The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
DG, my own beef is with this BB as I don't see where the board haven't been straight. AP invested himself at 0.60 and the associated narrative with the company Results made it clear that we needed cash. Raises have not been at a discount and I don't see the lies alluded to. Vast is an investment, it is unlikely to double overnight (unless something amazing comes from Marange) so will take time to come to fruition. just look at where we are now from 12 months ago. My own view is that it will come good which why I am invested, and honestly, so far so good the pieces are coming together, but I'm here for 2 years yet, so can wait. GL GF
DG, really? If the raise itself came as a shock to you then I'm afraid you are a bit naive, it was loud and clear - hence the headroom vote. It is unfortunate that it was not higher than the last close, but that is how it works. For the record I wasn't party to the placement, (but I have topped up in the last few days). If you know the company you are invested in, then I would really love to know what you would have expected to be so different? GF
DG, and the lies are? GF
here today. It was clear a placing was coming, after all most holders voted on it ahead of the AGM. The price is disappointing, but the market and our company has been hit hard in the last couple of weeks. What would folk like AP to give away in order to get a premium? After all I could buy a million quids worth on the open market at that price. The value is about what I expected even if the current share price isn't when I hoped it would be done - such is life. I don't expect any of the remaining c. £4m to be realised without a clear investment reason. Nothing changed for me. GLA GF
Mull, my point was that we still retain a 'controlling' interest. I think it was Pepco who mentioned Giant.
As you say, each to their own, but I would rather keep a growing revenue and profit stream with a 20 year mine life even if we have to dilute to realise other opportunities - after all it also outweighs the financing repayments and other projects are largely funded. Yes the profit and cash flow is yet to be proven I agree, but I think it will be and if it all goes t**ts up it won't make a jot of difference how it's all been funded because we will be stuffed either way. GLA GF
Mull, "small pieces of mines which we have no control" how do you figure that? Do you not know the structure of these assets? Vast has significant control of both PP and Giant together with significant strategic partnerships in Zim on which to leverage growth. Greater likelihood of re-structuring the asset management across Zim and Rom than a sell off. GLA GF
FTB, I think that's a great way of putting it! Add to that, we are dealing with a $100B company which will take time to get things signed off, so, so long as it's reasonable and AP is happy then I'm ok to wait a little. GLA GF
Don't think I buy those explanations Ian. What would it be - a million quid? Not enough to have a big impact. Reality is, we are in a base building period with all of the pieces coming together nicely, but not generating cash additional cash (yet!). We are spending or have plans to spend a lot of cash developing what we have, but no immediate increase in revenue generation. A strong production update from PP will help because that's cash generative but everything else is investment. We only really have PP making a significant contribution. Next year should see that change with Manaila improvements, BP and Eureka all making additional contributions together with further increases at PP and of course potentially Marange. No doubt for me that we are undervalued but until we start presenting the market with monetary returns i doubt we will see a shift in sentiment. We may see some upward movement and Marange could give us a shock injection together with monetisation events next year but for me, I am seeing this as a further 2-4 year investment before realising my return. GLA GF
Don't want it until we need it, so get the plans finalised, know when the cash will start going out and draw it down then. Could be a couple of weeks. GLA GF
I get your sentiment Tom. Made me chuckle 😀
Patien, this ain't ADVFN, please have some decorum. The markets are being pretty beat up just now and companies will get hammered even if fundamentals are good. Just ride it out, paper losses are tough but they aren't losses until you realise them. Lot's selling out at maximum pain just now because they have no choice, but if you can sit on your hands it will come good. If your exit date is about now then sell up and move on. GLA GF
Yup, tin hat on, dig yourself in and try not to get emotional! Just need to ride the storm........GLA GF
I hear you DG1, I have looked at my own position here many times over the last year to make sure I'm not missing something but the fact is I keep coming back to the same position - that Vast is significantly undervalued purely on what we have now, let alone the potential which could be explosive. One way or the other the next few weeks will set the tone for 2019 and for what I think will be huge for Vast. I do think the share price is only likely to respond to monetisation events, of which we have T2, production (where PP 3rd Q will see the whole of last year exceeded with a Q to go) and BB finance coming.....then next year further production increases across the board PLUS all the other early stage project developments. I won't mention Marange!! Oops 😀. I really think this will come good, but hey each to their own. GLA GF
Buko, not transformed and going backwards - really? Mercuria financing, BP, PP production, Zagra, Blueberry, Eureka, significant revenue growth. Equity yes, but for considered funding not death financing or significantly discounted pi** ing away of cash. Years away? No, not at all, BP, Eureka and PP will see to that plus Manaila increases, not to mention potential of Marange! Going round in circles? Piffle. If you don't like it at least give some reasoning rather than knocking without context........GLA GF
Larsson, I get your frustration but to blame AP and the BOD for the share price not being higher is unfair. In the 10 months since AP took over from Roy the company has been transformed, just look at what we have on the table compared to 10 months ago. What more can the guy do - he heads up the company but doesn't own the share price! Other than the share price which he has very little control over what aspects are you not happy with? GLA GF
In the words of the late, great David Coleman the share price here is "quite remarkable"! All we can do is watch AP continue building Vast into something special and hope that one day........GLA GF
Get in! Let's hope this really starts to reflect true value. GLA GF
Really?
I'm trying to Mull, I just don't see the evidence, implied or otherwise. Nobody knows at what price the placing will be at, but recent history does not suggest it will be too heavily discounted. I think the aims and strategic objectives are apparent even if not explicit and I doubt they could be more explicit at this moment in time because of the unknowns. Don't get me wrong I'm not blind and when I saw the results and subsequent letter from BM I re-evaluated, but came to the conclusion that I continue to support AP and the BOD not to p**s my cash away and that the benefits of current / future projects would out-way the costs and that it is not necessary to hold them to ransom. GLA GF
Mull "I am unhappy at what will become an unconditional placing at a sh i te price for the benefit of some ‘customers’ and without strategic links and objectives!!"
I'm not sure what you are implying? GLA GF