Member Info for Svend

Retec, answer on a RR plate:

https://nypost.com/2025/03/08/world-news/north-korea-building-nuclear-powered-submarine-with-missile-capability/

Hi Tim,

Ah yes, the classic "Not in My Backyard" (NIMBY) dilemma—an age-old tradition right up there with complaining about the weather and queuing politely.

But let’s take a step back. People have been living happily on top of nuclear reactors for decades—ask the fine folks aboard every nuclear-powered submarine. Those sailors aren’t just near an SMR; they’re sleeping beside one, eating dinner above one, and watching Netflix within a few feet of one—all while submerged under the ocean!

Meanwhile, most people are excellent living near gas plants, under flight paths, or within a stone’s throw of massive lithium battery storage sites, all of which come with their risks.

The reality is that fear often fades with familiarity. Once people realize that SMRs are compact, safe, and produce zero emissions, the narrative shifts from “not in my backyard” to “why didn’t we do this sooner?”

So no, RR doesn’t need to rethink. What needs a rethink is the outdated perception of nuclear itself. 🚀⚡

Sparkythecat That’s very kind of you to say, but I’d argue that we’re all navigating our seas, each with our strengths and experiences. If anything, the conversations, insights, and shared wisdom make us all better along the way. I appreciate the sentiment, but I reckon we’re sailing on the same course with different maps! 🚢👍

Tim, a well-informed perspective is crucial here. The notion that SMRs are “unproven” is simply false and inaccurate. The fundamental technology behind small modular reactors has been in operation for over 60 years, and governments have developed and sponsored it, particularly in military applications.

The UK, US, France, and others have been using compact nuclear reactors to power submarines and aircraft carriers reliably for decades—safely and efficiently, deep below the ocean. These reactors operate under some of the most extreme conditions imaginable, proving their resilience, safety, and effectiveness. Rolls-Royce has led this field, supplying the Royal Navy’s nuclear submarine fleet for generations.

What’s happening now with SMRs is not about proving the technology—it’s about scaling it for civilian energy production. The goal is to provide a stable, low-carbon energy source that complements renewables, not replaces them.

As for the green lobby, opposition is often based on outdated perceptions rather than current realities. Many environmentalists now recognize nuclear as a necessary part of the energy mix to achieve net-zero targets, given its ability to provide constant, emissions-free power. Even the EU, historically cautious about nuclear, has categorized it as part of its sustainable energy taxonomy.

So while debate is always welcome, dismissing SMRs as "unproven" ignores their long-established track record. The real question isn’t whether they work—the world has already answered that—but rather how quickly we can deploy them to meet energy demands and climate goals.

By the way, TeflonTeflon, I deliberately maintained your inaccurate data date, 2024, before anyone sparks a Rebellion.

TeflonTeflon, Ah, but here’s the clever twist—while the dilution from 2024’s issuance was hefty, this buyback isn’t just about reversing it. It’s also a long-term cost-saving move.

Think of it this way: every share Rolls-Royce buys back today is one less share paying out dividends tomorrow. So while some might jest about alternative funding routes (ahem, Wonga loans!), this strategy quietly minimises future dividend liabilities.

Assuming a modest dividend reinstatement at, say, 10p per share, that’s £12.5 million less in annual payouts from this buyback alone. Scale that over a decade, and you’re looking at serious savings—far outweighing any hypothetical short-term interest burden.

So, in hindsight, the better option? Perhaps not the Wonga route, but this strategic game of financial chess. Rolls-Royce is playing for the long haul, ensuring future profitability isn't weighed down by excessive dividend obligations.

Zoffy, well said, you are bang on 100% 👌😉

TimSmith12 v > Ah, the eternal quest for short-term share price predictions—much like navigating through a foggy sea at night with only a pocket torch and a seagull’s intuition!

But since you’ve asked, let’s hoist the sails and set a course:

⚓ Short-term waters (4-8 weeks) – Expect some choppy seas, with potential gusts pushing us toward £8+, assuming favorable market trade winds, strong tailwinds from SMR progress, and a continued tight grip on operational efficiencies. However, beware of sudden squalls—macro headwinds, geopolitical storms, or unexpected icebergs (profit-taking) could slow our voyage.

As for due diligence, my charts, compasses, and telescopes are all in order. But as every seasoned captain knows, even the best-laid courses can be rerouted by the market’s fickle currents. So, keep your hands on the wheel, a steady eye on the horizon, and—most importantly—don’t throw the lifeboat overboard just yet. 🚢📈⚓

Captain’s Log: A Rough Voyage, but Rolls-Royce Stays Afloat

Ahoy, crew! The markets have weathered their worst storm in six months, with the S&P 500, Nasdaq, and Russell 2000 taking on over 3% water, while the Dow Jones slipped 2.37%, washing away most of its year-to-date spoils. The Trade Policy Triangle continues to stir uneasy waters, with manufacturing slowing but services steaming ahead. The U.S. economy added 151,000 new deckhands, slightly below expectations but an improvement over January’s 125,000.

Across the Atlantic, Europe’s STOXX 600 broke a 10-week winning streak, dipping 0.69%, though promises of EU and German defense spending kept losses in check. Meanwhile, Germany’s 10-year Bund yield saw its most significant leap since the fall of the Berlin Wall, while the euro soared despite an ECB rate cut. Over in China, markets rallied on Beijing’s promise of more stimulus as the U.S. trade war rages on.

Yet amid the chaos, Rolls-Royce kept its engines humming, with its long-term outlook still charting a course for more substantial seas ahead. And as the week closed, one treasure shone brightest—gold, the best-performing asset in the fleet.

So steady as she goes, mates! May your trades be sharp, your compass true, and your weekend golden. ⚓🍻

Tim, do you follow the fundamental news flow?

Quote RR. Reinstated its dividend after a five-year absence and announced a £1bn share buyback programme. The engine maker beat its previously raised annual guidance and bumped up mid-term forecasts on robust demand at its civil aerospace arm.

Underlying operating profit surged 57 per cent to £2.5bn, ahead of guidance of £2.1bn-£2.3bn and the analyst consensus of £2.4bn. The margin improved significantly to 13.8 per cent, up from 10.3 per cent in 2023.

The performance was driven by the key civil aerospace division, where underlying profit was up 79 percent, as large engine flying hours rose by almost a fifth and new engine deliveries improved by 16 percent. The company pointed to "continued strong demand for travel and our growing installed widebody fleet."

Plans are in place to re-enter the challenging narrowbody market, where Safran (FR: SAF) and GE Aerospace (US: GE) are the leading players. The company's UltraFan demonstrator engine, which has undergone successful testing, is vital to this effort.

We looked at how Rolls-Royce has benefited from tailwinds, such as the post-pandemic rebound of civil aviation and the pressing need for Nato countries to increase defence spending.

Growth was also robust at the company's smaller arms. Profit was up 16 percent at the defence business, where wins included a £9bn submarine contract with the UK Ministry of Defence. At the power systems unit, profit was up 40 percent as power generation demand led the way.

Underlying free cash flow rose 89 percent to £2.4bn, helping the company pivot to a £475mn net cash position from a £2bn net debt position a year earlier. Total underlying cash costs as a proportion of underlying gross margin (TCC/GM) improved from 0.53 to 0.47 times.

Guidance for 2025 is for underlying operating profit and free cash flow of £2.7bn-£2.9bn. That would mean the company hits its 2027 targets, which it set out at its capital markets day, two years early.

While management expects supply chain challenges to last another 12-18 months, it also provided upgraded mid-term targets for 2028. It has pencilled in an adjusted operating profit of £3.6bn-£3.9 —£3.9 bn and free cash flow of £4.2bn-£4.5 —£4.5 bn.

Chief executive Tufan Erginbilgic described these targets as a "milestone, not a destination." Under his leadership, the turnaround has meant the shares have now risen by around five times over the past two years, after rising another 15 percent on the back of these results.

Valuation risk has reduced given progress with free cash flow. Rolls-Royce trades on 29 times forward consensus earnings, in line with Safran and a discount to GE Aerospace. But there are also cheaper aerospace options, such as Melrose Industries (MRO). Hold.

*23rd

"Tim, by the stars and the tides, return to your quarters below deck at once! That motley, foolish scroll was cast adrift on the 3rd of January, 2024, at precisely 10:24 bells GMT. Are you courting fate, lad? Unless you wish to find yourself teetering on the edge of the plank, I suggest you steer clear of such outdated folly!"

Tim, Ahoy there, matey! I see ye be settin’ sail with a fair bit of skepticism, and a captain respects a sailor who charts their course with caution. But let me hoist the counter-flag and set the record straight with the strength of the tide that carries this mighty vessel, Roycey.

Aye, Apple and Google be titans of the digital age, their buybacks a strategic hoarding of treasure to bolster valuation and reward their loyal crew. But do not underestimate the power beneath the hull of Rolls-Royce. This be no mere merchant schooner—it is a warship forged in the fires of aerospace, defence, and energy innovation, powering fleets, skies, and even the depths of the nuclear frontier.

To say Rolls-Royce has “little impact” on the UK economy is to sail blind in a storm. This company fuels the realm's defence, supplies the heart of aviation, and with SMRs on the horizon, may well shape the energy sovereignty of nations. A ship of this magnitude, once beleaguered by tempestuous seas, is now steadying and setting sail for deeper, richer waters.

Like any maneuver at sea, the buyback has its risks and purposes, but dismissing it outright would be to ignore the wind in the sails. So, every investor can choose their course, but let no man mistake this vessel for a leaky rowboat. She be reinforced, refitted, and ready to power through the tides ahead.

Steady hands, sharp eyes, and fair winds to ye, shipmate. ⚓🚢 🌊

Hi Cev,

Happy Phuket Friday

''Ermmm, each to their own.'' > Let’s compare like with like, shall we?

EEE and Anglo Asian Mining AAZ are UK-listed mining companies with distinct focuses and operational footprints.​

EEE: Primary Focus: Empire Metals is primarily engaged in exploring and developing mineral properties, with a significant emphasis on the Pitfield project in Western Australia. This project is emerging as a potentially sizeable titanium-rich deposit. ​

Recent Developments: The company has been actively drilling at the Pitfield site, with plans to extract substantial bulk samples for metallurgical testing. These efforts aim to define the project's potential and move towards establishing a mineral resource estimate. ​

AAZ: Primary Focus: Anglo Asian Mining produces gold, copper, and silver, operating primarily in Azerbaijan. The company has multiple mining operations, including both open-pit and underground mines. ​

Recent Developments: In 2023, Anglo Asian faced challenges due to suspending operations at its Gedabek mine. Nevertheless, the company reported progress in its medium-term growth strategy, focusing on becoming a mid-tier producer with copper as its primary commodity.

Financial Performance:

Empire Metals Ltd: As of March 4, 2025, EEE's share price was 9.68 GBX. ​

Empire Metals

Anglo Asian Mining PLC: On March 3, 2025, AAZ's share price was 112.50 GBX, reflecting a significant increase of approximately 89% over the past year. The company's market capitalization stood at £135.02 million. ​

Analyst Consensus:

Analyst coverage for Anglo Asian Mining suggests a 'Buy' recommendation, with an average target price of 308 GBX, indicating potential upside. ​

Conclusion:

Anglo Asian Mining PLC stands out due to its established production operations, diversified mineral portfolio, and significant market capitalization. The company's substantial share price appreciation over the past year and positive analyst outlook further underscore its strong position. In contrast, Empire Metals Ltd is in the exploration and development phase, with its valuation and prospects hinging on the successful advancement of its Pitfield project. Investors seeking exposure to established production may find AAZ more attractive, while those interested in early-stage exploration potential might consider EEE.

Potential 3x within say 6-24 months IMOO DYOR GLA 😎👍🙌 III

*Send

BIGfatty Aberdeen has quickly increased its strength score from 74.7 to 93, indicating accumulation rather than distribution. Add several incoming broker revisions and/or upgrades, and Bob is your Uncle. 😎👍🙌

Redknight1 sent them a note and requested a detailed explanation; maybe missed something important!

Wakeboader, Ah, now ye be speakin’ the Captain’s language! Aye, the thought of HMS Rolls-Royce sailin’ forth, her boilers ablaze with the raw power of SMR technology, be enough to make even the saltiest of sea dogs grin with anticipation! 🚢⚡

An aircraft carrier or three, ye say? Why stop there? If the winds blow in our favour, we might see entire fleets, sky-faring behemoths, and perhaps even a Martian outpost stamped with the RR insignia! 🌍🚀

As for the brand, you’ve hit the nail square on the head. Rolls-Royce is more than a name; it’s the gold standard of engineering excellence, the mark of precision, power, and prestige! With orders on the horizon and the boilers fully stoked, we keep our tankards ready—for the good rum shall flow as long as this ship keeps charging ahead! 🏴‍☠️🥃

To the sails, the reactors, and the riches ahead—onward, crew! ⚓🔥

Wakeboarder Aye, matey! The tides weave a tale that stretches far beyond petty squabbles over coinage and trading fees—there’s a deeper current at work, a subtle force beneath the waves! 🌊⚓

If my charts are accurate, the trade winds are shifting, and our grand vessel RR is poised to catch a mighty gust. May the sails fill, the rigging hold, and the doubloons flow like a fine aged rum from the captain’s stash! 🏴‍☠️💰

Keep yer spyglass sharp and yer sea legs steady—we be headin’ for new heights, and I dare say, this ship’s got plenty of steam left in her boilers! 🚢🔥🚀

Rycey - Rr trading indicates exceptional good news coming sooner than later !!!

Strong winds blowing our way from across the water, a fellow mature tealeaf reader states as follows: ''Speculate what that news could be ? U s. A large order for smr ? Airline order from u sa ? Fleet conversion to nuclear ? I believe the order is coming from tge USA side of tge ocean due to tge trading action after London closes . I have been a tape reader for 68 years and I am sure some major stock moving news coming or jpm is short adr is buying back tgeir short position . I am 98% sure good luck to all of us . I am not selling any shares I hold it like it was one of my children'' Enjoy the voyage 😎