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Unfortunately they are not expanding very quickly and are significantly behind all their own targets. They now have the plant in place but are also way off the nameplate capacity which seems to be relatively hard to achieve. If anything their payments could be falling further behind. They are out of cash and because of poor governance and other issues are not able to raise any more in the market right now. Increasing payables and other measures to preserve cash indicate that there is significant pressure. I rather they put the house in order and re-open access to capital so I agree with Genghis that there is a lot of uncertainty.....
Couldn't agree more on situation. Your observations and concerns are spot on. Company needs cash but is not investable right now so very scary situation for big holders. A lot of rose tinted spectacles on this bulletin board that actually think the results were good. There are a lot of shareholders trying to persuade the management to change its ways and get some proper governance in place etc to allow further development of the company but being rebuffed. Sensible directors resign. DYOR
Andii re our earlier conversation about going concern - as you surely observed there was a qualification in the auditors opinion so I was not unreasonable. The company is still cash flow negative or running on air and only had cash of £289K at the end of March. But paying CEO £320K - Very underwhelming results that raise a lot of issues. I have to admire everyone's optimism. And I'm not shorting the stock by the way. I'm a supporter but they will need to sort out the governance before they raise any money. They are extending term of payables to try and conserve cash at the moment
You are very analytical Andii and your posts are normally well thought out and accurate. problem is there are different ways to extract cash from a company and the headline G&A is not necessarily one of them. Also very low G&A is actually a problem because you need to pay key people a proper salary to keep them motivated or you get a very incompetent group. I posted about some of the ways they extract cash before: pre-payments for future capital equipment, transfer pricing, overpricing of plant etc
I'm not in the business of ramping or deramping. I'm not trading the stock at the moment although I am a shareholder. No accusations - just facts all on web - read my posts - make of it what you will. Just thought it was worth people knowing what the current situation is. No RNS on renaming the Indian company etc - I would welcome a bit of transparency - it would be great
Andii I think none of what IO'm saying is at all far fetched - it's obvious in the public information. I hope they are EBITDA positive at the moment but they have been running on air for some time as we all know. I can't find any reliable financial information - can you? Cash position? in the last year? my point is that they seem to be moving away from an integrated venture (as always indicated on website etc) by rebranding/renaming the downstream. But I really like the upstream assets - nothing wrong with them if what they say is correct. They can't raise at this price and the governance is very poor so most sources won't invest. They don't even have a proper CFO - check that out if you like - the guy listed doesn't even work for TGR since at least Jan 2023. He's a part time consultant.
You can just check yourself it's all public information or Google. TSG no longer exists - renamed. Not integrated into TGR - yet. One hopes that it will be. Andii already started to research Haritmay Ventures. Regarding cash position - it's very hard to tell. I can't find any reliable financial information that it vaguely up to date. I hope they are EBITDA positive at least by now but they have been struggling to get there as we all know. Did you participate in any of the recent raise/ convertible notes? That would be great. You can draw your own conclusions of what it means. I would love them to be more transparent
They transferred the IP to Haritmay as far as I know. And indeed HV supplies the kit. I think TGR buys from them and only owns the rights in Madagascar for mining. Cash from TGR went to HV to fund future kit. TSG has been renamed to PranaGraf - Unprocessed product goes to PranaGraf at who knows what transfer price. I guess PranaGraf makes a decent margin. Not sure about TGR. I bet you can’t find any financials. I assume that you own stock long post IPO and don’t mind TSG not yet integrated? Upstream assets are great but not sure any profits will come. Not sure if TGR is going concern actually
Pranagraf is the former Tirupati Specialty Graphite in India. They are downstream processing that was supposed to be integrated into Tirupati Graphite plc - never happened. They are not the holder of the IP - this is Haritmay Ventures owned I believe 100% by the Family. Selling the kit and holding the IP.
You are correct re corporate governance. Anyone who thinks otherwise is terribly naive. There is none. Family control everything. 3 Ned’s left in the past year. The family renamed the downstream in India already to Pranagraf - rebranding only ? I don’t think so. Check for yourselves. Many other issues but this is just the tip of the iceberg. Pranagraf advertises itself as integrated and owning the Madagascar and Moz assets. No coincidence
Operational performance has been fine - everything delivered in complex projects as promised - problem was the geology!! This is compeletly different asset and country - no relation. They have delivered a very impressive deal for a cash shell to 13 mln mkt cap already. just need to get the drill done but contracted and even conductor pipe set... operations are stellar!!