The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
"fortunately managing resources has been the big USP of TGR".
???
I would suggest the failure to foresee a cash crisis shows the opposite.
"It feels to me that you just want to hammer home the point time and time again that liquidity is low."
yes, of course. That is the whole point of my posts. 2 years ago, back in the era of cheap and easy money, that might have concerned me less. Back then. also, the market was less unforgiving of such ST issues if a LT payoff was in prospect, whereas now any disappointments get heftily marked down.
So with no new comms from TGR on cash, I'm still very wary, as we all have a right to be with our own cash.
But the SP is now up substantially from recent lows, so mb market confidence is returning.
And mb the cash position is improving too, as many here happily project on the basis of the co's forecast production.
But after watching the co get so close to running out of cash that it had to be suspended until auditors would sign off the accounts, I'm not willing to give it the benefit of any doubt.
Many here will, and do, but i want to see it in b&w before I believe it.
Https://afentraplc.com/wp-content/uploads/2023/09/231109_AET-Government-approval-lands-.pdf
Most BBs are churches of the converted, and by and large this one too.
But otw most posters here stick to facts not petty ppl bashing, and I've posted my views on cash position regularly. Still waiting for clarity on that front, tho.
Thanks for all the replies. I know my message is not terribly welcome to holders, most of whom must be underwater, so am slightly surprised (and grateful) that no one has got too mad at me.
Quite unusual on thesec boards, there;s usually several who fail to stay rational and start the ad hominem stuff.
Good luck....if I miss out and it's 50p, so be it.
Damon
i missed the call yesterday, was planning to catch up later but from comments it seems nothing new, much as I expected. i don't want to bang the drum yet again, but your comments sum up my dissatisfaction.
2phevs
Yes, I googled and saw that. But what inpact a need for licences has will depend on just how that works, and to what degree it restricts supply. Nobody knows that yet. It MAY indeed be a v significant move, but it may not. We'll see.
Crocqman
Yes, fair point re A and B listers, i was just trying to highlight that whilst a new non family NED is +ve it's hardly going to have much ST effect.
Cigam, and others, re China
Well, see reply to phevs above. We'll see. As to the effects on various different graphite types, again, we'll see. i do agree it has to be +ve, just that at this stage we don't know if slight or enormous.
As for the meeting, well, it's after hours so a RNS could cover any info disclosed prior to Thur open, so anything is possible.
fairdealer20
"this morning's RNS? It goes a long way towards addressing Finance issues that Podar has struggles with. "
Really?
It's a NED appt. That's all.
Tbc, what I want to see is a clear statement, including numbers, not assertions, on current cash, and cash runway.
I want to know if the ST cash problem has resolved, or if it will require debt (which has already been indicated) or equity. Debt is also required for the addnl capex indicated in previous RNS. I want to see the terms of that debt (or equity) raise before I even think about investing here.
For any co, in any market, cash is king. I don't think I'm being unreasonable, or -ve,
to require clarity on that in judging investability. I'm just constantly surprise at so many here brushing it away so casually.
Well...pleased to see a +ve on the SP. but I'm afraid I'm gonna be a Jeremiah once again on substantive issues.
New NED? Well, OK, move in the right direction, he reads OK, but hardly an A, r even B lister. Let's not get carried away.
China ban? Again, I'm not sure what inpact that has ; it's far from clear just what restrictions there will be , on what types, and from what date.
so many comments here that these bits of news, (which are really just background, not central nor critical to the most pressing issue, at least in the ST) are somehow gamechangers, will boost SP, etc.
Sorry to say that all sound to me like distraction by small things. The big issue reamains, and there has been no substantive news on it, just vague assertions of offtake finance, etc. Let's see if the meeting later brings any news ; personally I'm expecting more of the same, with no mention of hard cash.
Roll on 4.30.
Tbh i thought the interesting thing was the emphasis on synthetic Gr being preferred, its base material being a complex concoction mftd in UK, but sent to China for further refining.
i have no idea how this wil affect TGR's market for its natural product, if at all, but thought it well worth knowing.
I thought this from the always enlightening @EdConwaySky might be of interest. esp the natural v synthetic bit, and the bit about the Humber refinery.
https://x.com/EdConwaySky/status/1715270579232686282?s=20
BBN
"This market is barking mad at the moment and constantly looking for blood but it isn't always right."
Amen to that.
But it is what it is, and as someone JMK?) once said, the market can stay irrational longer than you can stay solvent.
I take on board your points about production ramp up, and if all goes to plan there should be great upside from here.
Problem is so far some things have'nt gone to plan, so the mgt assurances on non dilutive finance carry little weight to me.
2phevs
I'm certainly not current, nor was it ever my speciality, so I am only passingly familiar with it. But as you point out 10% every time is a good return....but comes of course from (in this case) TGR's pocket, so a hefty bottm line hit. For emergency use only, but a handy tool if you can acess it.
2phevs
"There are banks that will invoice finance VAT refunds and take over ownership of the debt by the local government hopefully tgr are looking at this option usually can be done for a maximum of 5-10% in that region or 2.5% in developed world just requires DD on the said VAT return by the bank"
Really? I doubt that.
Current interest rate environment suggests to me that even in Tier1 that discount would be higher now, what it would be in Tier 3 I have no idea, but suspect more than 10%, if indeed a counterparty could be found. If i were approached by TGR my first DD would show a co that was late filing accounts, can't f/cast cashflow.....how can I trust it's accounting procedures to do my DD? Mb I'm wrong, but it seems to me a sensible assumption till shown otherwise.
BBN
to respond to your yesterday "But you've been told today that TGR is producing at 40-45 tons per day. So my question to you is why are you ignoring that? Because that substantially affects cash flows now and going forward."
MB. But i don't want to extrapolate. Others here are doing the same. Already past extrapolations are undermined by the head grade reduction, who knows what else might undermine further ones?
If the co is confident t of the cash flows you posit, then let's hear it....FROM THE CO.
Many here seem happy to continue extrapolating in the face of all that has happened. I wanna see the co say it, in print, what is their cash position, and cash projection, for the next few months? But they won't tell us.
Already the assertions in prev RNSs re supplier advances being sufficient are undermined in the latest RNS by alluding to ie, part of the proposed debt finance for unbudgeted capex being used for "working capital", ie, ST cash.
I can understand why many of the faithful here don't want to focus on the downside, but it's staring us in the face. Until this cashflow is sorted, financed, and out in the open, SP will continue to drift, and with it, the co's bargaining power in securing that finance.
It is quite clear the co has failed spectacularly to accurately forecast cashflow ; a smallish raise 6 to 9 months ago at 30p + would have saved much of the subsequent SP damage.
It's a really unforgiving mkt atm, debt finance will be costly, and I suspect may come with an unhealthy dose of convos, warrants, or optiions.
BBN
"The market immediately (again) thinks cash shortfall but that is not the message in the update and a far as I can see non of the positives about where TGR has reached and has before it are in this MC."
OK. But the cash problem has been highlighted by the co, has caused the SP drop below 20p already, and what sensible s/holder would not want to focus on that? Yet, no mention. No mention at all of the most critical short term issue, which has sent the co begging to its customers, no assurance that cashflow projections are on track, no mention of current cash. Zilch.
i can't fathom how any CEO thinks it wise to issue an ops & trading RNS only 2 months after a suspension for late accounts & a cash crisis, without some reassurance on current cash.
Even less can i fathom why any investor would be unbothered by that, and prefer to focus on project delivery.
Without cash, theproject falls into other hands, that's how capitalism & markets work.
By some (actually, nearly all0 of the comments on the RNS.
To me, it reads as an unmitigated disaster for investors. Head grade reduction means raising debt to finance unbudgeted extra capex. That will come at a hefty price, either in interest or dilutive convos or both.
No mention at all of current cash, which is (or should be) the main focus of concern for investors at the moment after TGR went begging to its trade buyers so recently.
I'm only surprised the SP drop wasn't bigger given the market backdrop atm which punishes bad news.
Commiserations to holders; i kept watching to see if the co could get over its woes and turn the corner, but nowi feel I've really dodged a bullet here.