Zambeef Products Share Discussion Threads

[catsick] 26/8/2021 09:52

Interesting to see these elections in Zambia are a landslide for the new President who seems to be a decent guy, Has led to a huge surge in the Kwatcha which has appreciated over 25% and removed all last 12 months losses and some extra... This could be the first time in years that fx gives a big boost to the accounts, should be very good indeed for the company as is the high copper price which should make the macro situation in the country very helpful in rescheduling all the countries debts ....

[gb904150] 15/7/2021 09:14

Zambeef operate in Zambia, not in South Africa. I don't see much knock on effect there? Do you?

[pal44] 15/7/2021 06:58

See trouble in SA may impact here. Quite scary what is going on .

[gb904150] 20/6/2021 09:44

I think it's a tiny and illiquid company and takes very little buying to move it. A lot of PI's don't know about the pref shares and the half-year report sounded positive. Perhaps that was enough to move the SP? Was there much volume? They were tipped in Moneyweek a few weeks ago where it was highlighted how 'cheap' they were on a P/E basis - again no mention of the preference shares. ZAM doesn't generate anywhere near enough cash to pay off the pref shares before the 8th anniversary (2024). At that point they can convert at 1:3 into equity rather than 1:1. The optics of that would be very poor for CDC so I doubt they would be quite so ruthless. More likely is some kind of debt refinance but in which case ZAM are entirely at the mercy of CDC as to how generous they want to be. Too much uncertainty for me but perhaps a nice gamble for others. I've always liked the 'feed Africa' ZAM story but unfortunately that doesn't mean they are a good investment! This one has never shown much prospect of being run in the interests of investors.

[dave4545] 19/6/2021 10:55

Many thanks GB9 The old preference shares, Ive been caught out with those before. Wonder why somebody is buying such massive chunks of the ord shares yesterday ?

[gb904150] 19/6/2021 10:17

hi dave4545, Be careful with this one. A lot of people don't know about the preference shares that were issued in 2016 and compound at 12% pa. There is still no resolution on that. My calculations make that to be a 'debt' of $97.8m in 2021 but what it really comes down to is whether CDC find a reasonable compromise rather than fully redeeming them and leaving equity holders with (almost) nothing. My notes on that were: Completion 16/09/2016. 100,057,658 shares @ subscription price $0.555 = $55.532 $0.555 / $55.5m in 2016 $0.6216 / $62.16m in 2017 – 12% $0.6962 / $69.62m in 2018 – 12% $0.7797 / $78.02m in 2019 – 12%. Sept 2019. 2019 was best time to pay off. Min price was always $0.77 hence penalty to pay off sooner. $0.873 / $87m in 2020 $0.978 / $97.8m in 2021 Next important is obviously the Zambian Kwacha vs USD rates and finally local Zambian crop and meat prices. Those often do well when copper does well as the country as a whole is richer as a result. Regarding converting the pref shares I had these notes, I think from an old annual report. o Before 8th anniversary – 1:1 conversion to ord shares o After 8th anniversary 1:3 conversion to ord shares

[dave4545] 18/6/2021 22:53

Some interesting trades in this one today. Big uncrossing trades and a stack of big trades all at 8.5p full offer And the share is breaking out to highs not seen for a few years. Anybody here, no posts in 2021

[catsick] 23/12/2020 02:35

Copper prices at a 5 year high, production in zambia also ratcheting up and companies like Jubilee are reopening old mines to produce zinc lead copper and vanadium, the drc also booming copper production, this will be a massive boost to the local economy which has been smashed by low copper and covid

[ny boy] 29/5/2020 12:35

Sp going up, hardly any posts..always a good sign!

[cjohn] 29/4/2020 18:59

It's not brewing! It's already happened! Sinazongwe farm sold - as long anticipated - for $10m on April 24th.

[catsick] 29/4/2020 13:38

Looks like a transaction of some sort is brewing, maybe a farm sale or the whole company

[cjohn] 26/4/2020 15:41

Yes, that is good news. They need to sell-off more non-core assets.

[pre] 24/4/2020 12:44

Tick up - great news for ZAM

[pre] 24/4/2020 12:36

rns - sale completed received $10 million, current mkt cap only £10.8m !!

[cjohn] 10/1/2020 17:40

Hello pre and Value Viper. There are about 300m ordinary shares in issue. There are also about 100m preference shares in issue. These preference shares were sold to CDC, the UK development finance institution, in July 2016, for a total consideration of $55.5m. They accrue 12% annual compound interest should Zambeef CHOOSE to redeem the shares. Meanwhile, they receive the same dividend as the ordinary shares - currently, zero. They are convertible by CDC into ordinary shares at a rate of 1 to 1 until July 2024. Thereafter they are convertible at a rate of just over 3 to 1, 3 ordinaries for every preference share. So let's say, Zambeef choose not to or can't raise the cash to redeem the shares before the 2024 cut-off date. At that point, CDC will convert the shares which will give them 50% of the company. CDC are already a major shareholder here. They hold about 17% of the company (arranged simultaneously with the preference shares in July 2016.) So post-July 2024, CDC will hold 58.5% + of the expanded ordinary share capital, if the preference shares aren't redeemed. Some time ago, Zam expressed the intention of prioritising redeeming the preference shares. This has not happened. To redeem the shares currently, they'd need to raise around $82.5m! My belief is that they are highly unlikely to raise this money. (Nor would it be a sensible use of cash, unless they can take on a new loan at very favourable interest rates.) So it's likely that CDC convert in summer 2024. This will double the number of ordinary shares (and eliminate the preference shares.) and so half the share of all other shareholders. It could also serve as a catalyst for outing value…. So irrespective of the preference shares, I believe the current share price is too low. I have a very small position here - a few thousand pounds. But I think the risk/ reward profile is attractive.

[pre] 06/12/2019 18:58

farm sale for $10m, current mkt cap circ. £14m, 77% rise in eps and significant growth and most recent director buys at 10.5p, agree mkt cap way too low. Think many missed rns and probably will have missed the after mkt close egm rns too. Monday should be interesting:-)

[value viper] 06/12/2019 18:41

It's odd price didn't really move todayMaybe despite what they have said, the dire FX situ lessens the net effect to the co or something ?The farm sale whilst good news for realising cash was already in the public domain .... even if it's positive that it will be official soon.At face value, I think market cap way too low but are we missing something here ?I aware of boat loads of pref shares out there ?Asset value of all their farms should be material for starters I think.

[pre] 06/12/2019 18:33

well nice surprise rns after the bell...EGM to sanction £10m farm sale due early in new year....don't forget directors paid alot more (10.5p in feb 19) and eps is a whopping 73% higher and achieved significant grwoth...pretty certain this one has been missed off the radar.

[value viper] 06/12/2019 18:26

Sorry what ??This is Zambeef thread.

[pre] 06/12/2019 13:19

Zambeef achieved significant growth...not even priced in!

[pre] 06/12/2019 13:17

rns out...anyone seen this, blimey that's excellent performance: '.. Earnings per Share for the financial year ended 30th September 2019 is expected to be approximately 73% higher (in Kwacha terms) than the corresponding period last year for the Group...'

[value viper] 05/12/2019 14:09

Decent bid for the stock currentlyCan't buy any

[value viper] 21/11/2019 21:33

hopefully nothing to worry about by delaying the results a smidgen i have just counted 9 NEDS at the company ?? any thoughts cat ?

[value viper] 12/11/2019 10:28

Results due on 22nd