Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
Not so sure it counts as new blood though PJT12 as he's been on the board since January 21 as a NED. I'm not convinced his Apple experience and branding focus is what the company needs right now (more of the same?) . Hope he appoints a strong COO to get a grip of things.
The Board still can't quite seem to recognise the reality of the situation.
They still seem obsessed with resourcing a long term growth plan when the business is clearly in need of rightsizing to the realistic medium term position. A £35m hit from inflation next year including "retaining and incentivising talent throughout the organisation" - that'll be the talent that has seen the business mismanaged to its current state I assume. And I hate the weasily "where possible" added to the statement on cost savings - sounds like they are really not committed to it. And why does it take 18 months or so of sitting on an Everest sized pile of inventory to only now start significantly scaling back orders in the supply chain?
Having said that I've topped up this morning on a view (hope?) that the business will be in better shape in 3 years time and the valuation at these levels appears to offer significant upside if that does materialise. The CEO change is essential but I would have preferred a more rounded individual with growth and rightsizing experience rather than an ex Apple manager. The RNS has a feel of a kitchen sinking exercise to prepare the ground for the new CEO (why else talk about a worst case for 2025?) but we'll see. Hopefully this is the last of the warnings and they've now cratered expectations so low that they should be able to get close to them in 2025. Maybe this is the point of capitulation? They must be in play now given this morning's price fall so that should also underpin the price?
Possibly.
Trading will stabilise but I see issues with inventory (nearly a year's worth now on hand) and whether the growth cost "investment" proves to be overdone for the reality of the business.
Having said that, finally bought in this morning on a 3 year view that things should be looking healthier by then and the shares up from where they are now. Unlikely to be a smooth ride though.
I've been in here for 8 years and thankfully I'd taken profits on most of my holding in TSTL at higher levels, so no longer a significant holding but I'm more than a little hacked off by the poor market communication on the issues and decisions made by management. And the share based remuneration scheme is a joke. How can it align the management with interests of shareholders when the SBP charge equates to 40% of pre SBP operating profit in these results. Not a good optic and suggests that the Board need to take a hard look at this. As this is not a big holding I'm inclined to just sit on it and see what happens in the US but the distaste of SBP might push me over the edge.
I agree, but am a little bemused by the share price movement this morning. To me the results look like they came in at least in line with the post year end trading update and there didn't seem to be any overt negatives in the outlook. Yet the shares are down 15% at the moment. So much for efficient markets??
Price just gone back up to 290. Maybe an RNS in the morning?
Just had a closer look at the results and interestingly H2 operating profit was £51.6m compared to £56.8m in H2 2019, so not bad at all under the circumstances.
Only a shorter extension this time, so assume they are close.
Results looks reasonable. Encouraging performance in H2 and optimistic tone on the outlook suggests that the ERC writedown at H1 was a bit of a kitchen sinking exercise and there is a reasonable prospects of writebacks in the future. Strategic targets imply significant profit growth over the next 5 years, but we've all seen overly ambitious strategic targets in the past so some caution is warranted. The intended earlier resumption of dividends is a positive sign. I think that the 307.5p offer is a fair price under the circumstances, but I won't be distraught it it falls through as there may well be bigger returns available in the long term for a patient investor.
This has the feel of a combined announcement of the preliminary results and a recommended deal.
So a deadline extension and a slightly improved proposal up by 2.5p per share that is likely to be recommended. Well the Board and advisers have to demonstrate they are adding value I suppose, but 2.5p is hardly worth the effort. Another 2 weeks to see whether they can reach agreement. It feels like this might happen now.
Yes, we should know by the end of Monday, or maybe first thing with the RNS releases, whether TDR have managed to reach a deal with the board. With it going down to the wire, and no further news or rumour, my expectation is for them not to have agreed a transaction. And I can't see TDR going hostile, especially with the Aggreko deal to preoccupy them. So I expect the shares to drop back the low 200's and I'll reinvest the proceeds of my recent profit taking. I do think there is a lot of potential here for the shares to go higher in the medium term so look forward to seeing what management can do. The only thing I don't understand is why Zach Levy broke ranks and agreed an irrevocable undertaking at the proposed offer price. Unless perhaps he is on a promise from TDR? Anyway, let's see what the day brings. It will be interesting either way.
I sold about 20% of my holding at the initial announcement and will reinvest the proceeds if the price falls back if there is no deal. I am happy to to hold for the long term with the business performing well and strong growth prospects in a world awash with debt .
TDR announced an agreed offer for Aggreko this morning at a total acquisition cost in excess of £2bn. Wonder whether this might have implications as to whether the ARW deal moves forward?
OK, I thought you were looking at it from an EV perspective. But ongoing EBITDA is likely to be running at much lower levels than this year, which when you add in capitalised development costs of £4m -£5m per year means operating cashflow of maybe £2m p.a as a starting point for 2021?
Edwina
June 2020 interims cash £8.3m, debt £13.6m, net debt (excluding leases) of £5.3m. So if cash is now £11.6m then net debt is likely to be £2m.
Not wanting to rain on your parade, but H2 EBITDA will be c £3m and there is also debt that means they are in a net debt position of c£2m at present. At the moment this doesn't deserve a growth stock rating as top and bottom line are going backwards after a brief COVID boom, so its probably trading around FV at present.
How do you manage to get September/October revenue less than pre pandemic levels?
This explains the absence of trading updates recently - they had no good news to give. And what on earth is going on with all the vacancies they have been advertising?