Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
Spot on I think LL - the potential has been increasing for some time, with lots of positive activity, but until that manifests itself in a monetisation of the technology then the jury will remain out and the share price will be vulnerable.
As I've said before about Mirriad converting its technology into financial performance and shareholder rewards, given all the activity then "if not in 2024, when will the monetisation happen ?" And to me the monetisation means a turnover in the tens of millions and growing, a gross margin of 75%, and increasing profits replacing losses.
The absence of a cash call so far this year may be a good sign - that turnover is rising, that the cost control put in place in 2023 continues, and the time when cash is needed recedes a bit further into the future - but we need the board to tell us where we are and to clearly forecast where we're going.
I've wondered the same thing Jarv. Perhaps any interested parties over the past 18 months might have thought they'd step in when Mirriad to buy the intellectual property once it ran out of cash / went bust ?
Something that probably supports Mirriad in this regard is its collection of institutional shareholders who own a majority of the shares (I think that;s still the case). Any bid would need to persuade them - and as per a previous post I reckon shareholders have stumped up around £72 million, or around 15p per share, between the initial IPO and 3 subsequent cash raises.
Probably worth noting that, I think, through its initial capital raise in late 2017, and 3 subsequent raises, Mirriad has tapped investors / shareholders for £73 million, or roughly 15p per share.
2phevs is probably amongst the most positive of the posters ont his board, but his reasoning is entirely sensible and logical. However, the company has taken and is taking an age to fully monetise its technology. Hopefully, speaking as someone with a reasonable number of shares, a large scale monetisation is just around the corner - in which case, happy days. But there are no guarantees.
One other thing to note is that they did do a decent job last year of trimming overhead cost - so if they can exponentially grow their sales then a large % of that should flow to the bottom line and their cash balance.
Audited final year results for 2021 and 2022 were issued around the 10th May, so unless there are other major developments I'd expect something similar this year. The results for 2023 were issued about a month late, but that was because of the strategic review, subsequent cash call etc.
I'd certainly expect a trading update for 2024 by or at the audited results announcement.
Interesting to see what else might come up between now and then. While activity has increased and overhead costs have been controlled, Mirriad is likely still burning cash. If a cash call is needed you'd expect it at least 6 months before cash is projected to run out. The longer we go without a cash call, then I guess the better the monthly financial performance.
I don't think revenue of £2 million in '24 would cut much ice with investors.
I guess their breakeven revenue must be something around £11 million, so a step change is needed to get to that level of sales.
Mirriad has, I think, raised around £70 million from its initial offering in late 2017 and subsequent 3 cash raises, so clearly the current market cap of £8 and a bit million is a poor return for investors / shareholders at the present time. I think that step change in revenue - proof that programmatic can translate to the bottom line - is needed to prevent investor patience becoming exhausted.
I liked the cost control numbers, didn't like the revenue numbers, interesting that there was no mention of a future cash call.
Assuming they keep their overheads at £700k per month = £8.4 million pa, and they maintain a GM of 75% of sales, then they'll need a revenue number of around £11 million in the year to break even, or 6x the 2023 figure.
It's very possible with an increased market share, assuming they maintain the same level of penetration / conversion of share into revenue. They could also continue the good story on reducing costs, although I suspect that greater sales will need greater resources of customer liaison and development. And of course if programmatic takes off.....
2phevs, I suspect Mirriad's market cap zenith was at some point in April 2021 - the share price hit 63p, and there were (I think) 279 million shares in issue, implying a peak market cap at the time of around £170 million.
Think we'd all like to see a return that level, but we need to recognise it was likely driven at that time by promise and speculation. As per recent posts, we're in a different climate now - it is all about delivery / can they deliver / can they truly & significantly monetise the technology.
Just providing a possible figure for a bit of context JDF7. A 67% increase is and sounds great, but from a small base.....It'll be interesting to see what actual revenues are for 2023, and what any forecast is for 2024.
I think Mirriad needs to get to something around £15 million of revenue to break even. That assumes it keeps a gross margin of about 70% of sales (so £15m x 70% = £10.5m gross margin) to cover the £700k per month overhead indicated in past statements.
As I said in my post, "there's clearly still a long way to go". How quickly it can get that far will determine whether it's going to need another cash raise in the interim. Clearly winning a big contract of the scale that's been discussed would be a game changer, but even that will take time to come fully to fruition.
Update awaited with interest.
Think you're right JDF. Hopefully there is an RNS coming with some positive hard performance data.
To put into context, a 67% increase on 2022's sales would get you to a revenue of just £2.52 million - there's clearly still a long way to go.
Spot on anyone, ultimately the share price will be moved by growing revenue, gross margin, and a switch from loss to profit. All sounds good.
If the company does indeed do what we all hope it will, wonder if they'll look to list or upgrade their limited listing in the USA - especially given how much they are betting on the US economy ?
Good grief JDF7, that sort of calm sensible measured comment will get you nowhere !
Absolutely right - I think that the annual results ending 31/12 are usually announced sometime in the following May, but I'd expect updates well before then. I'm not sure any deals announced now will have much impact on this year's numbers, but they should have on next year's - if they don't we're wasting our time and money !
Given the presentation and directors' commentary back in August, any lack of positive news - ie sign up of at least one tier one client providing additional revenue in the £millions at the least - will be a credibility hit for the board. In such circumstances, you would expect, at the least, an update of some sort this side of Christmas to advise shareholders of the situation.
Having said what they said back in late August, I think they have to get at least one tier one player on board, with a significant positive monetary benefit, before Christmas. If they don't then I think the board's credibility takes a very serious hit.