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backwoodsman, crikey...40 cm diameter is not very big - with a little algebra (maybe i'm not bang on here) gives a max square of around 25cm x 25cm x 4m height = 0.25m3 per tree of 4m.....and there is not a cat in hells chance you would get anywhere close to a full 25cm square of usable timber from a 40cm diameter tree....so say recovery is a generous 50% (its going to be much more like 15-25%). that means there are 8 trees per m3 of sawn timber using trees 4m high. 150,000 m3 is a HUGE amount of actual trees being cut down...there is no way round it - you are utterly delusional if you think this isnt mass deforestation. I cant see obtala doign a proper replacement job - if they did it would cost hundreds of thousands of pounds each year - maybe a million or two, would be interested to see what this does to profits. i have no idea you get to 10 trees for 5m3 - its nowhere near that - but even at your rate obtala aren't even planting 10% of what they should be to replace the trees - at my calcs its way less than 1%...even assuming all seeds germinate and grow to maturity - i suspect those seeds actually equate to something like 0.05% of replanting ie next to nothing... I suppose you might be that type that worries about poachers hunting elephants for ivory or rhinos being killed for horns, or maybe plastics in the oceans - what is being done here isnt much better - its destroying precious habitats for large and small fauna and fragile ecosystems. If you are fine investing in something that is blatantly destroying the planet for the sake of a few quid, go for it. but please don't pat yourself on the back when you give to charity or pity distressed wildlife or take your reusable bag to the shops....
Backwoodsman, Page 22 says absolutely nothing (much like the rest of the presentation), its just waffle. if that gives you confidence - god help your decision making. you and whoever recommended you are utterly delusional. Let me explain... To process the amount of timber they are talking about, will mean decimation of fragile ecosystems. Obtala have talked about planting 10,000 seeds - whoopee! Annual cut is 150,000m3 acording to slide 3. Perhaps you need to be educated a little on forestry? to extract a single m3 of timber (which might come from felling 2-5 large trees), you need to access the tree (they don't all stand together), which means felling more trees. Also chopping trees down kills other trees as they fall. Then this development opens the forest for more development (which cuts more trees)... and Obtala is planting 10,000 seeds - a large proportion wont germinate, and most wont survive, whilst the remainder will take decades to get to a point where they look anything like proper trees. i would guess obtala ought to be planting something like half a million SAPLINGS, each year if they really were worried about the forests and doing this sustainably the irony of the content in slide 22 following slide 21....where it states african forests are being decimated - perhaps a good way of reducing that decimation, might be to stop commercial forestry on the scale Obtala is talking about? 10,000 seeds is barely a drop in the ocean. make no mistake if you are investing in Obtala, YOU ARE investing in mass deforestation of some of the worlds most fragile forests...don't kid yourself on anything else.
"Before this however it can be turned in to even more profitable veneer... " Do you actually know how be veneers are produced? Or even how export grade timber is produced...and sold? I'm guessing not by your comments. I'd stop trying to pull the wool over peoples eyes. As for 10k seeds(!) that's not a lot/next to nothing...given the land area they are harvesting... As for changing plans, on the agri side it changes every season...each year nothing gets produced. But these aren't the main reasons for staying clear...the corporate financing structure is a massive red flag
Note its 3500m3 of timber PRODUCED not sold. you have to hope that they are getting a lot lot more than $350/m3 - the licences and production costs will be much more than that - especially given the poor recovery. I hope they are replanting those slow growing hardwoods 11,000m3 is a vast amount of trees - my guess is they are doing ZERO/close to ZERO replanting....wait for the NGO's to take notice! this is definitely a baregpole stock - and thats without any environmental pressures. They keep changing plans and haven't produced anything in years despite loads of promises and investment....that and the very odd/complicated investment structure - they clearly can't cover those loans with revenue (let alone profit) - my 5 year old could see this. As for the mou - its very very easy to get an mou with an african government - its just more smoke and mirrors
Lets hope they have a blockchain angle to the new investment :-) so we can get the shareprice up to something approaching breakeven (for me at least). anyone know when they need to make a decision on investment, before woodford et al get their money back (im assuming i wont get mine back)? or have i missed something and investments are already decided
Thelix, you are very much mistaken if you think Woodford had no control...he would have been heavily involved in the decision to separate this out...him and another major shareholder, given their stakes. He might not have been a NED himself or consultant and could have been taking a light touch until he needed to..which is now. That money belongs to shareholders (ie the major shareholders) not the BOD, an investment will be found and if the BOD aren't right for that investment then the BOD will be changed. Personally I think this is a good move and not at all a surprise.
Surely this is now valued less than cash???
I have read the report......the discount rate is way to low for the risks, hardman also shows the impact of small changes in discount factors - demonstrating currently over valued....
good grief dr space, i think you are getting ahead of yourself or maybe smoking a bit of the funny stuff...could this double or even treble, certainly....will this become a multi-billion pound company when all it is doing is re-formulating existing drugs...highly unlikely.
why would you expect an rns?....its the off season for cutting in mozambique and its the dry season for growing in tanzania....not that anything has been done in tanzania to date anyway.... ie nothing is being done in the company right now
I'd be very surprised if there wasn't a deal with someone one way or another in 2017...either bought or buying someone else. The former will have the opposite effect on the short term sp as the other.
MTB...Yes it could go pear shaped, but personally I think this is a shrewd move....and I don’t see Mothae is/was a gamble worth taking – its not greed its business sense. “Alternatively the lender has the option to convert the outstanding loan into ordinary shares of the Company at the lower of 5.22p, being the average share price on 17 June 2015 when the loan was issued, and 90% of the prevailing market price on the day that the loan is converted.” so if I was “the lender” I’d be walking the shareprice down as much as possible prior to the 23rd November so that I could convert as many shares as possible for £600k – if PM gets the funding away I’d be thankful that he hasn’t diluted you (and him) any further....if no funding is raised no one will be sorrier than the board of directors....they have skin in the game, unlike a lot of aim companies time is tight though, not sure how long they can hold the suspense for...
I'd missed that small piece of news ;) not funding for sure then - agree this looks like a retrace back to placing, have reinvested my cash this morning having sold my lot a few weeks ago....fingers crossed that the impending news won't be dire!
Does this smell like a fundraising - signpost positive news as the sp falls?
So you lost money here. Why does that make it a bad company? I reiterate it's got twice as much cash as the mkt cap, agrred there may be some CL's but I'd guess if everything closed they would be a cash rich cash shell at worst....
I declare I have a tiny holding in sterling, not really worth trading. I know the management haven't delivered and have it dirt on drilling, but all the same it's an oily which is debt free, and with 80m gbp cash on the balance sheet yet a mkt cap of less than half that....wonderful world of oil investments!
Anyone out there think Entu could be a takeover target?
If the directors don't fancy it with all their knowledge about what's actually going on (rather than company rns smoke and mirrors) then I don't either. Could of course be his last chance to sell (maybe because others news coming) and he needed the cash for something else, but I don't view it as positive....
Doesn't look great....quite a lot not going well!
iknowheehaw, I too sense that you might be doing a little bit of ramping....on what planet is this a massive buy? there are too many poison pills to make this a serious takeover approach and anyway if its taken over I very much doubt shareholders will get anything - who would be stupid enough to take this crop of rubbish with contingent liabilities and pay the shareholders a premium for it....mark my words, the cash will be run down then it will be delisted, leaving shareholders (of which I have been one in the past....) with nothing....enjoy your fun, but don't try and get anyone else mixed up in this. I suspect you may have been let out in day release....time to get back inside I think, either that you or perhaps you are one of Myerson legitimate/illegitimate spawn hoping to save what's left of the silver spoon.....