Letter and Colour

Chemical Engineer | Microcap Investor | 🇦🇺

[Letter and Colour @LetterandColour]

@Eagleresa @ChuckChunder007 Very interesting. Thanks for the background, I'll need to look into that

[Letter and Colour @LetterandColour]

@Eagleresa @ChuckChunder007 What are the key problems people see with Nifty? Mining? The heap leach? Something else?

[Letter and Colour @LetterandColour]

@KJKLtd Fair point, selectivity is important to know, but that may be reflected in the grade. I should clarify, if we're talking a high level technical report or very very early stage testing I don't care much from mass pulls, but I very much appreciate when it's included

[Letter and Colour @LetterandColour]

@david_katunaric I've used FasterDD before, not quite what I'm after but thanks for the suggestion

[Letter and Colour @LetterandColour]

@kingfishcap @Nobody_But_M3 The question mark for me is now how long will it take to find a buyer of the remainco

[Letter and Colour @LetterandColour]

@99Proble Bugger. And I was in the process of opening up more brokerage accounts 😂

[Letter and Colour @LetterandColour]

Sometimes having a small portfolio is an advantage. Odd-lot buybacks on the ASX are rare, but can offer low-risk returns

$SHM.AX is running a buyback for holdings under 2,469 shares at 81c per share. The stock currently trades at 74c. That’s a 9.5% return in under three months.

[Letter and Colour @LetterandColour]

The business itself is mediocre but it’s not bad. For now, the risk-reward beats parking cash in the bank, especially if you have several brokerage accounts

[Letter and Colour @LetterandColour]

If the buyback proceeds, it’s a clean, short-term return while I search for a new idea. If it’s cancelled, I’m left holding a company with a solid record of capital management and shareholder focus (just look at their announcements from this year)

[Letter and Colour @LetterandColour]

The risk in uncertainty is on edge of what I'm comfortable with so I'm not going to increase my position for now and maintain it as a small 3% bet.

[Letter and Colour @LetterandColour]

This $BCC.ax special situation just got messier.

Roadpost now claims Beam hasn’t upheld its side of the settlement.
Beam tried to push the sale through by serving a notice of arbitration.

From a relatively clean forced sale to a messy legal fight.

[Letter and Colour @LetterandColour]

$BCC.ax will receive A$14.6M (16.9c/sh) with ~45% of it payable before end of this year.

Beam is required to pay Roadpost A$2.6M legal costs, so net amount is A$12M (13.9c/sh).

[Letter and Colour @LetterandColour]

The market obviously didn’t like that. $BCC's MC is now $8M (~55% of full expected payout).

But if they settle + nothing changes, Beam could see an initial $6.6M cash in ~3mo (~80% of MC).

[Letter and Colour @LetterandColour]

@CCoeAssociates @ARichLifeAu Don't hold but I think it's one to definitely watch as the business model is interesting

[Letter and Colour @LetterandColour]

@CCoeAssociates @ARichLifeAu Also, this isn't a full replacement of fire assays. Labs I spoke with using it all say it is just another tool as it has limitations e.g. accuracy is better with fire, and sample needs to "cool off" for 2hrs because it's now radioactive so it doesn't really save on labour costs.

[Letter and Colour @LetterandColour]

@david_katunaric Knowing the company, it's not an immediate pass because I'm interested in them, but it certainly would make me proceed more carefully. It's a bad look on management. What do you think?

[Letter and Colour @LetterandColour]

@ArrowInvestor I made a mistake, the Legal costs to Roadpost should be pretty much paid off based on recent quarterlies.

However, costs related to the valuation haven't been accounted for yet - don't have a good idea how much this will be.

Not much opinion on valuation of the remain co.

[Letter and Colour @LetterandColour]

$BCC.ax will receive A$14.6M (16.9c/sh) with ~45% of it payable before end of this year.

Beam is required to pay Roadpost A$2.6M legal costs, so net amount is A$12M (13.9c/sh).

[Letter and Colour @LetterandColour]

Special situation: $BCC.ax $BCC a nanocap with forced asset monetisation potentially trading below the sell value.

Beam Communications has been ordered to sell its 50% JV stake in Zoleo. The problem is they can’t agree on Zoleo’s value as of May 2023.