The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
I couldn’t understand why contributors of this board got so excited when Perenco got involved and sold quite a bit at 4.5.
As I expected it now states in the presentation that the new operator Perenco “may propose an alternate development scenario (e.g., an FPSO/FLNG combination) that may require new technical studies prior to approval”.
This may benefit the project in the future, but will cost time and money in the near term and as such will depress the share price.
What does surprise me here is no guidance or comments from the board (unless I missed it). They previously mentioned they see the fair value at 45p but I can’t see anything like this anymore.
It is good to finally see this up and running, but the level of detail they have provided is very very light.
While we know that the yield for palm oil has increased to 21.8% from 21.3% last month, we don’t know the yield for the cashew nuts. We also don’t know what’s happening with the waste material (the outer shells). This can either be binned or other things produced from it.
An update on the certification of the palm oil production would also be nice, but all in all so far so good.
The broker's target of 9p without a target date means absolutely nothing. Firstly we don't know when it will hit 9p (maybe in 10 yrears) and, secondly, as they haven't given a target date you can't measure their expertiese and how good they are at forecasting.
Palmoil production has been an absolute disaster, even without the current low season. - In H1 2017 it was 26,947 tonnes with revenue of €19.6m. Now fast forward five years to 2022 and production has almost haved to 16,893 and revenue is stagnant at €19.7m!
The share price has been continously going down, while staff and management are being paid every month at a fixed date.
I'm happy to hold but won't be investing any more or voting to support management until anything that has previously been promised will be achieved:
- 24,000 hectares of land planted in Guitry and second CPO Mill built (as promised in 2016)
- RSPO member - certification (as promised in 2019)
- Processing 30,000tpa of RCNs (as promised in 2019)
- Third commodity as well as clean energy (I think first mentioned in 2020)
I’ve had a look at the numbers in April and came to the same conclusion (although I expected it in June).
Let’s wait and see.
I have to disagree. This update is poor and the narrative is quite irrelevant.
A good indicator how the market is rating the company and its potential is the share price and that’s been continuously going down for the last few years.
I don’t rate the broker either. They are giving a target of 9p but are not giving a timeframe. Let’s ignore the fact that the share price was previously at 12p for a moment, are we going to see 9p next week, next year or in 10 years? Totally useless!!
There is potential here, but while management and staff get paid on a monthly basis the investors have been missing out and loosing money year on year. We’re investors looking for a return and not here to give charity!
You may think we’re finally there with the cashews, but don’t forget they are already planning another commodity (probably coffee or chocolate) and also energy generation.
It could be years before you see a return or get your money back (if you’re already under water).
I don’t have any insider information, so don’t know more than anyone else, but I can’t see this going down any further.
They are doing all the right things, paying a dividend and creating valuable partnerships. Sometimes the sentiment is against you, but I can’t see any reasons why this shouldn’t go much much higher!
Be very careful when sharing personal details of any kind as this can be used for phishing.
You should never put more than 10% of your holdings in one share and only invest if you are prepared to loose it.
You win some you loose some.
I’m sorry, but are we looking at the same video?
The video I saw on Twitter shows an almost empty hall with a hand full of people in it and a few machines (which don’t seem to be in operation)?!
If we were producing microchips I would be slightly excited, but being used to Greg Wallace walking around buzzing factory floors in the agricultural and food industry I’m left VERY disappointed with those videos!
Agree with this.
It doesn’t matter what the analysts or common sense say as it can all change very quickly in agriculture.
I used to invest in an orange grower and juice producer (I actually came away with a profit). LSE listed, it all looked amazing, analysts were equally positive as they are here. Than some monsoon hit the plantations followed by the trees being hit by a virus and the whole thing was delisted within a couple of weeks.
This update is actually meaningless.
I wouldn’t call buying just over 1000t for a 5 months period a “significant increase” … let alone that it will happen over the next couple of weeks.
The palm oil production has yet to hit the full numbers that were originally stated… and now they are thinking about a third commodity and energy production??!!
There is potential here, but let’s see some results first. I won’t be investing more until I get a return on the investments I’ve made over the last 5 years!
It’s amazing that we’ve been able to achieve an 83.6% increase in average realised PKO prices, yet managed to drive the share price down.
More “jam tomorrow”, no updates on the disastrous execution of the Cashew project… but there is one certainty: issue new shares.
Very disappointed
At the moment everything slightly negative is being used to push the shares down and short sell.
I think the results were good. They’ve reduced debt by half a billion and are still paying dividends to investors. I’ve topped up. It’s an excellent buying opportunity.
I wouldn’t call this “ahead of expectations”.
As an investor I lend the company money or buy their shares and expect a return on that investment.
While management and staff gets paid and issue themselves free shares (thanks to my investment). I am at a loss and haven’t even received a dividend.
So for me big thumbs down. Very poor execution on the cashew project and poor awareness from management to reward their investors. - Yes it looks like next year may look better, but they are already planning another potential disaster with another commodity and “energy generation”.
I will be reducing my support as I can’t see any reward in the near future.
This is a very old company - they’ve raised some £900 million in total over the years. The current valuation is about £13 million so even if it goes up times 100, shareholders still won’t be made whole again.
Congratulations to everyone who bought over the last few weeks, but the only ones who’ve made money on this are the old management team.
In my opinion the whole Cashew project has been more than disappointing so far and the market is completely discounting it. - Production of Palm Oil has dropped about 40% and so has the share price.
The production requires quite a bit of equipment and requires a lot of energy. You can find the required equipment here:
https://www.shellingmachine.com/shelling-line/cashew-nut-shelling-line.html
1 ton of raw cashew nuts (RNC) can be processed into between 250-300 kg of Cashew Kernels and about 700-750 kg of the Cashew Shells.
Cashew shells are considered waste, but can be are used to produce (CNSL) cashew nut shell liquid, a raw material used in other industries.
I too would expect them to produce numbers that follow the palm oil numbers and an explanation what they are planning with the cashew shells and if Cashew Nut Shell Liquid will be produced or if it goes to landfill.