The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
I think there is a slide in the JPM presentation which has this - I thought net debt sat at 560m.
Is that today or tomorrow? Was it JP Morgan?
How are you? It’s been a few years, hope all well!
Hope it keeps up.
The business is profitable. A TO is a possibility but unlikely. The SP might go lower but this a balance of risk versus reward and I like the odds of 20 pence upside.
Honestly didn’t see this today when I read the results but not surprised - markets are what they are.
Sadly, very much so.
Agreed CD, I’ve been in and out of Petra since 2008 (which was 55p then!). This deserves a much higher valuation on these results - let’s see some optimism get priced in!!
Who wouldn’t have a punt at these levels with a well run business - structurally it’s fine. I will continue to buy.
we know capex must increase over time but I doubt its going to be increasing to the levels seen in the last 6/7 years of $500m plus. I think guidance on this leaves material upside to FCF and sentiment and the ability to not only service but pay down debt. i see risks here - FX, geopolitical and others but the upside for a PI is massive. with debt managed and good stones plus industrial demand this a $1B company - minus debt. Petra can comfortably carry $250m in debt for 10 years on LOM . They dont have to clear it all.
Ah, I see - missed the reporting threshold.
It’s been a while since a holding RNS - if ii’s/Rowe have been dumping so much we should have had another update I would have thought? A lot of focus on gem quality stones but the industrial demand for rough is a factor too. Not sure of the mix for Petra. I still think it’s a good buy - plenty of cash and inventory and lower capes moving forward - LOM is not an issue..
at 30th June cash at bank is Cash at bank $90m this is taken off the 650m debt to give net debt of 560m. they generating FcF after all debt payments. so either way capex and debt repayment fully funded through 2020 cash at hand or capex covered for two years if margin is squeezed another by diamond price falls by 5-8% d then PDL only have fcf to cover debt repayments. the market is not that weak and bigger stones are coming out more.
US$M
89.5
The covenants and debt is well under control - any weakness in the wider diamond market was priced in at 17- 20p - the fact there is free cash flow and a lower capex going forwards means to me this is being walked down on relatively light volumes now - yes there was big volumes on the gap from 20 ish to 17 but not anymore.
From trading central reference:the downside prevails as long as 666 is resistance. Alternative scenario: above 666, look for 702.5 and 724.5. Comment: the RSI is below 30. It could either mean that the stock is in a lasting downtrend or just oversold and therefore bound to retrace (look for bullish divergence in this case). The MACD is below its signal line and negative. The configuration is negative. Moreover, the share stands below its 20 and 50 day MA (respectively at 704.58 and 717.67). Inmarsat is currently trading near its 52 week low at 623.5 reached on 27/01/17. Supports and resistances: 724.5 ** 702.5 * 666 ** 651 623.5 last 580.5 558.5 ** 537.5 * 515.5 **
50,000 for me. Worth a try.
Is anyone checking these people out? I might research later tonight - are they connected? players or heavy hitting PI's? be interesting to find out
Thanks Daisan, I've been long here for years. The proven part will hold the sale back from reaching that £120m mark but I think there is plenty of value here.
Discount for debt, I think net value assets around £30m and the mine itself - I would expect offers of to reflect a market cap £35-50m. But we this is aim and the mine is not proven economic at ROM so 5-8p?