The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
Good to see a former minister stating the obvious, that the mining projects need to be moved with haste and the minister also saying focus will be on these projects, albeit it is too little too late.
I suspect once the strategic review is complete, Songwe will officially enter an FSP in which we will ultimately sell the asset, perhaps to someone with a bigger financial presence, or a strategic nation (or not)
MKA does not have time for Songwe, we are too focussed on the recycling technology which is the ultimate prize, Malawi is not a place for small mining companies with little experience or history, the country has enough financial pressures and concerns for a minnow like MKA to be operating there with no support or backing. Look what happened to HZM. Unless governments want to fund on extremely favourable terms, sell and move on!
What is quite cool, by sheer luck fortune or skill, IF somehow GILD won Fortnite, FIFA and lets say Rennsport - then irrelevant of points they would have three title wins under their belt, even if one of the larger Esports teams won 2 events and finished 2nd in every other event, and had more points than GILD, we would take home the $7m USD. So quality over quantity is also a factor.
Not that anybody cares but details for the EWC have been released
Participation requirement - A Club needs to reach the top 8 in at least two competitions to be eligible to participate in the Club Championship.
Winning requirement - A Club needs to reach first place in at least one competition to be eligible to win the Club Championship and become the best Club in the world. In the case that the Club with the most points has not achieved this, first place will go to the Club that has accrued the most points whilst meeting this requirement.
Alongside this, it’s worth noting that Clubs can only earn points for participants that were publicly stated as part of the organization before the deadline at 23:59 AST on Friday May 31 2024. This includes competitions where the qualification or invitation occurs after that date
Points Breakdown
All competitions in the Esports World Cup offer the same number of points, rewarding Clubs that consistently perform at the highest level across the board. More Clubs competing in more game titles means more competition and many more unforgettable moments in esports history.
1st 1000 2nd 600 3rd 350 4th 200 5th 110 6th 70 7th 40 8th 20
With $20,000,000 up for grabs for the 16 most successful Clubs, all will have their eye on the grand prize of $7,000,000
2nd $4m USD 3rd $2m 4th $1.5m 5th $1.25m 6th $1m 7th $800K 8th $600K 9th $450K 10th $350K (11th-16th $250/150K)
Not a fan of the prize money allocation, I think they should have dropped the $7m GP to $5m and second place to $3m and bumped up the rest of the placement money
#GILD needs to finish in the top 10 to make any significant money
Although we are very good at FIFA, Fortnite and Rennsport
We are OK at Tekken and Street Fighter
Deadline for EWC players is 31st May so expect GILD to make more RNS signings before then (I Hope!!) we need to be in as many tournaments as we can
Not much love for the #GILD at the moment but suspect it will come
Really shocked the EWC has not got wider attention yet, just a couple of us and the tumbleweeds (unless we are the tumbleweeds?)
I've seen stocks with much less going for them do 200% on news and anticipation like what GILD is offering, LVCG anyone recall when that did nearly 500% on a KPOP concert? MOS did quite a bit as well at one stage, not to put GILD in the same boat but the potential here is enormous and yet the market still ignores it.
Cash perhaps? We haven't raised much but I am sure we need to do at least one more strategic raise of some sort
What happened to the 00Nation 'commercial agreement'
MIddle east investment of £250K seems to be paying off either way
Yep looks like a buyer is taking out a seller, although why it is across multiple trades I am not sure... you would think they would just do it all as one large transaction. Perhaps the seller was/is trying to crash the price, so the buyer is sitting on the book taking up the stock. I doubt they are working in co-operation but could be wrong.
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.