Tanfield Share Discussion Threads

[cool_hand] 05/12/2015 19:01

While the Directors continue to milk this dog.

[puffintickler] 03/12/2015 11:08

I didn't spot that! The brain's capacity to read what is expected rather than what was actually written is rather worrying.

[m.t.glass] 03/12/2015 09:38

Thank you for the correction.
(Edit: And I made a 1000 year error! Corrected that bit now)

[puffintickler] 03/12/2015 09:04

Hi MT Glass

You say:
"are Tanfield shareholders being strung along by references to "should" reach the threshold by the start of 1017? "

Where do you get that reference from? The recent RNS says "the Tanfield board would expect Snorkel should achieve and sustain an operating profit in the year ending 31 December 2016 and beyond. ". This is not the same as the threshold which is an EBITDA of $25 M.

[m.t.glass] 03/12/2015 08:52

You left out "imminently" this time. Have you switched from "in the next few weeks" to "in the next 2-3 years"?

:-O

PS: If it does take till September 2018, how much cash will the directors and admin fees have taken from the pot in that 2 years 9 months whilst twiddling their thumbs and buying each new calendar?

[multiplural] 03/12/2015 08:50

If it took untill sep 2018 to get the option released it would still yield a hefty 36% p.a. from the present levels. Not bad, but will happen before.

[m.t.glass] 03/12/2015 08:20

vertikal.net article in KHL Magazine repeats the Tanfield statement - but adds this comment:
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Vertikal Comment

Don Ahern has made substantial progress with Snorkel, but the business needs a year or two – or more to grow into its overheads. That is almost certainly what Ahern has in mind and this is not unusual for a privately held company owned and run by someone who is passionate about what they do.

However for Tanfield this will most likely mean that the business will not reach the $25 million threshold before the September 2018 cut-off date. It would appear to be far more advantageous to keep investing for the future than struggling to reach a target for which there is little apparent incentive?



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So, are Tanfield shareholders being strung along by references to "should" reach the threshold by the start of 2017? Or has the Vertikal.net author got it wrong?

[dave224] 02/12/2015 09:07

That may of already happened if you read the RNS its vey positive might attract new investors

[a2584728] 02/12/2015 08:53

I shall buy the next dips and then sit on a few then.

[dave224] 02/12/2015 08:11

I think Ahern will see the affect of the interest rate rise and make an offer early next year

[dave224] 02/12/2015 07:59

A2 this may dip but will then go up the only thing stopping this is something unforeseen like US recession

[m.t.glass] 02/12/2015 07:46

The prospect of a payout has been kicked into the long grass for another year, unless (a) both parties agree a different settlement (eg, Tanfield accept a low bid from Ahern instead of waiting), or (b) Snorkel report a dramatic surge in profit earlier than expected, pushing the trailing year total above the threshold during 2016 rather than after it.

[a2584728] 02/12/2015 07:42

Really? Why do you think that? He could just wait and make a reduced offer in 2017. I am not convinced. I hope I am wrong !!!

[dave224] 02/12/2015 07:32

Think we may see an offer from Ahern

[m.t.glass] 02/12/2015 07:17

Plenty of positive noises in today's Snorkel update. But:

"The trigger event for the initial realisation of the Snorkel investment occurs when the company has achieved an annualised trailing EBITDA of $25 million dollars in any 12 month period by 30 September 2018..."

"..the Tanfield board would expect Snorkel should achieve and sustain an operating profit in the year ending 31 December 2016 and beyond..."


So they don't anticipate reaching the trigger point before the end of 2016. There's no guarantee that the profit they are expecting to report then will exceed the $25m trigger (though I would guess it will, and might be apparent from updates before then)

So multiplural's constant assurances that the sale is imminent, which have so often been wrong, are now quite definitely shown to be wrong.

Directors' salaries and expenses and assorted admin fees will presumably continue to be drawn for another 12 months with no income.

[cool_hand] 01/12/2015 16:11

Good chance this will touch some new lows.

[a2584728] 01/12/2015 15:24

I hope you are right, I may come back later if we see some movement.

[dave224] 01/12/2015 14:55

All the best A2, think this will happen next year April/May time!

[a2584728] 01/12/2015 13:17

Seems others are following GLA

[a2584728] 01/12/2015 12:43

I am out, sick of waiting for something I don't believe will happen, better value elsewhere

[orange1] 30/11/2015 22:22

That's how the invasion of Iraq started. ;-)

[m.t.glass] 30/11/2015 22:16

Sorry. It was in my initial post, got deleted while making a correction, then added back as soon as I spotted its unintended deletion ;-)