Hi all
couple of points first
t89rex, not sure how you come up with $21m , only 9.3m in sales of the half year. Think you are double dipping on sales, cash receipts and receivable. I find best just to keep to sales. The guidance will not be reaffirmed as they changed financial years. Maybe updated in February
ed, don't take with the wrong way, just trying to understand for myself if I misread understood your post right. I took your post as the 4 agreements as being part of the 8 confirm/soon to be confirmed projects. I read this different I take this as there is 8 projects coming though, but these are a total different thing to the 4 agreements. The 4 agreements are companies saying they will subcontract work to us doesn't mean the 8 projects have anything to do with them. Some projects might be but I read this as 2 totally different topics.?
on the report. I found was very good but lacked the detail I crave.
On revenue, yes good considering where we have come from in the past and in line with the company guidance but personally was hoping for a 10m figure, was hoping the canal project had contributed more. By the look of the figures for 6 months this has only been $800k, so still plenty more to come from this project as they did order a Thor $1.5 m of product.
gross profit margin is strong, if as we expect a increase in sales this may increase as the economy of scale kick in more and if we end up buying the mineral deposit this should help more or allow the company to be more competitive on pricing to win more contracts.
the cash balance is strong but was expecting this to be lower as paying for the buy out of the Europe operations. I notice 3308k of convertible notes issued for the quarter, I take this as $100 notes, so expect these are part of the buyout, ie europe might of cost $3.3m
the 4 agreements with the construction companies sounds promising, would be nice to know if these are new companies that will give us work or subsidiaries of bweg ? Could one of these companies be run by our new director?
i find the company keeping cards very close to their chest. If some of these 8 projects are confirmed why no realease, no detail on value? Would have been nice if it read with a value attached might get more details in February. If we try and put a value on these 8 projects this is my thoughts. The contract we have done so far have had value of plus $5m each so could easerly be around $40m , but I will estimate for the time being around $25m ( the other month the presentation said 36 project value at $100m in the pipeline) so averaging this might be around the $25m. Since we are only into the first month of the year if they total the $25m to be done this year a very good start, they have another 11 months to cerment these contracts and build on it. The other point to mention would be 8 out of 36 in the pipeline would be a very good conversion rate in such a short time.
As alway good luck to everyone, only another 4 weeks until we might get a better idea
thanks
mickem
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