Member Info for SAGACITYRULES

Greeno et al - My apologies, I intended to report a 10p drop. A substantial difference!

Greeno - Topped up last week. The sp then dropped 10%, so climbing back!

Greeno - T

Eggshead - It is appropriate for you to express your disappointment that management have reported that a customer has defaulted. In accounting parlance, there are good debts, doubtful debts and bad debts. Bad debts are where the debt becomes irrecoverable. Doubtful debts are those where there is a problem in obtaining settlement, but the debt may yet be recovered. As I read the report, this is the position here. The recovery of the debt is problematical. You or management misdescribing the situation is not helpful as your comments will be taken at face value. This is not the first time that management have pessimistically reported financials. Does their announcement constitute a 'profits warning'?

Your criticism of management is justified. We will have to wait and see how strong their credit control and financial management truly is or was. If KMR successfully recover the debt, all well and good. If they fail to do so, questions will be asked. We do not have the information with regard to the customer involved. I do not think it is the case that a Chinese gentleman walked in off the street and without security ordered and received £9M of product. The customer may more likely be a customer of some standing with whom KMR have traded over a number of years. We do not know. The details of the transaction need to be more fully revealed, if further information is appropriate. So far, management have been rather clumsy with the detail in their announcement. For that they should be roundly criticised. However, bad debt is a hazard of trading, even at £9M. Since management have made the matter public, they must continue to issue update reports on a monthly basis, I would suggest.

Go woke, go broke!

Management needs to concentrate all their time and effort to protecting the company rather than making decisions influenced by irrelevant uncommercial issues.

Roxi - Are you suggesting "the police officer" was employed by KMR and not the local constabulary? If the latter, unfortunate as the death is, KMR would not have any legal obligation to compensate the family of the deceased. An "ex gratia" would likely not go amiss and that decision should be left to the local management..

The interim dividend has been reduced from c17.5 in 2023 and c15.0 in 2024 to c10.0, and yet the BoD indicate that all is well with the company. Something is not adding up.

On - Possibly. Hardly "dirty laundry", more like twaddle.

It may be "prudent accounting". Some might say it is "unnecessary accounting". Am I right, the charge arises as a consequence of a series of estimates and assumptions? If the estimates were to alter, the outcome of the review would alter? The underlying asset value (mining and processing assets) will depreciate over a period. The suggestion is that either the rates of depreciation to date have been insufficient or the cost of recent asset additions have not produced £ for £ added asset value. Whichever way, it is a matter of mathematical opinion in terms of estimated future product prices, multiplied by estimated future production/sales levels over an estimated number of years, compared to an estimated value attributable to the value of plant and machinery. There are too many "estimates" to produce a meaningful outcome. The "prudent accounting" is unnecessary and should be abandoned. Any fluctuation to the "estimates" would deliver a different outcome up or down. It is all a matter of conjecture. There are too many variables to reach a probability for an evaluated outcome. The arithmetical result should have been dealt with as a note to the accounts rather than an accounting adjustment, if it was to be considered necessary to be announced at all. Poor corporate management by a new FD, in my opinion.

Nosi by name and Nosi by nature - Given GlynJ's post, you may care to apologise to Greeno, Saga, Cont etc for being "full of s**t". I also made the tortuous journey in my ISA. I will refrain from hurling personal and insulting remarks in reply to your unwarranted and insulting comment. There should not be any need for such personal comments on this board. Indeed, this is a first in my experience of over 10 years as a contributor, but indicative of the moral standards of some (one).

Boy - For what it is worth, if the potential purchasers had lost interest because they made a discovery they were not at peace with, would they not have pulled out of the process irrespective of the delay in issuing the licence? I think the more likely scenario is that the Moz government are playing hardball. In Africa, these types of licences take extra time because of other dependent issues. I am being patient, but do not expect any new licence soon unless Mikey gets involved in the negotiation. When all is said and done , he knows the country and probably the individuals involved. The 20th June is likely to be another continuance.

Any views on the effect of the tariffs in terms of the potential takeover bid, or has it gone?

I think it may still be on, but at the original indicated price, perhaps with a small uplift.

The offer price of 580 now looks more attractive. We, smaller shareholders, do not really matter as it is the larger shareholders who have to be convinced.

Found them, thank you.

Please would someone give an indication as to when the 2024 results are due to be released?

Sak - I think you are overthinking the price gap too much. I have had experience of two other takeovers recently, Renewi and Shanta. Prior to going final, both showed a discount of approximately 20% on the quoted sp. We will see what 17/04 brings, but Mikey will know all about the licence, he probably negotiated the first licence and subsequent renewals. Patience is a virtue, so I advise to relax. We are holding shares in a very good and underpriced company, come what may.

If there is any intending purchaser who will already know the company inside out, it is Mikey. I do not expect the due diligence to present any impediments to the deal going forward. The question is at what price. I have not seen any substantial sales going through, not that this would be a likely scenario. I am hoping, rather than expecting, a final offer above the 580 suggested by Berenberg. Good luck all and do your own research.

Nosirender - It was a tortuous route, but halfway through I realised that I would be no better off as my dividends would be taxed at 32.5% in UK. If Rachel wants to sort out the Irish economy benefiting from the withholding tax and not the UK treasury, that is a matter for her.

Does anybody have an explanation for the RNS?

Con - I hope not. I cannot find a return of 16% elsewhere. A P/E of around 3.0, where do you find an investment with those matrix?

I think an offer is unlikely until the agreement with the Moz Government is finalised. Looking forward to the full year results which could provide an increase in the rate of dividend. Hope springs eternal!