Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Alessandro, they did say a couple of RNS' ago that customers were being slow to call off orders.
Blah,
Yes, agree with you 100%, they certainly don't deserve a bonus so it will be interesting to see whether they do.
I would like to think its a given but the greed of a board never ceases to amaze and surprise me.
Maybe if you have time you could email the chairman and ask him :)
I agree with you both, the RNS makes the right noises, but its a gamble and with the dividend suspended for how long ?
The company worded it "will recommence paying dividends as soon as appropriate" - doesn't sound like a short suspension to me. "Appropriate" is surely when the debt mountain has been paid down, and cash flow / banking covenants are sorted and the company is making money and the building work in Malaysia recommences. Could be a long time.
My take on it is minimum of 1 year, probably more.
So the only upside left for shareholders is if the share price rises and that is debatable with all this going on. All Imo of course.
Im happy to wait and see what unfolds.
They have warned they are likely to break their banking covenants - a company doesn't send this warning out unless they are 99% certain it is going to happen...
Their order book is behind and current orders haven't been called off by customers yet due to a slowing in demand.
This means reduced orders , reduced profit, reduced cash flow and Comet 40Mil fine to pay + 17mil costs to the other side for their legal fees.
Where is the money going to come from ?
When their banking covenants have been breached the only way out of this hole will be a rights issue and diluting everyone's holdings. And it will have to be a large dilution....
A few months down the line once the "Potential" bad news is reality, todays price will be a distant dream and it will be half todays price imo.
They always say "Follow the money" and the money just left. .
The days of when this company was run by shrewdies like LT are now in the distant past. There are new cowboys at the helm and they appear gung ho and not up to the job....
Why the ramptatastic talk about "cheap shares being going to be sold into a large buyer". Where do you get this information from ? Your sixth sense ? Lets try to keep it factual.
There are not any large buyers, just large sellers and in case anyone hasn't noticed, they all just sold up and moved out.
Horis,
The company has just warned shareholders that it is likely to break its banking covenants...
What will happen then ???
Big debt mountain + Big court fine to pay 40Mil + Comets Court costs to pay 16Mil + Reduced orders = Share price drop surely ?
Where is the money going to come from ? No Divi here for couple of years methinks.
Horis,
You said last week at 1250p it will rise 20% from here ! What happened - it dropped a further 50%....
Spouting ramping rubbish like "should be back to 1500 next week" is purely wishful thinking .
Why did all the smarts sell out last week ?..
1. A lot of debt that needs servicing utilising higher interest rates.
2. Court case / appeal still to complete and pay £40 Mill fine + to pay other sides costs and I read they had put a bill in for $16 Mill.
3. Reduced orders.
4. Customers requesting later shipment dates for orders means the market does not require their product for the foreseeable .
Personally I think it was overvalued previously and the market just got ahead of itself.