Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
It's a massive swing Snow and I think the industry has realised that as e-sports grow and these organisers / sponsors get a huge ROI, the clubs need a good percentage of it to survive. The collapse of FAZE from a $1bn valuation to Zero at the end of 2023 really highlighted this and told the industry, pay the clubs or e-sports will plateau.
The increase of the WC CLUB prize money from $5m to $20m this year shows that the industry is moving more towards club prize money, which could be monumental.
A couple years back Guild won the FCNS finals in which the player prize money was $1m, just last year Guilds total PLAYER prize money was $1.2m USD, in which they only made about $126K because most of this rightly so goes to the players. If these tournaments start matching player money with club money, or dare I say even more (like the sim racing tournament) then that $1.2m PLAYER prize money also becomes an additional £1.2m club prize money, which would be very high margin and almost like a $1m USD cash injection for GILD simply out of their existing operations.
As I have said investing in esports clubs is very risky, but at £1.5m cap theres no better RvR play out there on any stock exchange IMO. Of course it could go to zero, but that's the chance I take. DYOR not investment advice.
Really is make or break for Guild in the next 3 months, I took some stock last week for another go
https://www.prnewswire.com/news-releases/esports-world-cup-to-feature-record-breaking-prize-pool-of-more-than-60-million-302118030.html#:~:text=The%20Club%20Championship%2C%20an%20innovative,they%20want%20to%20compete%20in.
This really is an incredible opportunity for GILD, however the company needs to be more transparent with investors. A presentation perhaps to explain how they are going to approach the Esports World Cup
- $20m club money on the line (this isn't player prize money, $45m for that, this is club money aka high margin cash in the bank)
- Distributed to the top 16 Esports teams at the WC based on performance for the first time ever
- One club will be crowned champion of the world (sponsor money would be massive for this)
There are 19 titles at the WC, I am not sure how many GULD have qualified for or been invited to. Looks like they failed to qualify for CS2
They are quite strong in Street Fighter, Fortnite and FIFA (which are three of the titles) however to get into the top 16 you'd think they will need to win all three of those which would likely put them in the top 5-10) even with no points from other platforms
As I've said, this event should be heavily backed by sponsors and if it is a recurring yearly event then it truly is a game changer for e-sports, lets hope its a very profitable event for all.
As for GILD, investor presentation needed in the coming weeks.
Not invested but id argue the dividend is much better than buying shares back (which I am never a fan of but that's just me)
By issuing a dividend the SP should in theory drop 1p on dividend day, then retail investors will come along and say 'wow £3m cap for this stock, ill have some of that' yet at £5m cap and with the cash they are not interested. It makes no sense but wait until that dividend goes in I bet this is trading 2p+ shortly after even post dividend.
It happened with BRH, they offered a 45p dividend (or was it 43p) the SP was 55p dropped to 12p which is fair, then the market rallied it back up. Those were crazy times but I suspect it will happen again here. Watching for entry.
Also known as N’Djili International Airport and Kinshasa International Airport, the facility serves Kinshasa, the capital city of the Democratic Republic of Congo. Featuring a 1 million passengers capacity terminal and a 4,700 meters concrete surface runway, the airport is the largest of the four international airports in the country.
Also Read: Plans underway for construction of “New Mole Port” in Republic of the Congo
Owing to expansion and modernization projects, the airport’s capacity will increase fourfold. The scope of the project includes the construction of a new terminal 4 times larger than the current one. Equipped with six gangways, three of which are for large aircraft, the new terminal will have a capacity of 42,000 square meters.
Thanks Mike, I thought there were more international airports but I was getting confused with Domestic
So the following four: Kinshasa N'djili, Goma, Lubumbashi Luano and Kisangani.
Plus one of these domestic ones:
Mbuji-Mayi, Bukavu, Kananga, Kinshasa N'dolo, Mbandaka, Bandundu, Bunia, Gemena, Isiro, Kalemie, Kindu, Kolwezi, Lodja, Mwanda, Gbadolite, Tshikapa.
Its super interesting because Kinshasa N'djili is going under significant $12bn USD expansion from a Turkish construction company.
Told you guys to relax, not many companies sub £20m in the small cap space that are actually profitable in blue sky markets / tech markets.
If there are please let me know always happy to diversify.
If the profits are 60% then you don't even need to do calculations just enjoy the profits
If the margins are less then the investment case is still absolutely strong at 20%, you have to recall the company was already strengthening its balance sheet and looking investible before this contract landed. In reality the contract has probably only added maybe 1.5p to the SP (~£4m cap) which is absolutely absurd.
I am eager to view the call next week (if there is one) and see what PF says about finding funding (which will likely be super easy to find since they're in with the UK GOVT now and trade ministers) and second what the margins are expected to be for this contract.
DRC might want to offer the funding themselves for this in return for WSG to hold the revenue in a DRC bank account, having $10m+ USD in the DRC bank accounts is very good for FX control and to support their own currency so win win for both parties. If not I suspect the UK will finance any shortfall to get it up and running. Or a bit of both.
Just relax if all that has been said is true, and margins are over 50% then you dont have long to find out. The contract begins in July, so financing will be sorted before then and who knows they might be able to use their new credentials to land even more deals. At £10m cap there's not much else out there in this space that could be making a genuine £m+ profit per annum bottom line, so just stage your buys if you are buying, if selling then move on elsewhere.
Being profitable makes all the difference, whether its $1m PA or $5m PA (depending on margins and eventual bottom line) put you on the radar of institutions, the contracts are all long term deals so less risk vs a one off contract or hoping to repeat YoY, and dare I say they may be on the radar of some larger players like allied who may want to swoop in and buy them out (only if profitable of course)
Hi Mike, interesting ive just been informed of this by other investors that the margins could be 60%
Would be good for the company to expand, perhaps via investor call (next week is it?)
As 50% margin is significantly better than 20% margin and really is the difference between potentially 5-6p and 12p+
It's up from 1.4p so many will exit with a very handsome profit, and well done for taking the risk.
Those buying between 3-4p are paying what £11-13m market cap?
With this contract even at 20% margin, that's a $20m NPV over the next 10 years for a tech company, the valuation should now realistically be between 6-7p and that's only on a PE of 10, but this is the UK market.
Lets see where it goes id probably sell out at 5-6p and let someone else take over for the long ride.
If the margins are higher then of course adjust the SP target accordingly.
Wow he actually landed it, and no joke this time you could see the videos and also the articles showing they were out there are a key part of the delegation
No waiting around either $10m PA from July, that is a serious contract well done PF and the team, what a job.
Funding out of the current bank balance then debt arrangements likely with UK finance, couldn't really ask for more they have absolutely smashed it.
Terrible Idea
The SP Is 7p at he bottom of a bear cycle, 8 years ago it was a hole in the ground that looked like it might have some decent rare earth elements at the bottom of it and trading at 2-3p
Since then they've
- raised $14m from Talaxis to fully fund the Songwe DFS
- bought an initial stake in HyProMag, before anyone knew what it was, 42% for £500K
- Sold 20% of that Initial stage in HyProMag for £3.5m GBP, valuing the entire 'HyProMag' company at £17.5m face value, vs the £500K (42%) they paid for it, which give or take works out turning a £1.2m investment into a £17.5m+ investment and likely considerably rising. What percentage of small cap LSE/AIM CEO's have done that?
- Found an unbelievable partner in Cotec who have verbally promised to raise $30-50m USD for three US projects
- Found multiple TR1's albeit they have gone quiet, a good percentage of the company is privately held
- Raised over £10m GBP of funding from various governments to kickstart two projects one in the UK and one in Germany
- Found a suitable location for a EU processing plant and established a subsidiary with Polish heavyweight Grupa Azoty.
- Extensive RE market knowledge, being selected by the MSP and being part of multiple RE groups / connections including US DoD.
Firing the CEO would be total suicide, 90% of the problems here are out of his control, the MDA has been delayed for nearly 2 years by a government which has yet to do anything in its mining sector, not just MKA related.
Just because the SP is where it is, doesn't mean the company isn't incredibly strong. Tons of progress has been made here, the value will out in the next 6-12 months.
Nothing is ‘priced in’ because if Sky backed out this would go to zero, so at least you can still sell which obv isn’t great price but the Dutch fund put in a good amount at 0.6p (5%) think it was like £300K so although it may feel like selling here is pointless they’d still rather have £100K in the bank (66% loss) than nothing
The main points to note is this is a loss making company, like many on AIM/LSE at this end, the market cap is what it is because of this and loss making companies eventually go insolvent if they cannot find funding.
GILD IMO currently has a hole of about £2-3m per annum (last year losses were over £4m but I suspect they’ve cut more costs) Bitstamp is gone and has not yet been replaced, sponsors can eat into this hole and they’ve raised £750K but they still need probably another £1.5-£2m to be safe for the 24/25 FY. Whether that comes from a high margin sponsor or an equity raise… or some form of JV who knows but without that occurring then the outcome is likely zero so it’s probably one of the funds dropping X amount because as above they would rather have £100K in the bank than zero.
GILD need to sign some big deals and provide a solid update on progress, until then the sentiment here will be that insolvency is the most likely outcome, which is a massive shame as I am a fan of GILD and it’s a super tough market for marketing, let’s hope the WC helps them out big time to get some major deals. They’ve had an advanced pipeline for about 2 years.
Does make me laugh when he says the technologies are currently worth hundreds of millions of dollars, and in a few years should be worth many billions of dollars
Even if JT falls short by 90% we should all do very well! Plus, who are we to argue with his forecasts... the man has tremendous credentials and unlikely anything we see over this side of the pond, has put a small fortune into the company.
Doesn't look good, they've just raised £250K but likely need £2m a year to keep going (had about £500K at Y/E IMO)
No real new major sponsors have landed in the last 12 months, the Bitstamp partnership has now completely finished and have not yet been replaced
Only being able to raise £250K and no sign of 00Nation taking a further £500K / Commercial agreement
Could all change on a partnership / sponsor , but at this market cap Becks is taking the entire company in commission (£1.75m last year)
Content fees and Marketing + Ambassador fees were £3.2m last year
The balance sheet vs market and operations are completely unsustainable, 12 months ago you had the hope that they might land more sponsors and they had 12 months to replace the Bitstamp deal, then there was promise of CS2 sponsors and ME sponsors , not to mention a great partnership with Sky.
This really is make or break, by my estimates they dont have enough cash to continue past Sep 30th 2024 so will need to raise at minimum an extra £1m (equity or partnership) before Sep 30th. They need to likely find another £2-3m in sponsors on top of what they have to make this a viable business. I wonder if at minimum they will close down operations and simply become a content creation business "Guild Studios" or will 00Nation come in and take over? Who knows but at this stage it truly is a casino esc gamble, nothing is certain do you own research and a whiff of good news this can fly but just be very careful, make sure you have fully read the balance sheet and know the story here. GLA to anyone still invested may good fortune come your way.