Member Info for DamayHill

Can anybody enlighten me as to what alternative news it was that some people were expecting?!

It could well be 3p in shorter order but just to reflect here that 3p at year end would still be a really good position because of the things that would need to be true in order for that to be the case (many of which are still unknowns until we receive further news). The SP only hit such lows because a terminal outcome looked by far and away the most likely one, not because it represented the value of the business. A £40m MC (3p) would still not recognise the value of the business but would signal a significant step away from a terminal outcome. If eight months ago you'd said 3p by end of 2025 without a further raise I'd have absolutely bitten your hand off.

The more time elapses, the likelier it feels as though one of these offers is being negotiated and finalised to present to shareholders. I must say, given that this is currently at c.10% below the midpoint between these two offers, if I was a trader (which I'm not) the prospect of a quick 10%+ return on some of my capital would make this of significant interest!

You've been invested for eight months in a micro-cap, exploration and development, natural resources company and you are growing impatient?! It never ceases to amaze me what an absurdly short investment horizon some people have. I think the place you were looking for was a high street bookie, buddy. Nobody should be in this that doesn't have a high risk appetite and horizon of several years. That doesn't mean things won't or can't happen sooner in terms of SP action - they may well - but eight months, seriously!

Plan A was that the ramp up in production coupled with the increased capacity was supposed to generate enough free cashflow for further growth to be self funding, but as we know that has not gone at all to plan. What we suspect but don't know yet is whether there has been a significant breakthrough in production at scale or what longer term arrangements with OEMs have been reached. However, I think we can be confident that a placing is not imminently on the cards based on recent significant insider share purchases. If we are beginning to get back on track with production at scale/scrappage and the pre-payment arrangements with OEMs remain in place, then it may be possible to rely on cash generation and avoid further placings but that would surely be contingent on no further significant reversals. Lots of moving parts at the moment.

That guy this morning PROMISED us this would be a 100%+ day. He PROMISED. He turned up and he had so much to say for himself and to teach us all and he really seemed to know what he was talking about and he was definitely sure and then he just suddenly disappeared and I'm worried we'll never hear from him again. Has this ever happened before???

Thanks 30silver, your candour and insight have been really helpful here - very best of luck to you. Is that you pulling us back now! :)

Totally agree LegendRackers. When you see new posters arrive out of the blue spewing uninformed garbage and trying to school everybody, that's when you start worrying! Poster will disappear within days if not hours. Quick return. Each to their own. In the meantime, it's extremely tedious.

Dunk_Biscuit, you're absolutely right that this is a superior product to the competitor product, hence why major OEMs had begun to award eight and nine-figure contracts. However, for longer term shareholders such as myself the road since those awards has been excruciating, both on the manufacturing at scale (which is explicable but nonetheless poorly handled) and the management of cash/ rapid dilution (which has been disastrous). With respect, I'm not sure the words 'great achievement' should appear next to SCE for some considerable time yet.

Where I do agree is that if they can perform an escape from a terminal outcome here and return gradually to health, it will have been a minor miracle and in all honesty not one I saw coming. It speaks volumes for the quality of the product but also the investment from that goes into OEMs selecting the product in the first place. To abandon their decisions would be incredibly costly and disruptive to them with many knock-on implications.

Don't get me wrong, I desperately want to see SCE succeed and I continue to hold a retirement-enabling number of shares but you should not underestimate the ineptitude with which the Board (some past, some present) have handled the last three years or so. I'm sure the next RNS (surely in the next fortnight) will be illuminating.

Thanks latentvalue, great insight and appreciate you sharing. I must confess that as a shareholder here for about six years, I didn't really see recovery on the cards before the revised terms were agreed with OEMs and even then it felt like a stay of execution. If those revised terms are now coupled with a significant improvement in production and yields then we might yet get out of the woods. Certainly the visible signals could hardly be more positive at the moment, It will be a fairly lengthy road back - perhaps 3-4 years of consistent output to stabilise the cash position - but I hope that most here took a long-term view anyway. We will be more reliant than ever on the sheer quality of the product in terms of winning future major contracts. The OEMs have played ball because though they may like the product, it was frankly more expensive and disruptive to their own procurement and manufacturing processes to switch horses. What damage has been done reputationally remains to be seen.

In terms of pure SP, the recent and current levels are of course reflective of the near terminal situation and also of distressed placings. If - and it remains an if - they can demonstrate that manufacturing progress is really material, plus the cash position is manageable, plus the increased production capacity is available, then I could see this returning to a MC of £40-60m over a matter of months, which would equate to around 3.5-5p. Even 3p by Christmas and continued momentum, I'd certainly take that.

'A180 he is not who he claims to be! If he was, he would not be on this BB!'

Sandyman, I'm afraid your assumption that an investor with something valuable and relevant to say would not use this site says more about you and your expectations of this forum than it does about anybody else.

Head firmly in hands - you do understand the fundamental relationship between their production issues (cost/volume) and billable revenue? You have made a fool of yourself and you're embarrassed, so you're now desperately trying to find an angle where your narrative has any credibility whatsoever. I get it.

The lesson here for me is that if you ever think the quality of thinking and discourse on here can't possibly get any lower, think again because it always can, it usually does and right now it's called Johnnyy.

Keep an eye out for news of those infamous six-figure military contracts they spend a fortune on procurement for, folks!

Pitiful.

You're embarrassing yourself buddy. You heard it hear folks, Johnnyy is insistent that SCE has a secret number of military contracts, knowledge of which it is withholding from shareholders and revenue from which is so minute that it fails to extricate SCE from it's acute cash crisis. I'm literally cringing on his behalf.

Is that a serious question? How do I know that this completely cash-strapped company which was quite open about its efforts for military applications doesn't have ongoing, long term, highly lucrative contracts with military that it has in more recent years chosen to be completely secretive about? I guess in the same way I know that the earth isn't flat. Apart from being quite painfully obvious that they don't, why on earth would they not disclose long-term, lucrative contracts to the market, like any other successful and reputable defence contractor? Utter nonsense.

Short answer is it's certainly heading in the right direction and appears to be being managed well. Was £87M at end of 2021/22 and I believe the latest figure was about £52M.

No, that's not the case Johnnyy

There was a time - and we're going back 20 years - that SCE had some nascent partnerships with military (eg wide-bodied aircraft with Dunlop Aerospace, MBDA missile manufacturer). From memory, the R&D/procurement processes were just too lengthy and the company decided to focus on automotive as they were getting actual traction (forgive the pun) with customer such as Weber and Koenigsegg.

404x, I'm not intending to be rude. Your post (as I read it) insinuates that there is no material difference between the CSE product and the Brembo product, which is patently untrue and should be known to anybody who is either invested and/or expressing strong opinions. Apologies if I misconstrued that insinuation. I'm not clear what truths I am supposed to be twisting. The SCE product is superior due to the quite different manufacturing principles and processes. That that the company have been utterly unable to demonstrate that they can manufacture at scale, doesn't make the fact any less true! Believe me, I am no apologist for this Board/Executive, which has done an appalling job.

404x, and if you're invested here hopefully YOU'RE able to outline the differences between the SCE product and the Brembo product because they're pretty well publicised and the superiority of the SCE product is well-established. Does anybody do any research for themselves before making an investment? It's astonishing and depressing quite how little some vocal people on here appear to know about the company or the product...

100% agree with what guitarsolo has said in response. I'm sorry Latino, but if you are going to post, please at least educate yourself about the facts (eg restricted purpose of the loan for Capex, 'new' CEO). It's a bit embarrassing to be honest.