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.... very interesting the Port expansion works....
https://splash247.com/ad-ports-moves-to-develop-congolese-port/
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and more on the airport...
https://constructionreviewonline.com/construction-news/expansion-of-kinshasa-ndjili-airport-in-drc-to-resume-after-3-years-stoppage/
Almost certainly one of the 5.. it's the Kinshasa International Airport.
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Dr Mac...FYI. ..the departure tax is $55/pax.. not $60.
Departure tax
Departure tax
You need to pay a departure tax of 55 US dollars on international flights and 10 US dollars on domestic flights. You pay these fees when you check in for your departure. Get an official receipt and a copy for each fee. Hand the originals on request to immigration and at boarding and keep the copies.
Hi Dr M...
the DRC airport departure tax used to be structured in a different way,... two taxes,... one for the airline and security/processing tc., and one which went to the DRC government....---- it was later combined in to one tax.
I suspect that the tax gets shared three ways,.... little to the DRFD government,.. a little to the WSG company 'in country'.. supplying the labour etc.,... and the balance to WSG.
I doubt that PF will share the b/down,.. ( commercially very sensitive)... but from my research I recall the Government tax wa about $6-8's.
Anyway,.. just putting that out there-- clearly,... there is huge scope for the $10M.... to increase dramatically over the next 10yrs... especially if you add in freight scanning and some domestic routes,.. which attract airport departure tax of $10's/passenger.
NIce2 CU---- as you say read the RNS.
It's NOT £10---it is $10M..... which equates to circa £8.2M/annum.
It's not 15yrs.... it is 10years,... with a possible extension.
So that is £82m over 10yrs at present international passenger numbers. It doesn't include internal domestic travel,... nor freight.
Nevertheless, £8.2M,... at an operating margin of 50% ( recent years 50-60%)= is still circa £4.1M EBITDA--- or EPS of £0.013p with circa 330M shares in issue. Put that on a modest p/e 10years.... and you have circa 13p/share.... just for this contract.
As I said before, the current unknowns are the finance required and means of funding, and the discount that the market will apply for operating in that region.--- PF fas indicate that short term funding will come from cash to hand-- ( it's only a 3-month in lead up to revenue being generated)... and then. we'll see what else is required. Perhaps some further detail on this from the Broker presentations on Wednesday.- the nice thing about the structure of teh deal is that we are paid by the International Air Carriers and we aren't reliant upon the DRC authorities etc for payment.
It may takes just a few days,... or it might take a few months for the sp to start to reflect the value of the contract. That is outside of our control. The very good news for the LTH's here, is that this contract, together with SL ( which has record pax and growing).... are the foundation stones to getting us in to profit year on year.
If, as we are led to believe, good progress has been made on a number of the other long term service contracts, and one or two more of these land,.... then as it says in the RNS,... we really could be looking at a transformation rise in the share prise.
As it is, I suspect there will be a large amount of 'churn' and volatility in the sp as traders come and go; when this happens,... we hope that the sp forms a new base at a higher level,... and steadies itself for the next kick on--- much as we are seeing now.
Anyway, fingers crossed.
.... and several other MSC's, having made steps forward.....--- there are several on the books in terms of RNS's,... perhaps not as lucrative as the DRC, .... but important to us in terms of creating a solid base to cash flow going forward.
Liberia, was a port project that we port screening project that we announce in June 2021, during the covid crisis, and w have precious little from it since- albeit the port operator APM terminals ( who also operate Team) have recently been spending money dredging the port, Freeport of Monrovia, to allow larger container vessels with deeper draft,... and installed some new cranes?
https://www.lse.co.uk/rns/WSG/10-year-managed-services-contract-liberia-62q66g13t0ubpmt.html
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Then there is Central African Republic... CAR-- which, incidentally, shares a border with the DRC. However, they only have one international airport and it is tiny,... and I mean tiny!
https://www.lse.co.uk/rns/WSG/central-african-republic-and-trading-statement-gh7khp9j8seux7u.html
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Plenty more going on behind the scenes I am sure. Will be interesting to see what comes out of the Broker presentation on. Wednesday. Hopefully news will filter out to us,...
Best
....interesting those comments by PF,..... he mentions 'Ports' also...----- WSG had announced potential MSC's, via RNS's... back in 2021,.. so similar time line with DRC...... which includes a 10yr Port contract,.... Liberia.--- I believe this was delayed/deferred due to a land acquisition/dispute issue....
... maybe this has been resolved..
https://www.lse.co.uk/rns/WSG/10-year-managed-services-contract-liberia-62q66g13t0ubpmt.html
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and...
"Central African Republic
and
Trading Statement
Westminster, the specialist security and services group, notes recent press speculation with regards to a potential airport contract in the Central African Republic, and also provides the following trading statement.
Central African Republic (CAR)
In the normal course of business, we do not comment on contracts until they have been signed. However, the Company confirms that it is in discussions relating to a managed services contract, although there is no certainty as to whether these will result in a contract or to the timing thereof.
Further announcements will be made in due course, as required."
https://www.lse.co.uk/rns/WSG/central-african-republic-and-trading-statement-gh7khp9j8seux7u.html
"I am pleased to report we have made significant strides forward with several of the large-scale, long-term managed services airports and ports opportunities, each of which would, when secured, provide multi-million-pound step changes in annual revenues.
In our 2022 Annual Report published in June 2023 we stated we could potentially secure one or maybe two new large-scale manage services contracts in 2023. The outcome and timing of these complex projects are never certain, particularly in a challenging world environment, however, whilst we did not manage to finalise contracts in 2023, we have made important progress and from current activity and discussions underway we do expect secure these and potentially other such contracts in 2024."
https://www.lse.co.uk/rns/WSG/interim-results-xlz7z1q0rg4v4au.html
DRC contract is worth ZERO, will cost the company just over 1 million in loss.
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Interesting.... care to back that up with a calculation?
https://www.wob.com/en-gb/books/tony-levene/investing-for-dummies/9780764570230?cq_src=google_ads&cq_cmp=18059580451&cq_con=&cq_med=pla&cq_plac=&cq_net=x&gad_source=1&gclid=EAIaIQobChMIzcDsgqu6hQMVhJJQBh0ZtQIREAYYASABEgI-pPD_BwE#GOR001269128
This might help.
$10M= £8M
£8M at 50% operating margin = £4M EBITDA
330m shares= circa 0.013p/share
10 p/e= circa 12-13p share
UNKOWN... cash/debt to service contract...UNKOWN,... discount market will apply until first revenues start to be banked and risk attached to region..?
GLR....... historically the operating margin on the MSC's has been circa 50%..... , we have a training lemon t here too,.. so we are really holding their hand to get the security up to. top notch standard to attract more international carriers. I doubt the margins will be less than 50%, given the above.
Https://www.lse.co.uk/rns/WSG/signing-of-10-year-5-airport-drc-contract-3nwuzeopp6qckap.html
Contracts were officially signed today during the UK - DRC Trade and Investment Mission, at a formal ceremony in Kinshasa by board representatives of both Westminster and the airport authority, La Regie Des Voies Aeriennes ('RVA'), in the presence of various government officials and dignitaries including Lord Popat, the UK Prime Minister's Trade Envoy; John Humphrey, His Majesty's Trade Commissioner for Africa; HE Alyson King OBE, HM Ambassador to the DRC; and HE Ndolamb Ngokwey, Ambassador of the DRC to the United Kingdom.
The contract, which is for an initial period of 10 years, with a five-year renewal thereafter, is to provide comprehensive ground security operations, initially at four international airports and one national airport in the DRC.
Westminster will provide all the investment and expertise required to upgrade security at the airports. This not only includes the provision of advanced detection, surveillance, and screening equipment, but also the maintenance, training and various support services required to ensure DRC's airport security is run to the highest international standards. This enhancement in airport security will assist the authorities in DRC in developing and maintaining world-class airport security services, opening up the potential for growth in air traffic by attracting new international carriers and commercial enterprises to the region.
As part of the programme, Westminster will also be establishing an aviation security training academy to provide certified training to international standards for all aviation security ('AVSEC') staff within the country, ensuring that DRC's AVSEC staff are amongst the best trained, motivated, and valued in the entire region.
The contract is based on Westminster's managed services model successfully deployed elsewhere in Africa. Revenues will be driven by embarking passenger numbers using the airports and funded by a per passenger fee, denominated in US$, collected through the ticketing system and payable directly to Westminster by the airlines or a suitable collection agency such as the International Air Transport Association ('IATA'). Based on current international embarking passenger levels, the contract is expected to generate revenues of circa US$10m in the first 12 months of operation. In addition, there is an opportunity under the contract for further revenues, in due course, from domestic traffic and cargo screening operations.
The contract includes a 90-day transition period to allow for operational planning and recruitment processes to be completed. Operations and revenues are therefore expected to formally commence in July 2024, although Westminster will immediately deploy its transition team to commence planning, recruitment, training, procurement and logistics.
Initial funding for the project will be from Westminster's own resourc
... after such a large and sustained rise,... a little retrace is inevitable,... some people will be 100-150% in just a few days. To be honest, .. I was expecting some pullback--- an if it stays at only 8% I would suggest that is very modest. It wouldn't surprise me at all if this finished blue.
It's a two day visit to DRC by the UK Envoys,... so today is the final day,.... and I presume that they would be 'in the room', with WSG for the signing, assuming it does happen.
Fingers crossed for an exciting RNS tomorrow,... or my guess would be Monday.
Best