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The claim that gilts have no capital risk is only true if you hold to maturity. Prices will move with interest rates so you will see volatility in the capital values and I would not be surprised if these had fallen as much as PHNX over the past few months. Shorter term gilt yields tend to track closer to BoE base rates (ie less than 5%)

27.7% return (04/01/24-18/12/24) on the 2024 small cap picks.

Plus500, i3 Energy, Fidelity Special Values, Christie and MJ Gleeson

Hornblower, the defined benefit business liability will be hedged like other liabilities and this will include inflation hedging so there is no obvious windfall here. Real yields may rise but LGEN hold index-linked assets so the asset will fall broadly in line with the liabilities.

Perhaps the market felt the price was a little high for the acquisition despite the positive trading update. I think this is as good a time as any to add to my holding.

I just took a little slice of profit. Still a capital loss based on average price but a tidy gain on my last purchase at 3.6.

"Wind farms slow down the rotation of the earth such that soon, there will be no gravity, and we will all be ejected into space !"

Someone clearly wasn't paying attention during Physics.

Am I to assume people are here to talk politics rather than matters relating to LGEN? Surely there are better places to wage culture wars or fight other political battles than here - where it is largely irrelevant.

How is reducing carbon output, woke? I think you are confusing two different things

It will be nice to see the flow diagram that was mooted at the last investor meet because I can't quite reconcile the current 6.5-7kt p.a. processing at Sable to the 8.5kt p.m. of high grade 2.5% material from Munkoyo. There must be more coming from elsewhere and some of it must be new because it doesn't match the HY1 production figures of only 1.5t in a period where production was unaffected by the electricity problems.

Whatever my problems are in understanding the mechanisms that underlie the financials, there is still plenty of copper accessible in them there hills. And we aren't even talking about the development of the leeching process that will bring into play another 430tpm of copper from the low-grade material at Munkoyo alone.

Easy to see why the market liked the update. Hard to see what it is still somewhat blind to the potential

Almost all of the yield increases we're seeing here are imported from the US (inflation and rising debt) - though markets do have concerns with the UK debt situation too. But I don't know if the problem at the longer end of the gilts curve is likely to be driven by international investors - would have thought all those bonds were held by pension schemes and insurance companies. Base rates are another matter entirely and there appears to be more scope in the UK for reductions here - but they don't materially affect the valuation of a company like LGEN.

Not that the price drop should worry LGEN investors who generally buy the stock for the dividend. Dividends are driven by cashflow which may even have improved here with higher long term due to the way LGEN hedge their liabilities. Higher yields reduce the capital requirements which ought to allow an accelerated cash generation

There's an Investor Meet presentation next Wednesday at 5pm.

Wouldn't a more appropriate analogy be trying to catch a falling sausage roll - could still get burnt. But you'll need to elaborate on why GRG should be trading on a PE of 14 rather than just dropping that number into the conversation. For a quality stock like GRG, I would see them comfortably able to support a forward PE ratio approaching 20x.

The current price is looking very tempting but I won't bite just yet. I'll sit on my current holding and give myself a weekend to look at the valuation metrics.

From what I can make out it's a big gain on paper but they are replacing a fairly liquid holding with a share of a private company so won't be cash generating and I think they are getting non-voting shares which ought to be worth less than the voting shares.

Unless I see anything to demonstrate some extra value generated here, this may not translate into any SP impact - just an increase in the NAV discount.

Felt this was as good a time as any to go a little overweight here. I may end up keeping them but more likely will keep a few out of any profits.

May 2025 were Melissa's words in her November presentation. You posted the link on p4

I'd agree. Unless there are problems with the Snaitech deal and the impending dividend this looks like an exceptional price to be buy a stock that will be paying 65-70% of market cap as dividend during Q2.

I need to research the drive-thru market. Are we talking major route or edge-of-town sites? The drive-thru market seems to work in the US but in the UK we tend towards service areas for drivers needing to stock up on calories.

For some background, this is a spin-off from TEK capital and you'll get a much more conflicted view from those boards. In short, the risk here is all around capital raising and other share awards. A familiar problem in micro-caps but best to put it out there now.

As a spin off it had a bit of a running start since it was operating within the TEK umbrella before it launched in September so started as a revenue generating company. But in the limited information we have to date, they are showing growing revenues and expect to be profitable by May. The presentation on their website is worth a peruse. The first accounts they produce will be a major event as we still know little about their cost base.

Be careful with quoting figures as all their numbers are in dollars. And when they say they will be profitable by May, that still means they are currently burning cash but expecting to be profitable for FY25. Right now we are in more speculative territory but once there is a profit, you can start to adopt more traditional valuation method like PE ratios. Your own estimate is within my 48-240p range which looks prudent set against that of the 240-2600p range of UK investor magazine and while I take their prediction with a pinch of salt, I expect mine covers 60% of possible outcomes and theirs the top 20%.

And barely noticed but we have now reached the pre-div price from June last year. That's a 15% return in less than 7 months!!