february 1st 2022 |
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how are you jack it's been a while six |
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understand you could do 250 million plus |
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the next three years so uh i'll go |
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DATE
the next three years
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for 20 stock because this is i mean like |
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again but the last six months have been |
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the digital divide one connection at the |
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because one thing that people intends or |
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there since 1983 where it got uh where |
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for others for i would say at least 30 |
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back in 2011 this is when we started to |
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started with our first odm contract odm |
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contract and it was to deliver 2g indoor |
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something like four thousands of those |
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|
uh uh in uh back in 2011. |
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in 2015 we did the complete shift to be |
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four months after we were standing at |
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that uh you're probably one of the best |
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one out there to build products |
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we were one of the few players |
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you know there's one billion people |
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and uh 4 billion close to 4 billion |
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in 2016 which are which is a radio |
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|
solution starting 2016. starting then we |
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with multiple of the tier one operator |
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|
big players they are in the top 10 top |
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|
15 mobile network operator across the |
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sold over 5000 base stations that have |
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been deployed worldwide so in 15 |
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i happened to be at africa come in 2019 |
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|
meeting that was supposed to last 10 |
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|
minutes finally last an hour an hour 15 |
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TIME
last an hour an hour
|
|
uh areas and also upgrades on the 3g the |
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|
4g the 5g and over the top |
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in africa there's something like 300 |
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million plus |
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everything and we manage it for a 10 |
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uh uh nuran becomes a one-stop shop for |
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|
we manage it through 10 years plus |
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|
for 10 years it's a pay as you grow |
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first product out was called the gsm |
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|
light cell it's 2g |
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yes of course people will say yeah 2g |
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but 2g is what they need |
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and 2g is also what they can afford |
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you power up up to 20 000 people |
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and you cover up to 13 kilometer range |
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the average site 5000 but we've also |
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retained the ip it's called oc 2g oc |
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and of course 2g again but this was for |
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because the satellite consume around 50 |
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so uh 50 plus the 14 64 what for a |
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|
for the first time to |
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|
they did one in 2019 and they're |
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|
currently running one |
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|
this product is capable of doing three |
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|
2g 3g and or 4g at the same time |
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and you can also flip from one g to |
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|
about this one is that it allow the uh |
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|
one example of the type of contract |
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|
first first anniversary |
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|
february 8th last year |
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sign a contract for 2000 sites |
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that might be deployed within 40 months |
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it's a 10-year contract term |
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the contract is for 2g to start with but |
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|
with upgradeability path to 4g |
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|
|
up to 10 million people in the country |
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CARDINAL
up to 10 million
|
|
assuming we're doing five thousand but |
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|
uh over 10 years period is |
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|
394 million usd |
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|
building and operating those 2000 site |
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|
five years are being transferred to the |
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|
remaining period of the 10-year term |
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|
|
revenue one particularity of our |
5.04 |
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|
average it's one thousand dollar usd per |
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MONEY
one thousand dollar
|
|
and this one happens to show |
5.68 |
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|
we're delivering those 2000 site with |
6.0 |
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|
using four different categories and the |
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|
status we're now building one of the the |
5.92 |
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|
|
one of uh the other feature of the type |
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|
|
manage to get 50 a bit from all |
6.96 |
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|
|
three major contracts two with orange |
5.12 |
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|
one with mtn |
4.281 |
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|
|
2492 to be deployed in africa |
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|
|
growing pipeline of over 15 |
5.199 |
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|
|
000 sites |
4.88 |
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|
|
16 months |
4.96 |
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|
|
or over 34 million dollar usd to finance |
6.719 |
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|
|
the market so far so good 50 58 site |
6.801 |
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|
|
rate of 45.9 percent |
6.88 |
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|
|
1800 usd |
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|
|
uh december uh 31st 2021 |
8.16 |
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|
|
one point here the 45 45.9 penetration |
4.88 |
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|
|
taken into account a 24 25 penetration |
6.08 |
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|
|
we are at 45 |
2.64 |
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|
|
penetration rate for example you have 96 |
6.0 |
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|
|
97 percent of the population that has a |
6.0 |
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|
|
in the last uh 16 months and it will |
5.681 |
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|
|
since september 2020 |
6.959 |
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|
|
of progression so 16 months to do all of |
5.601 |
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|
|
so niran wants to achieve in five years |
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|
|
10 000 sites generating 200 million usd |
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|
|
in revenue per year and 100 million usd |
4.159 |
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|
|
organs for four different countries for |
5.281 |
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|
|
over 2000 site we've been shortlisted on |
6.079 |
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|
|
a major rfp with tier one uh with the |
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|
|
tier one mno |
4.88 |
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|
|
for over 10 000 site in 17 different |
5.92 |
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|
|
20 uh 3 000 sites |
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|
|
in our pocket it's 2500 site to build |
4.4 |
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|
|
upon two |
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|
|
so uh we are in the five-year plan |
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|
|
one year done we have 25 percent of the |
7.519 |
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|
|
suspect that we might hit the 10 000 |
5.2 |
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|
|
next two years max so |
2.88 |
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|
|
you is the follow one one |
6.559 |
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|
|
i've selected four players that are |
4.64 |
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|
|
american tower being one of them crown |
5.04 |
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|
|
and the smaller players are trading 8.6 |
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|
|
it's not part of this are trading seven |
5.04 |
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|
|
seven point five times a bit for your |
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|
|
account the 8.6 x multiple |
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|
|
with 2500 site |
4.56 |
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|
|
a reaching 800 |
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|
|
will generate a yearly revenue of 55 |
6.4 |
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|
|
million ebitda of 27.5 |
4.159 |
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|
|
a potential valuation of 36.5 million |
8.0 |
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|
|
currently trading at the dollar 40 |
3.359 |
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|
|
to deliver those 2 400 sites while me |
6.24 |
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|
|
okay first let me let me just |
4.0 |
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|
|
uh ask you a question first so bottom |
4.24 |
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|
|
i mean two billion dollar valuation |
6.24 |
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|
|
you know let's say you get the ten |
3.76 |
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|
|
thousand plus towers uh you know you go |
4.559 |
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|
|
what that would be what uh 200 million |
2.881 |
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|
|
actually no 100 100 million plus ebitda |
6.56 |
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|
|
right exactly 100 million plus ebitda uh |
5.04 |
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|
|
could be you know a two billion dollar |
5.679 |
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|
|
say you get to 100 million shares |
4.0 |
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|
|
uh that would be roughly 20 |
4.64 |
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|
|
we have 2500 sites under contract as we |
5.04 |
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|
|
proposal stage for over 15 000 sites |
5.6 |
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|
|
build those ten thousand site but at |
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|
|
least if we just stop here we have 2500 |
5.36 |
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|
|
sites and those 2 500 sites will be |
5.04 |
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|
|
generating 50 million dollars of revenue |
5.039 |
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|
|
27 million dollar |
4.0 |
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|
|
so we should be trading at 236 million |
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|
|
by five |
3.52 |
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|
|
anything else is going to generate 50 |
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|
|
million in ebitda |
2.64 |
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|
|
27.5 million ebitda twenty seven point |
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|
|
so 50 50 million grows 27 it's roughly |
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|
|
27 million okay yeah uh but that would |
5.04 |
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|
|
be still around 400 million 500 million |
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MONEY
around 400 million 500 million
|
|
uh fully diluted 41 million okay so |
6.08 |
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|
|
that's 10 bucks a share roughly based on |
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|
|
those you know 2 500 towers up is it the |
4.881 |
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|
|
because we will get theirs there's 30 |
4.96 |
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|
|
000 tower to be built in sub-saharan |
5.04 |
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|
|
exactly that's the number one question |
4.32 |
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|
|
it was not ideal to get the first |
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|
|
really is like one of the most essential |
3.68 |
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|
|
it's not like one of these things which |
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|
|
does and the one thing that you that we |
5.2 |
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|
|
population between 15 and 40. you would |
6.08 |
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CARDINAL
between 15 and 40
|
|
has been released from the billion |
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|
|
million melinda gates from the |
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|
|
you know this 50 million plus top line |
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|
|
27 million you know ebitda all that good |
3.039 |
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|
|
with the 10 000 sites under contract |
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|
|
probably within the next 24 months |
6.08 |
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|
|
so on the five-year plan that's like uh |
4.8 |
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|
|
two years ahead of time |
4.4 |
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|
|
uh talking about 120 million to raise to |
7.52 |
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CARDINAL
about 120 million
|
|
do the one the ten thousand sites built |
6.081 |
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|
|
just look at the one we just announced |
5.919 |
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|
|
there was uh to a 14 and a and uh nine |
5.76 |
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|
|
it with six million of equity so they're |
5.76 |
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|
|
they're asking for like 20 25 30 equity |
5.76 |
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|
|
which is a private entity and this one |
5.92 |
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|
|
from 2g to 4 or 5g look like in the |
5.2 |
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|
|
the box to put a new one |
3.12 |
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|
|
uh the next generation one is that the |
5.2 |
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|
|
presentation this one you can turn it on |
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|
|
with 2g then swap to 3g and to 4g |
4.88 |
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|
|
don't see 5g soon though in those |
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|
|
3g and 4g |
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|
|
the four orange |
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|
|
i will say 2022. now i don't have any |
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|
|
one they took seven months to announce |
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|
|
so beginning of september so seven |
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|
|
over it's close to 600 that we're |
4.399 |
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|
|
at 450 sites erected so this is part of |
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|
|
mode in drc we will be deploying 80 |
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|
|
the ground we have three subcontractors |
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|
|
in the rc one in cameroon and we have |
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|
|
selected one that will be part of our |
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|
|
of the 10-year contract does new run |
3.6 |
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|
|
term contract actually so that's uh one |
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|
|
ourselves to pursue those 10-year |
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|
|
we'll be back in just a second let me |
2.8 |
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|
|
for a second |
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|
|
15 really good questions i'm just |
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|
|
hang on one second |
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|
|
second uh apparently the electricity |
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|
|
standby should be coming in any second |
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|
|
like 20 minutes outside quebec city i'm |
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|
|
10-year contract okay |
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|
|
cost of the site is on average 25 000 |
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|
|
usually for five to six years max |
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|
|
our model was showing 25 penetration |
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|
|
rate we're at 45. so bang bang bang bang |
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|
|
asset forever because after the 10-year |
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|
|
september uh august september in 2021 |
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|
|
we were expecting something like 180 |
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|
|
nothing stopping us from doing 50 sites |
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|
|
a month 70 sites a month it's not a |
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|
|
fyi we have three million dollar worth |
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MONEY
three million dollar
|
|
first 120 site same goes for drc |
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|
|
200 to 200 towers per month in drc but |
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|
|
70 to 80 sites a month in drc |
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|
|
fast but we can probably do 30 to |
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|
|
30 to 40 sites a month easily actually |
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|
|
because between the december 20 and i |
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|
|
think january 20 we've deployed we've |
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|
|
developed develop deployed close to 30 |
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|
|
get about eight more questions to go |
3.039 |
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|
|
companies on one power or have you been |
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|
|
operator because if there's one thing |
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|
|
is to favor one or the other they would |
5.439 |
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|
|
because having one or multiple operator |
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|
|
onto one side there's a captive |
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|
|
population of 5 000 people |
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|
|
being 25 30 40 |
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|
|
it will be 25 30 40 |
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|
|
when you expect to have ten thousand |
2.399 |
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|
|
twenty five hundred sites |
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CARDINAL
twenty five hundred
|
|
uh currently so what are these 2 500 |
3.841 |
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|
|
40 months |
3.76 |
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|
|
for drc is 40 months |
5.2 |
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|
|
but by the end of 2022 we should be |
5.92 |
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|
|
finished with the 20 the 2 200 sites of |
6.0 |
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|
|
can you count on your 5g patents does |
4.48 |
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|
|
straight into yeah the 5g patent was for |
4.72 |
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|
|
into those dense area and you have 5g is |
7.361 |
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|
|
but yes we still have this 5g patent |
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|
|
2100 |
3.361 |
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uh 2100 so those kind so that slide |
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have 2100 sites exactly |
3.84 |
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probably three to four different |
2.96 |
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one in uh argentina brazil close to |
4.0 |
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maybe we can probably see the first |
4.88 |
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contract before the end of 2022 i would |
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intelsat to serve uh 62 islands in |
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on a capex mode so one off we're selling |
3.679 |
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have 10 sight probably live before the |
6.0 |
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the next five months you can't do |
4.56 |
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the next five months
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concrete-based tower in two places where |
5.24 |
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work so we will probably have maybe 10 |
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15 site live before this period wait a |
5.761 |
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december and the goal is to have the 250 |
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site running within 24 months |
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uh 250 site more |
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would you say the top three reasons why |
4.4 |
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2021 has been the year for ticking all |
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everything 2022 we're starting execute |
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second thing the market is booming the |
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three major the two major reason the |
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third one we have put together the right |
5.6 |
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see in the next you know 30 |
3.52 |
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next 60 days or so what kind of what |
3.28 |
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there will be a lot of news in 2022 |
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we'll see you in the next one |
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