Rainbow Rare Earths Phalaborwa project shaping up to be one of the lowest cost producers globally. Watch the video here.
Try Saxo? A foreign affiliate of theirs handles them (and has been trying to transfer them for me from HSBC InvestDirect International for months without success, due to the latter's incompetence although that is the least of their faults...)
Technically it is a return of capital from a special reserve, but this is effectively a fiddle to avoid Swiss withholding tax on dividends (which was at one time payable on GLEN divis if I recall). HL as a broker will not deduct tax at source, dealing with this is your own responsibility. I believe Alexander Beard v HMRC [2022] is relevant to HMRC's view on the matter.
DS - if it was return of capital, it would not be taxed as income, like a dividend. But GLEN distributions are in fact taxable as income - unless tax-shielded by an ISA or by non-residence, GLEN being domiciled outside the UK.
DTN - are you sure about that? I think you'll find that whatever terminology has been used, GLEN distributions have been classed as income (not capital gains) by HMRC.
Not sure if anyone else has latched on to this, but the Ethiopian rainy season starts again in June until September, and nothing much will happen on site even if the money has been banked. Still, confirmation of finance will spark the SP whenever that happens I would imagine.
Because it really isn’t all that big. About 15 years ago RR was chasing market share, and each new deal resulted in the share price dropping, since the market knew that the deals were on thin margins. I don’t suggest that that scenario applies at present, but in the current circumstances the margins will not be great and will involve offsets of some kind. As for the new engine sales (as distinct from the FHAs), Airbus has always expected thin or negative margins on engines exclusive to aircraft types such as the A350. It’s good news but hardly influential on the SP
Actually most civil engine customers are on fleet hour contracts whereby they pay monthly for hours (and sometimes flight cycles) used. Overhaul costs are then borne by RR but these arise later.
Obviously Tufan will ultimately be judged on results, but these will probably take some time to appear. One thing I will be watching is his approach towards electric aircraft: if he makes positive noises that is not a good sign. No more money should be sp**ked away on this green fairytale: it is not going to happen, ever. I am not sure (and nor is Warren East) what the future holds for large aircraft propulsion, but with an energy density about 2% of kerosene it ain't gonna be electric batteries.
Ha, you don't think it is that already? Both SPs are down around 40pc from recent peaks which are themselves fractions of earlier peaks. Both in the canine family
Without wishing to rain on anyone’s parade, the only business potentially coming from India is the XWB in the A350. Air India already operates GE-powered B787s and is highly unlikely to change for any future orders. Historically India has not favoured RR civil engines and RR is fortunate that there is no alternative offered on the A350
I believe so, and have added at 116.5. Reserve currencies such as the USD should soften as market expectations of rate hikes slowing are realised. The worst of this should be over, and the results are otherwise healthy. We should not expect a rapid recovery, but this is a sound business with plenty of upside medium term
In simple terms, RR trades in USD but accounts in GBP, so they hedge the exchange rate to avoid large fluctuations in recorded revenue. Labour costs are mostly in GBP but raw materials priced in USD. However, they have been spectacularly bad at hedge pricing, not just recently but going back a few years, resulting in losses which however are largely on paper only
I perhaps ought to clarify the distinction between TCA and PBTH. “Power by the hour” was conceived in the 1960s, mainly in relation to Viper-powered HS125 business jets., and did involve the pooling of engines. The Viper engine has long been forced out of service by noise and other emission regulations, and PBH is largely obsolete though the term is used generically. My previous comments apply rather to TCAs, where engine pooling is not used although individual engine or module swaps can be done by mutual agreement between operators. Many engines (and aircraft) are owned by lessors who usually forbid any such pooling without their consent, and RR is not free to swap or pool hardware without constraints.
You are broadly correct, although it is not generally the case, as you stated earlier, that RR owns the engines. Far from it: RR would like to own none of the hardware and usually insists (against resistance from the larger operators) on spare engines being purchased, at unit prices higher than those negotiated with the airframers. RR maintains lease pools on all current engine types, but keeps this costly investment to a minimum. In addition, cyclic (per flight) charges are often not included in TCA coverage and, if included, charged at cost plus. One other point, RR sells TCA as a win-win for themselves and customers, but disputes about coverage often arise and customers also tend to object to the very advantage enjoyed by RR: that payments are made in advance of repair and overhaul services being provided. Mature engine types can operate for 5 or 6 years between shop visits, yet TCAs provide for payment from day 1. Some argue that the main benefit is in budgetary planning rather than huge cost saving.
Q1 trading statement issued. It looks unexciting, but the drop seems overdone to me
AAF does not include Bharti Airtel, the Indian business which could be regarded as the parent. I believe the African HQ is in Nigeria, their largest market, but the management team includes several Indians. The persistent placings at around book value suggest the major shareholders see downside risks at that level
If you sell on the XD date, you will still be on the register the next day, because the records update/clear at T+2. For the same reason you will not get the distribution if you buy on XD date.
Larus, I take it you would agree though, that a buyer on XD day will not receive the div. Therefore a seller must have the rights
Aquae, on reflection I think you are mistaken. You should be able to sell today and still get the div in specie, because on the next day (record date) you will still appear on the register. Record dates are invariably the next dealing day after XD, but I believe this is a convention rather than a rule. Anyway, it seems logical that on XD day, either buyer or seller gets the div - it can’t be both but nor can it be neither.
Indeed Aquae, but I was just making the point that buying today will not get you the div, and a drop equating to the div value is the norm on ex-div day. In this case however, the div value is somewhat subjective.