Shaft Sink Share Discussion Threads

[rcturner2] 10/7/2014 19:31

muckshifter, you called this one correctly

shame hedgehog was so blinkered

[rcturner2] 10/7/2014 19:30

I said it was a dog along time ago, you said it was a great stock. That's all.

[hedgehog 100] 10/7/2014 18:28

I see RCTurner2 has reappeared.

[hedgehog 100] 10/7/2014 18:03

Sad to see SHFT top of the LSE losers list today, but the five month strike seems to have been 'a straw that is breaking the camel's back' -

Symbol Name Cur % Chg Change News
1 SHFT Shaft Sink 7.13 -46.23% -6.13 1


Price Price Change [%] Bid Offer Open High Low Volume
7.13 -6.125 [-46.23] 6.75 7.50 9.25 9.25 6.50 1,196,277
Market Cap. [m] Shares In Issue [m] Beta EPS DPS PE Ratio Yield 52-Wks-Range
3.38 47.50 0.09 4.14 - 1.72 - 26.25 - 6.50


10/07/2014 07:01 UKREG Shaft Sinkers Holdings Plc Financing Discussions



'Coincidentally', nearly a year to the day since the July 2013 profit warning:

15/07/2013 07:00 UKREG Shaft Sinkers Holdings Plc Trading Update



Perhaps July should be a month in which to be wary of SHFT.

[muckshifter] 10/7/2014 17:58

This bit of the RNS:
"As announced on 19 May 2014, the Company has been pursuing a number of initiatives to address cash flow issues including.....and improvements to the recovery cycle of receivables."

indicates quite a dangerous and perhaps desperate move by the company.

They are asking clients for early payment, imho. They may have excellent working relationships with some of their clients, but in each case, the man who signs off the payment will be aware of the possible expensive consequences for his company if shft goes bang. And perhaps the potential blight on his career if he has paid early, bearing in mind that he will be fully aware of the meaning of the "core clause" I wrote about in post 2468 which said:
"If the contractor shall become bankrupt, or have a receiving order made against him, or shall present his petition in bankruptcy, or shall make an arrangement with or assignment in favour of his creditors, or shall agree to carry out the contract under a committeee of inspection of his creditors or......................
or if the Engineer shall certify in writing to the employer that in his opinion the contractor............ or is failing to proceed with the works with due diligence or is otherwise persistently or fundamentally in breach of his obligations under the contract..."
The clause always then goes on to say that effectively the client can then withold all payment, use any plant and materials on site belonging to the contractor, and replace the contractor. If at the end of the contract period, ie. usually at least 12 months after actual completion and handover of the work, the total cost incurred by the client is less than he would have paid the original contractor to complete the work, he pays the balance to the contractor. But if the total cost exceeds what he would have paid to the original contractor, the contractor has an obligation to pay that extra cost back to the employer.

Unfortunately, a request for early payment, from a cash starved contractor, often backfires, and it only takes one big client finding excuses to hold major variation payments back, for example.

As I've been saying for nearly two years, it is now a fight for survival, followed by another.
Regards.

[pugugly] 10/7/2014 15:52

Game set and Match to Muck - Hedgehog now out and flattened.

Muck - A lot of possible investors owe you a large vote of thanks for your incisive analysis.

[rcturner2] 10/7/2014 15:00

I see hedgehog has disappeared.

[technofiend] 10/7/2014 13:18

Right royally shafted unless there is a clear resolution to the Eurochem arbitration in their favour.

If the court rules in SHFT's favour then there will probably be some form of compensation paid to them.

In theory, SHFT could easily quadriple from here, LOL. Go on jump in!

[lennonsalive] 10/7/2014 09:20

Still selling the family silver and unable to raise enough money. This will be bust by the end of the year.

[lennonsalive] 10/7/2014 09:19

Still selling the family silver and unable to raise enough money. This will be bust by the end of the year.

[buywell2] 10/7/2014 09:08

Re my SHFT 8p call ... now hit


My call now is 4p within 4 to 6 months

dyor and BOL

[buywell2] 10/7/2014 08:29

Well did you H ? ..... come on you can share with an olde mucker



Hectorp 17 Feb'14 - 10:08 - 2379 of 2504 0 0

Will continue to watch but don't intend to return to buy until I see the outcome of Eurochem arb.



buywell2 14 Mar'14 - 17:48 - 2399 of 2504 0 1 edit

SHFT

Is now in a dark place

Chart support being tested ... if it goes then 10p cometh

dyor

buywell2 17 Mar'14 - 08:20 - 2400 of 2504 1 1 edit

why ?

''Group revenues during the year ended 31 December 2013 are expected to be lower than during the prior year at approximately £150m (2012: £192.5m). This is mainly due to the Group's reduced workload during the year and the deteriorating value of the ZAR against Sterling, which impacted revenues by some 11%. However, a number of the Group's projects also encountered operational difficulties resulting in reduced billings to clients. Gross margin is expected to have decreased to between 9 - 10 per cent. (2012: 11.7%).



Since the Group's last update to the market, operations have been materially impacted by the following key factors:



1. Poor sinking progress at the Hindustan Zinc Limited project which resulted in higher than expected costs and lower revenues;

2. Operational underperformance at the Group's South African business, with performance at the Impala 17 and Styldrift projects particularly disappointing;

3. The write-off of previously incurred costs at the Impala 16 project that cannot be recovered from the client;

4. The under-recovery of Engineering overhead costs due to the lower workload;

5. Higher interest costs as a result of weaker than expected cashflow in South Africa; and

6. Delays to the commencement of the Kazchrome contract. Negotiations with Kazchrome are still ongoing and the Group shall provide a further update as appropriate.


As a result of the above, the Group's profitability will be materially below expectations for the year ended 31 December 2013, and profit before tax is expected to be between £2.5 million and £3.0 million, subject to the audit process''

Profitability and cash availability will remain under pressure until the EuroChem arbitration comes to an end, which management expects to be by early 2015.

[buywell2] 10/7/2014 08:22

Mkt Cap after todays news has sunk in might be circa £4.5m

I reckon they need the same in cash to have a chance of lasting another 12 months

Might get 3p a share float away IF they act quick

2p if they can't find a mug

MASSIVE dilution on the way







buywell2 16 Apr'14 - 11:57 - 2419 of 2502 1 0 edit

Well ...... check out if the chart support went







buywell2 14 Mar'14 - 17:48 - 2399 of 2418 edit

SHFT

Is now in a dark place

Chart support being tested ... if it goes then 10p cometh

dyor

[bad robot] 10/7/2014 08:22

this will be 2p tomorrow.

Soth Africa is the worst country to make business, they want 20% increase in salaires every 12 months.

dead suck

[bad robot] 10/7/2014 08:20

last one out please switch the lights off


Proper shafting here

[buywell2] 10/7/2014 08:20

Mkt Cap after todays news has sunk in might be circa £4.5m

I reckon they need the same in cash to have a chance of lasting another 12 months

Might get 3p a share float away IF they act quick

2p if they can't find a mug

MASSIVE dilution on the way

[buywell2] 10/7/2014 08:14

Top advfn loser is -5% ..... why is that ?

This is time for SHFT to shine



I think he must be a paid plonker

Nobody with a brain cell would have gone on for yonks like he has V the chart and PLAT SA market

Mind you several other posters have remained bullish , must have mule genetic mutations .... eh Hector ? .... you been averaging down against my advice here ?

[the stigologist] 10/7/2014 08:12

excellent !

[the stigologist] 10/7/2014 08:10

is headuphisownasshog100 some sort of reverse investment genius !

[the stigologist] 10/7/2014 08:09

well done on SHFT
hedgehog

[buywell2] 10/7/2014 08:07

SHFT could be TOP ADVFN FALLER today



Conclusion

Sometimes it pays to listen to other peoples views on a company and take off the pink specs and ear plugs.









buywell2 1 May'14 - 08:28 - 2437 of 2495 0 0 edit


From 30th Aprils results

Like I have been saying here from when SHFT was over 80p

South Africa is NOT the place to be mining now and won't be for many years due to strikes and political changes


But SHFT are stuck there

''the arduous operating environment in South Africa continues to impact our business and industry generally. The renewed strike action after the end of the year which, at the time of writing has not been resolved despite recent further offers being made, is debilitating and crippling the platinum industry in particular and is clearly affecting levels of investment. Nevertheless, South Africa remains a core market for Shaft Sinkers and we hope that the business environment will improve following elections later in 2014 and a sensible resolution to the protracted strike action is reached. ''






On going legal costs are rising

''Material impact of legal fees related to ongoing arbitration of GBP3.9 million (2012 GBP1.1 million), with outcome expected early 2015 ''

Profits this year were bolstered by the sale of SHFT HQ , it can't be sold twice and now the company are paying lease charges

''The Group disposed of its offices in South Africa on a sale and leaseback basis, generating cash of GBP2.2 million ''




I think any money from Eurochem is a very remote possibility

I think that the SHFT technology is also now very questionable

why ?

Drilling & Blasting

EuroChem has restarted the sinking of the cage shaft at its VolgaKaliy potash project near Volgograd, Russia, following the successful completion of the shaft freezing stage. The cage shaft sinking operations have been resumed from the 100m mark following the suspension as a result of the failure in the grouting technology used by Shaft Sinkers, a South African contractor which had been hired by EuroChem for the project.

EuroChem has taken the necessary steps to continue with the sinking of the cage shaft by deploying freezing technology. After installing a freeze plant to protect the shaft during sinking and performing necessary works, EuroChem construction teams continued to sink the cage shaft. The shaft is now being protected during the sinking effort by a freeze wall which is designed and operated by Thyssen Schachtbau. Thyssen Schachtbau is also involved in the sinking of VolgaKaliy's skip shaft and the EuroChem's other potash project, EuroChem Usolskiy Potash in the Perm region of Russia.

Clark Bailey, head of mining at EuroChem, commented: "We are pleased with the progress we are making with the sinking of the cage shaft. We have suffered a delay of approximately two years and nine months as a result of the failure of the original shaft sinking grouting technology used by Shaft Sinkers. We anticipate to completely finish the cage shaft in 2017."














Thus due to the recent rise on small potatoes volumes I have revised my 10p call to 8p within 8 to 12 months


If Eurochem succeed in their claim V SHFT it is all over

2015 will be the year it all ends

dyor and BOL

[buywell2] 10/7/2014 08:05

Conclusion

Sometimes it pays to listen to other peoples views on a company and take off the pink specs and ear plugs.









buywell2 1 May'14 - 08:28 - 2437 of 2495 0 0 edit


From 30th Aprils results

Like I have been saying here from when SHFT was over 80p

South Africa is NOT the place to be mining now and won't be for many years due to strikes and political changes


But SHFT are stuck there

''the arduous operating environment in South Africa continues to impact our business and industry generally. The renewed strike action after the end of the year which, at the time of writing has not been resolved despite recent further offers being made, is debilitating and crippling the platinum industry in particular and is clearly affecting levels of investment. Nevertheless, South Africa remains a core market for Shaft Sinkers and we hope that the business environment will improve following elections later in 2014 and a sensible resolution to the protracted strike action is reached. ''






On going legal costs are rising

''Material impact of legal fees related to ongoing arbitration of GBP3.9 million (2012 GBP1.1 million), with outcome expected early 2015 ''

Profits this year were bolstered by the sale of SHFT HQ , it can't be sold twice and now the company are paying lease charges

''The Group disposed of its offices in South Africa on a sale and leaseback basis, generating cash of GBP2.2 million ''




I think any money from Eurochem is a very remote possibility

I think that the SHFT technology is also now very questionable

why ?

Drilling & Blasting

EuroChem has restarted the sinking of the cage shaft at its VolgaKaliy potash project near Volgograd, Russia, following the successful completion of the shaft freezing stage. The cage shaft sinking operations have been resumed from the 100m mark following the suspension as a result of the failure in the grouting technology used by Shaft Sinkers, a South African contractor which had been hired by EuroChem for the project.

EuroChem has taken the necessary steps to continue with the sinking of the cage shaft by deploying freezing technology. After installing a freeze plant to protect the shaft during sinking and performing necessary works, EuroChem construction teams continued to sink the cage shaft. The shaft is now being protected during the sinking effort by a freeze wall which is designed and operated by Thyssen Schachtbau. Thyssen Schachtbau is also involved in the sinking of VolgaKaliy's skip shaft and the EuroChem's other potash project, EuroChem Usolskiy Potash in the Perm region of Russia.

Clark Bailey, head of mining at EuroChem, commented: "We are pleased with the progress we are making with the sinking of the cage shaft. We have suffered a delay of approximately two years and nine months as a result of the failure of the original shaft sinking grouting technology used by Shaft Sinkers. We anticipate to completely finish the cage shaft in 2017."














Thus due to the recent rise on small potatoes volumes I have revised my 10p call to 8p within 8 to 12 months


If Eurochem succeed in their claim V SHFT it is all over

2015 will be the year it all ends

dyor and BOL