Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
This becomes high risk should they not make a profit this year. However, that said, what is the break even? The issue here is simply that nobody really understands the financial reporting which seems to vary with the wind.
If they reported in simple terms investors could make an informed decision. I personally think this is horrendously oversold and anyone buying below 3p will do incredibly well. Note the use of the word “think” though because just like everyone else I don’t have the level of information to give an informed decision.
I have been pondering q2 sales against a changing macro and the 200KT target for the year. I’d be happy with 45KT but this would leave the annual target in doubt. That said Q3 is traditionally stronger. Whatever happens the 200KT target was ambitious and it would be a great result to maintain it beyond the Q2 results. It would effectively mean that all those farmers who jumped across because of a shortage of traditional supply have been convinced to stick around.
I imagine the share price will drop as it always does after an RNS. The fact that sales are down compared to last year will no doubt make the twitchy holders sell out. Anyone who understands the business will have a great opportunity to take advantage of that. Then, as we move forward in the year the initial dividend will reward them.
Fair point. 20kt would be a good result. Let’s hope that the price doesn’t drift too much so that a good result merely recovers to 8p. I had a dream that the price went up over time. Just a dream. At this point I should probably mention dividends.
I’ve been in this share for a very long time now. There’s a clear cycle that the company excels. They publish the results. Shareholders seek out ambiguity. The share price fluctuates but never reflects the assets or the potential. The market pauses and the hot money leaves. The share price drifts. Brian then removes the ambiguity via an podcast or an interview and we see a rise, but it’s short lived. We drift until next results. The reason for this in my view is AIM. It’s full of gamblers. There’s no gamble here. It’s a simple business. It can make a decent profit for the next 100 years. It’s not going to be 1000 percent if it hits. There’s no industry disruptive tech. It’s a steady profit. The only thing that will move this share price is to either buy the increase with dividends or get out of AIM.
Oldbutnotwisa that’s an interesting viewpoint that you don’t value anything in the ground. Surely if there was nothing in the ground the valuation would be zero. However the resource is there so the company has value. By this reasoning the resource in the ground is a huge factor in the valuation.
If you listen to the investor meet interview, Brian mentioned that there would be feedback from the lawyers about a share buy back or dividend. Brian said that he expected to be able to make an announcement later this quarter. 25 minutes in.
The last few of these have produced a significant rise over in the share price. I wonder why ? It seems that the business is sound and represents a good investment. People seem to need to hear that from Brian. Nothing new ever comes to light so people must be sat on the fence waiting to be convinced. This suggests that perhaps investing in HMI requires a leap of faith… and the only reason people need to hear this reassurance is because the facts they need to actually invest simply aren’t available. I don’t want to do maths to get a rough guesstimate. So I am invested having taken that leap of faith but at levels where my guestimate has significantly leeway. Hopefully a dividend will be specific and form the basis of investment for those waiting to get in.
Of all the companies on AIM this seems to have the least risk. It’s not promising billions following some discovery or a technological wonder which will disrupt the world… they dig up rock and crush it. They make millions doing it. There’s no need to dilute shareholders and there’s 100 years of production.
It’s unique in the area and is gaining recognition as an environmentally friendly way to grow organic crops.
Perhaps the biggest issue is that the lack of risk doesn’t excite the gamblers on AIM. This is very much the bird in the hand.