Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
The presentation posted yesterday indicated 88% increase on revenue for Q1. Whilst not quite triple digit growth, not far away. If the broker forecast out of sync with what is actually going to be achieved then we will be told soon enough. I personally would like to see a business segment revenues each quarter however it tends to be only large corps who provide this detail. The H1 figures for me will be useful in providing reassurance that all is well. It is disappointing that the SP is where it is however a lot of the decline is market sentiment due to Ukraine war, inflation and recession fears rather than with DVRG performance. I personally still think DVRG will deliver a significant profit on my investment but do understand why some have reservations in these precarious times!
Will we not get an RNS if it is Helium selling like we did before!
NU had a look at your sums earlier today so at the end of year 5 DVRG could potentially be generating $14.4m cash per month from 12,000 units in place or $178.2m per annum. Not an insignificant sum! Had a look at BAE systems accounting policies re lessor leases and my interpretation is if its an operating lease the income is recognised on a straight line basis, whilst if its a finance lease the value of the asset (the kit) less financing cost is recognised in year lease commences. This is my interpretation so maybe wrong. What is clear is that significant revenues that could being generated annually if production capacity utilised fully. The questions outstanding are what will be the utilisation and what are the margins! Maybe I am being overly optimistic or not understanding the model!
NU yes I understand the RNS. It tells us the payment or cash flow schedule, it does not tell us what the accounting treatment for the income is in year 1, 2 etc. As I said I am no expert in lease arrangements, so you may well be right but we do not know what type of leases are being proposed or how they will be funded, e.g. from cashflow or via a 3rd party. Leasing is a complicated business both for lessor and leasee and further info when available will be helpful.
The recognition of lessor income from a asset sale via a lease depends on the type of lease being provided. I would suspect that DVRG will be offering manufacturing leases which if I recall does allow recognition of some of the asset sale income at start of lease. It is a complicated area and I am no expert but it would be good to understand what type of leasing arrangements are being proposed? Peoples thoughts welcome.
£7m per Finncap update.
The potential sale value for CD4 will be interesting if they get anywhere near the book value. We will know soon enough as sale predicted early summer.
I have seen no daily trades in ODX, pre covid which is where we are now. CD4 can be very profitable in future I for one hope they do not sell it.
"The Alva site generated a £4.9m loss in the nine months to 31 December 2021." From March this loss will have been significantly reduced as will cash burn. It is not clear what the profit/loss is for LFT production will be going forward as yet.
FUD meaning in other parts of UK is a perhaps more appropriate!
Odx still have use of the Alva site until Dec for making LFT's, mainly for CD4 I suspect but you never know.
Quote from consultation launched on Thursday.
"Complete separation of sewage and rainwater systems would remove the need for storm overflows, however this would cost between £350 billion and £600 billion. It would also cause significant disruption.
For example, most of the combined system runs under our towns and cities and would have to be dug up. Reducing discharges to zero in an average year at all inland waters using other options, such as building storage tanks to capture excess water during heavy rainfall, would cost between £160bn and £240bn. The cost of each of these options would have an impact on consumer water bills."
The numbers are eye watering! I seriously hope this will not be fudged, as the increased rainfall predicted due to global warming will result in a significant risk to public health if the issue is not addressed. The role of monitoring water quality will be essential to determine investment priorities, enter stage left DVRG!
Wonder if he will fund ODX again! Stranger things have happened.
Slide 10 clearly says for post pandemic.
The government encouraged the UK diagnostics industry to expand capacity with the lure of large contracts. Remember the RTC, the expensive government loaned equipment and loans the £2m to support resource expansion. As a consequence ODX took the government at face value during a period of national crisis and created manufacturing capacity well beyond what was required for CD4 and any covid sales. That is why the Alva site needed to be disposed of asap. Now you can apportion blame on ODX BoD for being gullible in believing the UK government but imv the UK government have not behaved well in this affair!
Ragnarr the apple pancake recipe sounds good, I would add a bit of cinnamon or ginger powder topped with maple syrup, may have some for my breakfast tomorrow!
A whole day spent discussing a tender award. Yesterday it was where has the £10m gone. Day before was the cost of the funding to support growth being expensive! It's boring and shows agendas. What I want to know is, what does GB have for breakfast each day, via a RNS preferably, so I am kept completely up to date with daily developments, as an addendum any bowel movements appreciated!
Seemo DVRG yahoo historical data gives you the daily/weekly/monthly trade volumes. Does not distinguish between buys/sells. I reckon about a (roughly) quarter to a third of shares have been traded in last year.