Member Info for LOTM-13

Krustysmegma,

I thought this morning that the price would drop below the £7.00 level, but for some reason the LSE price was up while the JSE price was down. I was going to buy the stock back at £7.16 this afternoon but then felt it would go to £7.13 or less so I put a limit order in at £7.131 but sadly it didn't get filled even although there were some buys that went through at £7.12 :( (I wasn't able to access the market from 16:10 onwards as I was elsewhere)

I was wanting to hold the stock over the weekend given the LSE is closed but the JSE is open, in the hope that it would bounce there and therefore mean a good tuesday opening on the LSE.

Sadly it didn't happen so I'm now hoping Monday is a down day on the JSE so I can buy the stock early on tuesday morning.

We'll just have to wait and see what happens.

LOTM

I've decided to try and trade this stock to see how I fair after it had that sharp drop to below £7.00 & then quickly bounced back.

I bought a parcel at £7.57 before the drop & having held it through the drop & subsequent bounce, I've now sold it again for a loss at £7.49 as I can see this testing that previous low, given current market conditions rather than the £7.90 I was hoping for.

I'll be buying it back & have put a limit order in place in case it does one of these quick dips in the meantime at just below the £7.00 mark.

Hoping to double my holding at no extra cost through trading it.

LOTM

No wonder the share price is falling.

The employees of the company received a 47% increase in there base salary ! - yes that is correct 47%

But that is just the start of the gravy train, they also received bonuses of 478% yep, nearly 5 times there base salary as a bonus.

Who on earth would authorise such staff bonuses?

How many of these "employees" are relatives or friends of the directors I wonder ?

I can see a mass independent shareholder revolt coming to Bisichi.

LOTM

grezzza123,

The director's bonuses for the year exceeding the amount distributed to shareholders in dividends for a start.

A beautiful set-up, a £10M property portfolio that yields enough income each year to cover the directors salaries.

The vagueness of where the funds have actually been invested, ie the companies shares that they bought. So who will know if they actually bought decent investments or dud ones ? Is that money going to earn an acceptable return & who's account able if its not ......

LOTM

There is a constant 10,000 share seller filling the MM's up all the time.

Interestingly those on the SA register get there dividend next Mon 24th Apr. So they can re-invest the dividend literally immediately into the stock if they wish, with virtually no time for the share price to recover from going XD.

LOTM

Just had another long conversation with Barclay's they don't issue this R189 form until after you've received the dividend !

Then you fill it in & send it off to the tax office to reclaim the 10%.

I'm not convinced by this at all. I'll be trying to speak to computershare later in the day about it

LOTM

Pacman121,

Even more so when you don't have the 0.5% stamp duty to pay on LSE trades on this stock !

I sense today is going to be a wild ride for the stock, as I think some people will have sold thinking they are going to get the dividend, when in fact there not on the LSE. And those on the JSE may think the LSE price is way more than it should be for the XD-dividend stock & are selling accordingly, expecting the price to drop to the JSE level of the ex-div stock (when it won't) & then buy it back.

LOTM

They might want to arbitrage between the 2 markets if the prices get out of sink etc would be one reason.

ie someone might hold stock on both registers and move it from one to the other. They don't trade over the same time window each day either as far as I know.

LOTM

Yes Pacman121 that is correct.

Also no-one can move shares between the JSE & LSE register for a couple of days, which makes it more interesting .....

LOTM

Yes holding the stock in an ISA will stop you paying UK dividend tax on the income.

However it won't stop the dividend being subject to SA withholding tax in the 1st instance (before the cash hits your ISA). At either 20% or 10% (if you qualify & complete the required paperwork).

LOTM

After some phone calls it appears the form you need to get your broker to send you is a R189 (not sure if this is Barclay's specific name for it or the general name of it). You then need to complete it & return it to them.

I'm not sure if the form only applies as a one off for the SA company in question's dividend, or last's a year or more & covers multiple stocks.

I'll give a further update when I have more info to go on.

LOTM

Hi Fromage,

No I don't have an actual share certificate, they'll be redundant very soon anyway (before end of 2024). So do you claim the tax back in your actual tax return, or just forgo the 10% all together ?

I spoke to the broker I bought them with & they are going to send me out a form of some sort to fill in & return, but from what you've just posted I'm guessing I shouldn't get my hope's up on it actually working :(

Thanks
LOTM

Does anyone know what form or documentation needs to be requested & then send back to your broker to qualify for the 10% Withholding tax rate rather than the 20% rate for a UK tax payer ?

Thanks in advance
LOTM

As for production it would be great to get detailed info on how 16 & 17 are performing as well as the early numbers from 18 as it starts to clean-up.

LOTM

Given the current share price, the smart thing for them to do would be to announce a share buy-back along with a $25M Final dividend for 2022.

There now saving $10M a year from re-paying that $100M bond early, that saving should be spent buying back stock, every year. I also think they should add $15M to that number and start an aggressive $25M buy-back right now. Given the current share price they should be able to buy-back 10-12M shares over the next 2 months.

That would reduce the number of shares in issue by close to 5%, thus also increasing the dividend rate per share on any future payouts.

LOTM

DramChart,

I have no idea about any bid situation with IPEL.

I wonder if your getting confused with the current share-buy back program that is causing all these complex daily announcements ?

The company has set a monthly buy-back limit of £0.5M that there broker is currently carrying out.

I myself are not familiar with all the various discloser rules on AIM stocks, but it looks like the broker has to disclose both the number of shares it bought each day its trading as well as the number it has then subsequently sold back to IPEL for them to cancel.

To be honest I only bought it to get the big dividend & then sold it for a small overall profit.

However having said that, I am watching it now, I think this has great potential, its just a case of working out what price it becomes a buy & hold, given the small number of shares in issue, the return of normal dividends & the tiny share buy-back program which I'm guessing is limited by the lack of available stock. Plus the market turmoil at the moment.

They might be better, doing 2 things, a share split & a return of capital all at the same time. Which would make it easier to carry out further share buy-backs in the future.

So they could do for example a £22.5M return of capital £0.50 per existing share along with a share consolidation of 11 new shares for every 12 currently held. That would take the number of shares in issue to around 41M & then do a 2 or 3 for 1 share split immediately afterwards which would increase it to 123M or 164M in issue.

Having more shares in issue should make it more tradeable, tighten the bid/offer spread and make it easier to carry out future buy-backs when appropriate.

LOTM
LOTM

Well that was an interesting end to the day's trading with 1.93M shares disposed of by someone at 16:27 for £2.10 a share followed by significant volume of 1.08M in the closing auction at £2.14

Won't be that many holders who own at least 1.93M shares.

Looking at the company website the 12 largest shareholders (listed) own over 160M shares out of the 302M in issue. (not sure when that data was last updated)

Interesting to see what happens on Monday & then with the annual results on Wednesday. What will the normal dividend payment be ?

Given that the share price is going to drop to around £1.85 on Monday, the buy back program when it starts on wed/thurs is going to eat up a lot of shares. This £60M buy-back could end up reducing the number of shares in issue by 10% or more by the time it completes, unless there is a significant recover in the share price in the meantime.

That won't half boost next years eps etc.

LOTM

I have to say, rather disappointed in the dividend.

I was expecting them to increase the final payment to at least 8p if not 9p. That would have brought the total for the year to 11.5 or 12.5p which only amounts to total cost of approximately £68M for the whole year.

It will end up costing less than that given the amount of shares that will be bought back in the coming month's.

The share buy-backs are totally transforming the company, 690M share outstanding just over 2 years ago, now down to under 575M. Which translates into a 16.667% reduction to date. Add in the likely 25M+ shares that are going to be bought in the next year, takes that figure to over 20% (690M to 550M).

That reduction has a significant impact on the EPS going forward as well.

LOTM

Special Dividend of 77.8 pence per share going ex-date tomorrow so last day to buy in to qualify for the dividend and its paid as soon as 6th April. The start of the new tax year.

The dividend is going to cost them £35M (less the small number of shares they've so far bought back since that announcement, that they won't have to pay it on).

They are also going to start paying a dividend of £25M next year. Obviously the amount per share that work's out at will depend on how many more share's there able to buy-back before then, but the amount will be north of 55p per share.

LOTM

PUTUP,

I have no idea where you get the $24M on monthly spend that you posted & then adjusted to $19-20M net a month on your next post.

The cash balance was $116.9M on 16th Dec. They received a payment of $38.8M for August after that which takes you to $155.7M

The reported cash balance is then put at $151M on 27th Jan, in the next update. Which means the cash burn from 17th Dec to 26th Jan (6 weeks) was $4.7M in total, or roughly $800,000 a week.

The accuracy of that figure will be revealed with the year end results which will list the cash balance as at 31st Dec.

Creditor's will be another interesting number to view in those results, to see if the drilling / completion costs of these new wells has been paid for upfront or put on credit.

LOTM