Touchstar Share Discussion Threads

[smithie6] 28/2/2023 21:05

£5 million !! :-0

[rivaldo] 28/2/2023 15:59

:o))

I trust Ian Martin to make sensible decisions as to the cash pile given his track record and achievements here to date. Besides, I'd rather have £5m in the bank than waste it on the wrong acquisition.

[elited10] 28/2/2023 15:38

We'll they'd better buy something, or they will have about £5m in cash at the year end. That would be embarrassing with a m/cap just over it...

[rivaldo] 28/2/2023 15:28

Managed to buy some more here at 82p just now on the brief dip to 80p-85p!

WH Ireland now forecast historic 5.8p EPS, rising to 6.7p EPS this year and 8.4p EPS next year.

The current £3.5m cash pile - which is 50% of the m/cap - should continue to staedily rise from here subject to the acquisition of presumably earnings-enhancing acquisitions.

The order book is "buoyant", recurring revenues are over 40%, and:

"The buoyant level of the current order book and trading momentum underpin the prospects for 2023 and gives the Directors increasing confidence for 2023"

[russman] 28/2/2023 05:59

Dont think Petards would mix.

[rivaldo] 27/2/2023 15:00

News today of another new contract win for this year:



"Premium Homeware Retailer Selects TouchStar for Hardware Refresh
27 February 2023

UK-based rugged mobile computing providers, TouchStar Technologies, is pleased to announce that Silver Mushroom, the family run, premium online kitchen and homeware retailer has selected TouchStar for a mobile computer refresh. The upgrade will see the business upgrade their existing picking operations with the latest, rugged devices for real time stock visibility and control.

Based in Preston, Lancashire, Silver Mushroom offer carefully curated selections of quality homeware items ranging from well-known names to more niche brands. Established in 2011, the award-winning business has experienced tremendous growth in demand, which subsequently led them to opening their own third-party fulfilment centre, CK Fulfilment in 2022."

"Tony Barnes, Operations Director at Silver Mushroom comments, “We selected TouchStar to support us with the upgrade due to their experience and solid reputation within the industry. We were looking for a more robust and user-friendly device to replace our existing devices which were prone to damage. Not only were they able to help us select the right hardware, but the support they provided in getting us up and running has been exceptional”.

The technology rollout recommended by TouchStar was Zebra’s TC21 handheld touch computer. Rugged and fit for purpose, the TC21 is lightweight, easy to carry and easy to operate. Always connected, the device is perfect for the company’s scan intensive picking operation, significantly reducing downtime and ensuring the company’s picking operation is more productive and cost effective.

Peter Marsh, Sales Director for TouchStar comments, “With over three decades of experience supporting the rollout for mobile computing solutions for warehouse environments, we were thrilled to have the opportunity of working with Silver Mushroom. We feel that that in the TC21, we will be delivering a fit for purpose device that will deliver real operational benefits to the business. We look forward to supporting another successful hardware upgrade with Silver Mushroom”.

[cocker] 13/2/2023 12:27

Yet another contract(albeit completed over 6 months), this time for cctv and with Reed Assessment & over 1000 camera points. One can only guess in what financial period this has taken place, but again goes to show the company is in a good place at present.

[gersemi] 11/2/2023 07:18

A scoping study commenced in the fourth quarter of 2022 and management expects a base-case production rate of 20,000 tonnes LCE a year, the same as Laguna Verde. If all goes to plan, the company could undertake a PFS as early as the third quarter of this year.
Significant undervaluation

To put the undervaluation of CleanTech into perspective, the company has an enterprise valuation of $70mn (£58.3mn), a sum equating to $35 per tonne of LCE it holds across the Laguna Verde and Francisco Basin 100 per cent-owned licence areas.

By comparison, although Arkansas-based Standard Lithium (US:SLI) and Australian Stock Exchange-listed Lake Resources (AU:LKE) only have 3.9mn and 4.4mn tonnes of lithium deposits, or double that of CleanTech’s, their enterprise valuations of $469mn and $681mn value their LCE reserves at $120 and $155 per tonne, respectively. That’s around three to four times higher than the valuation of Cleantech’s LCE reserves.

Moreover, CleanTech has just been granted new exploration licences, covering a total area of 344 square kilometres (km) at a prospective greenfield project, Llamara, located 600 km to the north of its Laguna Verde and Francisco Basin projects. The company plans to commence drilling there early in the second quarter, providing shareholders with yet another potential share price catalyst.

Investors are getting excited about the company’s prospects. Hence why the share price has been steadily rising this year.The other driver is news that major carmakers are now splashing the cash to secure lithium deposits. Last week, GeneralMotors (US:GM) made a $650mn investment in Lithium Americas’ Thacker Pass project in Nevada.

Potential upside

So, with the LCE price significantly higher than the base case used in the financial forecasts for Laguna Verde, positive newsflow expected on multiple fronts this year, and Cleantech rated materially below the valuation multiples attributed to larger peers, a significant re-rating could be on the cards.

Fox Davies' three-year share price target may seem ambitious at 277p, or four times the current share price, but it’s easy to see how CleanTech could get there. It’s reassuring, too, that the insiders have skin in the game, including chief executive Aldo Boitano (8.9 per cent) and chief commercial officer Luke Jarvis (5.8 per cent). It’s worth following their lead. Buy.

[gersemi] 11/2/2023 07:18

Estimated capital expenditure of $384mn (£310mn), based on deploying a DLE plant using SunResin Materials’ existing DLE technology, represents a fraction of the forecast net cash flows, highlighting the attractive economics.

In fact, the report estimates a post-tax net present value (NPV) of $1.83bn using a discount rate of 8 per cent and post-tax internal rate of return (IRR) of 45.1 per cent. This is based on a long-term LCE price of $22,500 per tonne, or two-thirds less than the current spot price of $66,000 per tonne. On this basis, the payback period is only 20 months.

Importantly, the project has industry-leading ESG credentials, a critical advantage for the EU market, based on utilising DLE, which returns spent brine to the basin aquifers, and renewable energy for processing power via connecting with the Chilean grid and its abundant renewable energy supply.
CleanTech is now proceeding to a pre-feasibility study (PFS) for the project. The next key milestone is the construction of a pilot plant capable of producing a tonne of battery-grade LCE per month. The DLE unit used in the pilot plant is currently being manufactured by SunResin’s Belgium facilities and is due to undergo commissioning by the end of the second quarter this year. Using DLE technology has key advantages over salar (salt flat) operations in that it requires neither extensive site construction nor development of evaporation ponds, thus lowering upfront capital expenditure requirements.
It’s good for cash flow, too, as the sellable product is produced in a matter of days rather than the 12 to 18-month period needed for sufficient evaporative enrichment to occur in salar and hard rock spodumene sources.

Admittedly, CleanTech will need strategic partners to commercialise the resource, but given the attractive economics and the huge margin of safety on LCE pricing embedded in the NPV calculations, then it shouldn’t be short of interested parties. An updated JORC resource estimate is due to be released by the end of March this year, so there could be even more upside potential to tempt strategic partners with. The £75.3mn market capitalisation company is well funded to enter discussions, having raised £12.3mn in an equity raise last autumn to boost its £4.7mn net cash position reported in last September’s interim results.

Francisco Basin

CleanTech’s other major project, Francisco Basin, produced a maiden JORC Inferred resource estimate of 0.53mn LCE at an average grade of 305mg/Li based on the first of four drilling wells, completed before the Chilean winter break. Drilling on the other three wells will be completed in the current quarter, thus enabling CleanTech to expand and upgrade the resource estimate to the Measured and Indicated categories.

[gersemi] 11/2/2023 07:17

• Lithium deposits being valued on huge discount to peers
• Potential for sixfold investment return over three years
• Lithium-Ion market to be in large deficit by end of decade

This could be a pivotal year for CleanTech Lithium (CTL), a below-the-radar exploration and development company that is advancing two sustainable lithium projects in Chile to meet robust end-market demand.
The global move away from fossil fuels is accelerating as policymakers, government bodies and investors are increasingly recognising that electrification is happening on a scale that was simply not envisaged even a decade ago. Accordingly, the evolution is driving demand for key commodities such as lithium, graphite and cobalt, and other technology metals including copper and nickel.

In the third quarter of 2022, over 77,000 tonnes of lithium carbonate equivalent (LCE) were deployed in the cells of new passenger plug-in hybrid electric vehicles (PHEVs) and battery electric vehicles (BEVs) globally, a 70 per cent increase on the same period in 2021, according to market research consultancy Adamas Intelligence. Globally, China captured 58 per cent of all LCE deployed onto roads, the US rolled out another 13 per cent and Germany 6 per cent – collectively driving 77 per cent of the global market.
The surge in demand for LCE in EVs explains why the price of the commodity has risen fivefold to $66,000 a tonne in the past 18 months. By 2030, analysts at Benchmark Minerals estimate that demand will hit 2.4mn tonnes, or four times last year’s estimated global output. Demand from Europe is expected to be the key growth market, rising 20-fold between 2019 and 2029.

This not only highlights the importance of new sources of LCE, but also the strategic value to the car industry of CleanTech’s two major projects in Chile: Laguna Verde and Francisco Basin. In total, they have collective deposits of more than 2mn tonnes of LCE.

Laguna scoping study highlights major project potential

Last month, CleanTech released its scoping study on Laguna Verde, a resource that holds 1.51mn tonnes of LCE – of which 0.8mn tonnes are classified in the JORC Measured and Indicated categories, and 0.7mn as Inferred.

The update confirmed the likelihood of the project entering full-scale production in 2025 and supports the potential for Laguna Verde to become a major supplier of battery-grade lithium to European and US markets using sustainable direct lithium extraction (DLE) technology.

Based on annual production of 20,000 tonnes of battery-grade lithium carbonate for an operational life of 30 years, Laguna Verde could produce accumulated net cash flows (post-tax and royalties) of $6.3bn with a low operating cost of $3,875 per tonne of lithium carbonate.

[varies] 05/2/2023 18:49

From time to time there are references here to Chelverton Growth Trust (CGW). Forgive me for being too idle to look up its holding in TST but I believe this to be about 9%.
CGW is an unusual trust. Some 64% of its funds are invested in CEPS (quoted on AIM) and 23% in TST. It seems to be controlled by Mr. David Horner.
In November 2022 CGW declared that it was looking at ways to return funds to its shareholders and hoped to report within 6 months. After repayments of capital over the years, the value of CGW's portfolio is only about £3 million and the directors do not want to reduce this further as this would make CGW shares even less marketable than they are now.
CGW stands ready, so it seems, to increase its investment in CEPS but intends to liquidate its other investments "when appropriate".
Since TST has spare cash, it might make sense for TST to buy CGW's holding soon.
This would, of course, reduce the number of TST shares if the TGW shares are cancelled but would not affect the number in ready circulation.
Given the recent utterances by Mr. Martin about a return to TST shareholders, I hope we may see some action on this front with the next set of results.

[hastings] 04/2/2023 09:27

? Doh, just realised it's old news!

[hastings] 04/2/2023 09:24

Not sure if this has been posted yet, couldn't see it on the board, but apologies if someone else has already popped it on somewhere.https://fueloilnews.co.uk/2022/01/touchstar-and-hmk-bilcon-announce-new-strategic-cooperation/

[rivaldo] 03/2/2023 09:48

Good to see the spread reduced to a more manageable 7p today, with buying coming in at 91.3p.

[smithie6] 02/2/2023 20:36

...to trade, yes impossible , well, normally/usually impossible to make a profit "after the spread" on a trade for just 3-6 weeks.

to buy & sell & make a profit is possible,

----

to minimise the spread, use limit prices....& wait for X hours & hope that someone wants the other side of the trade....then hopefully the MM will do a zero risk trade at a smaller spread %

----
if there is normally little or no trade volume it is difficult to expect the MM to provide a very low % spread, although personally I think the mkt should dictate what the maximum spread is, I think that 5% is plenty. 5% for say 2 hours of exposure, a great annual % !

[cocker] 02/2/2023 19:47

The 10k sell was a bit of a killer, as momentum was just starting to build. I guess the rise gives holders a chance to exit or at least reduce their holdings as its basically impossible to trade the shares.

[rivaldo] 02/2/2023 11:41

Cheers - contracts being won at a rapid pace! This reads rather well too as regards the benefits of TST's systems adoption:

"Future-proofing their operations. A planned stream of new and advanced software functionality arising from Touchstar’s significant on-going investment in R&D"

I note that Manx are "scheduling implementation of the system for spring", so this will benefit TST's current H1. Here's the link:

[smithie6] 01/2/2023 21:24

...kudos to the Touchstar workers, they seem to be very skilled/experienced at integrating with existing systems/software at various new clients, & they have to do it fairly quickly & without it costing too much

some of the text for this contract from the Touchstar website, for the new contract.

"TouchStar will be using their comprehensive API integration and working with the existing CODAS back office system to integrate processes seamlessly and allow Manx Petroleum to leverage their existing investment. "

[cocker] 01/2/2023 20:30

Manx petroleum contract announced today!. This side of the business is truly flying & if the share price doesn't rerate soon, I can see TST being a sitting duck for a take over.

[rivaldo] 31/1/2023 10:47

The maximum shares you can buy online is now just 5k after a 7,500 share buy at 90p reported after the close yesterday.

[smithie6] 31/1/2023 10:11

"The TS8200 {handheld unit} also provides an ideal hardware solution for company’s new warehouse-based fulfilment operation. "The combination of high impact polycarbonate plastics, metal alloy chassis and the use of Sorbothane® rubber shock absorbers allow for an extremely reliable solution and prolonged life within warehouse environments. "

polycarbonate (used for motorbike visors since withstands stones etc), + metal case + Sorbothane.

sounds excellent. (& is surely is)

[rivaldo] 31/1/2023 08:59

Cheers again - good to see TST recommended for the new contract by the third party as you say (you never post the link so I always have to go looking for it!):



"On the recommendation of Minster, HD Group selected TouchStar’s TS8200 handheld as the mobile computing technology to support the real time data capture in the new operation. The new handhelds will equip warehouse operative with advanced scanning capability, help identify and track goods within their fulfilment process, capturing accurate stock information that together with Minster, will help support an efficient and flexible operation."

"Kerry continues, “Since the system went live, we are excited by the numerous operational benefits the technology is starting to deliver. The support we have received from both companies so far has been excellent, and we look forward to the potential benefits the system will be able to offer us as we continue to grow our operations.”

[cocker] 30/1/2023 15:34

Another contract with HD Group. A third party recommendation for the contract.