market thought more dilution could be on the cards.

Working out where the SP will go if we get positive news is quite easy.

Based on a market cap of £1000m - as it was on August 1st - currently £209m - the SP would be 15p.

Then it is just a question of factoring in the likely dilution level - for example 50% dilution would give us an SP of 7.5P

Its a financial mess but from an operational point of view it looks like production will continue but with different operators under different ownership as companies default.

The real question though is will new wells come into production - that seems unlikely with the operators who have overstretched finances - but the big boys will continue, especially if oil supply problems start.

The fall out from this could simply be consolidation of the industry with just the big players left and a few minnows exploiting the marginal assets.

That's just the point casual hard winters are few are far between but when they do come we need the road salt - if SM could stockpile the stuff it would be there when needed to distribute around the country - absolutely vital in a hard winter.

Scotman
If SM did produce road salt that would give the country another supplier - at the moment the only suppliers are Winsford and Boulby - both produce about 50% of the countries needs so if one closed the country would be forced to import.

Maybe if SM did commit to supply a proportion of the countries supply and stock pile on Teesside the Government would be more inclined to provide loan guarantees - it would be in the national interest.

…….button is now working again.

Chrisatbirdies
Yes and the best way of relieving that pressure is to stay positive - keep the market informed - report the positives and get the SP moving up again.

No, there is a point here - it is necessary to keep shareholders informed especially when the SP is being held up by nothing other than sentiment - the last thing that we want is for the shorts to take the SP down another step.

If CF has something positive to report - even if he cannot give details - he should let the market know.

sheps
I think that CF did say that he would give some sort of progress update on the financials by the end of October?

members
I suggest you do some reading mate -

https://www.amazon.co.uk/Investing-Shares-Dummies-David-Stevenson/dp/1119962625/ref=pd_sim_14_1/260-4424718-9102359?_encoding=UTF8&pd_rd_i=1119962625&pd_rd_r=5810d64b-54d3-48f4-add6-5e492460f9c6&pd_rd_w=kFY9o&pd_rd_wg=ICC8e&pf_rd_p=e323aefa-0fb8-4e75-9bef-479c25fd70eb&pf_rd_r=QBR2WHS1G6VVKH357CQR&psc=1&refRID=QBR2WHS1G6VVKH357CQR

Sorry - ignore the bit about being below par - I was reading the data wrong - Zinador 22L is better than the go to product - so I guess Zinador 35L must be even better at controlling odor.

There is a lot of info about Zinador 22L on the Croda website - link below - they measure its performance against the go to chemical for odor control, it comes out a bit below par - so I guess the new formulation Zinador 35L improves on that - John Shaw talks about the product gaining recognition in this mornings RNS.

https://www.crodahomecare.com/en-gb/products-and-applications/product-finder/product/2618/Zinador_1_22L?pageEvent=db1bc698-5c30-4be7-b130-0e2b5fb5b7d7

A fantastic endorsement of faith in Itaconix from one of our leading FTSE100 companies.

Load 47 - the one before last - is now heading towards the Suez Canal.