Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
I think it is also because it is reverse takeover of a failing business, still only 8 months old and no preliminary figures on revenues and profit have been ‘shown to the market’ or analysts yet. The perfect time for us to buy in!
progressing so quickly with a global brand and with incredible partners in the right parts of the world - future financial reports should be very promising and impressive - I'm just impatient to see them! I guess the SP will remain pretty static until the financial news on new deals is released and I think we will need 2 or 3 RNSs with the facts released over a short period to really get the momentum going. The risks and downsides appear very limited to me compared to most AIM companies but the upside potential is great - The market will wake up to that with the right financial data being released. What do others think?
Completely agree. I only managed to see the interview this morning and it is hugely reassuring. The touring licences are highly profitable. The one announced yesterday is worth £350k profit per annum and if/when the licence for Japan is sold that alone would provide another profit of similar order. Just one more at the level justifies the current market cap and there is a lot more going on in addition! DC clearly sees the touring licences as the cash cow/way to bigger profits so I expect to see more tour licences signed over the coming weeks/months. The brand is very strong already, this story is just beginning.
Malcmorewine, I agree with you. The financial results themselves are meaningless with regard to the now and the future as they only cover 9 trading days of the new LVCG business. Ignoring the one off, exceptional costs of 'dealing' with ending and transferring the previous business, the operating losses for that previous business (£390k) were not as high as I anticipated. The placings in LVCG up to April will have paid for the liabilities transferred from that business so all history now. All that matters now are the prospects for the new business and the RNS regarding Bricklive Touring and the payment for the licence(s) is very promising. I am however, disappointed that the forward-looking statement didn't make reference to potential future profits so we are still having to guess how big this opportunity is. Hopefully, we wont need to wait too much longer to receive news from the company about actual trading results for LVCG post last December and an indication of future revenue/profitability targets.
Uinsionn, I so hope you are right. All the indications are that the events are being extremely well attended and are proving to be very popular. The company also appears to have fabulous connections and is well-placed in many of the right countries/growing economies. I just hope the forward-looking statement tomorrow highlights the level of revenue that LVCG can/is making from an event. By my reckoning each event has an average of 20,000 attendees. If LVCG made just £2.5 profit from each attendee (surely a very prudent estimate) that is £50k profit per event. When up and running with 60 events per year that is £3M profit before all the other revenue streams are even considered. At a sector PE ratio of 20 to 1 that would provide a Market Cap of £60M, so nearly three times that of the current valuation. If anything like that can be discerned from the statement I think LVCG gets on the radar and the market will wake up to this opportunity. GLA