I took some serious pain in BMR under Alikhani but more yhan recovered by exiting and investing back into MTR when Borrelli arrived..am now building here again but retaining a fair chunk in MTR.. It was my jaundiced view back then that MTR would try and asset strip BMR....I am less negative about the relationship now
I can see what you are getting at, but BMR remains firmly in the driving seat no matter who may make an offer, for the reasons mentioned. With regard to MTR itself, it hasn't the necessary 'anything' to force through a buyout for whatever price. In my opinion. It is also ill-equipped to take on the project at Kabwe.
Alex has painstakingly taken the necessary courses of appropriate action, particularly on the technical side, with Jeremy Hawke coming in, to build up trust following the Alikhani debacle, reset the Company, and gain ZEMA approval on the main project, which has been accomplished via an impressive EIA application. The personnel has changed markedly, the correct people drafted into all areas of the business that required change, to ensure that the project not only be taken to its fruition, but also for BMR to potentially branch out on a global scale, with a developed method for the optimal processing of tailings. As I say, this is a unique method, niche, but a realistic platform from which to generate significant future revenue streams.
I haven't mentioned Star Zinc yet. Lol.
I feel the point here is acceleration. BMR will have its foot down and be fast approachIng the redline on its own lucrative and environmentally beneficial project, long before MTR can be involved in a project of any significance that will be up and running. Or, at best, will be running but still stuck in first gear, perhaps even with a dodgy gearbox.
Plain enough. I would say that most long-term holders here share this view.
I don't think it's a question of eggs in one basket, it's a question of what your basket had in it when you bought it. If the Cafe basket has a shoulder of mutton, sausages and eggs and plans to sell cheesecake you have a problem. We have painstakingly shopped over the years for parts of Kabwe as they appeared on the shelf. When Alikhani started to buy he was a collector of the various parts and to his credit he single mindedly made it his goal to put the various ingredients under one umbrella. The problem was his culinary skills led him to spice up the dish with a concoction of copper assets that were never in the recipe. Then he cooked the books and let his mates sample everything he had sold to his backers. Then he plain forgot the where he was shopping, what he was shopping for and why on earth he was shopping anyway. He was the risk rather than Kabwe assets in a single domain. I'd rather take the risk of the asset asset in Zambia, acquire other resource in Zambia and achieve the dream of making some dollar and benefiting the local community. Spreading risk seems a kin sometimes to diverting attention, funding and drive. We don't want another Alikhani buying spree based on risk aversion when we haven't started conversion of the task in hand.
Hi Bring I understand your reasoning and respect your views. Re a mining resource company investing in Spain . Ask any long term Ormonde Mining investor if they think it is a good idea. The answer would be the loudest shout of NO you will ever hear . Trying to get through Regional Administration re application of permits has slaughtered the company . The years and years of hold ups due to bureaucracy has been much more than an absolute nightmare . One of the few lucky to have made a bit of money there having got in low and fortunate enough to exit on a spike ( made a nice change for me ). Well worth researching in their history to get a decent handle of some of the problems companies face there, ATB.
I am not arguing about individual preferences Nor am I speculating as how Zambian authorities might react, though I tend to think given all work is being managed by a local company owned by BMR...they would not give a fiddlers arse...after all nothing would change..same local management, same CEO...they put up with Alikhani after all The real issue is would shareholders vote for it In my experience of AIM shareholders mainly vote for everything they are asked to.. And the sp is central...shares can be bought /sold around the 5p mark today...whether a 10p all share offer would succeed is possible...no one is offering 10p per share today....and access to Botswana could offer significant long term upside I am not arguing the will happen Just that it could Stranger things have
I hear what you're saying Luton, but if you have all your eggs in one basket and something goes horribly wrong you're screwed. I don't mind having assets in other parts of the world if they are low risk e.g. Spain / Portugal.
I know some of these projects could be years off making money but if things got messy in Africa, at least you'll have other assets to rely on. I think AB has stated that spreading our wings to other countries will reduce risk as a business.
I hope we can operate in Africa for many years to come without any problems but you just never know. It makes business sense to reduce risk, in the same way it's best to spread your investments across multiple asset classes (if only I could take that advice on board myself haha).
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