Utilico Insights - Jacqueline Broers assesses why Vietnam could be the darling of Asia for investors. Watch the full video here.
Saturday's Telegraph:
Mike Ashley’s Frasers Group is finalising plans to lend customers as much as £2,000 and let shoppers buy products on credit in a major push into financial services.
Mr Ashley’s retail group is preparing to launch a suite of financial offerings under a new “Frasers Plus” brand, spearheaded by chief executive Michael Murray.
A senior City source said: “Ashley’s really excited about credit. He reckons Frasers’ bottom line could be boosted.”
Frasers Plus will offer two main products: a buy-now-pay-later facility that will let customers pay for purchases over time, with Frasers Group covering the cost up front; and the ability to take a loan through the app that could be spent across the group’s retailers.
Customers will also be able to combine multiple buy-now-pay-later purchases into a single loan through Studio Retail, formerly known as Findel, the Financial Conduct Authority (FCA)-regulated business that Frasers acquired out of bankruptcy a year ago.
Technology developed by Tymit, a fintech startup in which Frasers has a 20pc stake, will be used for online payments.
It is believed that Frasers Plus could offer loans of as much as £2,000, which could be pooled for purchases across all of the group’s brands such as Sports Direct, Flannels, Evans Cycles and House of Fraser. Final details have yet to be agreed with regulators, however, according to industry sources.
Mr Murray is understood to believe that Frasers Plus’s standing as a regulated entity, through Findel, will set it apart from rival buy-now-pay-later providers such as Sweden’s Klarna.
The decision to offer financing in-house is a departure from rivals such as JD Sports, which relies on buy-now-pay-later payments provided by outside companies such as Klarna.
Bringing financing options “on balance sheet” will allow the company to boost sales while still retaining funds that would otherwise need to be paid to third parties in fees.
Frasers is hoping the initiative will enjoy similar profitability to other major retailers that offer purchase on credit. Next generates around £150m of pre-tax profit annually from its credit offering, Next Finance, for example.
Mr Murray is understood to believe that being regulated by the FCA should help soothe concerns that customers could be persuaded to buy unaffordable items.
“To be regulated is an enormous process,” said a source familiar with his thinking. “You need a track record of prioritising customers and treating them fairly.”
Https://www.telegraph.co.uk/business/2023/01/28/frasers-group-boss-mike-ashley-plans-major-push-financial-services/
Either way, Karo is big, it's got the right geological address, and from Tharisa's point of view, it's got the right geographical address too.
This development takes the company out of its original country of operation, South Africa, but not too far, and to a country where mutual ties are strong, and mutual benefits are well understood.
Mining has been one of the few industries that's kept Zimbabwe's economy going over the past decade or two, and the new Mnangagwa government hasn't been slow to recognise that.
At the ground-breaking ceremony in December, the Zimbabwean minister present, Winston Chitando, spoke of the 1,000 permanent jobs that will likely be created by the project, as well as the 7,000 jobs that will be created by the construction.
Mention was also made of Karo's green potential, as much of the power will come from a new solar facility that's also in the works.
Some more funding will be needed to get Karo up and running, but the economics are compelling.
The net present value is set at just over $770million, with the post-tax internal rate of return likely to run at just over 47 per cent.
It's not hard to see why Tharisa is committing to Karo, and not hard to see what success would mean either.
Not only would a significant amount of production be added to the company's annual output, but a significant marker will have been laid down.
This is a company that's willing and capable of expanding on all levels.
First production is expected from Karo in 2024, but it wouldn't be surprising if the shares start moving long before that.
30/1/23
In a way, the Tharisa share price graph makes for glum viewing.
Platinum and chrome production was affected after an unprecedented level of rainfall at the company's South African operations last year.
Across the same time period initial fears about supply constraints in the metals markets in the wake of Russia's invasion of Ukraine were subsequently allayed.
Tharisa's share price rose, and then fell.
The shares have been bumping around at their current level for the past six months or so – below the five-year high that was hit when the Ukraine war started but nevertheless two-and-a-half time higher than the depths plumbed during the worst of the covid ravages.
At the current level, the market values Tharisa at just over £300million, and well and good – the company has a track record of production at the eponymous Tharisa mine that runs back several years, and it hasn't made many mistakes.
What's really been lacking though, until now, is growth. This year looks like being one in which Tharisa starts to change that.
As a cornerstone, for this year, production guidance for the Tharisa mine is set at between 175,000 and 185,000 ounces of platinum group metal, and between 1.75million tonnes and 1.85million tonnes of chrome, not too far away from the 2022 numbers.
There's also more than $200million in the bank. But it's Tharisa's drive towards developing new assets in new jurisdictions that really looks set to transform the company.
The first cab off the rank in this growth strategy is the Karo platinum mine in Zimbabwe, which is held through a 70 per cent stake in a vehicle that owns 85 per cent of the project. The other 15 per cent is owned, free-carried, by the Zimbabwean government.
The project is already well advanced, with various ceremonies already having been held.
Ground was broken in December 2022, and construction is now moving forward, after a non-dilutive $38million in bonds was raised on the new Victoria Falls stock exchange.
Tharisa doesn't hesitate to refer to Karo as a world-class asset, based on an assessment that the project holds almost 10million ounces of platinum group elements at an average grade of just over two grams per tonne.
The key elements are platinum, palladium, rhodium and gold, with some additional upside from copper and nickel.
The plan is to develop a mine with a 20-year life, and that produces around 150,000 ounces of platinum group elements in concentrate per year.
This is fairly high-level stuff for a platinum project, and the kind of thing you don't see in many other parts of the world.
Indeed, the Great Dyke of Zimbabwe, in Mashonaland West, around 80 kilometres south of Harare, is arguably second only to the Bushveld region of South Africa when it comes to potential for platinum group metals.
The only other area that bears comparison is Norilsk in Russia, but that's primarily a nickel producing operation, although its output of PGMs is admittedly very significant
Bought by Fraser group, there was enough shares in free float for Frasers to take 17% until Schroeder's sold. Also the timings are perfectly concurrent.
Fridays holding rns. Frasers group bought 17% in January crossing the threshold on the 27th.
It will be interesting to see if they continue buying up to the point they have to make an offer.
Perhaps explains the recent directors buys here.
If they the Alliance family sell they will want a big price.
Interesting times.
Bwng in recovery mode now the Allianz settlement out of the way. Despite it being more than expected the company are left with a healthy net cash position of £30 million.
Most look at the debt and dont realise its all more than covered by the loan book. I saw a respected investor comment on debt on twitter with no clue about the financial arm of NBrown and the loan book.
I first bought in here at 23p a few years ago and it went up to 70. A repeat would be nice. The company is in better shape now.
I had the rns on investigate alert. Lse rns system unreliable at best.
Looks all good here but a sell order that is being fed daily Is taking the price down. No idea who is selling.
Perhaps giving a very good opp to get in at these lows. Or will it go lower? Chance you take but im sure a cash cow like THS will be back up when the seller is out.
So easy to get locked into aim shares that plunge yrabs. I read on the loop page you'd put £16k into loopi think it was 65p area. Just 2 years on its 4- 5p. A far faster fall than wsg.. Do you then take that big loss or write it off into the bottom drawer and just hope it will give you at least some back.
Mugs game for most isnt it.
At some point the market has to wake up to this. 41-44% rise in eps on last year and sp still near 24 month lows
Sad news Ths were clearly proud of reaching 6 million fatality free shifts. Always an accident waiting to happen with mines.
On another note Absolute bargain share price for those with free cash.
Former director now a NED. Its unlikely they would get the placing away in the current market with out director support. Was 12 months to the day they raised £8.8m at 25p
84% dilution in 12 months for the poor sods who got stuck in here.
https://ukinvestormagazine.co.uk/westminster-group-giving-money-away/
Maybe a glint of light in the dark tunnel for long term sufferers.
You would have got 100p.. psychological levels cost pi,s money all the time.
Reckon this is still very cheap jnder £120-130
None holders opinions count for nothing. They will never praise a share they dont hold especially if they are ex holders.
Srp hs similar revenues to CPI, the difference is SRP make good profits. Whilst CPI are only just turning from loss to profit… but the turn is clear if you investigate. I see no reason why cpi cannot catch SRP profits up in the next year or three. They are in a massive growing market.
The restructure has cost money but they are definitely getting there .
SRP mcap is £1.196billion v CPi £450m
Go and look at the major share holders in CPI a couple pf funds hold 18-19%… who is right top analysts of major funds or ex bitter holders?
Im happy to hold CPI and have the patience to wait for the turn around to bear fruit.