Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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With a six month agreed locking when/if the consideration shares are issued for each tranche of Akelikongo, we have to hope that the expected progress with Orom-Cross will push on the shareprice from where we are at present.
And we don’t know at what price they have agreed to issue the shares at, we know that Rab took their latest slice at a premium
As you were, back to 3.2 to sell :-/
Computer909 - not sure that BRES can afford to slow down at Akelikongo? The terms of the earn in require them to incur certain expenditure milestones within each 6 month period. I believe the first 6 month period is up this month. If they don't meet the expenditure milestones, do they not forfeit their right to earn in?
Personally, I can't see why management felt they needed to do the Akelikongo deal at this time, or on these kind of earn in terms. Its looking like it might be a millstone around the neck. The expenditure payments and the dilution involved are quite prohibitive and how are they even affordable, without a raise. Taken on a lot more than they can chew here.
Also, very clever of the Vendor don't you think? They will basically be "reverse earning" into Orom Cross by getting all these deferred consideration shares from Bres, without paying a penny - in fact Bres will be paying them!!! All imo and DYOR.
Also mr freind kevin needs a placing on aim as he has converted an old six transistor radio into a cold fusion device to produce unlimited energy, honest guv!!
Anyone have suggestions how to get into the aim gravytrain? I need to raise circa5mill to assess a local swamp for a massive potential methane resource.
Could be in-production in 50 years will give myself options to buy very big house in france and lots of cash and raise more once ive spent it all ooooh and just found another billion dollar resource of mould in bathroom
Always the same in these aim shares management never buy no matter how low price goes, unfortunately sub 1 p will soon be here and still no management buys, free shares for the boys nothing much to lose
Have to admit, not liking the 5% drop on a daily basis, pretty disappointed we can't hold 4p let alone 5p
Mike already admitted that Akelikongo will be taking a back seat for the moment, so i don't think any further buy in will take place in the short term.
We really do need to see some substantial progress and not the same rhetoric regurgitated though, as at the moment the market is hammering BRES from all sides, £15K sold against £5K bought and another drop of 5%.
The First Equity broker note doesn't really add any weight to the market perception, as they are the "poundland" of brokers
None of the management or the existing large shareholders are increasing their holdings at these 'cheap' levels, which just reinforces the suspicion that its because a placing will be needed, and that represents a better entry point? All imo and dyor.
For me, it's a question of timing. Invest too early into these early stage juniors, and you then get caught up in the dilution, before they finally de-risk the project through a JV, and you can expect some growth. We have discussed before that the BRES share price has not risen in between previous placements, but has fallen. BRES now only has £800k in the coffers. That will be swallowed up by the expenditure required at Akelikongo (see staged earn in terms below). They are currently incurring the stage one expenditure of $250k. I believe the 6 month period will be up this month. So they will need to issue $350k to the vendor in consideration shares. They will then need to spend $500k in the second half of this year, followed by issuing another $500k to the vendor in shares.
IMO, they are very early into the process of securing a strategic partner, so another raise looks almost inevitable?
Earn In Terms for Akelikongo:
1.US$250,000 spent on Project over first six months to earn first 20%. If successful and Blencowe moves to Stage 2 thereafter, US$350,000 of consideration shares issued to Vendors.
2. A further US$500,000 spent on the Project over the next six months to earn an additional 30%. If Blencowe moves to Stage 3 thereafter, additional US$500,000 of consideration shares issued to Vendors.
3. A further US$1m spent on the Project over the next 12 months to earn a further 30%. If Blencowe moves to Stage 4 thereafter, additional US$650,000 of consideration shares issued to Vendors.
4. A further US$1m spent on the Project over next 12 months to earn the remaining 20%
Western comp.s are it seem content to buy from china much like frau merkel was content to buy oil from russia it seems end of nose not yet reached!!
With regards to investment, we should hope there is no shortage of interest from deep pockets.
China for example is committing billions of dollars into synthetic graphite production, which is extremely expensive compared to natural graphite (especially if you look at Orom-Cross where it is lying on the ground !)
https://www.benchmarkminerals.com/membership/chinas-anode-players-announce-3-9-billion-for-synthetic-graphite-projects/
With all that is going on in the world it surely can't be long before western companies look to secure their supply of graphite and when they do capital investment shouldn't really be an issue.
I thought the webinar and latest PR push showed excellent progress and superb value on offer.
Finding a project partner will be a huge catalyst and plus what they have already delivered should bring the share price to a level to enable them to get the warrants away and put cash in the bank. TBH it should be up there now, but clearly for some reason we are not seeing the valuation match the progress of the company. It does seem to come down to funding and people concerned about how a company with a £6m valuation are going to fund a $62m investment. Well that's what the PFS is for. It clearly shows a very attractive project, and they are raising funds against a project with $1bn free cash flows and not against a £6m balance sheet. The pilot and then full production approach will enable them to retain more equity in the project.
In terms of the speed of the project, there is a very clear plan to match production with demand and they are a long way ahead of other potential projects when the time is right to supply the market. There is no point producing more than the market will take and giving up more equity to be able to do that. It's a very well thought out approach to see this through with the largest retained interest, rather than give too much away early doors.
If demand takes off sooner than the current model projects, there will be a queue of companies wanting to get involved to access what Orom Cross has to offer, and with such a shortfall in short term projects to tackle supply issues, the value of Orom cross increases so Blencowe will achieve a better valuation. They are already looking at routes to market, and there is a high likelihood at the right time in the demand cycle somebody will want to secure up their supply chain.
In this current market a company that is underpinned by an cash generative project like this should be a stand out investment opportunity. It's almost certain at some point it will peak someones interest when PI's least expect it and this moves quickly when any material amount is bought on the open market. With these stocks it's all about popularity, and at the moment BRES isn't popular, but it is at the stage where one event can change this significantly.
They're talking to partners now- if you watched the presentation you'd notice that? Doing a sample drill next, this Q3 and getting set up thereafter. They should get a partner. Already got a ii on board. Project is very valuable and the market is fast growing to supply batteries.
Watched the presentation. Great looking project, but I didn't get the impression that the company are looking to accelerate towards production. Rather, they are still 2 years from full production, and seemingly moving at the minimum pace possible. With only £800k in the bank, and no JV deal in sight just yet, it leaves the question of how the company will fund its commitments at BOTH projects without raising again at some stage. Can't see a re-rate happening here until they sign a deal of some sorts, because all the share price moving news that BRES can generate itself is now pretty much other there re Orom, so a deal is what is needed now imo.
Might happen one day. But not any time soon. Made the mistake of thinking the recent promotion might give this a lift but I suppose this is a classic bear market and it won't be cheered.
Unfortunately not Tricky.
Do you see a takeover coming then? Is this levistubbs ramping? Lol.
Back to 3.4p on the bid jeeze you have to laugh or you would cry.
Personally I would snatch the hand off a bid at the moment. Even with the sp where it is I couldn't see it being taken out for less that 10p which would give me a nice amount to invest in my others that have been clattered by the market.
So bad as it would seem, when your others are trading at fractions of their value, then it wouldn't be so bad to have a chunk of money to put elsewhere and given MR's comments about PIs I ain't going to show him any loyalty.
Bit inarticulate! Sorry. Trying to type on the run. Take two. Sounds like the news on the nickel project will come soon. Followed by a strategic partnership agreement for Orom Cross. Export licenses soon after. He implied he will keep us updated with regular project updates for the pilot drill. Worth a listen for sure. Keeping me hanging on in anyway.
Looks like the next news due is the end is-1. export licences and an agreement with a strategic partner. Analyst's target is 59p. We won't hit that tomorrow. Lol. If you're staying in no point being negative every single day. The market is forecast to grow massively for graphite for EV batteries.
Looks like there will be news soon on the nickel project too. Decent presentation. Thx for sharing FG.
Have to agree, in the current market the timelines that BRES are working to, arent to the taste of many that want to see an upward trajectory of the SP rather than us bouncing along the bottom like we have been for months. Realistically the target support level from the company should at least be the 5p they offered Rab.
This is however the timelines that are involved with this type of project, what is important though is that BRES do something to support the SP otherwise as you said the option for any "JV partner" looking with interest at Orom-Cross just looks at a £7 mcap and thinks it makes sense just to snap up the company (and we don't have enough shares in "safe" hands to block that if it comes), China have already started snapped up many non-producing graphite projects in an attempt to control the market.
Have they really got JV partners and Offtake customers knocking on the door, well if we have we could do with securing something in writing and taking that risk away.
More than happy to wait for the end of 2023 if we are going to get rewarded, I won't be ecstatic if we wait that long and we get bought out for peanuts after trusting them with my cash for three years
What's it take to put this on an upwards trajectory again? Very frustrating. Feels like we have only ever had positive updates. even equity raises have often been done at or even occasionally a premium of the SP of the time.
Have we run out of good news to tell for a while and the SP still languishes. I wonder if we become a T/O target? Anyone we try and propose project partnership with will surely look at our £6.5m Mcap and think rather than partner with us they could just buy us and take the whole of the pie.
It just feels that unlike many other AIM stocks this is so under the radar (look at the volume each day) that no one knows we exist. Long term I have every confidence but physiologically I would like to see the value in my PF rather than my imagination.
Here's the link to yesterday's webinar for those that might have missed it:
https://www.youtube.com/watch?v=s-5L5ObpdZM
ATB, FG