Adam Davidson, CEO of Trident Royalties, discusses offtake milestones and catalysts to boost FY24. Watch the video here.
Maybe reading between the lines here, but if they thought they'd need a rights issue to help settle the debt, I think the tone would have been more upbeat to try and boost the share price. Potentially the cautious tone could be a positive? Devils advocate being that maybe YE results will be the upbeat ones to drive the SP higher before an RI....
But with my auditor's hat on there are 2 main things I find pleasing. 1, the auditors can sign off on c 314m GBP of Goodwill through audit of their impairment test (CF forecasting). That's a regulatory hot topic lately so a clean opinion is reassuring. Secondly, a clean opinion on going concern. Again, another very hot topic for regulators and audit quality. The Board makes what I view as good quality disclosure surrounding the going concern basis of preparation. It shows that even in extreme stress test scenarios, there is sufficient headroom. The auditor also has to consider events beyond the going concern window (12 months from signing), so they are obviously not worried about the long term debt, not even a material uncertainty paragraph.
As an auditor, IFRS16 has caused a lot of headaches over the last 2 years. But you're right - to normalise net debt you either need to add in the Right of Use Assets or strip out the lease liabilities. Simply not useful to be analysing net debt with only LLs included, given this is just an accounting entry to bring commitments on balance sheet with a corresponding non current asset
You can listen into the live announcement today on "InvestorMeetCompany" - looks to be a great website for staying connected to your investments.
Pleased to see they have grown revenues and profits. For me the question is how do they eek out more margin in freight forwarding? To come away with 4.1m (4% ) operating profit (margin) on what is the core of the business feels like slim pickings. Especially when Transport support services generated 1.3m (43.3%) operating profit (margin).
I hope they discuss growing margin for FF and growing revenues for TSS
WOW! I know it's only 2 vessels, but a 50% yield is insane. Excellent new to hear another 3 vessels at > 20%
If we consider the average remaining economic life of 18 years (IPO prospectus, page 66) then the assets will be paying for themselves multiple times over! Not to mention this sort of yield in the market should see the underlying asset increase in value. With the company's balance sheet being fair-valued each reporting date, this will yield further profits!
Yes Krusty, the last couple of weeks have been a great trickle upwards, compounding a number of 2-3% daily rises.
Lots of headroom still and I think we will see a rise with the first round of results and greater visibility over expected dividend yield. Presently, many investors might see Tufton as a safer bet with some operating history behind it but that will surely change
Confused as to MILA Status
I had a good look through twitter on MILA and NGM after your recommendation.
Mila and NGM seem very heavily intertwined, with comments like "Why is Mila so exciting? Drilling for gold at Kathleen Valley, Western Australia. Meet the team and the project of NGM, the vendors into the London listed Mila shell."
If this is the case, why no announcements to market? Is there not a continuous disclosure obligation? Or must they wait until it goes through?
Either way, are we finally knocking on the door of some action?!
A bit disappointed by such a generic presentation, offered little insight above and beyond their existing website or admission documents. Little info about what a target company might look like and where they sit in the supply chain. Would love more visibility on what sort of companies they are looking at
The real comfort for me comes from Slide 65 in their capital markets presentation.
They have paid 344m to shareholders in dividends, which was in the span of about 4-5 years after listing.
The business can generate huge free cash flow under normal trading conditions. Furthermore, the improved cost control and extra attention placed on upselling/cross-selling during COVID sets them onto an even higher growth trajectory. Once they have 1-2 years of normal trading on record, I don't see what would stop the share price returning to historical levels above 2.50
Pretty common acquisition structure. The vendor company gets a small slice of a larger pie, now with increased growth potential. Obviously not well suited to a vendor looking to cash in quickly as the shares after often held in escrow for a period to prevent immediate sale. Some of you aren't chartered accountants at it shows ha
Finally in through X-O
A really exciting play, not without its risks, but the board have a track record in this very sector. I am keen for the next RNS hopefully giving an update of potential targets. As the SP ticks up and Helium One continues being in the news, hopefully this will gain more publicity
Also hoping that we see increased liquidity from the share issue which might help the price tick up. Hopefully we can see an RNS in coming weeks with greater visibility of the charter yields and impact upon dividend rate. As I said before, with charter rates > 20% of asset cost we could see either a substantially higher dividend yield or further asset acquisitions
Good to see them put their money where their mouth is. About 180,000 shares at 40-41p is pleasing to see and hopefully an indication of positive times to come. It seems to have achieved relative stability around 40p so fingers crossed it can kick on from this platform
Can anybody help clarify the deal please?
I can see how issuing 9.6bn shares at 0.472p gives the 45.2m consideration.
How does this then end up with a valuation of 11.76m? How do I bridge 11.76m to 45.2m?
They then go on to quote a 50m Market Cap?
Interesting deal structure too
300k GBP cash (30k now, 270k at the end of August)
The balancing 200k based on the IPO price of Aeramentum on the ASX. No trace anywhere of news on this company on the upcoming ASX IPOs list. Fingers crossed it gives us a slice of a good pie without the operational risks. But then again ASX Microcap mining is boom or bust