Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
2 years have been wasted because Czech govt since their elections were focused on other priorities.
With govt not making public its view on the project til now, Cez which is govt related (and obviously EMH) had hands tied to say anything.
That’s what killed the performance of the shares.
That’s changed.
FID this year.
I believe the market so far is totally missing the significance of that news.
The story has derisked markedly.
And yet it continues to trade at near all time low.
The best risk/reward play I can think of.
What’s the downside? Vs 9x upside to Nav post dilution…
The communications by both Czech R PM and Cez backing the Cinovec project are a GAME CHANGER for the equity story.
Their radio silence on the matter since the Czech elections was the they key reason for the stock’s massive underperformance. This is now cleared, and expect the discount to Cinovec NAV implied in EMH shares to narrow meaningfully as the risk premium that should be associated to the project reduces dramatically.
Recall this project can easily be financed just with the backing of an entity like Cez and its big balance sheet.
This is the year when EMH this shares could really move.
FID due this year according to Cez… and we finally get a sense of urgency by Cez!
The upside to fair value is enormous - post dilution you are probably looking at 9x upside at $28k hydroxide on my calculations.
I have loaded yesterday at open.
Fasten your seatbelts.
The deal announced this morning is a great deal!
It adds a significant c30% to Thungela group Freecashflow and a lower risk than South African activities , while capital increase of less than 10%.
So you can say it’s 20% or so accretive to Thungela shares.
Even if you include the large rehabilitation liabilities the payback at current coal price is 3 years!
I just bought some shares.
BUY!
Finally looking like an attractive entry point.
Strapped for cash, and need a £3m rights issue to have breathing space; but at current price I think the risk/reward is attractive nonetheless. NDPR p up >30% since Sept yet shares unchanged. Pjct econ make sense here
Finally looking like an attractive entry point.
Strapped for cash, and need a £3m rights issue to have breathing space; but at current price I think the risk/reward is attractive nonetheless. NDPR p up >30% since Sept yet shares unchanged. Pjct econ make sense here
You clown.
You don’t notice what’s happened to the company since?
It will NEVER command the same valuation as before since they LOST their infrastructure and their machines are 1-2y older since.