The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
Mick - all from about 8 mins 26 secs into the AP interview
https://www.youtube.com/watch?v=u_WV6H4nK8w
There were certainly positives, but we need operational cash to be able to realise them.
As n aside, in the interview AP talked about tailings producing 153,000 ounces of gold worth $300m at a cost of $300 per ounce (c$46m) to produce, which at 4.9% interest is worth more than the diamonds.
Happy to be corrected, but broad brush it seems to me that the 4.9% interest in the tailings would therefore be ($300m value -$46m production cost) x 4.9% = $12.5m
So it would appear AP has, as far as I am aware, let slip what the value of the diamonds are, ie less than $12.5m
As I say, happy to be corrected
He looks exhausted and low, which I suppose isn’t surprising given Andrew Hall is yet to be replaced. Whatever I think of AP, I hope he’s ok health wise.
Just on the diamonds, but if we were auctioning them this week as some have suggested, then surely AP would be able to do better than say he’s had confirmation they exist from third parties. For my money, they are still in the RBZ and we haven’t seen them. If that’s the case then the prospect of getting and selling them before 29/2 seems pretty remote to me.
Just an observation, but in the presentation Yates said that nearly 50% of our customers are US customers, but the final results to June confirmed that only 21% of our revenue came from the US/Canada (albeit that was a 373% increase on the year before). Very broadly speaking I would have thought that it should be nearer 50% of revenue, so I wonder if the revenue increase in H1 this year owes to an increase in the number of US contracts over that period?
Musing really, but it would be great to see us more and more established in that market.
Just for info, but I've noted on here before that Yates began liking posts from a company called Rapidemic during and after Medica in the Autumn, and he continues to do so. the latest being here. They are clearly earlier in their journey but I suspect that they are either already signed up or are one of the pipeline opportunities Yates refers to.
https://www.linkedin.com/posts/activity-7153324878547279874-nRwQ?utm_source=share&utm_medium=member_desktop
All more for info and awareness really.
In the presentation Yates disclosed that we are in the process of transferring 52 North's sepsis test into manufacturing. The test, called Neutrocheck, is a blood LFT for use at home or in a medical centre to test for Neutropenic Sepsis, which according to 52 North is the most fatal side effect of Chemotherapy treatment.
They seem to be doing quite well with it, having joined two of the largest, most competitive and prestigious healthcare accelerator programmes in the US, and made history by becoming the first-ever investment for Macmillan’s new £3.5m Innovation Impact investment portfolio.. Doesn't sound too shabby to me.
https://www.cambridgeindependent.co.uk/business/52north-joins-cedars-sinai-texas-medical-centre-accelerator-9345488/
https://www.cambridgeindependent.co.uk/business/52-north-health-makes-history-as-first-macmillan-investment-9298146/
https://nhscep.com/2023/02/07/macmillan-launches-new-3-5million-innovation-impact-investment-portfolio-by-investing-in-pioneering-at-home-neutropenic-sepsis-test-neutrocheck/
Watched it now!
Apart from the newly disclosed customers, the biggest point for me was the repeated references to helping retailers build their own product brands, and that we should hear more about this over the next six months. Only a major retailer would to do this. I go back to the apparent relationship I’ve noticed that our head of sales has with Asda Pharmacy.
Of course, it was helpful for Yates to confirm that H2 typically outperforms H1 n the business, that he’s expecting H2 this year to exceed H2 last year, and that target revenue of £8-9m is the aim within next 6-12 months. That sounded very promising time.
One last thing - it appears we paid Melanie Ross a “settlement” and Yates was coy when asked about it. Something afoot there I think although irrelevant to business prospects.
I’ve only had time to skip through the slides, but two immediate things stood out.
For the first time we have ABDX confirming they are working with Upfront.
They’ve disclosed a new customer - 52 North
https://52north.health/?
For info, are lauding their selection for this, which they say is prestigious
https://digitalhealthrewired.com/pitchfest/
But to what end Steward? Seems to me like we don’t have authority to raise anywhere near enough to satisfy creditors, and then there’s working capital to worry about.
A refi, perhaps mixed in with a share consolidation, seems to me the most likely option if we van find anyone to lend. And if we can the terms will be horrible I think.
Some might think, like Gemstar, that “ongoing initiatives as previously announced” must mean the diamonds. It certainly could.
But it’s also worth remembering this from the final results;
“In the event that the receipt of the historic claim proceeds were received after 30 November 2023, management is confident that with continued progress in the realisation process Mercuria and Alpha would remain supportive. To date, Mercuria and Alpha have extended the original repayment date several times. However, as mitigation, the Company continues to engage with investors and debt providers in order to provide liquidity to repay the Mercuria and Alpha debt and to articulate the fundamental strength of the Group’s business so as to attract additional funding when required.”
So, “ongoing initiatives as previously announced” could just as easily refer to these other engagements with investors or debt providers.
Just for info, but one thing I noticed is that between August, when we were told about the CP split, and the CP announcement yesterday, Cantenalucis LLC has sold down 500k shares taking them from 6.2% to 5.8% of the company. I don’t really think there is much to that at all - it’s a modest sell down over the last 5 months, but always good to be aware of these things.