Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
https://www.ukvalueinvestor.com/2018/08/ted-baker-dividend-growth-stock.html/
If I recall correctly, the last placing was to fund the Colter drill and the Jamaica seismics.
So will they need another placing soon for the rest of the licenses?
MARS looks cheap but just be careful with the debt levels......
House prices rise the fastest in West Midlands
https://www.bbc.co.uk/news/business-45196524
Interesting to see what that announcement from the US does to REE basket prices over the next year.
I'm not 100% convinced it's great news, trade wars tend to be bad for business in general.
Key points for me are:
1. Cheap valuation at current resourse estimates:
Mkango is trading at c40% discount to the 13p valuation of its share of Songwe Hill and the downstream Maginito venture ascribed by the initial Talaxis deal (in our view a minimum valuation benchmark), and considerably below our NPV-based valuation (20p on a risk-adjusted attributable basis today, rising to 100p at production). Moreover,
the group’s Thambani niobium-uranium-tantalum project offers a ‘free play’ on further value-unlocking potential.
2. There is significant potential upside, over and above current estimates:
Management anticipates that the BFS drilling now underway could upgrade a material amount of currently in pit-shell inferred resources to measured and indicated status (enabling them to be included in a future updated reserve calculation).
Inferred category resources comprise 55% of the currently delineated resource, with a significant amount lying within the conceptual open-pit that was modelled to calculate the maiden reserve. Assuming closer-spaced drilling successfully upgrades much of these inferred resources to indicated category, and that those indicated resources subsequently make the cut as reserves, we believe it is highly likely that there will be a material reduction on the 4.5:1 strip ratio that was assumed in the PFS, which in turn is likely to impact positively on operating costs. If planned step-out resource drilling (mineralisation is untested to the northeast and southwest beyond the limits of the present drilling, but is considered open) is similarly successful, we believe that the life of mine could be extended beyond the 18 years envisaged in the PFS, and/or annual production rates increased.
Potential areas of upside versus the PFS include optimising the flotation flowsheet (management believes optimising the flotation regime could see recoveries increase to over 80%, versus the 67% assumed in the PFS) and the possibility of a pre-treatment ahead of leaching (roasting or caustic conversion) and selective processing of synchysite versus apatite (which carries the less economically important HREE) to improve overall leach recovery of the key ‘magnet’ LREE (most importantly Nd and Pr) and lower acid consumption.
I think the problem is that while the revenue growth looks great, until we see some actual profit figures the market will be sceptical (due to historic falling margins).
Even if the assays simply confirm the previous resource estimate, the shares are clearly undervalued. Any resource upgrades would be fantastic.
Most of the profit increase is from gain on investments. I find the cash flow more useful than the income statement, with interest received from investments up 3.8%.
They're being cautious on the dividend, as the current spike in wholesale energy prices is not expected to last.
Why do they pay out so little in dividends (or buybacks)? They're generating £1.6m profit and turning all of it into cash. So why are they allowing the cash to just build up on the balance sheet? Of the £11m market cap nearly £4m of it is just cash.
Hopefully they guide on profits as well as revenues, we don't want a repeat of least year's big increase in revenues and big fall in profits.
Rate hike should help a little with the pension.
Surprised we've dropped so much after a good update.
Always seeems to rise to 3p the week before news.
The pattern is becoming annoyingly clear here. Traders buying just before news up to 3p, an then selling immediately if the shareprice doesn't skyrocket. We'll probably see another move up to 3p before the "European parter" announcement, which fortunately won't be long.
I like how increasingly bespoke the company's products are now, as evidenced by the modifications done for the "European partner" and to watchlock for the pending $250k order. It's a very interesting direction that makes them stand out from the crowd. If things go well and their customers are happy, orders will go through the roof as word gets around.
H2 will show good growth and positive EBITDA, but it's only the start.
Fantastic video, thanks. What a great company.
Why the drop? Looks like good results to me.
Thanks for the info, DR.
Until the BFS comes out, not much to say I guess......
I like the phrase "double digit growth". Snappy and to the point.
Net debt not mentioned but it should be getting close to zero as well.
Another day out at the pub for the Semi Final... good stuff.