Nova Res. Share Discussion Threads

[king suarez] 21/6/2013 15:39

I really hope so.... the results are due soon... whether or not they are good remains to be seen!

[bckttsim] 21/6/2013 09:42

We must be close to some results and news, after which these should fly.

[king suarez] 10/6/2013 17:44

When I saw the share price down 35% this morning I though "Oh great, what's happened - have I been mislead somewhere".. then I checked for an RNS.. oh there wasn't one.. just some people offloaded a few hundred k shares (couple of grand).

Perhaps one or two getting jittery in run up to results with no further news coming from the company?

I am a bit confused, because these should be making a few £'m profit from the 12 month contract alone.. and have trucks worth at least the market cap currently.. so either v oversold.. or something untoward going on behind scenes? I have no idea.. I am waiting for annual results, though was tempted to add a little more on the dip!

[the_beagle] 10/6/2013 15:06

Bought £2k worth this morning on the drop. Just for a punt as it looked oversold.

Listening to the interview posted above I got the impression that the company was confident on renewing the logistic deal, possibly at a better price, but I have to admit that the last RNS is slightly worrying.

Have they renewed for another year? If not what else is in the offing in what appears to be a very busy part of the world. I just hope the negotiators haven't tried for too much.

An announcement of a 12 month extension would see these 2p plus imo. Any comments from any of today's other buyers or LTHs if any are left.

[king suarez] 14/5/2013 20:11

Annual results should come out by end of next month. These should show a profit of a several million pounds if the contract details are/were correct.

Hopefully some new contract news before then also!..

I am waiting for results before making any decisions..

Thoughts?

[ryan83] 15/4/2013 21:17

I would think so KS. Mongolia has no infrastructure so trucking is the only method. With coal production set to increase there's increased business to be had. I assume they are negotiating cost per tonne as subbing NOVA trucks in was more expensive compared to their own (goes with the territory of subbing). I do expect a contract to come out of the negotiations but what value and length.

[king suarez] 15/4/2013 15:51

There is still a considerable amount of profit that will have been made with the current contract (should be shown in the next HY accounts - June?) + the value of 16 trucks purchased, even if they do not manage to renegotiate a contract extension.

Presumably there will be other possible contracts?

[j2bull] 15/4/2013 13:33

I have been watching from the sidelines but this is looking like a good entry point as they have the option of a new contract just need to give a bit on the terms it seems

GLA J2

[rbonnier] 15/4/2013 11:45

Im afraid the pump and dump team have moved on there wont be many left holding this cactus!

[king suarez] 15/4/2013 10:25

Disappointing RNS this morning - any thoughts?!

[moreforus] 09/4/2013 07:27

i know nobody will but its worth reading the report as it's extremely interesting on the coal market and China - going forward ....

[moreforus] 09/4/2013 07:11

ryan as if you read the results pdf you'll see they will be increasing coal output capacity to 15 mill tonnes pa (with a third processing module at UHG) with a 12 mill target for 2013 but have a maximum capacity to ship 12 mill....they also will never have a 100% utilization of their fleet - NOVA can make up the stop gap.

in NOVAs results they say the contract is until 2014 and revenue generation started in August.

[ryan83] 09/4/2013 07:06

M4, why would they want to renew the NOVA contract if its twice as dear than using their own fleet? Do they have the fleet capacity or is third party contractors cheaper than expanding the fleet.

So costing them 18.1 usd per tonne? NOVA contracted for 1.5mn tonnes per year, commenced June 2012. So 0.75 m tonnes June to Dec at 18.1 usd = 13.5mn usd or 848k usd per vehicle per six months. options to increase this to 3 mn tonnes as well as the 12 month extension.

Per NOVA the revenue per vehicle would be 700k per year per vehicle, short of the implied 848k above. D they use other third party long haul contractors? If they do, maybe they are more expensive than NOVA and a good reason to extend not only the contract but the tonnage.

Lets see what happens....

[doodle1] 09/4/2013 07:05

looks good for us M4 - just need NOVA to release contract news and next months results to shove this skywards

[moreforus] 09/4/2013 06:48

from the results rns

"The Group has been generating revenue from August 2012, due to the major transportation contract owned by the Company's sole investment, Nova Trans LLC ("Nova Trans"), which will operate for an initial period to 2014 (the " Contract")."

still expect an extension of contract rns by the 14th

interesting the "client" had its results out





"In 2012, the Group's transportation costs were USD130.9 million (2011: USD107.3 million), of which USD1.0 million is related to the transportation of ROM coal from BN mine to CHPP, USD66.0 million was related to long-haul (UHG-TKH) transportation; USD55.0 million to short-haul (TKH-GM) cross-border transportation for coal products sold to China-based customers under DAP GM terms, which includes costs of transportation and logistics associated with the direct delivery of products from UHG to GM; and USD8.9 million for coal products sold to seaborne market customers under FOB Nakhodka terms, which includes transportation and logistics costs incurred to deliver coal products from UHG to Nakhodka and to load the products on the customers' designated sea
transportation vessels.

In 2012, the management focused on maximising the utilisation of the Company's own transportation assets and improving efficiency in its main long-haul transport (UHG-TKH) section.

As a result, the transportation cost using its own fleet in the long-haul (UHG-TKH) section has been reduced from USD19.1 per tonne in 2011 to USD9.4 per
tonne in 2012, which represents USD9.7 or 50.8% decrease per tonne year-on-year.

Meantime, the transportation cost by third party contractors in the long-haul (UHG-TKH) section has been increased from USD16.6 per tonne in 2011 to USD18.1 per tonne in 2012, which represents USD1.5 or 9.0% increase per tonne year-on-year.

In 2012, the Group's own transport fleet carried the majority (70.7%) of its total coal products while the rest (29.3%) was transported by third party contractors, bringing the combined cost of transport to USD11.9 per tonne in 2012, down by USD5.3 per tonne compared to USD17.2 per tonne in 2011. "

also this

[moreforus] 05/4/2013 10:52

and its hard to buy so good news =......

[tom5boy] 05/4/2013 10:50

News due on contract renewal any day now.

Broker recently suggested a 11p conservative value.

[doodle1] 05/4/2013 10:23

Coming to life again

[moreforus] 05/4/2013 10:03

cant buy online and me FoKs have been knocked back

[king suarez] 25/3/2013 18:37

Yes, would expect an announcement 'soon'..

[doodle1] 25/3/2013 12:44

The contract is for an initial one-year period with the option to extend for a second year, taking the contract up to 15 April 2014.

Surely they must to close to annoucing werer they have taken up the second year option?

[yas27] 25/3/2013 12:39

Still holding and waiting for true value.

[doodle1] 25/3/2013 12:38

The contract is for an initial one-year period with the option to extend for a second year, taking the contract up to 15 April 2014.

Surely they must to close to annoucing werer they have taken up the second year option?