Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
Nowadays this is always leaky on the news, the update explains the recent fall. £8.5 m is well short of the £13m expected for year end.
Looks to be more short term pain for the shareholders....
It was always the risk when they moved from a well worked batch processing method that they initially proposed to the current production line one.
By my calculations if they can get the share price near to nav and then issue around 200m shares at nav it would be enough to get them into the FTSE 100. This in itself would help drive the sale of any share issue which is why I don't think that they will be too worried about debt.
Whilst I am inclined to agree with you, I wonder if they hope that they can get rid of the discount then issue equity to cover some of the debt at a smidge over nav as they have done in the past?
I guess their concern maybe is if they reduce debt too much and are still at a significant discount they will be bought out by PE.
The cash generation in the last quarter was around £120M (with low wind), divi's paid were £51m so not quite the 3x indicated by Citywire, but then there is more to come with the London array and South Kyle not fully contributing to revenues in the quarter which maybe what gets the numbers to their estimates.
Cheers, the key bit is -
'He said Greencoat UK Wind (UKW), the £3bn portfolio of wind farms run by Stephen Lilley and Laurence Fumagalli, would see its dividend cover fall from 3.2 times to a still very healthy multiple of 3.07%,'
More than happy with 3x divi cover on a >7% yield. It leaves plenty spare for the buy backs and some debt reduction.
I too was thinking that bedbugs and Asian hornets have got to be good news for RTO (although no one much else).
There have been 3k Asian hornet nests destroyed on the Cherbourg peninsular alone this year, so assume that RTO picks up some of this work across Europe it has to be quite a growth area. The first ones have now also been found in the US so it is only a matter of time before they too have this problem.
I decided not to offer any for tender as I am holding for the longer term and figured that some of those selling would be buying back in after the tender so the gains would be marginal.at least in the short term. I have all mine in an ISA wrapper so tax is fortunately not an issue.
Are you going to the AGM again this year?
After bips went ex div in July it still had 0.83 p of income showing, after going ex div yesterday this has increased to 1.25p.
So they are comfortably going to have enough income for a good divi cover for the year as well as extra to top up the shareholder reserves again this year.
Bloomberg-
Altice International, one of the three branches of billionaire Patrick Drahi’s troubled telecommunications empire, has won some time to tackle its debt load by refinancing a bond in the loan market.
The firm raised €800 million ($846 million) — up from the €500 million originally marketed — in a term loan due Oct. 2027 via borrowing unit Altice Financing. Priced with a discount of 96 and a margin of 5 percentage points over Euribor, it will redeem a €600 million junk bond due in Jan. 2025 and repay drawn amounts of the revolving credit facility.
Finncap and Zeus are pretty much in agreement about slightly reduced margins due to inflation (66>60%) with the subsequent impact on profits . Outside of this probably the main concern which will weigh is the comment at the end of Zeus's note -
'We understand management are considering new sources of finance, should this be required.'
It probably explains the share price weakness and would be a good point for the management to address in their presentation.
In line with the trading update. All in it looks very positive.
Looking forward-
'The outlook for 2023 harvest is very positive due to excellent growing conditions. No damage from frost was incurred, and the weather during the key period of flowering was favourable. We have recently begun harvesting and expect the 2023 vintage to be of an exceptional quality and with a record-breaking volume and yield. We expect it to be materially larger than last year’s excellent harvest (2022: 2,050 tonnes) as well as our previous record year of 2018 (2018: 2,173 tonnes). This will provide a platform for increased stocks of traditional method sparkling wine to deliver our 2026 business ambition. We will provide a full update when the harvest is complete.'
They just need to provide more clarity about funding for the new winery at Highland Court for another step up.
Unless I am missing something, then all is as outlined in the trading update 2 month ago. It seems to be proceeding as planned with no further glitches over the past couple of months.
I guess it will take another half years results to cement the confidence of investors although a further contract award as potentially flagged will do no harm.
I am not sure that they can keep repeating as they only have cash of £65m, after that they are using debt. They also have £800m of undraw commitments that they need to take into account. Much will depend on the level and value of exits over the next year..
I like PIN because they are reasonably cautious , I hope that they stay true to this and do not get too indebted just trying to run the discount down.
There is an article on this on City Wire-
I had not realised that it is not for the full buyback amount which addresses my main concern.
'The offer closes at 1pm on 17 October and will be followed by further share buybacks to achieve its £200m target. No director on the board is participating'
'Numis analyst Ewan Lovett-Turner said: ‘This can be an effective way of getting shareholders off the register and being left with a more stable and supportive shareholder register, which may make ongoing buybacks more impactful.’
‘We would expect buybacks will restart after the tender, which would give firepower of c£6m per month until May 2024, which compares to the £7.4m used in August,’ he added.'
Although the shares were cheap I had wondered why the price had moved up as much as it has with them buying relatively few shares and USS offloading. I guess there were those who knew what was coming.
Hopefully this has pushed the price back over 300, especially as we will have a fx tailwind for the next couple of nav valuations. The question is once the action has been completed will the price drift back down? I am not sure having the carrot of more buybacks ahead was not better than the jam today of the auction.