Starvest Share Discussion Threads

[brando69] 11/4/2011 15:47

nice little divi on top

[brando69] 11/4/2011 15:46

28.82p NAV

[zedder] 11/4/2011 15:19

Looks like my spreadsheet is not a million miles out:

zedder - 31 Mar'11 - 18:20 - 780 of 788
NAV of 24.95p (assumes 5p and 6p warrants exercised, 2.3m treasury shares sold and £800k of corp tax), or 25.9p if you remove 20% discount on ORCL on basis of planned move to AIM.

[topinfo] 11/4/2011 15:13

DJ Starvest plc Half-yearly report

TIDMSVE

11 April 2011

Half-year report - six months ended 31 March 2011

Chairman's statement

I am pleased to provide a portfolio valuation update as at 31 March 2011, the interim financial statements for the six months ended on 31 March 2011 and a commentary on the excellent progress made during the period.

Investment performance

At 30 September 2010, there were signs that dampening impact of world economic events was lifting and that the performance of the Starvest portfolio was improving after two years of stagnation. Those initial signs have proved to be a foretaste of an excellent half year. The key facts are as follows:

* Company net asset value has increased by ÂGBP5.9m or 141%;

* Starvest's mid share price has risen by 77% from 7.75 pence on 30 September 2010 to 13.75 pence on 31 March 2011;

* Closing net asset value of 26.16 pence per share up 131% from 11.28 pence; * Mid share price on 31 March 2011 had a discount to net asset value of 47%; * Investment sales have realised ÂGBP1.3m with a gross profit of ÂGBP1.09m; and * The bank overdraft has been eliminated.

Basis of valuation

Starvest uses closing bid prices, or the Directors' lower valuation if deemed appropriate. In addition, a 10% discount is made against those investments where the Company holds either a large percentage of a given investee or where the investment constitutes 7% or more of the portfolio. These valuation discounts totalled ÂGBP1.08m at 31 March 2011, or 2.66 pence per share. Adjusting for this discount, the full value based on bid prices was 28.82 pence per share leading to a share price discount of 52%.

Given the current stock market trading volume in some investee companies, it is arguable that mid price rather than bid price would be appropriate. Had the Company adopted such a policy with all options exercised, the value per share would increase by a further ÂGBP1.64m or 3.61 pence to 32.43 pence per share with a share price discount of 57%.

Company statistics

31 March 30 September 2010 31 March 30 September
2011 2010 2009

Trading portfolio ÂGBP10.03m ÂGBP4.57m ÂGBP3.53m ÂGBP4.72m
value

Company asset value ÂGBP10.10m ÂGBP4.19m ÂGBP3.19m ÂGBP4.02m
net of debt

Net asset value - 26.16 pence 11.28 pence 8.85 pence 10.72 pence
fully diluted per
share

Share price - mid 13.75 pence 7.75 pence 5.75 pence 11.75 pence

Share price discount 47% Premium 31.3% 35% Premium 9%
to fully diluted net
asset value

Market capitalisation ÂGBP5.05m ÂGBP2.84m ÂGBP2.01m ÂGBP4.1m

Portfolio comment

During the half year, Starvest sold at profit: its remaining holding in Franconia Minerals Corporation, the subject of a takeover; and a part of its interest in Beowulf Mining plc. On sales of ÂGBP1,324,020, the gross profit was ÂGBP1,089,779.

During the half year, there has been increased investor interest in mineral exploration ventures, particularly where they have demonstrated progress in their search for and development of their projects leading to much improved valuations. Against this background, previous valuation impairments totalling ÂGBP848,498 have been reversed; new impairments total ÂGBP35,198.

Taking these factors into consideration resulted in an operating profit before expenses of ÂGBP1,903,079.

During the period, Starvest added to its investment in Ariana Resources plc.

As a consequence of improved valuations, Starvest's largest investments, comprising 85% of the declared valuation, in order of size were:

* Oracle Coalfields plc

* Regency Mines plc

* Kefi Minerals plc

* Beowulf Mining plc

* Red Rock Resources plc

* Ariana Resources plc

* Sheba Exploration (UK) plc

* Greatland Gold plc

* Sunrise Resources plc

A year ago we stated that "within the investment portfolio, we have eight investments, each of which has the potential to transform the Starvest portfolio. We must be patient!" Our patience is being rewarded, and we continue to believe that there is considerable growth potential in Starvest's investment portfolio.

Other points of note during the half year:

* The profit on ordinary activities before taxation for the period amounted to ÂGBP1,812,920 (2010 loss ÂGBP100,276).

* After a corporation tax provision of ÂGBP490,000, the net profit is reduced to ÂGBP1,322,920 (2010: loss ÂGBP100,276).

* Basic profit of 3.6 pence per share (2010: loss of 0.29 pence per share); fully diluted profit of 3.3 pence per share (2010: loss 0.25 pence per share).

Resumption of dividend payments

In the context of the greatly improved results coupled with the outlook for the future, the Board has resolved to resume dividend distributions commencing with an interim dividend amounting to 0.25 pence per share for which the record date will be 27 May 2011 and the payment date 15 June 2011.

The matter will be kept under review, but at the 2011 annual general meeting the Board expects to recommend to Shareholders that a final dividend of a like amount be paid during January 2012.

The Board hopes to be able to recommend further dividends to shareholders in future years.

In early July, the Company expects to announce an update to the net asset value as at 30 June 2011.

R Bruce Rowan

Chairman & Chief Executive

11 April 2011

Profit & loss account

[crimeprotection1] 11/4/2011 08:59

The ORCP stake is now representing nearly 50% of the market cap with probably more to go, interesting times!

[weasel31] 08/4/2011 11:10

Previous quarterly valuations were issued on these dates:

4th January
11th October
13th July

I think we should give them a few more days before we call them lazy.

[backmarker] 08/4/2011 09:56

no valuation RNS yet. are they being lazy ?

[weasel31] 05/4/2011 18:49

Anyone know why the drop today?
3 buys, no sells.

[brando69] 01/4/2011 08:56

i expect to see it before the end of the day today

[brando69] 01/4/2011 08:55

i expect to see it before the end of the day today

[zedder] 31/3/2011 18:20

NAV of 24.95p (assumes 5p and 6p warrants exercised, 2.3m treasury shares sold and £800k of corp tax), or 25.9p if you remove 20% discount on ORCL on basis of planned move to AIM.

[zedder] 31/3/2011 14:50

Chairman's 6 month update issued on 2nd April 2010, with a valuation as at 31st March 2010. Expect a similar approach this year.

I'll try to remember to update my spreadsheet later, to see how close I get to their NAV/share.

[weasel31] 31/3/2011 14:29

What date is the update due? Anyone know?

[underperformer] 30/3/2011 09:09

oracle on the move again this am, virtous circle with RGM/RRR/SVE/ORCP gla.

[underperformer] 29/3/2011 14:50

even at 30% suggests a price nearer 17p

[backmarker] 29/3/2011 10:23

we're due an official update soon but on today's prices I'm not expecting much change, perhaps a small increase. I'd be happy to be wrong.

some of the larger holdings are up and some are down, and it's unclear how many BEM we have left to give a big boost. a lot of stocks fell back during Jan-Feb and have only been rising again this month.

however, if RGM and RRR can get back on form - it looks as though they may have just broken their downtrends - then things will look much brighter.

is anyone expecting the discount to narrow to below 30% any time soon ?

[underperformer] 29/3/2011 08:23

I would hope that Oracle's move to AIM would be good excuse for an RNS to state the 20% discount is removed and then give an updated NAV. Note that at 17p and above SVE included warrants in the outstanding shares calculation which is partially why the Jan4 NAV was a little lower I had expected. GLA.

[brando69] 28/3/2011 23:54

last official NAV of 25.8p was based on valuation at 31 Dec 2010. Look at the chart above which shows the share prices rebased for the main AIM holdings... and then tell me that we are not substantially higher than that now.

[brando69] 28/3/2011 22:42

zedder

NAV in header given at NAV 28.7p

but prices of most holdings are up since then!

[zedder] 28/3/2011 21:36

25.5p, or 26.4p if we assume ORCP moves to AIM at same price so we can remove the 20% discount.

[brando69] 28/3/2011 21:15

my guess is that NAV is at around 30p now

[brando69] 28/3/2011 14:41

145K sell at 13.75 this lunchtime moved the price up...

last of a stale bull selling out perhaps

[brando69] 27/3/2011 09:20

backmarker - circa 1 April - so in a week or so i would think

[meadow50] 27/3/2011 00:08

AAU up 10% yesterday