Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
Hi Gavster-NBC; hope you, your investments are well.
I don' doubt they have the (dividend amount) $42m, and they way I see the structure, that $42m will cover the tender, so they don't need a dime more. Which is probably the reason for the tender.
Looking forward to the accounts. The hedges (bar a haircut on the small oil) should show a big profit.
I don't think they have spare cash at hand, but that doesn't mean they are struggling. The repayment conditions of the ABS' constrain them. Perversely, I think DEC could actually be profiting disproportionately from their hedges at such low spot prices, as they will be paying less in royalties to right holders. The flip of course of the ABS excess cashflow requirements is that the debt, and cost of such, should be reducing, which for those with a long term view will deliver a bounty (on/against DEC's projections).
Lochnivarlass; your simple humble opinion is correct (I hope!!!) that they have $42m in cash for the dividend. But that doesn't mean they have more than that, and if they could, at least 50% of such gets absorbed in extra ABS payments.
Maybe they don't have much left after the dividend, for buybacks as well.
Tiburn; ha ha very good! And you are probably right.
Hasn't moved my attention on - just focused it in. When something 'is' too clever by half, I invariably ask why?
And this tender is, and I am.
On a more positive note, there should be a whopping IFRS profit in the update, which will concentrate/confuse the comments all over again.
Oh what a merry go round DEC is. Never boring. Never simple, and me, never complacent.
Aceofclubs; totally agree. I've always felt the much lauded asset sale was actually necessitated from a point of weakness.
But if the plan is on track, reduced production/income should be offset by reduced debt costs. We shall see!
The pragmatic thing to do would be to maintain the dividend. Many people here aren't receiving a yield of 25%, they are getting c11% because of the SP drop. To reward investors, for what is a non conventional investment that is a fair return,less wouldn't be. I also believe a financial performance warranted increase wouldn't be appropriate - use that cash to either join duce debt (RCF) or as cash at hand, both of which will positively impact sentiment (hence SP) far greater than a divgy increase.
If the dividend is reduced, the SP will sink titanically (it's hardly been a cruise lately), not because of the shorters, or the neersayers, or the pragmatists like me, but because to do so would destroy one of the tenets of DECs proposition, and highlight that it's other tenets, (manage/leverage debt, maximise/elongated production, protect pricing through volatility) are falling short.
"Can someone set up a crowdfund for the poor shorters?"
You? Out of your profits?
I really don't understand the preponderance of interest/vitriol to shorters here, which has dragged the quality of this board down. Shorters like longs, have one purpose to make money. I don' get this fixation with shorters as the bogeyman. If, as a long, you are right, they will lose and you will win. Simples.
And if the fundamentals that you invested in are true, they are wrong, so why the concern, why the preoccupation, why the negativity.
If you believe the fundamentals will out, you don't need to shout, don't need to find a bogeyman to help you out. Just hold, and forget about.
Ps - the SP is above the date of the short attack, so not sure they are the bogeyman.
Dps1329; thanks your post.
'strategic' buybacks aside, the key for me is BGEO buybacks - where they continue CGEO's will, just as a function of maintaining their stated hold level. I feel no BGEO buybacks = no CGEO buybacks -.at least until the debt is cleared/ minimised.
Wow, this company makes money on every angle.... I'll buyback shares at at a discount to NAV to be accretive, then I'll sell due to demand the shares I just bought at 55c for 57.5c, whilst reaffirming buyback plan (rinse, repeat?).
The gift that keeps on giving
Neil777;
"The next results all point to being positive and is oversold due to that ridiculous 'short' report that was totally refuted by the management".
This statement suggests they weren't oversold before. I'd you believe in DEC, the assertion that a short report caused overselling, particularly in view of the SP at the time of publication and today's, is frankly ludicrous.
Are you suggesting they were fair value and not oversold prior to the short report?
Ethical; agree your points on BGEO and CGEO both of which I hold.
Whilst BGEO is a dominant fish in a small pond, ergo how much can they 'grow' there, I see this purchase as BGEO leveraging their capabilities into being a regional powerhouse, and as such there is more growth to come from BGEO.
The growth/crystallisation of value in CGEO will, in my opinion, be greater ithan BGEO's in the interim, because their other holdings are so unappeciated (currently). Holdings that I calculate back of an envelope style, EXCLUDING BGEO 's contribution, are already yielding the equivalent of around a 6% dividend
My strong opinion is that the pharmacy arm will be floated/spun out in the next 18 months, and like BGEO they will retain a large stake. Ultimately, I see CGEO morphing from a private equity style house into an investment trust, holding sizeable influencing holdings in a plethora of companies.
Both have been great to me, and both have more to offer. I for one, am also heavy Georgia, but I will remain so, as Georgia is not on my mind, Georgia, to me, has been kind.
Geochem; I hope you are right on the divvy range, albeit I feel it'll be around 75p, which I'm happy with, as I'm here for the long term. The investor presentation, an an analysts question on the free cash flow, seemed to flummox them, in particular to the Cos stated free cashflow to dividends policy, which suggested (due to project costs), such would reduce the dividend considerably.
The recent farm outs, and their proportional repaying of proceeding project costs may get us nearer to your projection. Either way we are cash generative whilst growing tomorrow's profits (dividends).