George Frangeskides, Exec-Chair at Alba Mineral Resources, discusses grades at the Clogau Gold Mine. Watch the full video here.
Could certainly be a nice merger and wouldn't be surprised if NRR got involved!
A combined business should improve the EPS! Would make an interesting and more diversified business - the combined entity would have plenty of cash to take advantage of any asset fire sales too...
Or am I dreaming?
As REIT's go this feels like it's a safe one - good tenant mix in the "discount" section of the market, LTV is low and room for some deval, no interest rate exposure and no debt doesn't mature until 2028! But WTF do I know - I thought it was cheap at 90p haha!
Hopefully the disposals in the offing are at or above most recent NAV. I for one wouldn't mind if we sold the lot at NAV and we got left with a £1.30 distribution.
I don't disagree with a working capital buffer, but having 33% of market cap in cash is a bit ludicrous.
I seem to recall that some of NRR sites may have scope to obtain planning for resi which may offer large premiums to book value.
My ideal scenario would be they buy back shares and get the SP closer to NAV! Failing that the business is bought by a PE backed company offering us a substantial premium to the current share price and much closer to NAV.
Updating that last post as it was a load of nonesense.
Estimated Op Profit £37.7m (assumptions based on NRR FY results PowerPoint waterfall chart)
Net Finace costs of £16m leaves a UFFO of £21.7m/ 310m shares gives an EPS of 7p and 5.6p of divi - close to a 6.5% yield @87p.
With a 30 June 22 cash position of £93m less annualised dividend payment of £17.5m - what's the POA with this £75.5m warchest! Could take out 70/80m shares comfortably giving us over an 8/8.5% yield. Or can they buy a higher yielding asset?
On reflection, maybe a share buy back would be preferential at these prices!
If we took out 50m or so shares we'd be at a yield close to 8.5%... This assumes retail NOI consistent with 2022, full year of finance cost savings and accounting for £0.5m of head office savings).
With NAV > £1.30 and a conservative UFFO of £21m for FY 22 (having stripped out Hawthorn) this would return c. 5.5p per share dividend. At 92p that 's almost a 6% yield.
Most of the leases will be subject to inflation increases, debt is further under control so likely > profit margins. I would not be surprised if this comes out at at much higher yield than the 6%?!
This could very much become a takeover target... in the meantime a conservative 6% will do me!