Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
My last post on subject.
The point of the post to Hazbeen was to not take what directors say at face value.
Picking up on your comment in 6 months to Jul 21 EBITDA was -£7.1m so cash breakeven on a 2021 calendar really?
Razorshultz - I can't argue with such well informed and considered response.
Hazbeen,
From CEO report in Annual Accounts Jul 20 " We expect to execute sales contracts in 2021 that have longer project
lifecycles when compared to what we have today. This means that we expect to achieve cash breakeven across the business during the current calendar year". The actual result was EBITDA -£12.3m pre operating leases.
DYOR.
Could be a good option for HARL to issue shares rather than cash, if this is tight, but clearly dependent on vendor's plans and agreement. Payment has already been deferred to 30/11/21 (from 31/8/21) so directors should have it all in hand.
The last RNS to reference the amount of ordinary shares in issue following the various raises over the last year was 24/5/21 that confirmed 121,690,349 were in existence so EPS was roughly minus 13.69 pence on this basis.
No idea where the 3.142 billion weighted average number of ordinary shares comes from, the EPS of minus 0.53 pence or its relevance other than to misrepresent the loss carried by current shareholders.
Cenkos are not the unreliable boyfriend more missing link on at least two levels.
If only HARL had an advisor/broker to provide details of the latest strategy, valuation methodology and financial visibility to allay any concerns around the cash/capital/debt mix potentially constraining current share price.....
Lottie
The directors would resist given their remuneration packages but fortunately they do not have majority ownership so not their decision.
You are spot on in your assumption that a PV10 valuation relates to gas operations only. My only comment is the valuation was based on unaudited management expectations so they have a interest in making this as positive as possible. So market valuation is closer to sunk costs to date.
Further research:
The NPV10 of the Islandmagee Project, from latest annuals, is £141.6m*.
Current Market Capital is c£31m.
*Not seen report to verify this valuation but at face value the suggests Islandmagee Project is well discounted.
Market capital on 31/7/19, when the company was basically the Islandmagee project, was c£18m – I think but not sure.
We know the market capital rose on the positive recent news of the ML being granted rose c£10m.
Out of the current c£31m market capital any idea the market capital for Islandmagee Project?
A bit academic I know but if you can provide any science behind it that would be great.
Thank you.
Thanks for confirming the accounting period is 17 months and not a year as at Dec 21 as per your post at 15:58.
From the trading update provided by HARL on 30/6/21 "the company takes market consensus for revenues for the 17-month period ended 31st Dec 2021 to be £30m" if this is well off please feel free to educate me.
Please accept my humble apologies for the misleading post tbh I did think when I stated "for the 5 month period" it was fairly clear but obviously not.