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It has always been the case that many of the best company directors in terms of making a company work are the worst at PR. These are two different skill sets. The directors haven't done so badly - dud holes are part of the game and it's not their fault Romania raised taxes. In the long run best PR will be expanding production and making the company work
Serinus Energy - Poem
Directorate Office
Write a poem about Serinus Energy, an oil and gas company based in Romania and Tunisia
In far-off lands of sand and sea,
Where oil and gas run free,
There lies a company with great renown,
Serinus Energy, its name is known.
From Romania to Tunisia,
Their drilling rigs work with precision,
Extracting the riches of the earth,
To power homes and bring them worth.
They explore and they produce,
With skill and with resolve,
To harness the energy of the earth,
And provide us with the fuel we need.
Their engineers work day and night,
Their equipment a powerful sight,
As they search for the black gold,
To bring power to the world and hold.
Through storms and through sun,
Their work is never done,
As they strive to bring the energy we need,
And meet the world's growing need.
So let us sing the praises high,
Of Serinus Energy, who never tire,
In their quest for the oil and gas we seek,
To power our lives and make them unique.
Directorate Office
Do it again but make it more fun
Sure, let's give it a fun twist! Here's a poem about Serinus Energy:
In Romania and Tunisia's sandy terrain,
Where oil and gas are an abundant gain,
There's a company that's the talk of the town,
Serinus Energy, they don't mess around!
Their drilling rigs, so big and bright,
Work day and night, to our delight!
With expert hands and a can-do attitude,
They extract the resources that we include.
Their engineers are wizards, it seems,
With the equipment they have, it's like a dream!
They seek the black gold, day and night,
To power our homes, and bring us light.
Through sandstorms and heavy rains,
They work tirelessly, it's insane!
But they do it all with a smile,
With them around, we'll never run out of style.
So, let's raise a toast to Serinus Energy,
For all the hard work they do with great synergy!
Let's give them a round of applause,
For powering our world with all their cause!
If I've understood this right, this year Serinus are subject to 76 percent tax on any Romanian income ie 16 pc corporate tax then a windfall tax on all profits of 60 pc. They can maybe reduce that tax by up to 18 pct if they invest more in machinery etc. which wld be an effective rate then of 58 pct. That wld mean usd 8.41 m tax if revenues are the same (altho I'm unsure how much revenue is attributable to Tunisia, which wld affect it if significant). That wld reduce profits to around $2.5m after tax Anyway any opinion here anyone and this is just back of envelope stuff? To me this looks not a bad company but in a close on communist tax regime (actually Chinese and Russians are much fairer)
I think you're a little unfair even joking abt a company yacht. If directors are guilty of anything it's long-term investment. The haven't diluted stock and take amongst the lowest wages in the lse. They've build up this company successfully and I think they shld be given a break.
Https://uk.finance.yahoo.com/news/altyngolds-lon-altn-returns-heres-060007919.html positive analysis. According to this fair value is 3 times current price. Actually I'd have thought it's more
The company made it very clear in the last AGM that this problem won't be happening again. My view is that they're a growing business, and very busy just making it work and with the problems brought in by the last couple of years. In circumstances like this sometimes you get behind on paperwork - I certainly do - but they'll make sure this isn't a problem in the future.
As a point of interest, there's no real temptation to act badly for the controlling family. Because they own so much of the company, if they take money themselves, it reduces the value of their shareholding by a multiple of that. They've taken ridiculously low wages for ages and were I believe quite upset by not getting the paperwork in order this last time. Mistakes happen but I think we will find this the last of that type
I think it's just a question of getting the right paperwork that makes UK pple happy. Over there they worry more about making sure they know suppliers they are dealing with well, that they've proved themselves before if it's a big contract and that they are trustworthy. For that environment where you depend on good families (ie if someone doesn't deliver they are in trouble with not just you but their own family) it's a very good system. In the UK you could do business as a plc with a bunch of pple you felt distinctly uncomfortable with and it would apparently be the right decision ie you wldnt get into trouble if the paperwork was right altho the supplier didn't deliver. I think the Kazakhs system is better but they will take more trouble from now on to get the paperwork right.
I don't think there's any question of that here. Production costs per oz at $800 are amongst the lowest out there and this contract is being fulfilled, as it was last time.
Prepaying is perfectly normal behaviour anywhere and the company had done it before with the same subcontractor. I see no issue with that, especially when the subcontractor needs to buy new equipment. I think Altn were surprised by the auditors stance but knowing that now will ensure it won't happen again. Anyway the subcontractor have largely worked their way through the prepaid amount and given the good production figures, it was clearly a good plan - just needed to be tied up better considering Altns a plc etc..
What are assets per share now - any writedowns recently?
Can we just turn up or do we have to register beforehand? Got shares with Hargreaves Lansdowne so probably don't appear on the shareholders list.
The reason people are buying is it's cheap. Net Asset Value per share is currently 450p*5=2250p, ie 8 times the share price. And that is a valuation made by professionals in July, which those professionals would get sued over if it was wrong. They've just sold a property at those valuations. That is why Lighthouse have just bought yet more shares and why Desmond de Beer, who has inside information as he is a director, has committed 7 million pounds of his personal money for these shares and rights issue.
Something I find interesting. There is a big connection between the South Africans (the Afrikaans) and the Dutch going back centuries. And here we have 20% or so controlled by the Dutch and 11% by the de Beer mining family through Lighthouse. Blackstone have been continuously buying over the last little while. Put that lot together and I think you have not far from a majority - they'd get my vote too. The CEO is out now ready for a good replacement. All this requires is a bit more active control by someone who has a deal mentality, rewarded with options on how well he performs for shareholders rather than a fabulous sinecure received regardless. A half-decent CEO should see the shareprice skyrocket and should be rewarded on those grounds rather than just a fat salary.
I agree. I think it's factored in. SP is 1/8 net asset value. The share market is always a little ahead of the property market and I think that's why you've got these discounts. Happily unlike some other companies, debt really isn't that high.
I like your analysis. It does seem a bit crazy that you had a rent collector running such a huge concern. I doubt he could negotiate a discount at the local corner shop (and more to the point would have regarded it as beneath him....) Looking at the portfolio one thing I'd be looking at would be the 1.4 million square foot office development in central London.....wouldn't it make sense to convert use to residential instead given prices of £2k per square foot in the region.... I am also somewhat suspicious of their near full occupancy as the easiest way to achieve that is to charge below market rent. getting a replacement like next the same day as Debenhams leave.... doesn't exactly sound like they hold out for the highest price.