RE: xtr3 Aug 2020 13:32
I'm completely in agreement. Awful interview, Alastair Ford comes across as though he hasn't even bothered to do some basic research into the company where he's been made a non-exec director.
Andrew4444 "I suspect those long suffering xtract shareholders have a better understanding of the prospects here then our new non-exec director. Maybe that's why there has been very few sells so far?" - Nail on the head.
Circa £4-£6m expected cashflow (per annum) from the FB hard rock project off the back of our 23% as per the collaboration agreement, income from alluvials as per and the other projects we're expecting to progress with the potential for income in the not too distant future from as per guidance from CB. For a company that's currently valued at £6m.
Zero perspective was given on this via that interview.
If we were a mid cap £200m company then he'd be right, the levels of income we're talking about aren't exactly much if we were comparing them to that valuation. However, when we're a £6m company looking to make more than our Mcap per year then perhaps downplaying the cashflow as "not huge" isn't exactly right. I'd suggest that tacking on that kind of income, yearly, for a company of our size, is in fact huge.
AF does his best to come across as clueless as to the projects that are on the table and wilfully ignoring any kind of perspective on current company valuation vs revenue. In my view, AF has been brought in to appeal to the city boys as we tack on cashflow and gain in size, however he needs to keep in mind that at the moment we are a very small cap company and that the projects that are about to take off and the income they will provide are game changing for us - and importantly, for the loyal long term holders - have been a long time coming.
CB should be embarrassed for letting him speak on behalf of the company before actually understanding the operations - at least in terms of what they mean to us - I could have given a better interview on what's expected from our projects without even having my notes in front of me, let alone being given time to prepare.
I own 1% of this company, and after hearing that interview this morning, a message to you CB:
Count me as one very peeved shareholder off the back of that.
Trying not to make a snap judgement on AF in that I don't really know his work - but my initial thought off the back of this interview is that if we're not making "huge" enough cashflow, as he thinks, then perhaps we could look at trimming overheads... I can certainly think of one wage I'd be happy (based on performance so far) to do without.
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