Steppe Cement Share Discussion Threads

[wilo101] 13/5/2020 21:31

All domestic flights resume in Kz on Monday and most folks now back at work, the company is doing ok let’s see how June goes should be ok then a divvy hopefully

[jailbird] 11/5/2020 22:26

I think we call that deja vu :-)

[mattjos] 11/5/2020 21:07

Cantor still seem to represent a big seller in the stock, as they seemingly have done for as long as i can remember. Cant go on for ever but, with low volume and no Holdings RNS as yet, it's difficult to gauge how long the buying is going to take to eat away at this overhang.Hopefully some long-awaited good news on the results, cash-flow & dividend will bring in sufficient buyers to clear this seller out

[wilo101] 01/5/2020 11:00

All building, construction and engineering sites working normally despite the crisis, partially lift of the lock down now underway, some domestic flights resume on Monday and total lift, apparently on 11.05.20, weather is warming up fast, only 3,551 cases in total, 879 cured and 25 deaths, see coronavirus2020.kz

[mattjos] 01/5/2020 09:25

i think insti to insti

[zangdook] 01/5/2020 09:24

600k at 20.25, 600k at 20.85. Could just be somebody shuffling them about.

[mattjos] 01/5/2020 09:14

Decent chunk shifted yesterday

[king suarez] 22/4/2020 10:37

Just to add to that.. for 2019 interims showed cash generation of $7.0m vs $4.9m for the prior year - so ahead by some margin (this is also the weaker half of the year) so 2019 results are going to look good, with strong cash flow.

The 3p dividend last paid cost $8.3m, so only half the 2018 cash flow generation, and almost covered entirely by the weaker H1 2019 cash flows already - this is why Wilo has said this years dividend is aleady 'in the bag' (in his opinion).

Yes, 2020 might not look so good, but I can't see why this cannot continue paying very healthy dividends, unless cement demand completely dries up (pun intended) long term.

I think a good risk/reward and a lot of forward looking negativity well baked into the current price imo.

[jailbird] 22/4/2020 10:21

KS

Thankyou for that and reconfirming the financial state of things

It is the year after I am looking at as the market likes to look forward when pricing .

Share price has strugglesd to pass 40p+ with very good economics times and sentiment in that region and globally . Different times now and for at least another 12-24 months

We have to price that in . But for the positive believers who can look beyond that , then may want to add on this fall

[king suarez] 22/4/2020 09:58

The company generated $18.5m of cash in 2018.

$12m went to paying down debt ($7.3m), interest ($1.7m) and dividends ($3.0m), $3.1m spent on plant and equipment and $3.4m was the net increase in cash at bank at year end. The borrowings at end of year were only $11.8m (less than 1 years cash flow) and will be much lower by now - April 2020

We don't know all the costs for 2019, but the trading updates, despite the gloom and doom on this board, show record revenues for 2019. Ok 2020 may be a bit weaker, temporarily (hopefully) due to covid-19, but you have to ask yourself whether a company that can generate that kind of cash flow, which is about a 30% cash flow yield at current market cap should be valued a bit higher, or not?

[wilo101] 22/4/2020 09:23

I will not waste any further of my precious time. Think whatever you want.

[jailbird] 22/4/2020 09:10

Wilo Thanks for that I am not comfortable with using assets in this way.There has been penny of talk of using NAV figures to justify £1.50 pricing here . That would be true if a bid came in for the Co.It all boils down to revenues and profit for me and of course forward outlook .

[constable ken] 22/4/2020 08:59

Mattjos
The problem with comparing 2017 to 2019 is not just that you're cherrypicking data, but in 2019 the trajectory of the business was not the same as in 2017. Share price is not just a factor of present business performance, so those two years are not comparable on that basis. This is pretty basic, and you should be ashamed of yourself cherrypicking data to try to ramp an AIM stock which has brought you major losses after you bragged about buying "anywhere under 60p". You know there are plenty of suckers reading these boards. Business is slow for all of us, don't pick on the little guys.

[wilo101] 22/4/2020 08:30

Under long-term Finance Leases such include a term ownership does pass and transfer to the Group, as IFRS also requires, 950 are owned and 250 under long-term finance leases, yes wagons/hoppers are amortised like all assets in this case over 25 years, see page 56 of the Annual Report. see hxxp://www.stakhanovvz.com/railway.php?category=1

[jailbird] 22/4/2020 08:16

Leased wagons are not assets , they do not own them

[jailbird] 22/4/2020 08:14

WiloDo these wagons depreciate in value over time ?

[wilo101] 22/4/2020 07:49

as in the 2018 Annual Report, the company owns 952 cement hoppers/wagons and long-term leased 250 in 2018, see pages 9,11,13,19, 28,56 and 71 to properly understand, the wagons are carried at an asset value of US$5.5m

[azalea] 22/4/2020 07:33

By 2022, the wagons should be net earners.

[wilo101] 22/4/2020 03:07

Because the wagons are, in effect, a seperate business and profitable in its own right, as compared to leasing them from KTZ, and facing a shortage when the season is in full swing, plus with the free cash already in the bank and free cash flow they could retire the wagon finance anytime and at will, as I said the witner 2019/2020 season was the first time ever, and since 1998, the company had to take out no seasonal loans to produce flat out all winter, because at this time of year and as the season evolves, clinker ready to grind is equivalent to cash.
As of today Kz only had 1995 Covid-19 cases, 489 were cured and only 19 deaths, in total, Karaganda where the plant is had 101 cases, 17 cured and only 1 death, and Kz begins to lift the lock-down next week.

[constable ken] 22/4/2020 02:49

wilo

"Do you now understand?"

You said the company is effectively debt free. Then to explain you said that they incurred debt to pick up a bargain. That doesn't make them "effectively debt free".

"purchased at less than even the cost of the metal"

I suppose you'll argue they can melt the trucks down to pay off the debt? That doesn't make them "effectively debt free". It just means in desperation they could avoid going bust.

So come on, how are they "effectively debt free"?

[wilo101] 17/4/2020 10:19

The Kazakh Government have imposed a ban on all cement imports for the next six months as a minimum.......

[jailbird] 16/4/2020 13:55

Agree with that I am just thinking the full year this will take a little hit compared with last year's figures but should recover thereafter.But that is the situation for many Cos.

[mattjos] 16/4/2020 12:08

so where is the bloody seller when you need him? Zip available to by

[mattjos] 16/4/2020 12:05

anyway cc, you can go back on the filter list & do as you please.
It's my contention the price has been undeservedly sold off in the recent panic. Management clearly seem to have a grip on things & I agree with their strategy to keep the factory at full chat. I assume they have the necessary storage.

As/when various economies start to come out of this virus hiatus, there is going to be a helluva scrum for raw materials and stock. Those with inventory & ability to deliver into that demand are going to have strong pricing power. Steppe management look to clearly understand this market dynamic & the business will do well