In the current market nothing would surprise me. All stocks are manipulated and just now BEM is hoping on good will more than anything holding up the sp. I was absolutely ridiculed a few months back for daring to say this was going back to down to 10p now look where we are. Don't get me wrong I have a lot of money invested in here and have been here for years and want BEM to turn it round. But ffs they are a bunch of ditherers.
What they need to do is get some of there friends to start ramping up the share price or for people to look in the back of their sofas to find some money so they can save us al.
Seems you're not looking forward to the summer of exploration then? Have you have prejudged the results of the KS drilling campaign? The company have said they are funded for everything they need to do for this campaign and you are no financial expert. You say the court case is priced in with GKP is that the same as saying it doesn't matter if they lose?
To complete KS and to complete the 11000m on KN it will need another £4.2m or a further 55 million shares at today's price giving a 25% dilution bringing the SP down to 6p tops and more realistically 5p if we are forced to raise at a discount.
Not good, hence why the falling share price has to reverse and quickly. That is unlikely to happen.
Is a big concern for many AIM stocks but especially those with no cash flow.
BEM are in serious need of a big lift to the SP before the end of Q3 this year and that is highly unlikely.
I have had a look back at updates and you can check out the figures but I see big cash burn for limited drilling and I can't reconcile how BEM can drill another 18500 metres with only £3.7m.
In June 2012 the cash was £5.05m and 4300m of KN was drilled In Nov 2012 the cash was £4.20m and 5549m of KN was drilled (£680 of cash burn per metre) In Dec 2012 the cash was £3.7m and 512m of KS was drilled (£976 of cash burn per metre)
In 2013 there is 18500m left to to drill on KS and £3.7m in cash (That is £200 max per metre)
So I calculate that BEM on cash burn of say £600 per metre for KS will run out of cash a third of the way through KS drilling. Lets assume that there are no further delays and they burn at a rate of £300 a metre they will run out and need another £2m of capital raising to complete KS.
You can forget about the additional 11000m drilling on KN as that will burn £2.2m minimum.
These are all very generous burn rates on 2012 performance so perhaps someone can check out the maths and contradict my calculations as I am no financial expert, but what I see is concerning.
Happy to be challenged. We will get another update on May 31 and it will be interesting to see the cash position.
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