Investment Matters

Company News: Threat Protect, Inidore & Moreton Resources

Threat Protect put out its quarterly activities report. It showed revenue for the quarter of $4.5m, +30% on the prior quarter, and +30.6% ahead of the prior year. In particular the key metric of monitoring revenue was $3.1m, 77.6% ahead of this time last year.  This was due to the substantial acquisitions made in the past two years, and in particular the addition of the Security Alarm Monitoring Service business in 2H18. Encouragingly the business generated +$0.5m of free cash flow (after acquisition expenses, but also before the positive tax benefit received).

Inidore also put out its quarterly activities report. With the decision made to fast track phase 3 development (to reduce risk and speed up delivery time) this result is relatively meaningless as a measure of the success or otherwise of the business. That being said, the sale of $928k of product during the quarter, gives some indication that the business is capable of selling product when it has it. We see the process to develop this next phase as being significantly improved on prior phases, and are happy to see the company engage with well-credentialed project management staff, and construction businesses.  The key news for the next six months for Indiore will relate to the progress of the phase III delivery.

Moreton Resources also released its quarterly report.  It has been a challenging quarter for Moreton as it brings its Texas Silver Copper mine back online.  This mine has had technical difficulty getting the pH levels up to the required mark to start operations, for a number of minor technical reasons.  Whilst frustrating for the business, ultimately it is a surmountable problem that just takes time and a little trial and error.  Once the pH levels are up, cash flow will be imminent and large.  The bigger problem seems to be the Qld EPA, who are proving to be overzealous on a day to day basis.  It must be understood that Texas is the first mine in Qld history to be brought back to life (from the abandoned mines department).  Bringing it back to operations (under Moretons stewardship) has already improved the status quo environmentally substantially and ultimately will provide a pathway to improving the environmental impact of Texas (water usage and management is the main historic problem), and then remediation.  We have no doubt of Moreton’s environmental credibility and earnest desire to improve the environmental footprint of its businesses.