Member Info for Sq52

Sensible step, roll on more San Domingo results - must be about 100% by now?

Little more attention needed on announcement:

About Bradda Head Lithium Ltd…..

Bradda Head is quoted on the AIM of the London Stock Exchange with the ticker of BHL, on the TSX Venture Exchange with a ticker of BHLI, and on the US OTCQB market with a ticker of BHLIF.

Good old copy and paste, I normally wouldn’t mind, but come on, it was the whole point of RNS!

Latest interview with Ian around 15mins in shows some interesting deeper systems of pegmatite at San Domingo

https://m.youtube.com/watch?v=5Y03DEMwZqU

Worth a watch for this and key dates, can’t see much happening before March next year, unless Morning Star churns put some amazing results and hints at the feeder system.

Interesting BHL twitter feed yesterday.

Report on oil companies using their rigs to drill for brine, then the updated October presentation showing Wilson and Eureka drilling in Q1 2024.

JV on cards? Would be good to get that off the ground or they’ll never get drilled without a substantial raise.

Looking good for a positive Q1 / Q2 update and the push for growth + profitability.

Not sure when it’ll drop, early next week with AGM date?

Yep, looking good for SiS.

Crazy that a business, after years of investment, with the ops side / new site sorted and on the potential of moving into profit with sales of £60m+ (all from its own brands) is valued at £23m (still below the PhD valuation when SiS bought it).

Any sign of growth + profitability when they release EOY + Q1 update in June and I’d expect a rerate.

On the flip side, sure that ‘profit’ has been said a few times, so until the RNS is released stating it’s actually moving into profit and they don’t need cash for growth, then I’ll remain sceptical.

5.5m ‘sold’ on Thursday and another 3.3m ‘sold’ on Friday.

Any ideas why TR1 hasn’t been issued or why the ‘buys’ aren’t showing up?

Given the share price keeps creeping up, I’m assuming there’s going to be a load of delayed buys working through the system?

We’re approaching 10% of total SiS shares being traded this week now.

Chunks of just over 1% of business being bought everyday recently, must be due a TR1 shortly?

Site visit will be more about maintaining relationships and showing the institutions what they’ve spent their money on. Might even be a few new faces / institutions.

Interesting to see if this sparks any movement in institutional stance post visit.

Pack is broadly in line with what I’d expect and have seen previously. My main take out from it is 40m protein bars are being moved from external to internal manufacturing, that’s a lot of value being returned to the business!

Another 2m in addition to Fridays, it’s like someone’s building a position in the company at these crazy low prices ;)

And who snaffled another 1mil shares on Friday!?

Whilst we’ve not seen cash position yet, I’m hopeful that we’ve seen the end of cash drain as:

‘The Board has agreed a business plan which has been developed to regain growth levels of former years and step change margins to build profitability to industry benchmarks’ That’s some pretty big benchmarks - AN, Protein Works etc all make decent profits.

Then:

momentum is gathering, as evidenced by a record March revenue of £7.2m (FY22 £6.4m) and current trading performance in April. This beats estimated cut off point to deliver profit.

So:

A further trading update will be given when the Company announces the 2022 annual results prior to the end of Q2 FY23……

I’m expecting that we’ll get an update for the drop in cash between Sept22 and Feb23 (hence no update on this) and then a look at the ‘profit’ we’ve been making Mar/Apr/May

What would you value a profit churning SiS business with investment phase finished, sales growing and profits being delivered, I’d put that at many many multiples of current share value.

Watch outs for me are TR1 from Stephen Granite, any director buys as they’ve set their stall out and any ‘inventive’ plans they set out whilst share price is at rock bottom.

Anyway, times running out as firm guidance has been given, update will be given in the next 11 weeks.

Interesting that he’s bought 8m shares in the first place, that’s a big vote of confidence.

Cracking update, profitable growth and latest numbers are looking very promising. Carry on like that and no more raises needed.

Guessing Baillie Gifford just wanted a sale?

Cash:

Taken from end of Sept 2022 raise:

The Company believes that following the actions taken by management this year and the commissioning of Blackburn, circa £6.2 million of monthly revenue will deliver a breakeven cash position, expected in 2023

Taken from Feb 2023 RNS:

Against the tough economic and supply chain environment throughout the year, the Group performed broadly in-line with expectations. Group revenue growth of 1.5% to £63.5m (FY2021: £62.7m) was achieved.

So yes, very likely to be a gap / cash drain and I’d hope that the Sept raise covered this until expected profit in 2023 (assuming sales growth).

Also, still worth noting that now results have been published yet - historically out in March….. must be coming to the end of the ‘strategic review’ soon.

Not seen any news of offers yet. But we also don’t know who’s picked up the 6m ish shares off loaded on Friday.

If Stephen Granite has picked up the majority, it’s going to show a clear intention.

Good luck with buys, unless the forced sell continues on Tuesday, I’d be very surprised if you can get your hands on any at current pricing.

AN card has been played, going to get very interesting - would expect to see some sort of update from SiS as well? Unless shares are being accumulated without any approach / offer?

SiS bought Bought PhD for £32m (RNS from Wed, 9th Jan 2019 07:00)

Since then, they’ve moved PhD production in house + grown PhD business + SiS ongoing business. I’d say any buyout must be way above £32m, so plenty of scope to multibag.

Any aggressive share purchasing below this by AN (or subdivision etc) is just a business grab at rock bottom prices, making any final price discounted.

With SiS gel patent, beta fuel, production facilities, brands, loyal customers, USA growth, a £13m value is insane.

As SiS have finished investment / fast growth phase, I’d expect the focus to now to to profits?

It was a great price before todays drop, way overdone and for whatever reason, someone needed to shift a lot of shares quickly.

With the protein bar machine coming online, it’s a game changer and opens up some serious margin potential - although no way near as good as adding a bit of starch to water!

If there was ever any serious takeover bids coming in, it’s surely going to be at current prices.

Scanning back through PREM and their development of Zulu, looking like similar grades, drill lengths as results can in.

BHL are at a shallower depth, allowing even easier access. Arguably, BHL also have better location / jurisdiction with USA funding potential.

I haven’t been following PREM closely over the past couple of years, PREM has obviously started to take off with trial plant up and running and should be self funding now, any ideas on what was the catalyst for getting to the stage it’s at now?

Here’s the interview, key test for senior management and information accuracy:

https://m.youtube.com/watch?v=HAHRohFoL1Y&feature=youtu.be

Listened to it again and it sounds like it’s going to be all go at San Domingo, with some huge focus and speed (probably why Joey has been brought into the team)