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).
Only way to go imo is to keep all our eggs in one basket and expand the operations in as tight a geographical location as possible. The nucleus of a transformation of being near term profit making company with huge resources is with us now . The bolt on acquisition of Star was an excellent addition. Profitability from processing the tailings we have in abundance imo is the only nucleus we require for the SP to move up in leaps and bounds . Imo buying other assets from all over the globe will only lead to more dilution , years away from overall profitability and a stagnant at best SP. In other words fools gold . We all have our own thoughts of the best way for BMR to move forward . I will definitely increase my investment here considerably unless the company takes the other path and diversify into other projects that are years down the line from production similar to the MTR fiasco in which case I will immediately sell up and move on. Every one to their own .ATB to all holders here whatever their investment strategy is.
Servantofallah, it doesn’t matter if MTR were to double or treble in share price, it still doesn't mean they would be able to afford to buy us. Sure, they could make an all share offer but that would mean massive dilution for MTR holders. It would probably take a huge cash offer to successfully buy us out and MTR do not have the means.
Like Eric and others have also stated, BMR is well established in Kabwe and authorities in Zambia would probably be against any takeover offer for the company, especially at this early stage.
I would rather see BMR become a profit making company before anyone tried to buy us out. That way we are likely to get an offer that reflects a fair market value.
I would not have been surprised 12-18 months ago that MTR took a stake in bmr in exchange for cash. Things have changed a lot since then though. The funding agreement with ACI means that we no longer need funds (albeit the recent placing was a surprise as it was not necessary ). Mtr's financial position has since changed too. They have put their money in other projects so they are going to have to wait for them to mature before they can make decent returns.
What mtr did to ecr was not very good for shareholders in ecr and I think other companies have become a bit wary of them, imo.
Synergies. The implication being the combination of the two entities would produce more than the individual elements. Here I see synergy being a more effective entity run at lower cost to produce the same revenue. I don't see the contribution from MTR. The costs would be more difficult to control if the reverse took place as MTR would be the greater partner and has a chairman who has built the structure and cost base. The Botswana investment is exactly what it is and it will be valued accordingly by any party wishing to develop. That development is at least 3 years away, possibly much longer. In its current form it remains a risk in value terms and will not achieve its potential value. A scoping study merely suggests potential in a very broad brush fashion.
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