Andrada Mining acquisition elevates the miner to emerging mid-tier status. Watch the video here.
If so why are there so many sells?
Let's see how it pans out...
is RNS worth the +25% rise?
Genuine question...
UK's Cineworld gets further debt reprieve to ride out closures
https://uk.finance.yahoo.com/news/uks-cineworld-gets-debt-reprieve-072737978.html
Sunday share tips: Cineworld, The Panoply
https://www.sharecast.com/news/tips-round-up-premium/sunday-share-tips-cineworld-the-panoply--7721368.html
"Film studios Warner Brothers's decision to debut its next blockbuster Wonder Woman 1984 in cinemas won't be enough to turn around the fortunes of Cineworld, The Sunday Times's Sabah Meddings said.
Indeed, even before the pandemic struck, which just last month forced the firm to close all its theatres in the UK and the US, analysts already believed the company's finances were shaky.
With core earnings of $758.6m for the six months ending in June 2019 and debts of $8bn at last count, the odds were thus already stacked against Cineworld, the tipster explained.
But with core earnings for the half year to last June down to $53m "it looks ludicrous", she said.
The company is now close to agreeing a rescue deal and is trying to negotiate rent reductions woth landlords, but in any case will likely pursue a company voluntary arrangement.
Yet while a deal would likely give its lenders security over the firm's assets, with a cash burn rate of $50m per month and just $260m of liquidity on hand, "time is running out", Meddings argued.
"Potential financial saviours will want favourable returns to compensate them for their risk. What suits them is unlikely to suit existing shareholders. Despite the glimmers of positive news, it’s too early to call a recovery. Avoid."
The Mail on Sunday's Midas column thinks readers should take buy stock in The Panoply, the technology outfit set up by serial tech entrepeneur Neal Gandhi."
· Secured a new debt facility of $450m and issue of equity warrants
· Agreed bank covenant waivers until June 2022
· Extended maturity of the $111m incremental RCF from December 2020 to May 2024
· Accelerated tax year closure to bring forward an expected tax refund of over $200m to early 2021
- Company will issue to participating lenders 153,539,786 equity warrants representing in aggregate 9.99% of the fully diluted ordinary share capital of the Company assuming full exercise of the warrants.
- monthly cash expenditures to approximately $60m whilst cinemas are closed.
- Group expects to retain sufficient liquidity for a number of additional months, but may require lender support in order to deploy that liquidity.
- The warrants represent 11.18% of the Company's current issued share capital.
- The Group base case scenario assumes a reopening of cinemas no later than May 2021. Under this base case scenario, the Group has sufficient headroom for 2021 and beyond.
- If Cineworld reopens in May 2021 then that means it'll cost the business $300million whilst the cinemas are close with no revenue.
Cineworld considers CVA to avoid unhappy ending
https://www.thetimes.co.uk/article/cineworld-considers-cva-to-avoid-unhappy-ending-gdsrmltnd
"ineworld is considering putting its UK business through a company voluntary arrangement (CVA) as part of a wider restructuring of the world’s second biggest cinema chain.
A CVA, an insolvency procedure typically used by businesses to cut property costs, could result in the permanent closure of a small number of its 127 UK cinemas, although a source close to the process emphasised that no decision had been taken.
Even if it does pursue a CVA, the chain would still have to press ahead with a wider debt restructuring as it wrestles with its $8.2 billion debt mountain and the probable breaching of its covenants."
Survival mode: Movie theaters brace for desolate winter
https://www.chicagotribune.com/entertainment/movies/ct-ent-movies-winter-commentary-20201118-kvvkhlkg6fawhi4rsnqzx5ufne-story.html
"
Movie theater executives don’t usually quote Winston Churchill on earnings calls.
But during his company’s most recent quarterly report to analysts, AMC chief Adam Aron dusted off one of the prime minister’s most famous speeches to describe the financial cataclysm engulfing the exhibition industry and the resilient spirit he hopes will rise up to meet the challenge.
“We shall fight on the beaches, we shall fight on the landing grounds, we shall fight in the fields and in the streets, we shall fight in the hills,” Aron said.
A touch melodramatic? Perhaps, but Aron is correct in noting that cinemas have never faced a threat as grave as COVID-19. In 2020, theatrical box office revenue will plummet 65.6% to an estimated $15.5 billion, the worst result in decades.
"
Universal’s VOD strategy in the COVID era
https://www.latimes.com/entertainment-arts/business/story/2020-11-18/croods-universal-pictures-vod-strategy-covid
"In Universal Pictures’ animated sequel “The Croods: A New Age,” a prehistoric family of cave dwellers meets another clan that gives them a preview of mankind’s future.
Another evolutionary leap is happening in the movie industry.
With the Thanksgiving release of the $65-million DreamWorks Animation film, Hollywood will get a glimpse of what the business of releasing movies could look like after the COVID-19 pandemic. The film will be released Nov. 25 in the few U.S. theaters that remain open. Before Christmas, less than a month later, the family comedy will be available for households to rent digitally for $20.
“The Croods: A New Age,” the follow-up to DreamWorks’ 2013 hit “The Croods,” is the latest film to be released under a novel strategy Universal pushed forward during the public health crisis that dramatically shortens the gap between a movie’s theatrical debut and its home video availability.
Under terms of deals with two top cinema owners, Universal will have the option to release movies on home video after just 17 days in theaters. Before the coronavirus, studios waited at least 74 days before putting their films on iTunes or Amazon Prime. The average gap before home releases, known as the theatrical window, was about 90 days.
The pandemic shutdowns have given studios opportunities to experiment with new ways of releasing movies. But Universal executives say the Comcast-owned studio’s new $20 rental window — dubbed premium video on-demand, or PVOD — is not a temporary fix.
“This is our new normal,” said Peter Levinsohn, Universal Filmed Entertainment Group’s chief distribution officer. “We may make the decision that certain films should have more than three weekends at the box office, but our new normal is that we’re going to be making our films available in the home sometime after that third weekend.”
Theaters have long clung to the months-long exclusive theatrical window as a means of protecting their business model from at-home competition. If people know they can wait just three weeks to see new movies without going to theaters, they will, critics of the strategy say. Some analysts and industry insiders doubt that the added revenue of PVOD will make up for declines in box office. "
U.S. weekly jobless claims unexpectedly rise
https://www.reuters.com/article/us-usa-economy-idUSKBN27Z1X7?taid=5fb67a7039486a0001c68832&utm_campaign=trueAnthem:+Trending+Content&utm_medium=trueAnthem&utm_source=twitter
"WASHINGTON (Reuters) - The number of Americans filing new claims for jobless benefits unexpectedly rose last week as new business closures to control the spiraling COVID-19 infections unleashed a fresh wave of layoffs and further slowed the labor market recovery."
"Initial claims for state unemployment benefits totaled a seasonally adjusted 742,000 for the week ended Nov. 14, compared to 711,000 in the prior week, the Labor Department said on Thursday. Economists polled by Reuters had forecast 707,000 applications in the latest week."
Unfortunately, if you are jobless, cinema will be the last place you will be going to...
Following AMC Deal, Universal Is Partnering With Another Major Theater Chain
https://www.cinemablend.com/news/2558831/following-amc-deal-universal-is-partnering-with-another-major-theater-chain
"
Earlier this year, shortly after the COVID-19 pandemic started wreaking havoc on the film industry, Universal Pictures got into a bit of a kerfuffle with the AMC theater chain over the studio’s decision to release Trolls World Tour in theaters and on VOD the same day, an approach that was considered for more releases. But by the following July, Universal and AMC had buried the proverbial hatchet by striking a special theatrical window deal, and now Universal has established a separate deal with the Cinemark chain too.
For those unfamiliar with what Universal and AMC hashed out, movies from the former studio only have to play for 17 days in the latter’s theaters, rather than the traditional 90 days. After that, Universal can provide said movies, from both the main Universal branch and Focus Features, as PVOD rentals, and AMC would receive a share of that revenue. Universal’s arrangement with Cinemark works similarly, albeit a bit more focused. Cinemark will play Universal and Focus titles opening upwards of $50 million at the domestic box office for 31 days, while movies opening under $50 million only play for 17 days.
Once those theatrical windows have run through, then Cinemark gets a cut of Universal’s PVOD revenue stream from those movies. According to Deadline, about 10% of PVOD revenues on a title have been set aside from exhibition, and of that share, AMC and Cinemark respectively receive 15-17%, which makes up about 1-2% of the entire PVOD “pot.” There’s also nothing to stop Universal from continuing to play its movies at AMC and Cinemark locations even after they become PVOD rentals.
So while the particulars of Universal/Cinemark deal are a bit different compared to what Universal worked out with AMC, that’s two theater chains where the studio now doesn’t need to show its movies for as long as is typically required. Could Regal Cinemas be next? That theater chain issued a strongly-worded statement against Universal Pictures for how it chose to release Trolls World Tour, but that was over half a year ago, so maybe Regal is now open to getting in on that PVOD action.
"
Sp coming down....approaching 44p
Sp climbed up 15% from the bottom so the day traders would be leaving now...for the long-term holders to pick up the pieces.