Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
One thing you have to remember is any risk to covenants is not caused by underlying operations.. The AA in an non corona world are a strong business and can manage debt.. i think worst case repayments will be relaxed to help support these businesses... if the trading was poor then i would dump this business.. but they are going in right direction
How?... they meet requirements of the covenants in terms of interest cover and EBITDA.. they have also reduced net debt..... and pay dividends?..
What else do you want
Where do you see that?
Cars dont like sitting idle for 12 weeks... when normal life resumes could be a lot of people with issues.. i work for one of Uk largest aftermarket distributors and expecting people will have problems... Win for AA
What are you taking about.. i have invested.. and am happy the business will do well in the future.. however im stating the fact that CV will impact most business in Q2...
To date.. thats one week to end of march.. lock down was on 23rd.. april and may will hit most businesses hard.. no one said there won't be any impact of CV
At least its been announced... the uncertainty was leading to share price volatility.. they will probably pay a special dividend once the virus is under control and full assesment of impact on business has been undertaken.. i believe the cancellation was already priced in last few days..
That is the whole point... the debt is being managed... operating model is improving and they are generating cash... 350m in cash profits... looks good to me..
JLP have just tweeted in regards to palladium prices
Article in
@FT
shows record high prices of #palladium of over $2,700/ounce for its use in catalytic converters.
Positive for $JLP with recent #PGM ounces delivered up 82%, PGM revenue up 107% to £16m & PGM operational earnings doubled to £8m
There is no direct substitute for rhodium..i read that 10k is very possible in short term due to supply issues
Also palladium used largely in petrol cars and platinum for diesel based convertors.. platinum to break 1180
Using platinum as alternative in petrol convertors will take development.. upto 2 yrs
I will try and find the article