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Aveng (AEG)...free lunch?!

Aveng AEG small cap construction

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#1 GutfeelTrader

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Posted 25 July 2022 - 01:35 PM

Anyone any idea or heard birdie tweet when we'll know about the trident steel sale? Excited to see a nice jump but don't know if we're just floating along or have a date to look forward to?
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#2 Goliath

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Posted 06 July 2022 - 06:59 PM

Sounds good, but management just treading along.. reason for the current share price! Same with all the other guys (Ellies, Rebosis, Finbond)
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Never underestimate the potential for human stupidity when wealth and power are at stake!

#3 Goliath

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Posted 06 July 2022 - 06:59 PM

Sounds good, but management just treading along.. reason for the current share price! Same with all the other guys (Ellies, Rebosis, Finbond)
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Never underestimate the potential for human stupidity when wealth and power are at stake!

#4 Zeebo

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Posted 05 July 2022 - 11:38 PM

Welcome development.
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#5 Trader001

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Posted 05 July 2022 - 04:21 PM

Settlement of uncertified claim and repayment of external debt and renewal of cautionary announcement
 

AVENG LIMITED

Incorporated in the Republic of South Africa

(Registration number: 1944/018119/06)

ISIN: ZAE000302618

SHARE CODE: AEG

(‘Aveng’ or ‘the Company’ or “the Group”)


SETTLEMENT OF UNCERTIFIED CLAIM AND REPAYMENT OF EXTERNAL DEBT AND

RENEWAL OF CAUTIONARY ANNOUNCEMENT


Settlement of Uncertified Claim

Aveng is pleased to announce that it has reached settlement on and received payment of R282 million (AUD25

million) for a long-outstanding claim. This long-standing claim was previously disclosed as an amount that had

been subject to protracted legal proceedings and reported in the amounts due from / (to) contract customers in

the December 2021 interim results.


The settlement results in a small profit to the previously reported position, reduced ongoing legal costs and the

removal of litigation uncertainty. This dispute dates back prior to March 2016, when McConnell Dowell instituted

action against its client, with a view to recovering previously expended costs. Through the course of this protracted

litigation and delay, McConnell Dowell has significantly grown its business despite having liquidity tied up in this

dispute. The resolution of the dispute is a significant achievement and the resulting additional liquidity has

currently been retained in McConnell Dowell and is reserved for future investment opportunities that add

incrementally to the Group’s growth and performance.


Repayment of External Debt

Aveng has continued its debt reduction strategy during the year to 30 June 2022, through the scheduled

repayment of R275 million in June 2022. The cumulative repayments have reduced external debt by R350 million

in the financial year to 30 June 2022. Should the Trident Steel transaction be successfully concluded, it is expected

that the proceeds will be utilised to settle the remaining debt in South Africa, create further liquidity and strengthen

the financial position of Aveng.


Renewal of cautionary announcement

In line with the cautionary announcement released on the SENS on 13 June 2022, negotiations continue to

progress and shareholders are advised to exercise caution when dealing in the Company’s securities.


The Group expects to release its full year results on or about 23 August 2022.


5 July 2022

Melrose Arch


JSE Sponsor

Investec Bank Limited


Itumeleng Lepere

Stakeholder Engagement Lead

Tel: 011 779 2800

Email: investor.relations@avenggroup.com


Date: 05-07-2022 04:13:00

Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (‘JSE’).

The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of

the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,

indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,

information disseminated through SENS.

 


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#6 Zeebo

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Posted 20 June 2022 - 12:47 PM

Don’t have the exact numbers but I think to reduce the debt to around half.
On the side, the share has been dropping since last week and I’m personally not surprised. The next few months up to the results announcements will be quite illuminating.
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#7 Sleepwa123

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Posted 13 June 2022 - 03:47 PM

Interested to know how significantly would the debt decrease with this transaction. Anyone have a ballpark figure?


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#8 Zeebo

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Posted 13 June 2022 - 02:12 PM

Some good news…

Let’s see if the sale closes and where the share price goes.
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#9 Zeebo

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Posted 26 May 2022 - 02:17 PM

So effing true.
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#10 Tonyh199

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Posted 25 May 2022 - 03:15 PM

Listen Up Avengers….

So I contacted the company about the deafening silence while this share plummets.
In short- no current communication planned. We may (or may not!) hear something by end next month!

In any other realm, sitting SILENT in a listed company on a loss of more than 60% value in months - after hanging around for years through the pain - would have resulted in the entire board fired.

Here? crickets….

Anyone care to join me for some shareholder activism. This one is begging for it.

Hey the CEO and CFO awarded themselves  2,4 million shares (1,2bn preconsolidation)  - so are sitting pretty even at R13. No need to talk to the peasant shareholders that supported the company when it needed it!


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#11 Zeebo

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Posted 25 May 2022 - 01:25 PM

Listen Up Avengers….

So I contacted the company about the deafening silence while this share plummets.
In short- no current communication planned. We may (or may not!) hear something by end next month!

In any other realm, sitting SILENT in a listed company on a loss of more than 60% value in months - after hanging around for years through the pain - would have resulted in the entire board fired.

Here? crickets….

Anyone care to join me for some shareholder activism. This one is begging for it.
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#12 Zeebo

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Posted 23 May 2022 - 10:35 PM

Has anyone on here heard from Investor Relations or tried to reach them for any indication of when a trading update or commentary on current performance may be expected?
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#13 Trader001

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Posted 13 May 2022 - 05:35 PM

Looks like my estimate of 30% down after share consolidations was a bit off. I still see no value in share consolidations as the shareholders take all the risk of exposing themselves to the downside again and yet it happens time and time again where shareholders approve the consolidations. Why I ask you , why????

Yes I agree. This is really disappointing. I note today it went down to R13 per share. Often I am just too scared to look as I will be getting a new surprise. So it has now lost more that 50% of its value since the consolidation at R30.

 

I think this downward spiral is due to world economy under threat of all sorts of things. Ukraine conflict, high inflation,  high energy prices, rampant inflation. The problem with Trident steel just hastened the downward trend. Al shares are taking a knock.

 

I am in it for the long haul.  I think we should ride it out as they have good businesses in McDonnel and Moolmans. I am sure the share will recover.

Yes, and now no one hears anything  from Aveng management to calm down the situation. They are now missing in action 


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#14 JR7800

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Posted 12 May 2022 - 03:16 PM

I see the  share consolidation have been approved. 

 

I voted against this but knew it will still pass. I hate share consolidations as it has never added value to any of the shares I held in the past that got consolidated. Most of the time the shares lose 30% + of their value post consolidation.

 

 

I know that in theory a share trading pre and post consolidation should be the same but I always maintain that at share pre consolidation at 1c have zero downside where post  a share consolidation of lets say 100 to 1 that new R1 share (100 x 1c) now again has a 99% downward potential back to 1c. My opinion is management must work to get better earnings and eps shall be the determining factor to move the share price.

 

 I am considering selling. Can anyone maybe give me a reason why this consolidation will work that I might be missing.

 

Looks like my estimate of 30% down after share consolidations was a bit off. I still see no value in share consolidations as the shareholders take all the risk of exposing themselves to the downside again and yet it happens time and time again where shareholders approve the consolidations. Why I ask you , why????


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#15 Ramo

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Posted 12 May 2022 - 11:10 AM

Any thoughts. The sh#tshow continues.
Has now lost more than 50% in value in 6 months with little prospect of pulling up from what I can make out.

Where are all the big voices from a year ago? Early profit takers or licking their wounds quietly?

 

Share dropping on very small volumes.  Major shareholders are not likely to be selling.  Probably panic by the small shareholders created by the drop in world markets.

It's disappointing that management does not put out some news to calm the shareholders.


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#16 Zeebo

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Posted 10 May 2022 - 08:54 AM

Any thoughts. The sh#tshow continues.
Has now lost more than 50% in value in 6 months with little prospect of pulling up from what I can make out.

Where are all the big voices from a year ago? Early profit takers or licking their wounds quietly?
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#17 Zeebo

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Posted 24 April 2022 - 07:13 AM

Key items to watch IMO:
1. Debt update
2. Underlying trading
3. Trident - going or not and the re-treatment as discontinued asset and impact on accounts
4. Update on prior chatter about secondary listing

At this rate seems we may only hear more around Aug after YE close in June. Sigh.
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#18 Zeebo

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Posted 22 April 2022 - 07:22 PM

Good points, thanks.
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#19 Zeebo

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Posted 22 April 2022 - 07:21 PM

Good points, thanks.
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#20 JR7800

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Posted 22 April 2022 - 06:52 AM

Everyone silent back here? The price keeps dropping, mgt silent, can’t even get through to Investor Relations.

Any insights?

I got out at R18.50. Should have sold out at R26 but greed kept me in the game. Luckily I got my shares at average 2.1c so R10.50 after share consolidation.

 

What I learned from this share is that there is a reason why a share trades at 2-3 cents a share. Throwing money into a company (rights issue) only saves the company some interest on debt paid off but if company is not making money (lots of it) from there core business, walk away. There are many stocks out there and I think deep down everyone buying this share knew this was a punt or at best a very short term holding.

 

I will look at it again when it is way below R10 a share because if it continues on the downward trend big holders are going to start cutting their losses and then its game over.

 

As always I hope I am completely wrong and it goes to R100 a share for everyone who is still holding sake.


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