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Weatherly International Share Discussion Threads
Showing 15201 to 15223 of 15225 messages
|I am just going to sit this out and see if they can fix the production issues. It sounds like it is probable - but hopefully not to be replaced by another unexpected issue. Agree that the POC does not help, but some figures on lse suggest that this is not a total basket case yet. Mining industry is sooooo slow......|
|Relieved I exited. Good luck guys not looking good. Watching with interest. Price of copper is our undoing needs to rise to $7000/tonne with this loan hanging over us albeit that our largest shareholder, Orion, is providing the finance.|
|Sounds like toast to meIf copper prices remain at current levels it is unlikely that the Company and its subsidiaries will generate sufficient surplus cash to meet all loan repayments when due and planned capital expenditure to support achieving production and operating cost targets. The Company continues to positively engage with Orion on the subject.|
|Yes - that appears to be the case.|
|situation normal here once again|
|likewise, I have a top up ready butvwantbto see what the full quarterly update states and what Orion are going to give us.
|Roll on 27th April - to see where this is going, if anywhere. Not sure if this presents a quick op 'til then or just too much of a gamble?|
|They fed the 'heavy rain' line to the market a few years ago under Webster.Looks like they are running out of excuses now & so having to re-use old ones. The dog has eaten the RNS looks likely next time.|
|A complete sell.|
|More bad news. nothing seems to be going right here!|
|Volume starting to pick up a tad|
|Lots of discussion on the L ondon South East site.|
|No posts for a month? Just checking if anyone is out there....|
|At the time of that announcement the share price was not much over 1p...options more than three times that price...
According to TDDI, the current broker's forecast is for 0.64p EPS next year...based on outdated copper prices and taking account of the hedging...
The company statement says:
"it is unlikely that the Company...will generate sufficient surplus cash to meet all loan repayments when due...."
That doesn't mean they can't repay the lot further down the line, especially after the hedges unwind...in fact they could enter into new hedges now if needed, at prices that would be far more attractive and profitable than the old hedges...
While the net operational cashflow was minus $3.452m for the half year, WTI is generating net positive cashflow right now. Prospectively this will increase significantly after May...
While the Group had $8.7m cash at 31 December, its Net Current Assets, including the Orion Working Capital Loan, but not including the Orion major debt were in excess of $12m...
But that includes inventories of $12.9m, valued at cost, i.e. $4307/tonne whereas even at the hedging price of $5,000, this adds a further $2m or more to NCA, taking them to c $14.5m...
I imagine the loan extensions to April 2017 are to allow both parties to take stock of the copper price, in advance of the hedges unwinding, so as to most objectively reset the Loan Repayments, especially as surely WTI will be in a position to start repaying before the end of June...?
Finally, unless I've missed something, none of Orion's loans are convertible into equity; in any case they wouldn't want to be in a position where they have to consider taking over WTI...if the call in the loans WTI is bust and what good does that do?
Orion has been very supportive.
They have very attractive off take agreements.
They are making a fortune on the loans as long as the company remains in business.
If copper prices remain here or, as many expect, go even higher, rising and staying above $3, Orion has a near 25% stake in a company that could be debt free within 2 years, generating substantial cashflow and paying meaningful dividends while exploiting its other assets....or...
Orion could broker a takeover by another company but surely nowhere near enough to pay off its $100m+ debt...
In fact, as others have said, basically this is a leveraged copper play, so I've just talked myself into doubling my holding....
AIMHO as usual and GLA...|
|I think he should be holding more shares right now today - As of today the CEO only owns 0.46% of company's share capital..
Even with all those options, assuming the company manages to get to the prices at the times concerned, the new CEO will own around 10million shares and get him up to 1% of market capital.
To put into perspective the old CEO who is nowhere to be seen owns 28million shares. So in essence Rod Webster gains more from future share price increases than the current CEO for the mess which he created.|
|Craig Thomas has been appointed as Chief Executive Officer and has joined the Board of Directors of Weatherly.
Mr Thomas holds 4,842,105 ordinary shares in Weatherly representing approximately 0.5 per cent. of the Company's issued share capital. In addition, Mr Thomas holds 4.8 million options of which 2.0 million are fully vested and exercisable at a price of 3.2p until August 2020, and 2.8 million vest over a 3 year period on meeting certain performance criteria and will be exercisable at a price of 3.38p until October 2024.
Do you not think that those options with strike prices which are multiples of the current share price provide sufficient incentive?|
|What your view on the modest little shares the directors hold compared to other companies? CFO not on list of major holders and CEO only owns 0.46%?
They should hold more... greater incentive to run the business to best of ability.|
|I think it is being prudent with investors too.
There are glimmers in the half year RNS which give a bit of hope. Talk of re-opening mines shuttered when copper prices fell and the prospect of a JV to explore another copper prospect, suggest that the CEO is not just sitting on his hands praying for a continuation of the industrial action in Chile.
The last five years has seen ALL commodities roiled. Who knows what happens next?
If we did we would all be multi millionaires.|
|I'm sure in time the new CEO would be better, lets face it, it won't be that difficult.
The CEO only holds 0.46% of total shares, some PI's of have 4-5times that amount - how about a show of confidence and up his holding?|
|To be fair Leedskier I do empathise with your point of view and clearly the company in November was between a rock and a hard place but what I dont get is why with copper at its present price the company are still not confident that they can manage this debt??
from latest RNS on top of the non payment of Namibia VAT of $7M
''Weatherly has previously advised that if copper prices remain at current levels it is unlikely that the Company and its subsidiaries will generate sufficient surplus cash to meet all loan repayments when due. This remains the case and the Company continues to positively engage with Orion on the subject.''
That for me is what confused me|
|I am not a 'fan boy' of the previous management.
The decision by the previous management to blow $80 million plus on a copper mine likely to produce 16K MT a year, without further CAPEX to increase that to 20K MT a year, whilst running an expensive office in London and not doubt other non-essential costs, belonged to the pre Lehman era. Add to which those decisions were made when copper was trading at a much higher price.
However to criticise the present CEO for any of that or for taking the prudent step to hedge part of the production, is I think unfair on him.|
|MM's have their own Agenda just like the forecasts provided by ABN AMRO, Macquarie
Commerzbank etc... so they are only interested in themselves
The facts are everyone knew up front a large proportion of mining labour contracts are due for renewal this year, copper supply is heavily disrupted in Indonesia & Chile.. the issues with Indonesian government have been known for years - Given the probability why hedge? and why hedge such a big proportion of production? why hedge and not include a buy-back option?
I get that it's easy to look back, of course it is but other small mining companies haven't hedged, ATYM haven't hedged, the big companies also haven't hedged who are at greater risk, BHP & Freeport make more copper each (when they are producing) in a week than WTI does in one year, they are at a bigger risk with copper prices and haven't hedged. The saving grace is WTI haven't hedged more and it runs out soon so have a chance of a much better Q2 now....
Management is key! copper price will take care of itself ........ get nameplate prod at low cost, sort out water management (think they have) & start paying back Orion.|
|MM are not bothered what the share price is, providing they can make trades at that price and more importantly close the day with a flat book. MM make their money on the spreads.|