Bisichi Share Discussion Threads

[rimau1] 06/9/2022 08:06

LAS has started moving now but its still an arbitrage play on BISI’s recovery over the past 24hrs and the massive derate in LAS from 26p last week pre BISI results. I would guess LAS should be about 26p now.

[8gggggggg] 06/9/2022 07:58

Many thanks for that info , so I have just added .Dakas

[rimau1] 06/9/2022 07:46

The market is massively mis-pricing LAS who’s BISI stake is now worth the entire market cap if you include the upcoming dividend payment by my calcs.

[tim000] 05/9/2022 15:27

The cavalry turned up this afternoon, for once I was not one of its members.

[bisiboy] 05/9/2022 12:22

there are some very good and well placed comments on this board.
having been a shareholder for over 30 years now and experienced several ups and downs
this is an investment which continues to frustrate me. i try and look for the positive in things but this option buyout is not something i approve of.
in my view we should of had an increased dividend with the funds and i accept that
there would have been dilution but so be it.
if the shares remain depressed i would expect in a few years the new options will
be "re priced".
its like 12 years ago all over again. a cynic would say its a good way of extracting
value for the directors.
i sold 40% of my holding about 14 years ago so i suppose in some ways these don't owe me anything other than lost opportunities.
i agree about a mission statement but won't hold my breath.

[tim000] 05/9/2022 10:58

Indeed. They have said they are going to do more shareholder engagement, I trust them to follow through with that. Timing is another matter.

[e43] 05/9/2022 10:56

A mission statement from the company saying they will return a decent % of future free cash flow to shareholders would work wonders.
They need to communicate to the market a change of policy going forward.

[tim000] 05/9/2022 10:47

And yet BISI has most to gain from higher coal prices, given its current mkt cap. Defies logic.

[e43] 05/9/2022 10:45

TGA&GLEN both having a v strong start to the week,BISI not .It looks like it may take a little while to get over that option settlement last week.

[tim000] 02/9/2022 11:43

Yes, it’s one thing to focus on running a business and letting the share price do its own thing, but to date the Directors seem to be going a stage past that!

[e43] 02/9/2022 11:36

Yes it's almost like the director's don't want BISI &LAS to have high shareprices.
There's a clear path to a 100m mkt cap for BISI if they wanted the profits to benefit all shareholders equally .

[tim000] 02/9/2022 10:36

I think you're right. In which case many investors are going to miss out on a humongous dividend yield next year.

[robizm] 02/9/2022 10:28

I have followed Bisi and LAS for over 15 years. Rarely investing just following progress. They made £21 million profit and valued at £31 million and are almost certain to make at least £25 to £30 million in the second half unless a black swan event happens. And even if coal prices fall in 2023 they will still make decent profits going forward but the problem has always been most investors do not trust them.

[tim000] 02/9/2022 10:07

You make a fair point that the Directors can be criticised for not putting their own money on the line by buying shares.

[robizm] 02/9/2022 09:43

The directors could be allocated shares and actually keep them. Ie build up a stake in the company and reap the dividends and capital growth. The fact they exchanged them for cash says an awful lot on what they think of this companies future.

I have never seen a company consistently pay out more to directors than shareholders.

[tim000] 02/9/2022 06:33

If the Directors had been required to sell their options in the market and had reduced the share price, they would also have reduced the strike price of their new options. And shareholders voted for this anyway. But I agree it seems perverse that the Directors' bonuses take preference over shareholder dividends, in timing and scale.

[tim000] 02/9/2022 06:26

The cost of cancelling the 680k old options was £1.85327mn. That is exactly the same amount as the company gains from increasing the strike price of 680k new options from £0.7946 to £3.52. The only loss is the 80k new options, issued at a reasonable strike price. The company in effect has compensated the two Directors for recalibrating their options to a more reasonable strike price.

[e43] 01/9/2022 20:34

Yes H eagle ,that option settlement equates to what could have been an additional 17p on the dividend.
I knew the announcement was coming,but it's still frustrating .

[horndean eagle] 01/9/2022 13:37

didnt take them long to dip into that trough. shameless. clearly no way they could have sold the shares at that price in the market.

[tim000] 01/9/2022 08:03

No harm in being conservative. They produced 1180k tonnes as recently as 2020, 600k tonnes shouldn't be much of a stretch given their new mining seam is open cast.

[e43] 01/9/2022 07:51

I"m going for 500k plus Tim,which will work out very well if the exports stay at approx same as H1,My reading of the situation was that there was significant lag time at end of H1 from the finishing of production at the old workings and the ramp up of production at the new,due too development work needed to get the new coal seams ready to mine.
Good news is that'we're now producing more high quality coal which is selling for excellent prices so free cash flow will be significantly up at present on corresponding H1.

[tim000] 01/9/2022 05:53

At end April when they published AR21, the company offered guidance for 2022 of similar production as the previous year, ie at least 1mn tonnes. At that time they would have known about the production shortfall in H1. So it’s possible they’ll produce around 700k tonnes in H2. At the moment, futures markets point to significantly (20%) higher average prices in H2 than in H1.

[tim000] 31/8/2022 21:08

Having analysed the figures, the company did well to make so much profit given a 40% shortfall in production. They overcame that by a 10% overshoot in export volumes, a large increase in bought-in coal to process through their own CHPP, and very good cost control despite tough mining conditions. Negatives were a disappointing performance of the equity fund (aka cash reserves) and a fairly high level of capex that was unexplained - is this going to increase productivity going forward or was it unproductive investment arising from mining problems? Looking to H2, the company has said mining conditions and coal quality have improved, resulting in higher pricing. If they can maintain the H1 rate of exports and bought-in coal, and add 200k tonnes to production, they’re going to make sensational profits in H2.

[e43] 31/8/2022 21:00

Yes the company's building a v strong position now 2 months into H2 ,a little unlucky choosing an awful day for energy/resource stocks to release your results,so likely to be well bid when the market settles again.