Tharisa Share Discussion Threads

[moneyman50] 15/12/2022 18:59

Said it before say it again -the market always reacts negatively when a company cuts it’s dividend-always gives the impression something not quite right.
Would have been nice if the company paid out 30% to 40% of its profit after tax and not a miserable 17%.-still would have a lot to reinvest
Shareholders not been properly rewarded hence losing interest and shareprice falling.
Let’s hope once Karo built company Tharisa pays dividends at much higher level and does not fined some other capital intensive project which once again puts shareholders at the end of the queue when it comes to payouts.

[tigerbythetail] 15/12/2022 13:08

The thing about share prices is that they can always go lower.
By all normal metrics, Tharisa is severely undervalued already. It's priced like it is a debt ridden zombie headed towards bankruptcy, when it is a debt free, highly profitable, growing and dividend paying company.
So how much lower can it go? 80p would be just plain ridiculous. Which doesn't mean it won't happen!
Anyway, good luck all in picking the exact bottom! I'll "splatter" my buys in the hope of ending up with a decent low average.

[lennonsalive] 15/12/2022 12:13

It's broken 100p, not good. Next stop 80p

[whitehunter] 15/12/2022 10:37

Ironically if the management were not so ambitious about building/growing the business the share price would be much higher and awash with cash for distribution to shareholders

[basem1] 15/12/2022 10:11

This is turning into a horror show the price action here

[moneyman50] 12/12/2022 14:29

Weak bond issue seems to explain the low dividend last week as I thought.
What a shame shareholders having to finance more of the Karo project-hope they are suitably rewarded in a couple of years time when Karo producing and income from Karo not pumped into another project

[podgyted] 12/12/2022 13:48

Just sneaked over the $25m - 3rd Party only $21.8m. It would seem they were indeed nervous about the fund-raise when considering the dividend.

[davidosh] 09/12/2022 14:02

yes on the next show this Monday evening

[ntv] 09/12/2022 13:39

Aren't they @ Mello next week?

[moneyman50] 08/12/2022 12:03

It seems the dividend might have been cut at the last minute-the company recently twitted about a record dividend which seems to have disappeared.
Perhaps the directors got spoked about the $50 million bond issue thinking there might be a shortfall in the amount raised !
We will find out how the bond issue has gone very shortly.

[ntv] 07/12/2022 21:50

They could have easily stated the dividend policy when they issued the first year end \RNS as they already knew they were going to cut it
VERY POOR PR

[robers98] 07/12/2022 14:36

Management was on sky business news earlier today.

[tigerbythetail] 07/12/2022 14:27

RNS out - official opening ceremony for Karo...

[moneyman50] 07/12/2022 11:42

I just wonder at this ridiculous low shareprice some major will come in with a takeover offer-even at £2 per share this would be an absolute bargain and pocket change for a major especially if done via a share for share exchange.
The 22.2% dividend cut was a schoolboy error by the directors and has sent a very negative signal to the market and potential investors and probably goes a long way to explaining the negativity in the current shareprice

[ntv] 07/12/2022 10:15

Zimbabwe has major power problems as Caledonia have found
Diesel generators and solar plant will be the answer but costly

[tigerbythetail] 07/12/2022 10:15

When a share price can't go up it must go down. And we have had a seller here who has been offloading a sizeable position for some time now. This will rise back up again to more "normal" levels once they are done.
Tharisa has never been in a stronger business position. And yet a look at the long term share price graph would make you think that the company was in some trouble. That's how distorted things are here now.

[basem1] 07/12/2022 08:38

The market seems to have its head on backwards at present Roll on January

[nakedmolerat] 07/12/2022 08:28

Here we go sub 100p, I should just go short rather than long here :D

[redtrend] 06/12/2022 22:24

SteadyEddie - as moneyman has partially pointed out you are incorrect Net Profit adjusted for Karo acquisition is more than last year.

Last year's Profit attributable to owners of the Company was $100m, this FY 2022 it was $117.4m. There's a breakdown on pg.27 of the Financials Presentation

hxxps://www.tharisa.com/pdf/investors/presentation/2022/tharisa-fy2022-results-presentation-final.pdf

So based on that adjusted/ normalised profit stripping out Karo, THS is on a current PE of merely 2.5 (based on USD GBP 1.2 Forex and normalising for Net Cash position), when it's open pit mine life is 19yrs not taking account of Karo and Tharisa Mine optimisations (benefication, hopefully increasing chrome over time to 2MT etc.). I'm also not taking into account their trade surplus of $25.8m. THS is unique in that its Trade Balance (Trade Receivables minus Trade Payables) is in large surplus not included in Net Cash. Most miners and producers this normally reversed.

On Karo to nitpick, their Net Interest I believe is actually 56% (66.3% x 85%), with Leto owning 1/3 of Karo Mining Holdings and Karo Mining Holdings 85% of Karo, with 15% to Zim Government (Generation Minerals). That's 56% of 190k oz p.a. 17yr open pit life, with huge room for expansion on top of that if it works out.

[moneyman50] 06/12/2022 21:12

Ignoring the profit on the subsidiary - EPS is circa 42c per share(last year 37c per share) and net cash as at 30/9/2022 is circa $80 million and no doubt growing on a weekly basis.
The investment in the new mine is over 18 months of which some has already been spent.
We have the $50 million bond issue -results of which will be announced next week and no doubt the rest of the investment will come from senior loan arrangements and current cash balances.the first anticipated production is in 18 months.

[5teadyeddie] 06/12/2022 19:44

Never looked at THS before. Profits as stated are exaggerated by the $48m book gain on acquisition of a subsidiary, without which they're lower than the previous year.

The P/E and % divis look great, but investing $391m (which has not yet been raised) in a half share (70% x 76%) of an unbuilt mine in Zimbabwe is enough to put the frighteners on anyone!

One for the watchlist only...

[moneyman50] 06/12/2022 19:13

Well said Podyted -still taken aback at the 22.2% cut in dividend when EPS and cash balances at record levels-no wonder the shareprice is stuck in a rut!
As always shareholders take the big hit in the bad times but are not given a fair share payout when times are good

[podgyted] 06/12/2022 18:59

All other things being equal, I can't see this doing much until Karo is up and running and has a couple of years under its belt. That's what I think the market is indicating - can't say I agree but I'm not the market.

Cutting the dividend whilst having a record year was a massive own-goal, but the powers that be have salaries we don't.

Kept a few for interest, sold the rest.

[frizzers] 06/12/2022 10:33

Might be of interest

hxxps://frisby.substack.com/p/the-results-are-in?sd=pf

[moneyman50] 05/12/2022 17:25

Agree TBT -strongest results yet,looking very good going forward and broker consensus targets in the £2.50 to £3 yet share price remains anchored to around a £1 and unnecessary cut in total dividend for year cut from 9c to 7c (this might help explain the non movement in shareprice.)
The other point that people might be negative on is the movement on the currency exchange reserve which is manly arises from restating the assets of the company from Zars to dollars and has no effect on the operational profitability of the business
Hate to think how low the shareprice would be if company had not had it’s best year ever.