BBN Profile picture
Oct 2, 2020 7 tweets 2 min read Read on X
1/7
All these months, I have tried to keep things in perspective on how big an opportunity these Covid tests, could be for #AVCT.

The phrase "if it sounds to be good to be true," kept coming to mind.

Given where we are in the process and what AVCT presented on 29th Sept,
2/7
I think I am now entitled to start factoring in few of my grander questions.

If AVCT can set itself on a path to even half of what has been presented, so 50-60m tests per month, be it directly involved or not,
3/7
what does that say about where they can take the therapeutics business post AVA6000 first (assumed successful) read out?

How many therapies can be tackled at once?

What does it say about their standing in the diagnostic and even cancer therapies market place?
4/7
What does it about how their Affimer platform will be viewed and indeed how enviously it will be pursued.

What does it say about direct diagnostic test interest?
What does it say about increased partnered interest in that business?

What does it say about the AVCT SP?...
5/7
and the company's ability to survive M&A and what its valuation could end up being?

If this pandemic has taught the sector anything, its that it needs to be prepared for the next one.

There's no faster diagnostic gun in the West, than the Affimer one and that...
6/7
was prior to expansion of their facilities, prior to ISO 13485 accreditation and prior to completing this process and learning from it.

AVCT is about to receive the biggest endorsement their business could ever hope for, on the greatest stage their sector has ever known.
7/7
Call that a ramp, call it what you want to but there is no denying how close they now truly are, to achieving a monumental goal, which is why they stated ;

"it will be a very exciting and genuinely transformational year ahead for Avacta"

You're no kidding.

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More from @BigBiteNow

Apr 4
1/23
I've been studying the #THX Segilola remaining mine life and found some interesting details.

First of all, here is the independently calculated mine plan as it stood in 2021.

Note the mineable ore was calculated at just $1,600 gold.
Image
2/
A total of 501,800 ozs of payable gold was expected at 97% recovery from 518,000 oz of contained gold.

To date, recoveries, since operations began, have been averaging c. 94.4%.

At that rate, Segilola will deliver 489,000 oz over its current mine life. Image
3/
Up to the end of 2023, the mine has produced 192,503 oz and sold 179,138 oz.

This means 13,365 oz sit in inventory as of 1st Jan 2024 with a current value at $2,100/oz of c. $28m.

What this also means is that Segilola still has 296,497 oz of gold to produce.
Read 24 tweets
Jul 22, 2022
1/16
It's difficult to call this market but my view is that assuming no more operational glitches #TGR now steadily re-rates as the operations sign off the various stages to 30ktpa.
2/
Front-end valuations should depend on where graphite prices go but as Syrah demonstrated yesterday (graphite fines not large flake) orders are buoyant.

Forward orders there running at 90,000 tons which are 50% of their current yearly output. So substantial.
3/
Note also Syrah cannot produce for less than FOB C1 $543/t even at 15,000 tons per month output and that's fines.

It is clear after last night's presentation that TGR C1 costs have also risen but this is to be expected in this current market.
Read 16 tweets
Jul 21, 2022
1/12
Here are Verde Agritech's expected sales targets for 2022 which were revised in May and offer a significant read across to #HMI and what it can achieve this year and also.
2/
Note the 43% jump in forecast 2022 sales but that all of this rise is due to significant increases in Q3 and Q4 sales projections.

In fact, Q1/Q2 should actually deliver slightly less than was forecast originally.
3/
This forecast was adjusted on 3rd May and the Q3/Q4 forecasts are based on "committed orders and projected orders." Just like with HMI.

Verde sees itself delivering c. 62% more product in Q3 than originally projected on 10th Jan 2022. So inside 4 months.
Read 12 tweets
Jul 20, 2022
1/9
In a previous #HMI thread, I highlighted that the $600k write-down in the FY2021 accounts meant that trade debtors (so effectively trade receivables) almost doubled between YE 2020 and YE 2021.

$924k vs $1.824m
2/
Due to the way HMI's business cycle runs this is a theme that compounds as sales expand along with prices.

Meaning that if investors simply concentrate on cash on hand then they are misunderstanding how the business operates.
3/
This is can be proven by simply reviewing the Verde Agritech quarterly accounts once more.

For revenues Verde count the full price including freight which indicates that they are responsible for this. Unlike HMI which sells at the gate.
Read 9 tweets
Jul 20, 2022
1/18
I've been running an extensive exercise on Verde Agritech also a relatively new but expanding fertiliser producer based just c. 70km from #HMI in Minas Gervais in Brazil. The results to date are rather fascinating and certainly worthy of review.
2/
Verde is a TSX-listed producer with a current plant capacity nearly double the size of HMI (0.6Mtpy) but with a phase 2 expansion due to come online in 2023 which would take output to 2.4Mtpy.

So a much bigger operation to come and soon.
3/
Those that remember my 5th July numbers on #HMI sales prices will perhaps remember that they demonstrated a $53.20/t average sale price for 2021.

At the average achieved AUD/BRL for 2021 of 4.054, this equated to an average price of BRL216.

Read 18 tweets
Jul 5, 2022
1/7
Based on what I have just talked about if #HMI had received all the monies from its sales in 2021 then this would have amounted to $4.52m and the business would have been profitable at the operating level in 2021.
2/
What's more, the $4.454m paid out in 2021 reflects more accurately the true costs to run the business over the course of one year.

One cannot conclude exactly how much HMI produced in 2021 because the cash receipts reflect payment dates and not when the goods were received.
3/
Inventory was fairly minimal which reflects an operation that leans towards producing to order.

However, the costs associated with administration clearly eat up the vast majority of this with the consolidated statement accounting for c. $3.85m in the period.
Read 7 tweets

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