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wh ireland note: (under the markets in financial instruments directive ii (“mifid ii”), this research is paid for by the subject issuer as declared in the disclosure and disclaimer pages of this document. )
view: the securing of the mining licence for han**** is a major milestone and has been well received with the share price reacting positively to the news. if alien can secure funding, han**** is a quick to production direct shipping ore project with low capex and opex and a simple business model of dig-crushship, which could be delivering cash flow in the near-term. we will continue to monitor progress as it is reported. we still see fair value at 2.7p/share.
But Cirata has no assets other than cash - the property is on a two year lease.
This from the Annual report, which i assume you have read, says it all!
Sheffield Wednesday F.C.
During 2022 the Group agreed to pay $362,691 to sponsor Sheffield Wednesday F.C. for sponsorship of the 23/24 football season, which was on
behalf of EyUp Skills Limited. EyUp Skills Limited is a company owned by David Richards jointly with Jane Richards. There is also an additional
$127,303 sponsorship payable which is contingent on certain post-year-end outcomes.
Will need some! Read the annual report: significant payments to former directors and the costs of the "irregularities" . Most telling is the 5 year record on page 85: 2019 revenue $16,155,000; 2023 revenue $6,695,000.
The interest on the Can$27million drawn down on the loan would have been US$1.8m pa so giving up US$3.6m only costs US$1.8m in cash flow. There must be oil and particularly gas producers in Canada with weaker balance sheets than I3 ripe for takeover - would help if share price was a bit higher to allow share based acquisitions though.
Progress continues with the potential development of the Serenity oil discovery in the Central North Sea alongside our partner i3 Energy plc, ahead of the licence's current expiry date in September 2024
· The partners believe that Serenity offers a commercially viable development opportunity with a number of potential development scenarios available given local infrastructure
· A future development could result in approximately 1,000 bopd net to Europa's 25% interest
· Whilst we continue to assess various development scenarios for Serenity, we are concerned about possible future UK fiscal changes in the event of a change of government which could negatively impact the economics of the project
I am impressed with your confidence and more realistic analysis of the position and am surprised that the share price has not dropped today. My original reason for buying -at much higher price than today was that their product sounded attractive but with last quarter performance of 2 contracts at £120k plus and 13 at an average of under £25k each it looks as if they have been unable to convince businesses that there is a need for this technology. To hit the lower bookings target they need 35 big contacts (over $150k) and 240 small ones (of the size signed in the first quarter) in the next 9 months - a very tall order. As Richard Griffiths has a blocking shareholding they can't raise new capital without his agreement which gives him the whip hand. I will stay watching from the sidelines.
The Group is pleased to announce that, subject to the completion of the year end audit, revenues for FY24 are expected to be approximately £20m (2023: £12m), 65-66% higher than FY23 and 66-67% higher on a constant currency basis.
The combination of higher revenues and the high operational gearing present in the business is expected to result in improved profitability.
As at 31 March 2024, gross cash balances totalled £17.2m (2023: £8.3m). The Group has no debt.
With a dividend of £12.3m and since the paying off the loan, which needed repaying with a facility that only needs the interest paying on whatever is drawn down, there should be about £40m pa cash flow from operations plus £40m undrawn facility. I3 Energy now has the opportunity for either earning enhancing acquisitions or share buy backs .
Sorry but Q1 is not going to be great. From the RNS. "Some of the orders that slipped from FY23 Q4 closed in early FY24. However, deal slippage is again a feature of Q1 FY24. We will provide a Q1 trading update during the week commencing 8 April 2024."
Are they waiting for the market to close before announcing the results? Those at the meeting will know the outcome and have an unfair advantage over other investors/potential investors. Though I am not sure which way share price will go , at least in the short term, if the bid fails
He is sitting on a big loss with possibly further to fall.
No revenue projections in the annual report but if revenue is 93% of bookings (as last year) management are hoping for revenue at the current exchange rate in the region of £9.5m -£12.8m for 2024 with overhead costs of £18.2m. A market cap of £25m (22p a share) would seem to be generous. Again no mention of the FCA investigation - what will that cost?
The company urgently needs to cut annual costs to below £10m.
About Shanta Gold:
"With a strong balance sheet, a growing diversified portfolio and dividends paid since 2021, Shanta offers a resilient investment opportunity for the near and long-term."
This is a direct copy and paste from today's RNS.
The figures are from the KPIs shown on the Cirata website - the RNS link refers to $2.7m of bookings but doesn't mention T/O. https://cirata.com/investors/key-performance-indicators
Results due shortly will show $6.8m T/O in 2023 (30% down on 2022) - $2.2m in Q4 - and apparently no new significant contracts . Why a business with an annual turnover of less than £8m (running rate), with cash overheads of £5.3m in Q4 should be valued at over £75m is beyond me!