Good Morning,
Having had some high risk binary money on the water permit
outcome with a high probability of success assumed, this morning was the time
to close the position at a loss circa 11%. Iofina's "hopes" to
diversify from an industry where prices have crashed akin to Iron Ore.
Iofina's balance sheet including the circa £4m cash should
last them a few months (9) if prices do not recover or costs significantly
reduce. As pointed out EMC: IOF, Finncap may have to go cap in hand. Remembering
that EBITDA does not necessarily mean operational profits (EMC: IOF May). Whether the management appeal now is
irrespective, there's a psychological cementing of poor performance in the
stock, expect weakness. We'll ignore the confidence exuded in respect of
obtaining the water permits that was a binary bet.
For those following the Vodafone debacle with Liberty, there
will no doubt be an immense amount of copy and paste on the deal. VOD confirms
that it is in the early stages of discussions with Liberty Global regarding a
possible exchange of selected assets between the two companies. Fees all round,
but more importantly, Vodafone have taken a sensible route instead of some
denial there offering will remain attractive despite the entire market place
changing! Finally a viable company...
Congratulation to Glencore today, whom managed to
obtain £1.3837 or U$D2.1208 a share in its managed
share sale of 3,983,350. They have obtained significantly more than
anyone should have paid, LMI operationally need cash, they may have lending
head-room but the facts remain, PGM prices are low, their costs are not.
Limited time for a horse or 10!
Atb Fraser
More later? after meetings.
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