Member Info for kfkmjl

Good article in FT

https://www.ft.com/content/2290571b-08ae-4e77-bcd1-8b7099e50086

Struggling with current price given price per carat increasing, increased market demand, China potential results should show good profit

Just sit and wait

Strong

Expect circa $40m - 50m surplus cash on total revenues of $250m

Sedibelo investment write down will impact profits but not cash

Expect 1.2 - 1.5cents divi given share buy back 2cents would be welcomed

At least racing resumes today, prize money increased full schedule until May

“For the sixth consecutive year, overnight purses have been raised, the late-closing events have been upped in value with a focus on the aged Diamond Horse Alliance contests and the incentive program for horsemen has also been increased.”

Can anyone provide an update on Sedibelo re resources

Revenue / production has dropped from last year - results do not provide any outlook commentary

Balance sheet looks strong, potential US listing muted

Difficult to get any real news or update

Good article

https://timesofsandiego.com/opinion/2023/02/04/legal-online-sports-betting-in-california-requires-collaboration-with-tribes/

Continue to develop the business on the ground , Something has to happen at some point in my view

https://www.gamingtoday.com/news/national-sportsbooks-only-california-option-tech-providers-san-manuel-band/

I read this and thought it presented a positive way forward and where Webis well positioned

Fingers crossed politicians, tribes etc can find a way forward

Which is surely why something needs to happen , sports betting is happening regardless of regulation, regulation brings better controls and tax revenues
This should never have gone to the polls but been a govt led initiative $400m spent on advertising alone for either party to attack each other’s adverts.
Glad Webis kept out of the fight but need some news from mgmt re direction end of November - sooner would be good very quiet…

Most big players have already found there partners so agree either one of the remaining big players or expect more of a new entrant or local arrangement with a sports team, tribe etc
Their seems to be resentment to out of state bookmakers so keeping separate may be favourable

Expect a few players sitting on the fence - let the big guns spend millions defining the market. last estimates seemed to be around $180m spent on advertising across the opposing proposals could reach $300m so if neither succeed then justifying any future spend by either would be challenging.

So keep out of he fight enter the market at a lower cost once the dust settles regardless of the result.

Prop 27 seems to be losing favor with the voters - do not see that as a bad thing for Webis - only delays transition to online to a future date 2024 maybe that allows related parties to talk and ideal is government backed proposal versus one from either the tribes or bookmakers.
The state is losing taxes to illegal betting, offshore so why would they not want to legalise at some point with the right controls

In the meantime Webis ticks along with its niche position, expansion into Atlanta keeping in profit ideally but no fireworks(sadly)

prefer to not wait too long and drop to the 1p’s a concern but been here before so will sit tight and watch with interest - also added some more today as seems cheap again given potential

8th November

Re Sedibelo
https://seekingalpha.com/article/4528325-sedibelo-resources-us-ipo-rollout
Potential listing registered on 29th July
H1 seems to have been a challenge for the company due a variety of factors be interesting true market value if listed

Total cash and receivables equal total capitalisation at todays price !give or take a few $$$
A dividend decl in September would be welcome ….
No Update on disposal - was expecting some news by now

What are thoughts re partnership with an Indian tribe, some of the smaller tribes already supporting proposal 27 from the big players
Aligning with a local tribe, watch and wager platform already being invested in, physical track(s) good track record in California all tick the right boxes to be operational
The 100m is restrictive and agree with your comments but ultimately if that is the only hurdle can see the money quickly being raised.

Ruby sale Including sale of two one off stones 32.5 and 29 carats
https://www.rough-polished.com/en/news/125806.html

Hard to say but the fan duel deal seems very restrictive due to high entry fee, pretty much creating a monopoly, one of the conditions is licenses that Webis has so a takeover by major player, access to existing client base, having a physical presence would be one outcome,
“ gaming companies would have to pay a $100 million licensing fee to do business in the state, as well as already be licensed in 10 states, or be operating in five states and running 12 casinos.”

The tribe initiative is more restrictive and specifically excludes Caltex not being a thorough bred
Horse track - yet Caltex creates jobs for the local community, excellent horse welfare record etc so why exclude is odd. A future partnership with a tribe an option ???

My expectation is the politicians knock some heads together and get the right parties around the table and deliver a proposal that has the key positives of each initiative, benefits on the ground business operations and allows punters to bet with out using unlicensed companies.

Watching closely since 2018 and expect there is more to this journey in the next 6 months

See a 65% upside
https://www.iol.co.za/business-report/companies/momentums-stock-pick-of-the-week-gemfields-5c90db44-cefe-426a-89cd-7b4601e24835

GBP divi for uk holders
AIM shareholders – USD/GBP 0.7630, equating to a dividend of approximately GBP pence 1.29785 per share

Nice to see 20p barrier broken even after ex divi

“ Arizona’s online and retail sportsbook took in $563.7m in wagers for January, which is an increase from the previous high of $499.2m registered in December. On average, bettors wagered $18.2m each day over the 31-day month, again an increase from $16.1m per day in December.”

Looks good for future growth

Announced on Wednesday, one article implied gemfields has a holding

https://gemfields.com/journals/gemfields-invites-partners-to-join-gemdustry-and-support-online-tech-gateway-gemcloud/

No idea re price drop last month, created nice buying opp, surprised not broken 20p following recent auction, divi due etc.,

I am more optimistic, profit last time 0.72m, given handle in general seems up , new markets opening creating additional demand then to see betting revenue up from $45m to $53- 60m would be my expectation
Assume 30% flows to bottom line, increase in costs due to local campaigning activities
expect closer to $2m, but over $1m would still be positive = surplus cash
Let’s see , might be wishful thinking, Roll on Friday / Monday

Net $100m in bank after debt pay down plus sale proceeds
Potentially $50m from sale of minority stake
Circa 25 years of sustainable mining generating $30m net cash per annum
Valuation only $260m - ignoring potential bid - should the above assumptions not give a valuation of circa $550m plus ?
Struggling with the fundamentals here , appreciating mining carries many risks - appreciate guidance on why gemfields not at a higher market valuation.

Good article by Bill
https://www.gambling.com/news/us/florida-closer-to-becoming-biggest-state-with-sports-betting-2476900
Agree with being patient but next six months will be interesting let alone next 2 years