Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
I disposed of my holding at 50p last August (2018) - yes 50p!!
So was delighted to see the fear and overreaction and delighted to be back in from 7p - but its still with enormous potential It's recent p/e ratio of less than 3 just looks wrong. I am still increasing today.
Last week's statement mentions the expectation to report interim results in line with board expectations, with a "small" profit.
The sale of the Construction fibres is at EUR 6.4 million will return well to L and B coffers with the pound on the floor.
The sale process for the Needle-Punched Non-Wovens business is still expected to conclude during the current financial year.
We will be saving the extortionate salary of a way too expensive senior manager.
Just a few months ago we saw analyst predications drop from 28p to 15p (still 50% minimum upside from here).
Low and Bonar are doing the right things and that will be demonstrated in the improving bottom line.
Results 30 July - usually dividend time.
My darling Mr H. You rightly noted my average is far, far higher than here. Therefore, you concurrently noticed how steadfast I have been. I have visited Gedabek and Gosha 2011 and went on a separate business event to Baku just in 2013, as well as being in dialogue with aaz as all engaged investors are. Trust we will be long term friends as the recovery from here will be exponential Mr H xx
As our new friend wigwammer mentions, the depreciation in the manat covers much of the debt maintainance. This is a very strong, one way recovery stock - the balance will change and market cap will steadily increase its ratio vs debt.
Hi Bringiton, I am more optimistic than that, last Easter we were 3 times this sp and Easter 2013 we were at 5 times this sp. We are in a much stronger position now.
2012 -2013 AAZ were producing at Between 600-700US per ounce. The exact cost of sales information is only in management hands at this stage, but the declaration that the manat devaluation will save approx 6.5million US$ in 2025 is extremely welcome and I would hazard an estimate that this alone could slice 10% or more off cost of sales for this year. This combined with increased gold, silver and copper recoveries is going to compound with the higher grade ores identified at Gadit with Gosha ore already in this mix. Production is substantially up since last quarter - all of these factors should change the game and we should see a return to 2013 levels of cost per ounce. Frankly, the sp hike yesterday was so tiny, a mere paracetamol for the pain the market has inflicted on AAZ .this sp is a complete steal for investors today and a gift even at multiples of today's sp.
Bringiton, I am pretty sure you will get to your 25p target way before then - I would bet before year end. I am really pleased to see the management announce a real estimate in savings from the recent devaluation in the Manat. The $6.5 million saving per annum is around where I would have expected it to be. The company are being sensitive to the fact that the Manat devaluation is obviously disappointing for Azerbaijan, but should be balanced by the fact that economic diversification is so key to the economic future there. Debt decreased by $2 million- loan obligations all met. The EV has largely been skewed on the side of debt vs market cap since the recent capital expenditure, but we are now in situation where this will only reverse and the sp will now ascend over a very sustained period. Another great point is the processing of the tailings. 90% recovery for gold with the floatation plant and the tailings require no further treatment. High margin, safe, predictable output. The management have clearly focused on overcoming all recent adversity. We are certainly moving away from the Nadir. Only upwards from here- looking forward to great progress and a transformed sp by year end.
boxian, Cash costs will be reduced since those last stated. Production has increased, the AZ manat has devalued 34% vs the US$, cyanide costs have been controlled. They are accessing higher grade ore...
I think you put that very well Doze and yes, I am shocked at the bottom, but positive going forward.
Company is more than likely to show significant recovery imminently, build on it sustain it. Remember also that the company stated objective is always to be a regional mid-tier producer (by definition 200k ounces per annul plus). CEO Mr Vaziri is well connected to the Azerbaijan administration - an administration which now need to diversify their economy with away from oil and gas.
Hi, I am here :-) Well at the company high of around 125p, that 324,000 purchase would have cost £405,000 -today you could pick up 10% of the entire producing business for that, Even at the more recent high of 80p in January 2011, it would have cost £260,000! Today it cost just £13,700. With NO DILUTION whatsoever during that time. It's now quite shocking how little it would take for a fund or PI to build a substantial stake here in a business that is likely is likely to show significant short term recovery.
Hi Doze, The target market for this is not as you mention. BTW Elephant and Castle is surprisingly central and close to Westminster/Central London sites.This is a top end, stylish hostel proposition for: Traditional backpackers/flashpackers (see definition http://www.hostelbookers.com/article/travel-articles/flashpacking/ ). Tours/schools and youth groups. Younger couples/families. It is also good for business travellers - budget travel is showing the highest rates of growth in corporate travel. http://www.hotelnewsnow.com/Article/10107/UK-hotel-budget-sector-strengthens-share
Dear Pommefrite, How lovely to see you here, are you invested? The information in the admissions document is up to date (see page 11 for this info). http://www.safestay.co.uk/files/4213/9885/6384/safestayplc-admission-document.pdf The occupancy was 72% last year and bookings are "significantly ahead" for 2014. LY Turnover 1.9million £4750 per available bed. Operating profit in 2013 £494,000 margin 26% Roll the beds out PDQ I reckon!!
A very interesting proposition here. I have viewed the property and I have subsequently invested. Believe the press coverage, it is undoubtedly welcoming and very well operated (front and back of house). All the essential detail is in the admission document, but for me there are a number of very attractive key investment points here: Firstly the investment is completely asset backed by the property itself Grade 11 Listed Building (former labour party headquarters) , bought for £3.8m in 2011 4.5 million spent on conversion to a 74 rooms/413 beds hostel (which range from 2 bed private rooms to 8 bed dormitories). Post conversion and 2nd year operating as a hostel the independent market valuation is 12 is £12,200,000. See admissions document page 23: http://www.safestay.co.uk/files/4213/9885/6384/safestayplc-admission-document.pdf This, on its own, makes a very compelling proposition vs the current market cap (calculation below): Current in issue: Shares issued from 4.8 million placing 9,600,000 Number of shares to be issued to Safeland shareholders 3,617,246 Total shares in issue 13,217,246 Market cap 13217246 x 0.61 (mid price today) 8,062,520 GBP Prior to looking at this investment, I had not realised the key definition of a hostel vs a hotel- which essentially involves the sale of beds vs rooms. A few quick calculations would reveal that the income generated from 413 beds at low hostel rates is higher than a typical budget hotel selling 74 rooms.The positioning is dormitory style accommodation of better quality than that of traditional hostels and at more attractive rates than budget hotels. In addition to traditional hotel clients, in recession recovery , travel budgets, even business ones, are likely to remain under pressure and the budget hotel space remains the highest projected growth sector for the near future. The independent valuation also notes that the most likely aquirer would be another owner/operator. However, as I understand it, Safestay are ambitious and looking to roll out the brand to further locations in London and possibly key destinations overseas. Year end to 31/12/2013 Turnover 1,933,813 Hostel Operating Profit 549,912 28.4% A dividend would be possible from this kind of return, however, I understand the main objective is seeking to achieve capital growth for Shareholders. There is very strong list of shareholders institutional and otherwise at IPO , so these are likely to be very tightly held. Future funding secured. I am taking great interest here, value catalysts are multiple – most significantly roll out of a proven, market friendly, successful product (a quick google will show the press has been fabulous ), property appreciation, dividend potential...
Set in a a gorgeous 18th Century House: http://www.visitbritain.com/en/Accommodation/Budget-accommodation/Britains-best-luxury-hostels.htm Grazia: http://www.safestay.co.uk/files/7513/8010/0548/Grazia.pdf Telegraph: http://www.safestay.co.uk/en/pr-media/what-the-press-are-saying/telegraph-four-of-the-best/ Travel market trends for 2014: http://www.dailymail.co.uk/travel/article-2526585/Travel-trends-2014-The-hottest-holiday-destinations-year-ahead.html
http://www.krg.org/articles/detail.asp?smap=02010100&lngnr=12&anr=30138&rnr=223
ONGC and Reliance rumoured to be in talks with Addax. So 3 consuming nations reportedly in the race. The articles mentions that JCG wants a deal quickly and Chinese bureaucracy could hinder their bidding process. http://www.telegraph.co.uk/finance/markets/marketreport/5580846/Indian-oil-company-said-to-be-third-bidder-for-Addax.html
If reported Sinopec offer of 4.8 billion GBP materalises based on 156.56 million shares the new sp would be 30.65GBP (28% uplift). Would love to see 28% or more uplift on my holding of course, but I am only a lightweight in Addax (too late an adopter I am afraid), but I have a substantial holding in GKP. The Addax movements are more interesting for me as as a they are pathmaker for M & A activity within Kurdistan
I will be aware and probly add in stages if I decide to take a larger position.
Thanks, I have started a small position here, but after more research, I suspect I will increase. Speak again soon ff PS I go under the same nickname on iii