|So I am not sure if this is that relevant to zam but anecdotal evidence from an old mining friend is that things in the congo at the moment are going nuts with a huge cobalt boom, apparently the only place on earth with any unmined capacity in cobalt is the drc/zambia copperbelt and there is not enough cobalt in the world being mined to make the batteries for the tesla megafactory so there is huge money being offered to long in the tooth geologists to go risk life and limb prospecting for cobalt, after the copper bust that hurt the zam economy it would seem that zam and drc are at the center of the worlds automotive needs ! I am sure that being the Walmart of zambia may not be a bad thing ....|
|Should be getting a trading update soon ahead of the interims, over the period the fx has been very stable so it will be a very clean way to compare with last years interims, hopefully some nice growth and pnl will be evident, The absence of external shocks should mean the management have been focused on growing the business and making some cash, these shares should be shown to be waaay undervalued..|
|Well, recent news has been more promising and the currency has been strengthening slightly of late, which generally helps. I'm not too worried. I'm more nervous about US and UK stocks where consumer credit markets have started deteriorating and there are some signs it is leading to economic weakness. ZAM might be a safe haven from turmoil here later this year. I don't think I'd enourage anyone to buy a lot, though. It's still Africa!|
|Chart beginning to look a bit ominous, could do with an update but there isn't one due for possibly a month.|
|Looks like somebody has put a prearranged £half-million deal through the market at lunchtime.|
|Yes not a lot of new info other than that they are producing now at commercial volumes from 2,800 ha, its a bunch of capital they have stuck into this with no returns to date, would be good to get some guidance on how much cash they think they can make from this business it should be highly profitable with a big advantage in the domestic market.|
|Commercial palm oil production has now started.|
|Zambian economy recovering well, main export is copper which is surging higher, the main problem which caused the devaluation and zambeefs woes was all driven by the copper price collapse, things on that front seem much more stable and we should see very strong growth this year .|
|The cap is 60m or 80m if you take the 100m of prefs into account there are 300m shares and 100m of the pref thingies out to cdc , I think it is still too small for most instos given how hard it has been for me to put together my small position there just are too few shares available , the company itself however is not too small it is 1pct of the gdp of zambia , if the shares were trading at 1 pound then all of a sudden it would be on a lot more radar screens and the company could support that valuation !|
|Interestingly, 20p would give a market cap of £51m. Some investment funds have a £50m market cap threshold. It might encourage some institutinos to dip a toe in.|
|Definitely not a lot of stock around.|
|If this one can break 20p, it looks likely to get to 30p pretty quickly as there was hardly any volume in that range going down. The shares are creeping up on little news so a small piece of decent news might do it.|
|Spent some time going through the ann report today, there is a lot of interesting info in there, for a 60m market cap company it really is an impressive well run business growing at a very healthy rate, that growth has been hidden by the rapid ccy devaluation but over the next couple of years we should see a very nice growth story pan out, Cdc must be pretty happy with the investment, they have bolstered the board with some smart looking neds and seem to be encouraging good governance and a push for international standards in quality. After all this I spent the morning trying to buy some more shares, all to no avail, even trying to pay the ask in small size failed to get me any shares, There seem to be none on offer at the moment ...|
|Only little moves every now and then but the last month has seen a nice rise such that ZAM is threatening a new 2+ year high.|
|tenapen - a company disappointing the market within a year of listing? Quelle surprise! That's why it's best to buy later when the price has fallen a lot.
The company has grown a lot since then and the share price has fallen 3/4. The problem is working out the value of that growth through all the currency variation and some equity dulution. Therein lies the challenge.|
|Aleman - agreed. For this year other things being equal we will have higher profit because Zamchick and Zamhatch are 100% owned with lower borrowing costs offset by the dilution of the extra shares issued to CDC. In addition if there is a dividend declared to ordinary shareholders there will an equivalent dividend for the preference shares; this will then be deducted in calculating earnings per share attributable to ordinary sharesholders. Based on that working on the US dollar numbers I get a figure of approx. 4 cents so the 2.72p for 2017 does look conservative (2017 forecast was the equivalent of 4 cents before the results). It has probably been reined in a little because of the change in the US mood with the strength of the dollar and expected impact on emerging economies - the kwacha has fallen since September though should be helped going forward if the recent rise in copper is sustained.|
|Zambeef came to AIM as a divi paying company, they paid once.
|There are the full results and some excellent presentations on the companies websiteOne thing I would note is that the company have totally dropped all mention of palm oil from everything they have just released, they have invested over 20 million usd to date in palm which has a large tax advantaged domestic market and plan to increase this to total 40 million over the project life, they have just commissioned a crushing mill and should be just about reaching maturity on the early plantings, yet zero communication .I suspect this lack of communication relates to the CDC , palm is a dirty word to western investors as a result of heavy EU funding of ngos campaigning against anything palm related, it is impossible for the eu to compete in edible oils with palm as it is natures super oil producer , ngos are trying to kill feronia over the border in drc who are the only employers in a devastated region, cdc are shareholders in feronia and i suspect at some point it may make sense to roll this investment into zambeef but they will be taking a lot of flack from euro ngos for the position in feronia and I suspect the cdc have asked for silence on palm despite it all being done on unused non deforested land ...It will be interesting to see how cdc influence zambeef, I thing they will be a good long term holder but political influence over what zambeef farm and do would be unwelcome ....|
|VSA Capital comment on the results can be found on the proactive investors website.
Regrettably ADVFN does not seem to allow me to link to the proactive investors website but here are some of the salient points:
"These results confirm these more positive trends, with 10.8% volume growth in cold chain food products and 15.3% volume growth in stock feed reported, delivering a much improved group adjusted PBT...
This year ZAM has provided additional clarity on the specific financial impact on the group from its retailing operations, which contributed 20.7% of group gross profit in the year, up from 17.8% in 2015. This, combined with the strong reported volume growth, is evidence to us that the group’s macro store expansion strategy and general renewed focus on its retail network is starting to achieve results.
..we believe the stock still offers compelling value at these levels.."|
|There is quite a lot to delve through in the results, the fx effects are all over the place and you have to try strip out the cdc transaction, the debt is still higher than expected but all the operational updates seem good and they seem to be expanding all over the place at the same time as operating most of the facilities at max capacity, the start of divs in 2017 should provide a boost at some point, the patient is out of intensive care now happy to hold these ...|
|The 3.82 cents basic eps - continued operations is comfortably ahead of the 2.78 cents forecast (which was recently revised upwards to take reflect the "materially higher than current market expectations" update at the end of September).
It will be interesting to see if the current year forecast of 4 cents is revised upwards following these results. Current year P/E is presently under 6.|
|well they seem pretty decent results at the first squiz, helped by forex gains and tax write-back in some areas but low gearing and growing with upbeat statement...DYOR...|
|There is a lot of potential news this weekUpdate on palm production project, this should now be coming to fruition.Result of fx moves should be very positive boost after years of negative effectNew post restructure balance sheetProfit growth from strong underlying performance hinted atImproved local economy should be feeling the results of better copper prices which the economy is highly leveraged to ...In short many of the effects that have been working against the company are now in reverse, they have hinted results are good, the shares are priced still for the company to fail even after the rally ...|
|well someone seems to like the potential results!|