- This topic has 4 replies, 1 voice, and was last updated November 24, 2022 at 10:20 am by
Nick Hargrave.
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June 22, 2022 at 7:34 am #2496
Nick Hargrave
KeymasterGood performance in Q4 leading to weather driven production coming in slightly lower for the full year than estimates, but pricing being ahead. With 6 cyclones in 6 months, Madagascar weather conditions have caused a 3 month delay to the next 18,000 tpa plant coming online this year, though the company maintains an expectation of a positive bottom line for the year. Cost inflation is noted with mitigation from pass through on prices
While this will impact our short term forecasts, the focus remains on achieving the 84,000 tpa production target in 2024 and we will await the full year results before updating the memo. In the current markets, any short term delay is amplified in the share price providing opportunity for the patient that understand delays can happen and volatility is part of small cap investing
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November 24, 2022 at 10:20 am #3814
Nick Hargrave
KeymasterA further operational update released this morning. This is fantastic progress from the temporary weather-related setbacks and at this rate they should come in ahead of their guidance for the full year. We’re hoping for the Mozambique licence approval to perhaps provide the final catalyst to move the share price back to something reasonable
https://www.londonstockexchange.com/news-article/TGR/operations-and-development-update/15728460
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October 28, 2022 at 1:14 pm #3668
Nick Hargrave
KeymasterThe company is now at operational breakeven capacity, which is testament to great management in difficult times, while still trading as if it needs significant funding
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September 23, 2022 at 1:39 pm #3500
Nick Hargrave
KeymasterFurther evidence of a management team focused on operational excellence. Extremely encouraging
https://www.londonstockexchange.com/news-article/TGR/operations-and-development-update/15641035
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July 21, 2022 at 4:51 pm #2837
Nick Hargrave
KeymasterAn insightful presentation by TGR’s CEO this evening to answer the concerns of shareholders in response to the recent share price performance. This was in addition to the operating update of this morning. The presentation answered all of the 5 questions that we had submitted ahead of the call which we believed were the key investor concerns, in addition to some further colour on their ambitions
The company has reworked their mine operating plan intelligently and significantly mitigated the potential additional costs of roadworks highlighted in the previous update. See the RNS here:
https://www.londonstockexchange.com/news-article/TGR/update-on-madagascar-operations/15549744Responses to our submitted questions
1. TGR has raised £16m equity as a public company and have built 27k tonnes of additional capacity. By end Jul, the existing 12k tonnes capacity will be substantially available and the company can quickly ramp up the next 18k tonnes over the rest of the fiscal year. This provides financing flexibility and they are looking at options to ensure they reach profitability this year despite opex increase (fuel costs and steel prices have increased, but some cost mitigation is coming from the new operating plan and supply chain costs are being passed on
2. The CEO stated his specific assurance that TGR will never raise equity at a non-prudent price
3. The TSG acquisition has not fallen away as he believes the market has mis-construed. Indirect foreign investment clearance in India continues to drag on, but they need to keep the downstream business options moving forward while they continue to pursue the acquisition (for example, they are working in the UK to develop a downstream graphene facility). They admit that there are valuation issues as time has passed and TSG and TGR are different companies now to the time the acquisition was agreed
4. Mozambique acquisition – they are still awaiting ministerial approval and continue to work on this. TGR and Battery Minerals’ commitment to the transaction remains strong and they are expecting completion in the near future. This resource will diversify their graphite sources and go towards their aim of providing 8% of the world’s expected 5m tonne graphite demand
5. Remaining public has innumerable advantages and so the CEO (and largest TGR shareholder) has no thought at all of taking the company private opportunistically at current share price levels. They have huge ambition and need capital market engagement
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