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Hello all.
I know I am late to the results party back in Feb but have had a good look this morning and have a question for anyone with insight!
I read a passage which says:
Capital expenditure for 2023 of approximately €4.0 billion, subject to the timing of aircraft deliveries. Net debt broadly maintained at the December 31, 2022 level of €10.4 billion by the end of 2023.
So - the forecast is for net debt to remain the same at the end of 2023 as it was at end of 2022.
If I am reading that correctly, how is this SP going to shoot up materially if debt isn't going to come down this year?
Banbo
Cheers Padyboy.
I know this is a general question that might not have a definitive answer.
So if I decided to sell my rights on the market, do the rights tend to command a higher price as soon as they are made available or do they go up or down at any point.
Ive never dealt with a RI so not sure how best to play it. I do feel if it is going to happen Ive left it too late to get out v the risk of there being no RI and it shooting up.
Any experienced opinion very welcome.
Cheers
Hello all.
Im struggling to keep up with the amount of posts here so apologies if this has already been answered.
I have a decent holding here, but don't have spare cash to take up the rights.
If you sell the rights, is it a variable or set price? What I mean is, does it work out to roughly the same outcome if you sell the rights as to take them up or does selling them result in a more unfavourable outcome than taking them up - Supposing you use the proceeds to buy more shares?
Trev
Not saying you are wrong BB, as I don't know myself.....But......at the end of March IAG had cash of 8bn and in these results they have cash of 7.7 bn. Overall, they have 10.8bm at their disposal. 190bn a week cash burn a week means half of the cash 3.75 bn will be used up (at current operating levels) by mid November. That still leaves 3.75bn cash plus 3.1bn additional.
I would have thought America will probably have upped their vac rates by then to have enough confidence to allow uk in, especially if our opening up proves it can be done and Delta variant not the big problem they currently believe it is. If so, then current cash should suffice should it not?
Im interested as to your reasoning as to why another RI will occur?
Trev
Moody's march 18th 2021
'Moody's assigns B1 rating to IAG's proposed senior unsecured notes'
Said 185m. I'd be surprised if they were wrong. Where is the 80 m mentioned if you don't mind me asking sun..
On the Moody's website under
'Moody's assigns B1 rating to IAG's proposed senior unsecured notes' 18th march 2021 it says 185m /week. I'd be surprised if that was wrong or are the ratings agency using out of date figures. Could I ask where the 80m a week figure is from?
....struggle to reply in a timely fashion as looking after 2 young ones.
Although I'm grateful for replies, no on has really answered my main question.
If money will run out march (ish) 2022 with current 185m cash burn, week, does furlough ending in Sept not massively change this figure? If it's 185m a week as it stands now (Moodys) - would anyone have any idea / inclination of how much cash burn might increase to per week?
I understand there are risks but if anyone would / could hazard a guess at weekly cash burn without furlough it would.be appreciated....
Hello all.
I did post this last night but perhaps at the wrong time of the day to get a response.
Very close to investing here but have a couple of things I'm concerned / interested about.
Firstly, does anyone have any hard facts about how much of IAGs revenue was driven from long haul to the states prior to the pandemic?
Secondly - reading Moody's report on IAG they say cash burn is 185m p/w. By my reckoning - and theirs that means the 11.3 bn that was available as of 31st December will last until the end of Feb 2022. However, if furlough ends in Sept as planned, surely this will massively increase cash burn IF routes have not opened up to a good degree. Surely money will run out much sooner and another rights issue would follow.
I'm not professing to know - just posing the question to anyone with a genuine response and not those trying to influence to protect their own position....
Many thanks
Trev
Hello all.
Very close to investing here but have a couple of things I'm concerned / interested about.
Firstly, does anyone have any hard facts about how much of IAGs revenue was driven from long haul to the states prior to the pandemic?
Secondly - reading Moody's report on IAG they say cash burn is 185m p/w. By my reckoning - and theirs that means the 11.3 bn that was available as of 31st December will last until the end of Feb 2022. However, if furlough ends in Sept as planned, surely this will massively increase cash burn IF routes have not opened up to a good degree. Surely money will run out much sooner and another rights issue would follow.
I'm not professing to know - just posing the question to anyone with a genuine response and not those trying to influence to protect their own position....
Many thanks
Trev
Thanks for replies fellas.
Just looked . Pre covid high (not pre rights) End Dec 19 - 625 which now shows on google as 380 ish end dec 19.
Does that mean that IF all things were equal this should get to half of original price 625 (beacasue of doubling of shares) or half of googles re-gigged high of 381? OR because the SP has been recalculated on google, is it to say that upon full resumption of operations (all being equal) this should rise with time to 381?
I reckon im about to get a mouthful...
If not cheers
Trev.
Cheers Tricky.
Appreciate your reply.
Now i know this is not the case, because IAG has made many changes to its structure to support itself going forward. I understand that.
BUT - did it double its shares in existence, or was it less than double? If it did double them, leaving structural changes aside, would this not half the potential maximum SP recovery?
Sorry to press the point, i just want to get an idea of what maximum headroom is here...
Trev
Apologies to all the well versed her because in truth. i haven't been on it enough to know what i'm talking about.
However, when the rights issue happened, didn't they basically increase shares in issue by a factor of 2 (as in double the amount shares in issue)?
If so, doesn't that mean that the maximum this share can reach is half the pre covid High (6.00) at about £3.00 - when fully functioning and pulling the cash in?
Realise i could be VERY wide of the mark, but if so could someone please explain why ?
Trev
Hello all. I have had a good look at the IAG final results and can not see reference to weekly / monthly cash burn as in previous reports. I see a few posters have referred to 80M euros a week etc.
Am i missing it somewhere or have some of the more astute contributors on this board done some nifty calculations based on the report.
Trev