Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Newly invested. As Steward says lots more RNSs coming up and they will all shift the share price. A lot more ups and downs to come but incredible medium to long term potential which is why I’ve invested.
Good shout Maddo!
5.1p now gives us a solid support level which significantly derisks Itaconix.
We are fortunate that Itaconix have chosen not to go 100% private equity. Often private investors such as our selves don’t get a look in, as venture capitalists gobble up promising companies this size. While we don’t have a large slice of the cake it’s still a very appetising slice given all that we know.
Enjoy your weekend everyone.
FinnCap have published a new research note which is an excellent digestion of today’s news and also provides forecasts for FY23 and FY24.
“Valuation. The company is ideally placed to be a beneficiary of the mega trend of decarbonising consumer products in the cleaning, beauty and hygiene sectors. It therefore has significant growth opportunities in these large-scale markets. We see the next few years as transforming its commercial prospects. We maintain our 12p price target, indicating the potential for substantial upside over the next few years as progressive commercial trigger points are delivered.”
Agree it is good for the long term and we finally have an answer as to how Itaconix will fund its stratospheric planned growth. The fact the money was raised so easily speaks volumes as the appetite out there for Itaconix. I would love to know who has bought in but not sure we will ever find that out.
Also relieved at the price of 5.1p.
There is an incredible amount of information to digest in the letter both on the offer and trading update.
Pleasantly surprised to see the company end the year with $0.6m cash as I was expecting zero. So the increase in revenue and marginal improvement in gross margin has worked its magic.
Also a lot of interesting information on the patents to study. Fascinating stuff!
The volume of shares traded in January was double the volume of shares traded in December. Weekly volumes are now running at 2.6 million and I don’t believe that is just us private investors. Lots of positioning going on here ready for the announcement.
Reading the last Full year update delivered later than January which was 18th Feb 2019, it appears the company did this as an opportunity to update on a major new customer deal at the beginning of the new year:
“Since the year end, the Company has announced a supply agreement with Nouryon for Itaconix polymers to be used in non-phosphate detergents. We achieved major progress in the second half of 2018 and the start to 2019 with increased revenues, another collaboration with a worldwide leader, and a major reduction in our fixed costs,"
So could it be history repeating itself?
Unfortunately JD us private investors don’t hold any power due to the small percentage of shares available. If I were JS I would be thinking how am I going to fund this massive expansion. I don’t want to give away any more shares especially when they are half the price of the last 12.3p fund raise. That’s why I think some sort of partnership with Bemis to fund the expansion is possible or JS just takes the easy way out and Bemis takeover. I will be sitting firmly on my shares because of this possibility. All IMO. GLA and DYOR
Hi AJP, I take your point but recently the results have been released earlier not later. For example H1 2022 came out 2 weeks earlier than H1 2021.
I’ve just been reviewing the 5th January RNS and the Audit Committee Terms of Reference which Paul Le Blanc is now chair of. They have to satisfy themselves that the results are financially sound so perhaps the new guy needs a bit of time to acquaint himself with everything.
I suppose at the back of my mind is the fact that Bemis is a fully private company. We shall see.
It’s the 1st of February and whichever way you look at it now, the results are clearly delayed from when Itaconix historically releases them and there has to be a reason for this. Technically they have until 30th June to release the results for H2 but why are they holding back now?
IMO the company has been very quiet over the past 6 months during a period of rapid expansion and undoubtedly new customers and products.
We believe the company is doing very well so I don’t think the delay is bad news, I just think there is something significant going on behind the scenes. So when the RNS does eventually land I am now expecting more than just a H2 update.
@AJP I agree it’s highly likely the company will get bought out at some point. Possibly around the time it transitions to net profit. For Itaconix to realise the sorts of revenue JS has talked about on numerous occasions which are a factor of ten higher ($75m) than the 2023 predicted income, IMO they will need a company like Bemis to either takeover or partner them. I firmly believe there is more to Paul Leblancs appointment.
On reflection I think it may be a broker to broker transaction. If that was a buy it would have sent the share price up by at least one pence and vice versa if it was a sell. Unless the share price movement isn’t reflected until Monday morning due to the timing of the trade.
Wow! Yes AJP that’s definitely a buy, I was tracking the prices throughout the day trying to decide when best to add. Sadly that last mammoth buy isn’t mine. That strongly suggests the trading update will be next week.
Just added 50,000 shares. Roll on next week
I would also add that AIM listed companies who don’t give regular trading updates do not fare well as investors are nervous beasts. Investing in small cap companies takes a lot of guts and belief so we don’t need any unnecessary uncertainty.
So if anyone from the company reads this bulletin board I suggest you get your finger out and publish a trading update next week.
AJP that is a plausible but horrifying thought. Last year Final Results weren’t available until June.
As a shareholder I would not find it acceptable to be kept in the dark from the last H1 trading update for almost a year.
However I am surprised the trading update hasn’t landed and it is now into delayed territory. I hope this is just because of the appointment of Paul Leblanc as Audit Chair and his new responsibilities.
The last time we had a trading update later than this was 18th February 2019 so it’s possible we could be waiting a while longer.
I think there are 2 likely possible reasons we haven’t had the trading update yet:
1. As per my previous posts Itaconix have only recently appointed a new Audit Chair and he will have to sign off the results.
Or
2. The company want to provide H2 and another piece of news. I feel quite optimistic that this other piece of news would be something positive relating to the 5th January comment “ As Itaconix enters a new phase of development with its rapid revenue growth…”
Yes they seem to like 26th January as the date for the H2 trading update so likely tomorrow but you never know, it could be next week, so you could be in luck.
I did wonder if the appointment of a new audit chair (Paul Leblanc) might delay things a little. We will see tomorrow morning.
Good find AJP. Interesting that they were working on superabsorbents 15 years ago. Just shows how much science and IP there is behind everything Itaconix do.
Very quiet trading so far today on what could be RNS-eve. Wonder if we will see a late buying spree. I think it’s odd on we get the update tomorrow morning unless they stick to the 26th of January (Thursday). No doubt I will be waking up like a kid on Christmas Day hoping Santa has been.
I’ve managed to squeeze in one last top up of 28,000 shares before the trading update. My stocks and shares profile is now heavily Itaconix so I’ve definitely put my money where my mouth is lol