# AFL - AF Legal Group



## pancho (15 March 2006)

Hi found this chart and i do hold what do you think?


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## greggy (21 April 2006)

Navigator resources looks very much to be in a positive uptrend as long as its holds above 20 cents. Next target 40 cents.  The company already has 400,000 oz of gold in WA with more to come and has been recently tipped by the Speculator in the Bulletin. But do your own research before buying.  I bought 60,000 the other day and will be buying more.


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## greggy (26 April 2006)

NAV - Navigator Resources got another mention in the Bulletin today.  The stock went up to 25.5 c in the past few days and is looking very well technically.  Any other opinions out there?
But do your own research before buying.


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## greggy (1 May 2006)

Navigator is up to 25.5/26 on nearly 1 million turnover.  Any thoughts?


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## the tipster (6 May 2006)

I agree with your post on Intermet Resources being an exciting uranium play, but I don't like Navigator Resources as much.  It doesn't have as much upside in my opinion.


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## Robroy (7 March 2007)

Navigator Resources is the week's strong buy recommendation from The Speculator (David Haselhurst) in The Bulletin magazine published today.

Haselhurst points to numerous strong pluses including a 700,000 oz resource of mineable gold at Leonora, WA, an inferred resource which has tripled since the ground was bought in 2003. The resource was established to date at $6 p. oz., one-fifth the industry average.

90% of the gold is in shallow, unmined positions.

7-30 km from Leonora there are five idle or underutilised treatment plants.

Feb drilling results include 4m of 20g/t from 40m; 8m of 20g/t from 16m; and 4m of 7.8g/t from 40m. None of these new results are included in the resource yet.

Some of the company's newly-riased cash will be used to drill for uranium at NAV's rare earth uranium prospect in the Kimberley, which The Speculator describes as 'intriguing'.

More interesting to me is the timing of The Speculator's report, with gold apparently botoming and and the ASX hopefully doing so too.

NAV's price was knocked down in the shakedown, and is now an unusually cheap 45c. It would now seem to have little but upside.


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## Captain_Chaza (4 April 2007)

Let's head for the Blue Sky on the horizon

Salute and Gods' speed


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## siempre33 (16 April 2007)

high grade gold discovery.....newz..

http://www.asx.com.au/asx/research/...panyName=&principalActivity=&industryGroup=NO


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## jpy (2 May 2007)

Could someone who is more geologically savvy please explain the figures from the Cummins Range Commencement of Drilling results.
Does it mean that they have a uranium deposit of significance or not?
Many Thanks


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## namkey (21 May 2007)

Another high grade gold announcement. I've really got no idea about the scale of these finds. Are they significant or are they hardly even worth digging up? The market hasn't reacted much to this announcement yet.


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## namkey (21 May 2007)

Well, I wasn't to sure how far this would run and seeing how this is the first time I've ever tried day trading, I took what I could while I was happy. Bought @0.72, sold at 0.82. Now hopefully it doesn't fly over a dollar or something and make me look a fool


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## ubid (4 June 2007)

Sorry namkey, you should of held on! 

There is nothing wrong with making a profit!

Looks like she might run well for a while yet, gold upgrade to come out also rare earth results.


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## Col Lector (8 November 2007)

Very little traffic here. NAV could well be worth a look by Au/U3O8/REO followers. Au at Leonora the main game but 100% Cummins Range REO &U3O8 has big potential. Significantly both Au & REO very shallow deposits with cost-benefits attached....
V.positive drill results released this morning for confirming high-grade rare earth & U3O8 at Cummins Range. Very shallow long intercepts with higher grade zones eg, 
24m@4.0% REO from 0m (incl. 4m@10.7%)
16m@5.2% REO from 44m (incl 8m@7.6%) or 56m@2.7%REO
56m@324ppm U3O8 from 44m (incl.8m @1078)
Assays do not as yet include expected additional heavy-metals eg, titanium,niobium, tantalum,zircon.
Jorc initial early 2008. Potential for marketable REO concentrate to accelerate project.
Market conditions today mean that NAV sp gains in response have been dampened...for now at least
Thoughts??



> 08 November 2007
> Company Announcements Office via electronic lodgement (11 pages)
> Australian Stock Exchange
> PO Box H224, Australia Square
> ...


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## Col Lector (9 November 2007)

The good news keeps rolling in....New Ann out! Gold at Leonora.....new hits. On top of yesterday's REO/U good news. Something bound to spark the sp sooner or later...


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## lazyfish (10 November 2007)

Here is my take on NAV. 

2 main projects

Gold - I will be happy to put a generous 40M on it. Bear in mind that at this stage it is less than 1Moz and the grade is 2.2g/t, not all that exciting.

RE would have to be the bulk of the pie. Reading from the latest anns, and looking at the cross section (Section 307150E), looking west, the area bounded by 1% RE or above, is around 12 x 25 x 25 = 7500m2. Looking at a top down view, we can see the horizontal section is around 150m. So the very rough volume bounded by this high RE zone is around 7500 x 150 = 1.125 million m3. I will be generous and make it 1.5 million m3, give that it could be open to the north west, and north east. 

What that gives us is around 3.75MT, using a density of 2.5. We can see from the top down view that most of the grades are less than 2%, but let's just make it 2%. that gives *3.75MT @ 2% RE*, which is around 75,000 tons of contained RE. Quite consistent with the non JORC compliant resource estimate that they have. 

Now, let's look at a company in a more advanced stage, namely LYC. LYC has 7.7mt @ 11.9% RE, around 917,000 tons. Someone asked a question regarding composition of ore at NAV's cummings range to LYC's and TOM said they are directly comparable.

So in summary, after taking gold and cash out, NAV has a market cap of more than 80 million at today's sp. LYC's market cap is 682M. LYC has more than 10 times the resource, and is in a much advanced stage (I think they have supply contracts signed and plant secured in Malaysia). Given this, I really think the market cap of NAV, less gold and cash should be less than 10% of that of LYC, but isn't the case. I know that I did not take any Uranium into consideration, but being the conservative person I am, and cummings range located in WA, I do not want to factor that in.

Tom said market 'has not digested' the news on RE. I can't say that I agree. NAV is the most interesting company that presented on AMEC today. I will be waiting patiently for a much more reasonable sp to enter.


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## grace (8 February 2008)

I have a few dates coming up in my diary for NAV.  New updated resource for gold due Jan/Early Feb.  Initial JORC on REO due Feb 08.  Gold resource should go over the million oz this time.  Anyone still holding?  Should be some good news in over the next couple of weeks.


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## gtsman_05 (12 March 2008)

grace said:


> I have a few dates coming up in my diary for NAV.  New updated resource for gold due Jan/Early Feb.  Initial JORC on REO due Feb 08.  Gold resource should go over the million oz this time.  Anyone still holding?  Should be some good news in over the next couple of weeks.




pitiful JORC figure announced today for NAV...

the question is... has it got much more??

Looks like leaving LYC and ARU holding the only viable Rare Earths fort in australia


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## lazyfish (13 March 2008)

Well my estimate is pretty close this time :. Regarding viability though, I vaguely remember reading LYC's presentation in which they said that viable REO deposits need to have low uranium content . Can anyone shed some light?


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## jonojpsg (13 March 2008)

lazyfish said:


> Well my estimate is pretty close this time :. Regarding viability though, I vaguely remember reading LYC's presentation in which they said that viable REO deposits need to have low uranium content . Can anyone shed some light?




Pretty close!!  Damn near spot on lazyfish - nice work.  If you can do that for a few other explorers who are firming up JORCs that would be great  give us a chance to make some more informed trades prior to their actual release


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## grace (13 March 2008)

Board room radio interview.  I guess the initial jorc is only over a small area of the whole deposit so hopefully more resource to come.  Heavy minerals still to be quantified zircon etc.  1 x metre splits to come through soon.  Phosphate there as well at 11.2% (spot price at least $200/tonne). This will add viability to the project.  (phospate hill mine at 23% from memory, and that's all they mine is phosphate).  I thought the deposit needed low thorium.....could be wrong though.

Assay results should be out soon for recent drilling at Leonora.  The 1 million oz will come.  I think everyone (like me) was expected it this time.  Got close though.

http://www.brr.com.au/event/43367


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## grace (16 April 2008)

Here goes folks.  Here is the start of those assay results coming in.  Looks like Cardinia is going to firm as a 3km long open-pit shallow operation...very nice grades too!  Hang in there, I think you'll be rewarded.



> *HIGH GRADE GOLD RESULTS
> FIRM UP 3km CARDINIA SYSTEM*
> 
> *Coherent shallow high-grade gold intersections from an ongoing program of close-spaced RC drilling has significantly increased the mining potential of the 3km Cardinia gold system at Navigator’s 950,000 oz Leonora gold project*
> ...







> The initial RC drill results enhance the mining potential of the entire 3km Cardinia gold system which, in conjunction with significant gold systems identified at Tonto and Mertondale South, *appears likely to provide Navigator with a third large open pit work area within the Leonora project *(in addition to ten other satellite open pit areas).




And some comments from Colonel Sanders..



> “*Having a free-dig gold system that is potentially open pitable over a three kilometre strike length adds substantial backbone to the Leonora gold project*”, Managing Director Mr Sanders said. “We have quadrupled the gold resource at Leonora over the last three years and there are still extensive areas with shallow untested resource potential; the deeper underground potential is largely untapped”, he added.


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## grace (17 April 2008)

BRR presentation out today, highlighting market cap of only $50oz which ignores all other assets (also jorc not updated for recent results).  Tom Sanders says Cardinia is derisking due to continuity, with high grade, sitting in soft oxide (free dig), weathered to 90mtrs, shallow pit operation.  Cardinia now 3km long and possible extension of another km..  More results to come in on Tonto, Mertindale with 4 drill rigs in operation.

http://www.brr.com.au/event/44765


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## grace (10 June 2008)

Some really good assay results out today, but the market doesn't care at the moment.  Plenty of high grade, close to surface.  Will put the resource well and truly over 1million oz IMO.  Feasabilility study due Mid 2008.

Here are a few of those reported...



> * 17m at 5.2 g/t gold from 6m
> 11m at 10.7 g/t gold from 7m
> 11m at 5.3 g/t gold from 2m
> 2m at 33.9 g/t gold from 23m
> ...




http://aspect.comsec.com.au/asxdata/20080610/pdf/00849483.pdf



> Assay results are also pending from a program of aircore drilling aimed at extending the resource from 2km to 3km in the southern portion of the Cardinia gold system


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## grace (23 July 2008)

grace said:


> Some really good assay results out today, but the market doesn't care at the moment.  Plenty of high grade, close to surface.  Will put the resource well and truly over 1million oz IMO.  Feasabilility study due Mid 2008.
> 
> http://aspect.comsec.com.au/asxdata/20080610/pdf/00849483.pdf




Thought I would share The Speculators comments on this one today as a heap of drilling results are due, upgraded resource and Feasability study.



> I would hang on and hope for some recovery.
> 
> Company overview
> Real-time quote
> NAV.AX , 0.275, -0.010, -3.510%): With a 950,000oz gold resource 240km north of Kalgoorlie, it hopes to complete a pre-feasibility study in the current quarter when its share price may then get a lift provided the gold price holds (as I expect). Navigator’s shares have tumbled from a year’s high of $1.15 to a low of 29.5c and last week closed at 30c.


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## grace (29 July 2008)

Some nice drill results out today, and a little buying coming back in.  Looks like this one should stack up to a low cost, open pit, near surface, high grade operation.  First mining planned for 2009 (late).  Hope the gold price goes into orbit by then.



> Shallow high-grade gold intersections from RC drilling of the Bruno area, located in the northern part of the 3km Cardinia gold system, have further enhanced the mining potential at Navigator’s 950,000oz Leonora gold project.
> 
> Better drill intersections, which in most cases approximate estimated true width, include:-
> 9m at 53.0 g/t gold from 19m (NCGC01561)
> ...




I won't bore you with it as there are 13 pages of drill results.  I think this resource will firm up nicely in the next jorc release.  They don't seem to have any trouble finding gold.  5 mills exist within a 70km radius that have spare capacity.  

Hopefully this has seen the bottom now.


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## Sean K (30 July 2008)

grace said:


> Some nice drill results out today, and a little buying coming back in.  Looks like this one should stack up to a low cost, open pit, near surface, high grade operation.  First mining planned for 2009 (late).  Hope the gold price goes into orbit by then.
> 
> Hopefully this has seen the bottom now.



Could have a little to go grace but should be getting close. Probably relying on a POG steady climb and some stability in the overall markets. MC at $41m and MC to oz au $45, which isn't really cheap for a sub 1m oz au explorer, but doesn't factor in recent drilling results. 

When's a resource upgrade due and for what deposit?
What do they have to do to get into production Capex wise? 

kennas


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## grace (30 July 2008)

kennas said:


> Could have a little to go grace but should be getting close. Probably relying on a POG steady climb and some stability in the overall markets. MC at $41m and MC to oz au $45, which isn't really cheap for a sub 1m oz au explorer, but doesn't factor in recent drilling results.
> 
> When's a resource upgrade due and for what deposit?
> What do they have to do to get into production Capex wise?
> ...




MC of $41 mill  (140 mill shares & options) at 30 cents.

Cash $10 mill (although will be less per quarterly).

MC of $31 mill excluding cash

Have
Gold resource 950 000 plus a new upgrade due

REO deposit (Cummins Range) with initial JORC of 38,400 tonne of REO (1.1 mill tonne of ore) and more with lower cut-off, including phosphate at 10% (most rare earth deposits also have phosphate just like Mt Weld) and uranium at a nice grade too.

Two free carried NI-PGM JV's.

So I guess to value just on gold is a little unfair.

Looking at gold though, plans are for
-  mining late 2009 at 70 000 oz per annum first 2 years (open pit)
-  100 000 oz next 2 years
-  underground as well after year 4 adding to production

I haven't seen any estimate of cost for capex and opex, only to say it will be low.  Prefeasability was due July 08, so that will tell a few things.

There are plenty of options in relation to mills though.  Resource upgrade was due June 08, but as the assays are only just rolling in, I guess it might be this qtr some time.  It is running late.

So MC of $31 mill excluding cash.  I'd put at least $10 mill on the REO/Phosphate/uranium deposit (this deposit is only partly drilled).

MC of $21 mill (attributing zero to other JV's) for 950 000oz is only $22/oz, with a big upgrade due very soon.

Looks low to me, especially if the mention of low cost, high grade, near surface, open pit mines are also shown in the prefeasability study due any day.


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## grace (20 August 2008)

grace said:


> MC of $41 mill  (140 mill shares & options) at 30 cents.
> 
> Cash $10 mill (although will be less per quarterly).
> 
> ...




I think NAV has a little sping in its step now with the appointment of Gordon Galt as Director.  Colonel Tom is good at finding the gold, and Gordon will be good on the development to mining next year.  Just the man they need for the job I think.  I think I'll stick with this one now on the strength of management.



> “At the same time we are delighted to have secured the services of Mr Galt who will bring to the company more than 30 years of mining industry experience, including that as Managing Director of Newcrest Mining”.
> 
> In the past ten years Mr Galt has worked as Managing Director of companies engaged in the development and operation of large resource projects and is currently engaged in funds management and corporate advisory work. Dr Trench described the appointment of Mr Galt as a natural progression as the company moves towards development of its Leonora gold project that is currently at pre‐feasibility stage.
> 
> ...






> 1998‐2000: Managing Director of Newcrest Mining Limited
> 
> Overall responsibility of Newcrest’s business interests. Moved Newcrest in to ASX 100 in December 1999. Improved profit from $174,000 in 97/98 to over $60 million in 99/00. Lowered unit production costs for eight consecutive quarters. Significantly improved safety record.
> 
> Awarded Gold Industry CEO of the Year Award in 1999.


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## bowman (7 September 2009)

I've just become aware of this as a rare earths play.

There's not a lot of reference to rare earths in this years announcements, so I assume they are not currently focused on progressing the Cummins Range project?


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## CapnBirdseye (21 June 2010)

Anyone been watching NAV?  

NAV are an unhedged gold producer in WA.  Recently they have been ramping to to a 100,000 oz/yr production.  June is to be their first full capacity month.

Anyhow, they have about 1.7M of of reserves, mostly low grade.  All the infrastructure is in for their bronzewing project.  They are anticipating operating costs costs of <$800/oz and are expected to be reduced over time.

So, considering in-the-money options only (there are a good few options out there.... not sure how to handle these in EV/oz estimates) I'm getting EV/oz of about $47.  Current Mc is about $79M.  

If we assume a POG of A$1350, then they are looking at profits of $55M based on operating cost of $800/oz which management say to be conservative.  

Now, these guys are unhedged.  With a high operating cost this does give some downside risk.  Nonetheless, they seem to be pretty good value on the current numbers.  There is also potential some upside on operations and exploration.  Se their laters presentation.

So, my question is am I missing something here?  These guys do seem pretty cheap to me.  My guess is that  the market may be waiting for them to get a few months of operation in before getting involved.


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## springhill (23 October 2010)

For those with an eye on the Rare Earths scene, NAV are due to spin off a REE based company, focused on developing the Cummins Range deposit, in early 2011. Those with a holding in NAV (at an undisclosed date, late 2010) will receive a capital return in the form of shares in the new company, aswell as a pro-rata entitlements offer to subscribe for additional new shares in the REE company.
http://www.asx.com.au/asxpdf/20101022/pdf/31t9n0cnh3l8wk.pdf


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## Donga (23 October 2010)

springhill said:


> For those with an eye on the Rare Earths scene, NAV are due to spin off a REE based company, focused on developing the Cummins Range deposit, in early 2011. Those with a holding in NAV (at an undisclosed date, late 2010) will receive a capital return in the form of shares in the new company, aswell as a pro-rata entitlements offer to subscribe for additional new shares in the REE company.
> http://www.asx.com.au/asxpdf/20101022/pdf/31t9n0cnh3l8wk.pdf





Great week for NAV on gold front and also rare earth minerals - so good to see this one start to move


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## SilverRanger (23 October 2010)

Just saw an ad on Bloomberg TV about this company, seems like they are quite keen on getting some investor attention


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## mr. jeff (23 October 2010)

Looks like it may be getting a leg up ? 
daily chart for 3 months from big charts.


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## Trevor Perth (23 October 2010)

The Company's plans for 2011 were posted on their web site yesterday.
Looks as though they have decided to go alone on developing REO
by offering shares in a new company to existing Navigator holders.
Potentially it could be a brilliant move.  It will be interesting to see how the prices shakes out on Monday.


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## Donga (23 October 2010)

Trevor Perth said:


> The Company's plans for 2011 were posted on their web site yesterday.
> Looks as though they have decided to go alone on developing REO
> by offering shares in a new company to existing Navigator holders.
> Potentially it could be a brilliant move.  It will be interesting to see how the prices shakes out on Monday.




Not sure if this come out, but is link to a good read about the NAV rare earth play... http://www.raremetalblog.com/2010/10/australia-becomes-a-two-speed-rare-metals-story.html. I'm in


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## grace (24 October 2010)

Donga said:


> Not sure if this come out, but is link to a good read about the NAV rare earth play... http://www.raremetalblog.com/2010/10/australia-becomes-a-two-speed-rare-metals-story.html. I'm in




Gosh, can't believe my luck.  I dumped this stock a couple of months ago, only to see Rare Earth's go bolistic ever since.  I've held this thing for years too.


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## RAREARTH (26 October 2010)

Disappointing performance of SP since the Placement so a good buying opportunity now - see discussions on HotCopper


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## RAREARTH (3 December 2010)

The company expects to issue an ASX announcement on the terms of the spin-off of the rare earth asset early next week - stay tuned.


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## TabJockey (4 January 2011)

I went in NAV this morning at 23c in a big way after allot of research over the weekend.

Its currently earning 6c a share from its gold alone. The rare earths that are going crazy in ARU and lyc have not even been rated by the market, once the rare earths are spun off you would expect them to get some market attention. So the more entitlements I get now the better.

Plenty of sellers at 24c, not sure who these people are but this company is worth allot more than 23c right now, and even more into the future.

Holding with a 12 month target of 72c plus RE spin off.


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## TabJockey (12 January 2011)

Anny today very good news. One concern I had was their production costs, which are apparently "significantly improved". Gold production up to 22,667 ounces a quarter which is about 31million in revenues. Costs will be around 23M for the quarter, that's 8M of earnings for the quarter or around 8% of the market cap...in one quarter.

Maybe investors look at the yahoo figures (which are way out of date) and think that NAV has debt and is therefore riskier than it actually is? 

NAV has a net cash position, I expect another 2M of its 13M debt to be retired this quarter. I am not in a hurry for the market to rerate this one, but I will expect some price movement when the spin off is finalised in the next month or two.


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## Logique (12 January 2011)

Yeah looking good TJ.

New monthly and quarterly production records set at the Bronzewing Gold Project.

The spin-off JV - initially 25% of the Cummins Range REE project (into Kimberley Rare Earths - KRE - in exchange for shares in KRE) record date is forecast for March 2011, which as you say should attract market attention.  Especially given that the majority of these shares in KRE will be re-distributed back to existing NAV holders via an in specie distribution. 

Also, under the terms of the JV, KRE will be granted a right to acquire an additional 30% interest in Cummins Range, by paying $10Mill within a four year period... KRE would eventually have a 55% interest in the JV.


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## TabJockey (12 January 2011)

The spin off is a great strategy to get some value for shareholders. I am impressed by the management of this company, they are really trying to get out there and raise awareness plus the mine is ticking along nicely.

But as I see it, the entitlements to NAV holders are just a bonus, I dont rate their rare earths resource as something I would want to invest in. We are not sure if production there would be profitable, even at current prices and if it turned out to be its many many years away. Just because they have a big JORC does not mean that its worth allot, rare earths are not really that hard to find.

So once the spin off is floated, I would expect the market to notice and drive the price up (seem to be very interested in rare earths at the moment) my plan is to sell whatever holding I have in it on this first rally. 

But I will be keeping NAV. Only risk is if gold prices drop <1000. The falling AU will help NAV in the 2nd half of 2011 also.


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## Logique (27 January 2011)

TabJockey said:


> ...I dont rate their rare earths resource as something I would want to invest in....



Still think so TJ?  Look who's come onto the Board of KRE (ASX Anns today).

'..has accepted the company’s invitation to join the board of subsidiary company
Kimberley Rare Earths Limited (KRE, or “the company”), which plans to list on the ASX
in the second quarter of 2011...
...an engineer with recognised international experience gained over a 35 year
career, based mainly in Australia and South Africa. He has managed complex large
scale mining and metallurgical operations and projects with distinction.
Previously, Mr Rowe was the Project Director of the Fimiston Expansion (Kalgoorlie
Superpit), General Manager of the Boddington Gold Mine and of the Boddington
Expansion Project and Managing Director of Bulong Nickel. From 2004 Peter
led AngloGold Ashanti Australia before moving to Johannesburg where he served as an
Executive Vice President for AngloGold Ashanti Limited until his retirement in 2009...'


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## TabJockey (27 January 2011)

Yeah I read it. Great but...we are still at .23 for a reason.


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## Logique (17 March 2011)

ASX Ann today:  Navigator's Cummins Range Rare Earth Project
http://imagesignal.comsec.com.au/asxdata/20110315/pdf/01161810.pdf

Key Points
 Prospectus lodged with ASIC on 14 March 2011 and is available at
www.kimberleyrareearths.com.au
 *Record date for the Priority Offer is 4 April 2011 *(“Priority Offer Record
Date”)
 Record date for the pro rata distribution of free KRE shares to eligible
Navigator shareholders is 16 May 2011 (“Distribution Record Date”)
 Timetable released - details below [see the Ann]


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## TabJockey (17 March 2011)

Logique said:


> ASX Ann today:  Navigator's Cummins Range Rare Earth Project
> http://imagesignal.comsec.com.au/asxdata/20110315/pdf/01161810.pdf
> 
> Key Points
> ...




Whats remarkable about these announcements was how mistimed they where. Who cares about a pro rata distribution on a day when the NIKKEI was down 14%?

NAV management may know how to run a mine but have looked pretty shaky at managing share price appreciation. 65M market cap now for a company set to make 20-25MM profit FY12.


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## ozbecool (30 March 2011)

Can somebody explain 29 Mar 2011 EGM notice in plain language ? I.e. a person who would not want to participate in KRE - will one get any money instead ? Or is it : "if you do not take the 1:10 offer then you will loose out because NAV shares will go down after demerger" ? 

Great thanks


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## Logique (30 March 2011)

Well the main thing is that in December, NAV were proposing that an 'eligible shareholder' would mean someone with a minimum holding of 10,000 shares at the Record Date 4 April. Although I couldn't see where this is stated on the latest 29 page offer document.

So 'eligible holders' will get a priority offering of stock in KRE. After this, there will be a public offering, open to anyone. And after that, once KRE is listed, an in-specie distribution of 1 KRE for each 20 NAV held.

So if an eligible holder, you don't have to do anything. You will have the opportunity to buy KRE shares.

If you want the priority offer and the later in-specie distribution, make sure you have the minimum number of NAV shares by the Record Date.

As for the future of NAV shares post demerger, I have no concerns.   Note my post above: "..Also, under the terms of the JV, KRE will be granted a right to acquire an additional 30% interest in Cummins Range, by paying $10Mill within a four year period...KRE would eventually have a 55% interest in the JV.."


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## ozbecool (31 March 2011)

So if I do not do anything, i.e. I keep holding my NAV shares (way more than 10k) till at least 09 May and do not apply for any KRE shares then I will be entitled to a KRE share for 20 NAV shares for 'free' and if I sell NAV shares on 10 May or later then I still get 'free' pack ?


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## Logique (31 March 2011)

ozbecool said:


> So if I do not do anything, i.e. I keep holding my NAV shares (way more than 10k) till at least 09 May and do not apply for any KRE shares then I will be entitled to a KRE share for 20 NAV shares for 'free' and if I sell NAV shares on 10 May or later then I still get 'free' pack ?



Yes ozbecool, broadly as you describe - except for the date. As on page 2 of the 15 March ASX announcement, the 1 for 20 _in specie_ Distribution Record Date is listed as = 16 May 2011, ie hold shares that evening. 

Don't forget that the whole deal is subject to shareholder vote at the EGM on 6 May.


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## Logique (5 May 2011)

ASX Ann on 3 May 2011 - looks like a popular IPO.

ASX Code: NAV ACN: 063 366 487
ASX ANNOUNCEMENT & MEDIA RELEASE
3 May 2011
*KRE IPO OVERSUBSCRIBED*: Navigator Resources Limited (ASX: NAV) (“Navigator”) is pleased to advise that the prospectus for the IPO of Kimberley Rare Earths Limited (KRE) has been substantially oversubscribed for both the Priority Offer and the Public Offer.

To assist with the extra demand, after consultation with BGF Equities who are the Lead Managers to the IPO, *KRE has issued a Supplementary Prospectus to accept offers for an additional 19,635,234 shares ($3,927,047)* which was reserved under the Prospectus for Navigator Optionholders to exercise options into shares to participate in the Priority Offer. To the extent that these options were not exercised, this capacity remains available. *This extra issue will still not satisfy demand *and there will be a scale back applied to both the Priority and Public Offers.

The Public Offer closing date remains 5pm Perth time on 5 May 2011. The Priority Offer closed on 21 April 2011.
The Directors of Navigator and KRE are very pleased with the overwhelming support of Navigator shareholders and the public for the IPO.
Managing Director
NAVIGATOR RESOURCES LIMITED


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## TabJockey (28 June 2011)

To anyone following this stock, its a complete disaster. Looks like cash costs spiked up, all the debt is due and the company does not have the cash. Forced into a capital raising at 4c, its still probably not a t good buy at current price of 2.9c. If the capital raising goes ahead the shares will be heavily diluted, if the company goes into liquidation shareholders will probably get nothing. Complete wipeout for holders.


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## LifeChoices (30 June 2011)

Bought into this debacle Tuesday at 2.7 cents. For about 10 minutes I was kind of happy with what I had done, then the market closed for the day and reality sunk in. 

Shares were in trading halt today and will open up again on Friday. This company has serious issues.

It was one of those double or nothing sort of punts. However, after a day reflecting on this, it sounds like nothing is going to be a very likely possibility. I could kick myself sometimes for making these high risk trades.


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## Crom (30 June 2011)

I hear you!

I sold my entire holdings at just over 4cents for the tax loss, then with the monies minus the brokerage bought them back plus more.  For a short while I thought nice trade CROM.  Now I'm thinking that this will now be the third company that has gone belly up on me.  The other two were CMR (compass resources), and RNG (Range river resources).

While all three have producing assetts, the problem was and is management.  Make mental note over and over, do not invest in companies with a record of poor decision making, no matter how good the price looks!


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## LifeChoices (1 July 2011)

Oh great, been waiting two days while exercising my "refresh" and "sell" finger and the stock is now suspended pending the release of an announcement. 

This doesn't sound like good news.


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## skyQuake (1 July 2011)

LifeChoices said:


> Oh great, been waiting two days while exercising my "refresh" and "sell" finger and the stock is now suspended pending the release of an announcement.
> 
> This doesn't sound like good news.




Its the cap raising news - see prev announcement re rights issue.


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## LifeChoices (8 July 2011)

Eventful day for NAV holders.

Came out of a trading halt with another revised rights issue - this time underwritten to $20M with no reprising.

Offering a 7 for 2 issue at 2 cents with a 1 for 2 attaching free option, exercisable at 4 cents to raise up to $32.6m. 

I'm not really sure about the meaning of the 1 for 2 attaching free option, exercisable at 4 cents - can someone explain that for me?

After a couple of hours trading this morning the shares were suspended and all or orders purged due to an ammendment of the dates. Just began trading again at 12:15pm.

I managed to sell 77% of my stake in it for 3 cents  a few minutes ago. I'll keep the other shares and consider the rights offer. It's been a pretty exciting ride so far.


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## blackjack (14 July 2011)

LifeChoices said:


> Eventful day for NAV holders.
> 
> Came out of a trading halt with another revised rights issue - this time underwritten to $20M with no reprising.
> 
> ...




IMO
this is a dead horse
no amount of flogging will get it up and running
i didnt lose to much
but i feel the market wont trust this company anymore
badly managed and ticked off by the ASX
mmmmmm


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## LifeChoices (14 July 2011)

blackjack said:


> IMO
> this is a dead horse
> no amount of flogging will get it up and running
> i didnt lose to much
> ...




I think you're right. I got in really late and actually did quite well out of the whole thing. It's a bit DÃ©jÃ  vu for me - similar to my BNB experience went it went down. Wild profits and wild losses. 

I've still got 40,0000 shares with an option to purchase 3.5 for every one for $0.02

If I'm unable to trade/sell my options and holdings on commsec like others are doing, I think I'll just buy them and play it by ear. It's a good learning curve.


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## Logique (25 July 2011)

Given us little to smile about lately. I noticed strong market depth this morning, and looking back in, it seems to have put on +25% to .03 on increased volume.  No announcement there, so will be keeping an eye on it.


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## LifeChoices (9 August 2011)

In the turmoil today  NAV finished up 57% wtf - this stock has sure given me some wild rides.

Last week I purchased 140,000 options for $0.02 - looking forward to see what is going to happen with this.


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## Logique (9 August 2011)

LifeChoices said:


> In the turmoil today  NAV finished up 57% wtf - this stock has sure given me some wild rides.
> 
> Last week I purchased 140,000 options for $0.02 - looking forward to see what is going to happen with this.



Now that is good business LC! Bet you'd like to see the April highs again, $0.20


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## LifeChoices (10 August 2011)

NAV up more today, at one point it was as high 54% on yesterday - currently trading at $0.05 - this is crazy


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## robz7777 (13 October 2011)

NAV in a trading halt at the end of the day with some serious speculation happening.. Nearly 10% of the market value was turned over with 134m shares traded with all the action after 3pm?? 

Don't think it will be too long before it returns to 2c with unless current holders are expecting gold to take off again.


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## Logique (14 October 2011)

ASX anns - price query and NAV's response. There doesn't seem to be any corporate activity or drilling results behind it. The volume yesterday was stupendous, and came late in the day. Suspended at .03

Weird. Perhaps a rumour, or good old p & d.  Be interesting to see how it opens.


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## bucklenut (28 December 2011)

*NAV - Navigator*

Hey there,
Has anyone got any thoughts on NAV. I know this has proved to be a be of a dog of a stock and the company has major issues but it looks cheap at present...


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## reeftip (28 December 2011)

*Re: NAV - Navigator*

They had trouble meeting their budget after starting production in April 2010 so they 
did a 7:2 renounceable rights issue at 2 cents a share. They used this money to pay down debt so now the balance sheet does not look too ugly. 

This one will continue to be a high cost producer - so any downside pressure on the gold price will really hit the bottem line.

They might have turned the corner now, but I think there is so much better value elsewhere than this one at the moment.


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## bucklenut (28 December 2011)

*Re: NAV - Navigator*

Thanks for the feedback  reeftip.. I'll tread with caution with this one...


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## Dougs Antiques (28 December 2011)

*Re: NAV - Navigator*



bucklenut said:


> Thanks for the feedback  reeftip.. I'll tread with caution with this one...




IMO if I was to buy into this one it would be a small parcell to put into the bottom draw for a couple of years
But there are better options ATM to provide a much rosier upside
Regards


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## bucklenut (29 December 2011)

Thanks for the heads up Dougs...


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## fwpike (31 December 2011)

Would someone care to enlighten me as to why this stock trades at a P/E of 2.75 please?


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## blackjack (12 June 2012)

this stock is suspended

the company has seen fit to threaten legal action against people saying things that they deem defamatory against NAV

From HOTCOPPER MODS
Dear members,

Due to legal threats, all discussion on this stock has been suspended indefinitely.

We apologise for the inconvenience caused.

I have contacted ASIC about this company and they are investigating them
Now that NAV have threatened people with legal action the story is compelling

The share price has plummeted to 0.008 cents, it is suspended, upper management heads are rolling, the saga continues.


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## blackjack (13 June 2012)

blackjack said:


> this stock is suspended
> 
> the company has seen fit to threaten legal action against people saying things that they deem defamatory against NAV
> 
> ...




if you have any issue with NAV and would like to join the action then contact ASIC or you can make an e complaint online  
Misconduct & Breach Reporting
Australian Securities & Investments Commission
Ph: (08) 9261 4280 | Fax: (08) 9261 4227 | Level 3, 66 St Georges Terrace, Perth WA 6000


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## blackjack (16 June 2012)

blackjack said:


> if you have any issue with NAV and would like to join the action then contact ASIC or you can make an e complaint online
> Misconduct & Breach Reporting
> Australian Securities & Investments Commission
> Ph: (08) 9261 4280 | Fax: (08) 9261 4227 | Level 3, 66 St Georges Terrace, Perth WA 6000




*ALL comments on the forum have been deleted* DYOR on NAV as everyone else is slowly being gagged


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## matty77 (17 June 2012)

Can you give us a clue what happened?

I did have these on my watchlist, but never jumped on board.


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## System (4 June 2019)

On June 4th, 2019, Navigator Resources Limited (NAV) changed its name and ASX code to AL Legal Group Limited (AFL).


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## greggles (11 June 2019)

This company has done a 20 to 1 share consolidation prior to it recommencing trading on 7 June.






Here's what AF Legal Group is all about according to their announcement dated 6 June:


> AFL (trading as Australian Family Lawyers) is an Australian law firm that practices family and relationship law. The firm provides advice to clients in respect of divorce, separation, property and children’s matters together with ancillary services such as litigation, wills and estates.
> 
> AFL was founded by Managing Director Edward Finn in 2015 after identifying an opportunity to build a disruptive law firm that combines an innovative client acquisition model with a cost effective and scalable operating model in the large and fragmented $1.1 billion family law market.
> 
> AFL’s strategy is to become the largest family and relationship law firm in Australia.


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## Stonkytonk (1 January 2021)

Market isn't aware that AFL has changed hands and is now a rapidly growing legal firm and no longer a garbage-tier explorer.

Rapid and cheap growth is achieved through lateral hiring and new offices, and acquisitions of family law based firms. Each lateral hire costs $50-100k and brings in $1.5M-$2.5M in fees across an 18 month period. Will likely produce $11M revenue this year, up 250-300% YoY.

They're targeting 10% of a $1B market. As more offices and lateral hires come on board, margins will increase. They have a unique model for generating leads at a lower cost. And management have a strong history of organic growth with the COO heading Shine Lawyers previously.


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## Stonkytonk (4 January 2021)

There will be multiple catalysts that will help re-rate AFL higher in the coming 12 months including quarterly market updates, expansion into new geographic localities (they are now present in every state in Australia excluding NT and TAS) via opening of new offices, recruitment of additional lawyers through lateral hiring and announcement of acquisitions (priced at 1.7x the 3-year average normalised EBITDA).

New offices and lateral hires will help drive an increase in profit margins due to synergies of front office marketing within the company as a whole, and also from shared back office costs including IT, admin and financing; thereby increasing profit margins and driving down costs.

FY21 includes new office expansions into Adelaide, Perth, North Melbourne and the Gold Coast and x7 new lateral hires. Canberra Stronglaw was acquired on October 1st 2020 and all unbilled work from this date is pushed into AFL's bottom line. A new referral program was also established with Slater and Gordon in November, who do not practice Family Law, however I am unsure what leads/revenue this will create for AFL.

50% revenue CAGR and 150% EBITDA CAGR from 2017-2020. Record high FY21 Q1 quarter and record monthly revenue and EBITDA in September of 2020. 

AFL management has a history of being well above expectations and ahead of schedule. FY21 goals including presence in all states and territories, so expect new office openings or acquisitions in the Northern Territory and Tasmania within the next 6 months. It is likely there will be another x3 lateral hires, as part of their FY21 goals is one lateral hire per office, and they have 10 offices.

Management have been providing numerous updates so I am expecting within the first 6 months of 2021 to include:

FY21 Q2 update in mid-January
FY21 half yearly results in late-February
FY21 Q3 update in mid-April
FY21 Q4 update in mid-July
2 expansions into NT and TAS
x3 lateral hires
Possible acquisitions


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## Stonkytonk (4 January 2021)

Things to like about AFL:

Company is small with low traded volume and low institutional coverage (DMX Assets is one institution who holds; coverage here: https://www.dmxam.com.au/files/DMXCP November 2020 Update to Investors.pdf and https://www.dmxam.com.au/files/DMXCP October 2020 Investor update.pdf), therefore it may be operating under the radar.
Easy to understand business - Family Law, low lock-up days compared to industry (AFL 79 days vs 176 days of industry average), operate on fixed-fee structure, none of this no-win no-fee rubbish. After a specific number of days (I believe 60), if fees have not been paid, the contracted lawyer will discontinue work until payment is made.
Predictable revenues - EBITDA, Operating EBITDA and FCF margins are shown in company announcements. Therefore we can extrapolate profitability of the company for FY21. At approximately $10-12M revenue (my low-high estimate), the company will generate $2.0-2.4M NPAT for FY21, assuming 20% FCF margin. Unaccounting for synergies between front of house and back office, margins could increase anywhere to 20-25%, resulting in $2.5-3.0M NPAT in best case scenario. At $28M MC, expect pricing of 13-15x FCF on FY21 results.
AFL is the largest specialised Family Law in Australia, and has the advantage of being the first-mover in Family Law in Aus with no other national players.
The company is capital light, as mentioned above, it costs AFL very little to acquire new lawyers via lateral hiring and to outfit new offices. And in return, new lateral hires return $1.8-2.5M over an 18month period (however this occurred in Sydney and Melbourne, so may be lower for other localities including Adelaide, Perth, GC etc).
Cash flow generation is predictable with the company being capital light. FY20 cash flows were $1.6M with $1.5M being banked as of 30th June 2020, highlighting the significant cash generating ability and capital lightness of its operations.
Owner/founder operated and management have previous experience in growing law firms (Grant Dearlove as acting CFO of AFL, who worked in Shine Lawyers).
Strong capital allocation through (1) organic growth, (2) lateral hires and (3) acquisitions will allow for rapid earnings growth and multiple expansion, helping to catalyze a share price re-rating.
Goals for FY22 will involve moving into funding services and pre-nuptial agreement type services, expansion into wills and estates and assessment of larger scale acquisitions, all possible as a result of a rapidly-growing, capital-light, highly cash-flow generative company.


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## galumay (23 January 2021)

Been doing a deeper dive on AFL, might look to take a position in my personal portfolio.


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## frugal.rock (23 January 2021)

Vultures...

Your onto a winner, I would say.
Statistics would say they should have an abundance of clients for a good 12 months or so...


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## Dona Ferentes (23 January 2021)

frugal.rock said:


> Vultures...
> 
> Your onto a winner, I would say.
> Statistics would say they should have an abundance of clients for a good 12 months or so...



Have a relative in Family Law (= separation and divorce). She has a standard speech
"_As your lawyer, I'm $600 an hour; the lawyer on the other side is $600 an hour. The CDs you are fighting over cost $10 each. Work it out; make a decision._"


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## galumay (23 January 2021)

Dona Ferentes said:


> _Work it out; make a decision._"




Good advice, usually ignored sadly!  Which is why your relative still gets to make the speech!


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## Dona Ferentes (23 January 2021)

galumay said:


> Good advice, usually ignored sadly!  Which is why your relative still gets to make the speech!



There's money in acrimony 

and the other aphorism; _"when you divide things 50:50, you don't end up with half"_


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## Stonkytonk (11 March 2021)

https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02352509-6A1024101?access_token=83ff96335c2d45a094df02a206a39ff4
		


AFL to acquire Watts McCray. Has 5 locations across Greater Sydney and the ACT which have historically been AF Legal's strongest growth districts. This acquisition now expands AF Legal into complex large estates and asset distributions.

Watts McCray generates $6M in revenue per year, and AF Legal generated $8M in revenue in the last 12 months. So early estimates for FY22 revenue will be $15M assuming ~30%.

Total consideration is $0.375M upfront in share consideration, and $1.125M in deferred share consideration across 3 annual installments subject to performance conditions. 

Acquisition will absorb $1.5M debt facility paid for with existing cash and proceeds from rights entitlement. Therefore this will be completed on a cash free and debt free basis.

$1.5M total consideration for $6M revenue = bought at 0.25x sales.

AF Legal trading at 0.505c, fully diluted, resulting in $36.1M MC. Trading at 2.5x sales without any organic growth for FY22 and that figure does not accurately represent FY22 revenue due to newly founded offices which will take 6-12 months to generate revenue scale, as evidenced by initial Sydney and Melbourne offices.


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## galumay (11 March 2021)

My first read of the announcement it certainly looks like a good fit for the business. Pity they couldn't wait until after the SPP to announce, I was hoping to miximise my allocation, will likely be heavily oversubscribed now!


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## Stonkytonk (11 March 2021)

Whether or not it will be a good fit will be seen come reporting time for shareholders, however one for thing for certain is that this will be acquired cheaply. Hopefully there will be similar Rev/EBITDA/FCF margins and will scale well. 

I trust Grant, Ed and other management's judgement on the future that they are choosing to go as they are aligned with shareholders in terms of holdings. So a win for shareholders is a win for their own pockets. So far they've done everything right, raising at high multiples and buying acquisitions at low multiples.


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## galumay (11 March 2021)

It will take a bit longer than that to confirm, but based on the published numbers I think we can be reasonably confident. 

I am still nervous as I am not a big fan of roll ups generally, and legal ones in particular have been spectacular destroyers of shareholder value. (I still have butt hurt from SHG.)

I will take up my full allocation in the SPP and apply for extra, it still leaves me with a relatively small position, which I feel is appropriate given the very early stage of this business. I dont normally invest in businesses this early on, probabilistically it does't make sense, but I made an exception in AFL's case. Its also in my personal portfolio where I am occasionally prepared to take a bit more risk, rather than the SMSF.


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## Stonkytonk (12 March 2021)

galumay said:


> It will take a bit longer than that to confirm, but based on the published numbers I think we can be reasonably confident.
> 
> I am still nervous as I am not a big fan of roll ups generally, and legal ones in particular have been spectacular destroyers of shareholder value. (I still have butt hurt from SHG.)
> 
> I will take up my full allocation in the SPP and apply for extra, it still leaves me with a relatively small position, which I feel is appropriate given the very early stage of this business. I dont normally invest in businesses this early on, probabilistically it does't make sense, but I made an exception in AFL's case. Its also in my personal portfolio where I am occasionally prepared to take a bit more risk, rather than the SMSF.



From memory, SGH made an absolute shocker of an acquisition in the UK, using borrowed money, and wrote it off as nearly a $1B loss. https://www.smh.com.au/lifestyle/the-undoing-of-slater-and-gordon-20160613-gphmej.html

So far this is very different story. And they have proven that they can suitably manage the roll up of acquisitions - see acquisition of Nita Stratton Funk in June 2019, Walls Bridge in Feb 2019, Strong Law in December 2020. So yes, while I am cautious, SGH is a very different tale, and so far they have been acquiring on very cheap sales multiples using *scrip and/or cash, not debt*, and are likely buying depressed assets which are inefficiently run; I suspect largely non-digital, lot of paperwork, with unnecessary additional staff. So they buy these companies which are likely being run at low profit margins, remove the trash in the middle, and incorporate a lot of the back-house operations into the AFL way of operations to dramatically increase profit margins and realise the true value of these assets. We will see hopefully how Strong Law performs over the next 6 months, to whether how correct this theory is.

I think its quite a compelling investment. AFL can expand very cheaply and very rapidly, as shown so far through new offices and lateral hires. Profit margins so far are good and if they can be maintained or increased, then it increases the FCF coming through the bottom dollar. You have the founder of the company being heavily involved and well-aligned to the success of the company, and even stepped aside to let someone more experienced in the legal sector expansion to take the helm. With this acquisition, AFL is now the largest, by revenue, legal firm on the ASX too. There is a lot to like, and this is one of the few microcaps on the ASX that has real potential to vastly outperform the market.


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## galumay (12 March 2021)

Maybe, but caution is wise. Its trading on stupid multiples now, it needs to continue the growth uninterrupted and execute everything very well. Any business involved in roll ups is high risk, and as a result position sizing is critical. 

(its not the largest revenue law firm on the ASX by a long way!)

Your narrative is compelling, but the proof will be in the pudding - and thats still in the oven.

As I said, I have enough conviction to hold a small speculative position, because there is potential. 

Seriously, there are plenty of ASX microcaps with the potential to vastly outperform the market, unfortunately potential is an unrealised outcome, we always have to remember there are many possible paths and many don't follow the narrative.

I hope for both our sakes your optimistic narrative turns out to be warranted!


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## Stonkytonk (12 March 2021)

galumay said:


> Maybe, but caution is wise. Its trading on stupid multiples now, it needs to continue the growth uninterrupted and execute everything very well. Any business involved in roll ups is high risk, and as a result position sizing is critical.
> 
> (its not the largest revenue law firm on the ASX by a long way!)
> 
> ...



I really don't understand how this is on a stupid multiple and I believe you're being blinded by price/earnings ratio. AFL is $26M EV therefore LTM EV/EBITDA is 8x, assuming a 50% EBITDA profit margin as per their normal operations, the NTM EV/EBITDA is 3.5x. LTM P/S is 4x, while yes this isn't considered cheap, this is not out crazily of the question for a company growing organically at like 30%+ pa, and NTM P/S is closer to 2.2x.

RE largest law firm, apologies I have omitted 'family law'. Which yes, they are the largest listed family law firm on the ASX.

If this is currently being valued at 4x P/S, what is the correct evaluation next year when they report in excess of $15M revenue due to ramping revenues up from all new lateral hires and office openings, plus acquisitions? $60M MC/~73M SOI diluted = 82c

There are many people on other forums who I have discussed this with, who also see this value.


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## galumay (12 March 2021)

EBITDA is bull**** earnings at the best of times, AFL are particularly egregious in this case, they have 3 different types of EBITDA in their reports and it ends up being a proxy for revenue because they remove so many fixed costs, read the notes and footnotes carefully and you will see what i mean.

They are the only listed family law firm, so thats meaningless.

P/S is a pure stonk metric & even more meaningless than EBITDA. 

If you know what companies are reporting next year, then I am not sure what you are doing bothering posting on forums!

The world is full of people who mistake narratives for value, or have insufficient understanding of financial reporting to be able to calculate a range of value.  A consensus about a business is a red flag for me, not a confirmation.

Despite all that, I think there is a reasonable chance that AFL can make the business plan work, but if you dont understand and account for the risks involved in roll up models you will burn a lot of capital learning. Its not a given, and the downside is significant. 

The reality is the business is far to young to assess its true value and potential. We cant look thru meaningful ROIC or ROIIC metrics to understand how the roll up model is performing and whether capital allocation is prudent. This really matters in finding great businesses. As said, I am prepared to risk a small amount of capital to have a toe in the water incase they do execute and it becomes what I would consider a long term investible business. I repeat, I hope your narrative & optimism plays put for both our sakes - and then you can say you told me so!


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## galumay (16 June 2021)

AFL announced today that the Watts McCray acquisition is finalised and that the business is tracking inline with their expectations, given that the results for FY2021 have been largely telegraphed, subject to any hidden surprises, my sense is it will be probably 6 to 12 months before a clearer picture emerges of the value of the business and whether it can execute the narrative while controlling the costs and avoiding poor capital allocation decisions. Happy to continue holding at this stage.


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## galumay (23 June 2021)

I see AFL have acquired another small family law practice in Melbourne, deal done with cash, some hurdle payments to come. Wont be a big impact but it all helps if they can continue to get the scale advantages and the execution is on point.


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## galumay (24 June 2021)

Correction - Its not an all cash deal, its 50% cash, 50% shares, shares will be issued under the less than 15% rules.


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## galumay (30 August 2021)

AFL released FY 2021 results today and the market didn't like them, a massive reversal of last half's profitability and a big loss for the full year.

 I have had a bit of a chat to a couple of fellow investors and I think they are right in pointing out that while the results are worse than the company had suggested from guidance, there are some mitigating factors.

The two acquisitions in the half have impacted negatively on earnings - the costs have all flowed through but any revenue has been slow to come in, there were some staffing issues as well at the start  of H2 that didnt help with the expenses and the previous 2 quarters cash flow had been particularly strong and the cycle of working capital caught up this time and detracted from the operating cash flow.

I think the promotional management style hasn't helped, they failed to flag the likely downturn and then chose to ignore it in the AR & investor presentation, instead focussing on bull**** earnings. It probably would have been prudent to outline to shareholders why EBIT, NPAT & FCF were so negatively impacted and why in the particular circumstances they weren't necessarily a good indicator of the financial health of the business.

I was considering getting out based on the annual report, but I have decided to hang in there and see if they can deliver some earning power from the acquisitions and some organic growth to improve the financials.


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## Austwide (30 August 2021)

Sounds like lawyers being lawyers, avoiding any facts unless it suits them


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## galumay (25 October 2021)

More red flags for me with AFL today, released an announcement of acquisition of Darwin firm, Withnalls. Its a 51% ownership deal which smacks of KPG - and is a structure I particularly dislike for the opaque accounting and financials it creates. It also looks expensive for a tiny office with 3 lawyers. Again, a microcap announcing a deal with no meaningful financial metrics, so we have no idea if the business is even profitable. 

My conviction is dropping and it wont take much for me to exit this one.


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## galumay (23 February 2022)

AFL have redeemed themselves slightly in my eyes with the release of their H1 2022 results. Still have concerns about IR with this mob and the bull**** earnings nonsense they fill the front of the report with. Just report the actual financials and leave the accounting gymnastics to others.


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## vonnyvaulx (3 May 2022)

I honestly don't understand why so many people say that AFL has actually redeemed themselves due to the release of their H1 results. Just like someone said above, "we still have concerns about their bull**** earnings." Guys, those are not concerns. Their income is just stupid and has no sense! I consider they don't show their all income, as it cannot be like that. I think they need some better accountants who could actually help them get out of this asshole. Right now, and right here, the league is going throw a terrible period.


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