Stephan Bernstein, CEO of GreenRoc, details the PFS results for the new graphite processing plant. Watch the video here.
NOFEAR if you're interested in On Exchange vs Off Book, these charts may interest you:
https://docs.google.com/spreadsheets/d/e/2PACX-1vQ49B8X4hFFdtXb6WUx45CDRcgMt5FBglgZCFc5UnApKRpOX8cznaVjvfKeIWdC6xr70q5wCbdhpFe7/pubchart?oid=570999884&format=interactive
https://docs.google.com/spreadsheets/d/e/2PACX-1vQ49B8X4hFFdtXb6WUx45CDRcgMt5FBglgZCFc5UnApKRpOX8cznaVjvfKeIWdC6xr70q5wCbdhpFe7/pubchart?oid=2070430100&format=interactive
Total Voting Rights show an increase of 3,410,113 for February 2024
https://docs.google.com/spreadsheets/d/e/2PACX-1vS0oSavIsBjHgD7k6NMyk7Z591Cm2IrevvLI-Jq95gOmESrOI0Vi_NhA8LIO9rMz90Y5zCOCoFuEItG/pubchart?oid=1812824850&format=interactive
https://docs.google.com/spreadsheets/d/e/2PACX-1vS0oSavIsBjHgD7k6NMyk7Z591Cm2IrevvLI-Jq95gOmESrOI0Vi_NhA8LIO9rMz90Y5zCOCoFuEItG/pubchart?oid=1451011517&format=interactive
As far as I'm concerned it didn't matter who the new CEO was; As long as they keep to the current strategy, which I believe to be correct. BT don't need a big personality, they need someone who'll maintain the current heading full steam ahead. The market has pushed Telecoms into the bargain basket for its own reasons, a lot of potential CEO's, with over inflated opinions of themselves, will shy away from Telecom companies for that reason.
Https://investors.vodafone.com/sites/vodafone-ir/files/2023-11/Vodafone-H1%20FY24-Results-Announcement.pdf
"Net debt increased by €2.9 billion to €36.2 billion (€33.4 billion as at 31 March 2023). This was primarily driven by the free cash outflow of €2.0 billion and equity dividends of €1.2 billion.
Current liquidity, which includes cash and equivalents and short-term investments, is €11.2 billion (€16.0 billion as at 31 March 2023). This includes €3.8 billion of net collateral which has been posted to Vodafone from counterparties as a result of positive mark-to-market movements on derivative instruments(€4.6 billion as at 31 March 2023)."
There's no way Vodafone would agree to 100p to 105p, it dramatically undervalues the company. Any entity would have to bid in the region of £2 to come close to being taken seriously. If the sale of Spain and Italy goes through, it would likely bring the Net Debt figure down to around €20 Billion. Vodacom is worth around €9.5 Billion, with Vodafone's share of that being around €6.1 Billion, then you have all the other parts like the Germany, UK, Turkey, Vantage Tower shareholding and other bits like Mpesa, etc, and that's just off the top of my head. Even £2 a share seems cheap to me.
The Net Debt figure will drop simply as a result of holding more cash on the balance sheet
This is where things currently stands according to Vodafone's Bonds outstanding (EU and US) page:
https://investors.vodafone.com/debt-investors/bonds-outstanding-eu-and-us
https://docs.google.com/spreadsheets/d/e/2PACX-1vRA1ndHTf_Bz7O_moDxmcbWnEtcusZucUu6lEJvm3O4mGooeH4ErFjRqot3RQHBaVXCgoUED1k2CUVK/pubchart?oid=17624073&format=interactive
https://docs.google.com/spreadsheets/d/e/2PACX-1vRA1ndHTf_Bz7O_moDxmcbWnEtcusZucUu6lEJvm3O4mGooeH4ErFjRqot3RQHBaVXCgoUED1k2CUVK/pubchart?oid=1681133451&format=interactive
Something else to consider is that Vodafone transferred Vodafone Italy's Towers into INWIT around 2019/20, and subsequently transferred their INWIT shareholding into Vantage Towers; So the Vodafone Italy sale shouldn't include any Tower assets if I'm understanding things correctly.
Https://www.lse.co.uk/ShareShortPositions.html?shareprice=VOD&share=Vodafone
"If i had to guess I'd say about 2b Eur, UK is 2.5b but Italy is 2/3 of the size"
Beo no doubt you have a far greater in depth understanding of accounts than I do, but are you overcomplicating something that's simple. Does Italy have any Financial Debt? Because I can't see anything in Vodafone's documentation mentioning any Financial Debt in respect of Italy, with all the Debt accounted for at Group level within the Free Cash Flow calculation.
Italy will have Liabilities, like leases, but they will transfer with the business along with things like Spectrum licences. Is it not reasonable to assume that Vodafone will receive €8 Billion in cash, keep hold of any debt at Group level and Swisscom will take ownership of any Liabilities directly associated with the Italian business onto their books?
In the RNS it says the deal will go through on a "debt and cash free basis ", so I assume Vodafone wont transfer any debt onto the Italian business as part of the deal, and Vodafone will receive any outstanding cash on the balance sheet when the deal closes; So Vodafone will receive sale cash of €8 Billion plus whatever cash may be sitting on the Italian business balance sheet when the deal goes through; With any liabilities, like leases, then becoming the responsibility of Swisscom.
Does that make sense?
Beo looking at the segmental results and analysis, they don't appear to allocate Debt to specific businesses within the group, at least I couldn't find any reference to it. Vodafone appear to account for their debt in the Group Cash Flow statement, so Vodafone will receive the full amount under this deal and any debt will likely be accounted for elsewhere.
The Dark Side of the Force is working hard to keep Vodafone's stock price down this morning.
https://www.youtube.com/watch?v=BOUWrW1ZsTE
Continued:
"Estimates are based on discounted cash outflows and do not reflect the likely and significant impact of cash inflows generated from the disposal, repurposing or subleasing of properties retained post-2031.
We are permitted to hand a limited number of properties back to the lessor prior to 2031. On initial adoption of IFRS 16 we were not reasonably certain which properties would be handed back and as such the lease term did not reflect the exercise of these options. Subsequently we exercise judgement in identifying significant events that trigger reassessment of our initial conclusion. We exercise similar judgement in identifying events triggering reassessment of whether we are reasonably certain we will not exercise termination options associated with other leased properties.
In doing so we consider decisions associated with our ongoing workplace rationalisation programme, in particular decisions to exit a particular location or lease an alternative property. Generally we remain reasonably certain that we will not exercise a termination option until implementation of the associated business plan has progressed to a stage that we are committed to exiting the property. At that point we reassess the lease term by reference to the time we expect to remain in occupation of the property and any notice period associated with exercise of the option"
https://www.bt.com/bt-plc/assets/documents/investors/financial-reporting-and-news/annual-reports/2023/2023-bt-group-plc-annual-report.pdf
In the 2002 Annual Report BT said; "In December 2001, as part of a wider property outsourcing arrangement, BT completed the sale and leaseback of the majority of its UK properties to Telereal"
They also said; ". BT has leased the properties back at a total annual rental commencing at £190 million and subject to a 3% annual increase. In addition, BT has transferred the economic risk on a large portion of its leased properties to Telereal in return for an annual rental commencing at approximately £90 million per annum". I'm assuming the first year Leases and Rent were £280 Million in the first year and increase annually by 3%, so year two would have been £288.4 million and so on.
In the 2023 Annual report, on page 181, BT said:
"Substantially all of our leased property estate is held under an arrangement which can be terminated in 2031, at which point we may either vacate some or all properties or purchase the entire estate. If neither option is taken the lease continues to the next unilaterally
available break point in 2041. The lease liability recognised for the arrangement reflects a lease end date of 2031.
On initial recognition we concluded that, although the majority of these properties are expected to be needed on a long-term basis, we couldn’t be reasonably certain that we wouldn’t exercise the termination option or that we would exercise the purchase option. In coming to this conclusion, we had due regard to material sub-lease arrangements relating to the estate.
As time progresses our assessment may change; if this happens, we will remeasure the lease liability and right-of-use asset to reflect either the rentals due for any properties we will continue to occupy, or the cost of purchasing the estate, using an updated discount rate. There would be no overall impact on net assets.
If the assessment were to change at the balance sheet date 31 March 2023:
– Exercising the purchase option would lead to an estimated increase in the lease liability and right-of-use asset of between £3bn and £5bn
– Continuing to lease the estate beyond 2031 until the next available break in 2041 would lead to an estimated increase in the lease liability and right-of-use asset of between £1bn and £2bn
Our assessment will be directly linked to future strategic decisions, which will be resolved at some time prior to 2031, around the development of the fixed network and the associated rationalisation of our exchange estate. The breadth of the ranges reflects the significant uncertainty around key variables used to determine cash outflows, especially future inflation and which properties the group will be able to exit prior to or in 2031 "
" So the savings will mostly be on rent/short leases"
That's what I believe, since the lease liabilities form a good chunk of the Net Debt. I'll start a new thread to discuss Lease Liabilities, since they are an important consideration in my opinion.