Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Will keep going until selling drys up - That 1,500,000 sell yesterday won't have helped. Needs some form of comms as price will be irrevocable - Heading into the 6's - Over 200% raise to get to recent placing price on news - I think not.
Think most locked in for long haul.
Positives
Sales uplift in Morrison daily roll out formats - Rebranding 'strong' with better than expected ROI
Wholesale agreement extended with Morrisons
Improved cash margin from sales uplift / better more sustainable mix
Roll Out - Full steam ahead and potentially transformational
Store optimisation program completed
CEO has skin in the game - Further £3m invested at capital raise 20p
Market Cap low
Potential takeover target with two of the big players already purchased Morrisons and Asda (Potential VC opportunity if not bought by direct competitor)
Post offices in sites massive plus with reduced high street presence in banks - Impulse spend - Quality supermarket produce/offers
Uber eats Trial
Low amount of free float shares
Negatives
Market sentiment - Share price down from 20p placement at back end of 2021
Debt c£100m
Potential rising interest rates making debt more expensive to manage
Poor/little in the way of market re-assurance from the board
Unknown
Banking facility review
Finalised 21 numbers - Due in March - Although should be in reduced range that was reported
Q1 trading including store conversion numbers / performance
Any initiatives put in place - Revenue generating or cost reduction
Sad to say it but the lenders will pull plug and it will go down pre-pack route.
Share price action appalling
No communication from board or IR
Interest rates rising
Morrisons will have no interest as we are not the only ones doing the local franchise model (Although probably the biggest and will support making the distribution numbers work)
Absolute S show
Leadership is terrible no respect for shareholder value - Absolutely decimated
Share price c36p - Fund raise @ 20p Back end of 2021
Jan 2022 - Share price 7.5p (Sell and declining)
Hope he looses his £3m - Surely he should do right thing and resign - Absolute incompetence
Price action suggests lenders are pulling the plug
I know, unless more going on in the background resale / potential takeover /refinancing.
His total holding is huge so has a vested interest in this performing well (obviously over the 20p, recent capital raise).
Price action is a tad worrying and market could do with some reassurance. Surely a TR1 will follow this week as it looks like a big player selling out/reducing stake. This is not unusual as will likely have trading parameters set.
I'm confident board will be working on getting something out asap (Probably re: finance renewal) to steady the ship. Will be uncertainty in market at this time with low margin products and interest rate rises.
Remember nothing much has changed since the £35m was raised at 20p :)
Patience wins
Need to relax, it will come good.
£3m invested by CEO @ 20p months ago
Morrison conversion ahead of schedule
Confident banks will agree facility extension based on new business model
Spread is large, will move up quickly based on free float.