Obtala Ltd (OBT)

 
Obtala Resources Plc: The Times They Are A-Changin’

By Hybridan | 22/10/2015

Obtala Resources to some looks like your average run of the mill mining company on AIM. This couldn’t be further from the truth as upon closer inspection one can find a fully functioning vertically integrated agribusiness, timber and retail business. Kevin Milne, Executive Deputy Chairman was appointed to the Board in August 2015 as part of a wider push to strengthen the management team and to refocus the business going forward. The interim results announced in September portrayed a strong platform for growth reporting revenues of £2.3m, net profit of £3.02m with net assets of £95.8m. The company’s three core businesses cover farming, retail and timber and are purely focused on Africa which is set to take advantage of the continent’s unprecedented rates of growth fuelling growth in domestic consumer demand. The farming division operates a “seed to fork” strategy from horticulture to branded product ranges including dried fruit and chilli based sauces taking advantage of the whole value chain in food production. In Tanzania, 530 Ha are held under long lease agreements with 80 Ha currently cultivated with up to four crops per year per hectare. Earlier this year Obtala received the internationally recognised farm GLOBALG.A.P certification which allows them to overcome significant barriers to entry with many international food groups. GLOBAL.G.A.P is the internationally recognised standard for farm production which will support the company in broadening their partnerships with various trade partners as they look to develop more land. The retail division looks to capitalise on Africa’s emerging middle class, grown to some 400 million people. Six multi product department stores are currently operating in Lesotho with further in-country expansion planned for additional three to four units over the next 12 months. The division is well established and currently embarking on further improvements with enhancements to their ordering systems, stock management and cost control. There is future scope to roll out in Southern and East Africa where Obtala has an already existing presence. Under the company’s recent strategic review, there is a proposed spin out of their forestry division to be quoted on AIM. Africa accounts for 17% of Global forest cover but only 4% of global round wood and less than 2% of global sawn wood production. The company is, subject to local Government approval, completing the acquisition of 50 year leases for two new timber concessions totalling 35,000 Ha in Mozambique to bring the total forestry area to 314,965 Ha. Honour Capital prepared a valuation report in June 2014 which attributed a NPV to Obtala’s timber business of US$161m at a 12% discount based on a ten year cash flow model. The 2014 valuation was based on eleven concessions with a total land area of 279,965 Ha. This puts Obtala in a strong position to become a leading supplier in a market that is facing increasing global demand for high quality timber with new suppliers being curtailed by strict environmental and conservation laws. Obtala Resources has successfully repositioned itself as a socially responsible company which is debt free and diversified both geographically and by sector. It is trading at a deep discount to NAV and we believe the current management team in place are executing a strategy which will bring rapid improvements in the operational performance of their portfolio.

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Holding(s) in Company

RNS Number: 3820U Obtala Limited 23 October 2017 TR-1: NOTIFICATION OF MAJOR INTEREST IN SHARES i 1. Identity of the issuer or the underlying issuer of existing shares to which voting rights are attached: ii OBTALA LTD 2 Reason for the notification (please tick the appropriate box or boxes): An acquisition or disposal of voting rights An acquisition or d...

Change of Adviser

RNS Number: 7268T Obtala Limited 16 October 2017 16 October 2017 Obtala Limited ("Obtala", the "Group" or the "Company") (AIM: OBT) Replacement Nominated Adviser Obtala Limited (AIM: OBT), the African focused agricultural and forestry company, is pleased to announce the appointment of Northland Capital Partners Limited as Nominated Adviser and...

Align Research update note

RNS Number: 3758T Obtala Limited 11 October 2017 Obtala Limited - Conviction Buy. Target price 38.18p Step change in revenues evident following interims & Q3 update Obtala Limited is an Africa focussed forestry and agriculture company with a goal of becoming one of Sub-Saharan Africa's largest sustainable food and timber producers. Interims show period of...

Removal of Nomad Status

RNS Number: 2846T Obtala Limited 11 October 2017 11 October 2017 Obtala Limited ("Obtala", the " Group " or the "Company") (AIM: OBT) ZAI Removal of Nomad Status by the Exchange Obtala Limited (AIM: OBT), the African focused agricultural and forestry company, announces that it has been informed that that the London Stock Exchange has determined...

Nomad Register Change - ZAI Corporate Finance Ltd

RNS Number: 2478T AIM 10 October 2017 This announcement replicates RNS No. 2473T REMOVAL OF NOMAD STATUS BY THE EXCHANGE This announcement is made pursuant to Rule 32 of the AIM Rules for Nominated Advisers (" Nomad Rules" ). Pursuant to Nomad Rule 11, the Exchange has determined to remove the nominated adviser status of ZAI ...

Beaufort Securities initiates coverage

RNS Number: 0541T Obtala Limited 09 October 2017 9 October 2017 Obtala Limited ("Obtala", the "Group" or the "Company") (AIM: OBT) Beaufort Securities initiates coverage on Obtala with 37.5p target price WoodBois acquisition 'perfect timing' to position Obtala to benefit from 'super-cycle' in timber Research analysts Beaufort Securities today issued their inaugu...

Director/PDMR Shareholding

RNS Number: 5739S Obtala Limited 03 October 2017 Notification and public disclosure of transactions by persons discharging managerial responsibilities and persons closely associated with them 1 Details of the person discharging managerial responsibilities / person closely associated a) Name Martin John Collins 2 Reason for the notification a) Position/status Deputy ...

Share Option Awards / Director dealing

RNS Number: 4807S Obtala Limited 03 October 2017 3 October 2017 Obtala Limited ("Obtala", the "Group" or the "Company") (AIM: OBT) Additional Share Option Awards/Director dealing Obtala Limited (AIM:OBT), the African focused agricultural and forestry company, is pleased to provide the following update. Share Option Awards The Company has approve...

Obtala Resources Limited Research

hardman & co
Obtala Resources Limited
05/06/2017
Under new leadership and strengthened operational management, Obtala Ltd, the African agricultural and forestry business, is setting about commercialising the substantially untapped potential of its...

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