The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
They made a statement yesterday
https://www.imperialbrandsplc.com/media/key-announcements/2022/update-on-russia---ukraine.html
Tucson - I think they just weren't going to let a short-term minor cash flow problem cause long-term dilution. Taking that loan to prevent dilution was probably a very smart move in the longer-term. It came, however, with a price tag, which was a longer delay to complete the pipeline. I personally think they made the correct decision, but as with so many other things, only time will tell.
Cost of capital is another slippery concept. Makes sense in theory, but just about impossible to apply with any accuracy in practice because to determine cost of capital you first have to come up with your cost of equity. I wish I had a quid for every hour I've spend arguing cost of equity. I'd be rich.
Mirasol - there is no scientifc or economic way to determine discount rates. You just start from some sort of a base (gilt rate, for example) and then adjust according to personal appraisal of risk or probability of return. It's very much a subjective thing.
Jim - the major sentiment change is out of tech into value and defensive shares. The party is just getting underway, but I expect it will be a good one. I'm just curious how long it will take for the fund managers to can their virtuous principles and join in.
Hey Funky, why are you wasting your time with kzg? What you really want to do is start a company to profit big-time from your betting talents. You float it on AIM and pay some broker to write a glowing report or two detailing your betting history. If he exaggerates a bit, that's ok too. So then you collect a nice chunk of cash and pay yourself a handsome salary. You don't actually have to do much betting, just keep promising the shareholders that "the big one" is right around the corner. When you need more cash, just place some new shares and let all your friends and family subscribe and sell them forward. You won't have to buy them Christmas presents ever again, believe me. We'll miss you here on the kzg board, but you really ought to take full advantage of your talents.
PS - If you need a non-exec director who'll let you get away with all of this, I'm available.
Mib - you make a number of very good points. But I think I'll wait a couple of weeks to see what 4q production numbers are before drawing conclusions. I agree regua will be crucial to any kind of successful mining operation. And yes, the gold (or lack of it) is becoming an embarrassment. If the decision has been taken to put it on the back burner, then say so!
The government keep listening to that lunatic at Imperial. His models have been consistently ridiculously alarmist - and totally wrong.
Right Geng. In winter/spring 1919 it apparently mutated into a far less deadly form and then just sort of withered away.
A few months ago there were a couple of virologists who predicted exactly what is happening now. They said the virus would mutute into a form that was far more contageous, but less deadly. It seems it's a known viral survival tactic when the number of potential hosts becomes too low (because of immunity, vaccination, etc). Their conclusion was that the pandemic will be over, for all intents and purposes, by springtime. I'll believe it when I see it.