Bradda Head Lithium exceeds targets, secures US$3 million royalty and moves closer to production. Watch the video here.
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Too much debt PL priority get this down.
Not bad first 6 months trading TBF with higher pricing achieved being the positive but the lower volume failed to capitalise - sometimes get the feeling there is some balancing at play with volume v price! Good the local pricing has not reduced (at the moment anyway)
Clearly a few challenges/ issues to work through this second half and no mention on farm out - Paraguay problem with rig supplier (which may result in reduced fee’s to compensate) assuming will be late Q1 spud. Fire has NOW had an affect (but covered by insurance) Salta performing well (I think - as no actual details provided)is PPC still on for $40M turnover for Argentina?
USA someone/s been fired and replaced due to delays - need this back online urgent to provide group cash flow
Even with some of the challenges I still feel this is well undervalued as a group business. Interesting to see what happens when trading into the new ticker. I am sure PL will see this a line in the sand which to build from. Have they kitchen sinked as much negative/delayed news to make a fresh start under MAN I wonder.
Will remain invested and will review end of year as certainly not the end of the world and can see many more companies with far bigger issues/challenges to deal with over the next 12 to 18 months!
The problem is that we were expecting good results backed up with a better update and trading statement. Unfortunately neither has occurred hence the 20% drop!
This has got to get better, too much of a loss now to sell, in it for the long term whatever the outcome.
Not sure you can say its undervalued surely the Argentinian business is worthless, significant debt not covered by remaining businesses?
Interest payments are easily covered by Argentina business/cash flow , so debt/interest payments is manageable at the moment - Yes, total debt levels certainly not ideal, but maybe this situation may change at some point which has been mentioned in previous RNS - assuming PL is expecting something on this to change from Argentine government in the near term!
If not, then USA needs to get back on line ASAP, which can be used to pay down some of the debt levels (like I said interest payments are well covered)
Total over reaction if you ask me - MC £19m with ATOM approx £9m - so rest of PPC valued at £10m - the Paraguay drill could be worth this alone on speculation following spud, let a lone any farm out. I will remain patient and await further updates. IMO not the time to sell at these low levels..
over reaction?
The total debt is now $34m and they cannot move $ out of Argentina! We are now dependent on oil prices staying above $80/ barrel.
Yes, clearly a few challenges but these can be worked through - what is your opinion on the company value if funds can be repatriated? Still assuming approx over $40m turnover per annum!
Like I said I feel this has been kitchen sinked as PL will want a fresh start on MAN (hopefully good news only!). My main concern is what happens next when changed to MAN and how quickly they may raise/need funds. GH could use cashflow within Argentina for Lithium prospect, but clearly fundraising will happen at some point, I guess its at what price and for what!
There is no cash in Argentina to repatriate!
If the house broker could get a placing away fair play that would be some effort
There is no cash in Argentina to repatriate!
So out of approx $40m turnover pa (expected - maybe less now) PCC don't have any working cashflow. If no cash then why are you worried about cash stuck in Argentina as one of your concerns - surely it should be just about general business and that they are not covering interest payments therefore effectively insolvent- this is clearly not the case is it?