Member Info for GingerHippo

The auditors do not agree with you there, GLG.

Inventory is shown at the lower of cost and net realisable value. If they couldn't sell it the auditors would have to insist they write it off.

Also of note is that the value of the PGM concentrate held by the company has gone up from £2,305,108 to £4,127,939 which was mentioned by CS as "some additional material generated from the required compliance".

Yes, LittleRR, it's worth noting that £719,325 was spent on "work in preparation for mine construction" which is "near completion"

I guess there’s less to say on “boring” profitable companies. Feel free to check out the ones I mentioned.

You don't know my portfolio, but as you're interested, it's primarily made up of fin, cab, wosg, elix and similar. All profitable companies. The only other not-yet-profitable companies I have are asset plays, which is not what SYME ever was.

That's the main lesson I'm taking from this. I invested in a company whose value was in a service they were potentially offering. I should not have invested until they already had a reliable revenue stream.

Other mistakes include being too involved in a TG group, which made it harder to be objective, listening to CEO interviews instead of focussing entirely on the numbers, and not getting out early enough when there were plenty of signs.

I'm very open about my investments and my thinking behind them, which leaves me open to anonymous online posters taking pot-shots at me. But I find the process of writing down my thoughts helpful, and if someone has constructive criticism all that better (note the word constructive please). I don't get every decision right but investing a lifelong learning process.

Yeah.....

Is it ready to fly, eh?

Got EUR8 billion of funding coming, does it?

WL deal any day now?

You've chosen quite a bad target audience to try and pump a company with zero revenue on nothing but promises.

We all make mistakes. But hopefully not more than once.

Typo. Seems to be the final.

But somehow the typo “do do” seems appropriate too

That seems to normally be the do do chapter in a penny stock saga. I’ve never seen it work to turn a stock around. Anyone?

Yes the loan is convertible into share at Sanderson's election.

There must be a lot of fine print we don't know about, for instance, are CS's shares collateral only if Sanderson lends the entire £2.5M, which itself is subject to EUA hitting key milestones, or are all the share collateral from the first tranche, or is it proportional, or is it linked to the value of the shares at the time of repayment?

If EUA hit the milestones set out, Sanderson will lend £2.5M and the share price will go up a lot, so Sanderson would obviously opt to convert the loan into shares. We won't mind because we'll all have made money.

If EUA don't hit the milestones set out, the share price will be lower than it is today, so Sanderson won't want to convert and will ask for cash, which EUA won't have. Sanderson will then take CS's shares and EUA will again need to sort out finance for working capital.

So, CS has staked all his shares on the basis that they are able to get a dual listing and sign an SPA within a year. Otherwise both he and us shareholders stand to lose a lot. The bod cannot get any more remuneration until the loan is repaid (presumably by a sale of assets), so the whole notion of this being a lifestyle company is totally discredited. Our interests are totally aligned.

Best case scenario is we get the sale done within 90 days so Sanderson can't convert any shares, but I'm not going to guess that will happen. But I do think by this time next year. Just my opinion. Bashers can bash away, it's just an opinion.

Oh, and if the bod don’t sell the assets and repay the loan, CS loses all his shares, worth around £2M at the current price.

Exactly, summit.

The bod won’t be able to repay the loan until they sell the assets, and until the loan is repaid they cannot take any remuneration at all. There is literally nothing in it for the bod to perpetuate a fraud or a dying company.

The loan is repayable in under a year. I know this has been said too many times to count, but I do think that this time we are in the home stretch.

We have a EPCF deal agreed with Sinosteel. A sale has to offer at least as much return to shareholders as drawing down on this contract (in present value terms). I don’t think under 10p would cut it.

Https://x.com/_finseta/status/1835967682891386986?s=61

Rachel, I'm a bit surprised by your assessment. Companies like Microsoft have PEs of well over 30, compared to ours of just under 10 (for full year 2024).

We are expecting a license to operate in the US soon which will likely significantly impact our growth rate. How much can giants like Microsoft really expand from where they are? TBH I don't know, but I think there's more room for Cab to grow percentage-wise than Microsoft et al.

I'm not saying investing in Microsoft is a bad idea, that's not for me to say, but for me, if I'm looking for a growth stock at a reasonable PE, I'd choose Cab over a tech giant.

Correction. It wasn't Finseta that tweeted that but a site called FXrest, an Arabic version of Vox or Proactive or something . Clearly of interest to readers in Arabic speaking countries like UAE.

Https://x.com/Fxrest_com/status/1833808298694603181

Finseta tweeted the results in Arabic too. Interesting. Think UAE....

I think this is the buy on rumour sell on news BS that seems to be running the markets right now.

Anyway, positive RNS. Another small step in the right direction.

FG, you said "If year on year growth of 21% in Adj EBITDA in 1st half '24 is repeated in the second half, then the full time Adj EBITDA will be around £5.8m + (1.21 x x£5.2m ) = £12.1m."

I want to point out that revenue in the first 2 months of H2 has grown 33% and therefore EBITDA should be up quite a lot more than the 21% you have factored in here.

What's the point of deramping after hours?

Nobody thought they would release the AR during trading hours. We delist if we don't get accounts published this year. They've got 3 months. They said they expect it this week.

Delisting would not be the end either, btw.

Cab has a cash balance of around £140M give or take. 40p is considerably less than the cash balance in this profitable business. Anyone who says 40p is the value of this business, can I please buy all your twenties for tenners?

80p is also way too low. The EPS of 4.3p is for just 6 months, not a whole year. So even if you use a PE of 10, you get 86p minimum. But we know that H2 is more profitable than H1 so 86p is way too low.

TBH why am I even using a PE of 10? 15 would be fairer.

Really basic maths tells you that Cab is undervalued. People want to undermine confidence by chucking low numbers out there without any attempt to back them up.