Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
I would agree. I sold out when this looked like a shipping ship - this company is not taking on water but has sunk.
I reckon in a year or two you will see a rights issue or debt to equity restructure again. Feel sorry for any shareholders who have lost money and hoping.
The management will stretch this as far as they can go.
You got to love how their RNS try to mention any positives and nothing about the negatives. Net debt spiralling again in a backdrop of weak prices and production.
I posted several weeks back as the situation looks dire.
I sold some weeks back before it fell further but only just had some time now to leave a message.
This is without question the worse stock I have ever purchased. Lost about 95% of my investment and a lost of £35k. Kept on doubling down to reduce my SP breakeven before being wiped out by the debt to equity restructure which wiped out shareholders. Hindsight is a lovely thing and probably could of stem the losses much sooner and maybe got 50% of my investment back, so lesson learnt the hard way. But in all honesty, my overall feelings are relief as I can finally just move on.
Don't be fooled by the Executive and BOD investor relations and glossy reports. The hard facts this is a sinking ship. Debt is spiralling again despite the debt to equity restructure, all mines seem to have issues with productivity, grade quality, costs, strikes, PR tailing disasters, diamond parcels disappearing, more disputes and so on. Mines are need of capital investment to try and boost revenue all at a time when diamond prices are an issue. Cash is king as they say and this company is certainly not positive.
If you want to keep bankrolling he BOD then go for it but as they say if it 'looks like a duck and sounds like a duck then its probably a duck. And in my opinion this certainly almost a loss-cause. If they turnaround then hats off to them but I am done.
If I had cash or knew how to short this company would be it. But I am just happy to be out and move on.
Good luck to you all.
Don't let the fluffy jargon cloud your judgement...these results are terrible which is such a disappointment after such a strong prior financial year. This is the worse since the debt to equity debacle.
Net consolidated debt is up c$177m from $40m just twelve months earlier.
Desperate times I am afraid cannot see any light unless they get super lucky and find some large and coloured diamonds.
Thanks.
Did not realise the parcel was worth $40m for Williamson mine. Sound like most of this will cover the VAT dispute ($34m) so seems like they’ve already prudently accounted almost worse case.
Can’t believe SP is below 16p. FCF positive after servicing debt with 43.6m debt repayments.
Last the addition of the mine costs guidance but would it be too much to ask to convert all into USD with a footnote to say operating costs are paid in ZAR though. Not sure if anyone else has estimated the contribution towards O/Hs of each mine.
See we have a little comment on the confiscated diamonds parcel but no update. Wish they just sort out the $34m VAT output dispute and we can get the 72,000 ct diamonds released (unless already pocketed , must be worth about $20m on average ct price for that mine?
Yes also trying to work out the $150-200m FCF comment. Should be higher with lower guidance CAPEX. Can only assume they’ve gone prudent in the hope they will outperform this. To be honest if they can deliver $200m FCF after debt repayments over next three years I will take that. As would reduce debt pile to about $350m.
Agreed I think everyone needs to catch their breath again and the market to rebalance after a surge in SP over a short period.
Some good news and this should creep up to 30p short term, after its significant and overstated SP drop
Depends on the sector and if they can afford the repayments. I am in a sector where debt to revenue is 4.5x and we can comfortably afford our cash interest payment.
Sp is spiking faster than I thought but let’s not forget it dropped from 45p not to long ago and a ex rights issue price of 62p. So I think 24p is not overvalued at all. Petra is not out of the woods by any stretch but recent big finds and renegotiated transitional covenants and last update with debt reducing cannot be ignored. Few more good quarters and it has a lot of potential.
Not sure. Maybe blackrock continue to flog their shares. If they keep doing this the sp which continue to be restricted, although can’t do this forever, still possible to buy these shares for cheap. There investment has dropped from over 10% to 6% now.
A nice Easter present.
Stone alone should add another +2% to revenue for be financial year.
I reckon 210ct stone is about $8-10m. I think the ‘legacy’ 425ct estimate is slightly conservative, hoping for over $20m+.
Cullinan mind found a little sweet spot. Long May it continue. Hopefully we can find some big blue stones!
Wouldn’t mind some more quality big pink stones in the other mine, but maybe I am being greedy! : )