We tipped Obtala (OBT) at an 8p offer and the shares are now 19p bid which values the company at c$60 million - we use dollars for the sake of convenience. But news after hours yesterday makes the shares still cheap! we spoke to chairman Miles Pelham on Thursday night and this is exciting.
We first tipped this one at an 8.25p offer. But shares in Obtala (OBT) now trade at 15.5p-15.75p on the back of yet more evidence that new boss Miles Pelham really is delivering.
A busy day for followers of Obtala (OBT) on Friday started with interim numbers which really did not look very good. In fact bad is the word that springs to mind. In the 6 months to June 30th sales were £264,000 versus £2.16 million a year earlier and there was a loss of £2.63 million versus a profit of c£3 million. But here's the thing.
It is hard for a management team to admit to errors. It is so much easier for a new management team to admit that an old one goofed and thus Miles Pelham the new boss at Obtala (OBT) has done just that.
Rather than issue shares like confetti as most AIM Companies do and, indeed, as under its former management Obtala (OBT) used to do, this company is raising capital to expand in a non dilutive way.
You may remember that Tom Winnifrith had a chat with the new chairman of Obtala Resources (OBT), Miles Pelham back in late April. Tom caught up with Miles again today for a detailed phone catch up. The key take-aways are:
Miles Pelham had only been in the job a few minutes but pitched up at UK Investor to present on behalf of Obtala resources (OBT). Enjoy
First up, just a note that Obtala Resources (OBT) has confirmed that it has received the cash for selling a small part of its forestry portfolio. That is to say $900,000 is now in the kitty,a third of it two months ahead of schedule. That an AIM Company has to announce that money has arrived as per contract tells us everything you need to know about the state of AIM. Anyhow it is good news.
Following the appointment earlier this week of Miles Pelham as Chairman, Obtala Resources (OBT) has updated on its strategy and outlook, with Pelham emphasising “I am strongly committed to enhancing shareholder value by monetising the substantial capital investment made into our African ventures in recent years”.
Updating earlier this month on Obtala Resources (OBT) with the shares then at 6.375p, we noted the valuation looked to fail to reflect the asset backing and likely news flow but a disappointing share price performance from a now long-running recommendation. It is now boardroom change ahoy.
Obtala Resources (OBT) has announced a quarterly update, including that the “period has been very much focused on business development ahead of harvesting in April on both the timber and the agribusiness as both businesses move from project phase to operational… The sales pipeline is growing and the forthcoming months present themselves as an exciting period for the progress and expansion of our agriculture and timber divisions”.
Obtala Resources (OBT) has announced receipt of further monies from its approximately $3 million forestry investment agreement. Good News
Obtala Resources (OBT) has announced it has entered into agreements to secure an investment of approximately $3 million for its forestry division in return for minority interests and certain off-take rights over specified forest concessions in Mozambique.
John Meyer of SP Angel this morning comments on 600 Group (SIXH), Glencore (GLEN), Metminco (MNC), Obtala Resources (OBT), Kibo Mining (KIBO) and Stellar Diamonds (STEL) as well as offering a detailed macro view on the news that is shaping global mining and the AIM mining pond.
