Rainbow Rare Earths Phalaborwa project shaping up to be one of the lowest cost producers globally. Watch the video here.
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Jandaga offloading a few more? Probably skint?
According to mike the total cost with drilling (optional ) is $11.5m as $1.5m of that is paid to the driller in shares - the DFC quote also included drilling, this is optional bit so DFS = less the drilling costs
All source funding DFS cost has been stated by the the DFC as $11M
https://www.dfc.gov/sites/default/files/media/documents/9000116316.pdf
Maverick some of your numbers aren't adding up
Thanks for sharing that Mav.
To be fair it is not a case of misinformation as the company actually stated that the DFC $5m represents "40% of the overall DFS cost" hence the reality is the total DFS cost is indeed $12.5m based on this company statement in the half year report.
It is very useful however to get the further context to provide some clarity.
Hey Guys
Seen some wild numbers in here so I had a chat with Mike on this
The DFS cost is not $12.5m
The cost will be $9m which is what they need to fund and then there is a further optional drill programme the company want to do to add significant JORC Resource roughly $2.5m but it is as I said optional when they are ready
the maths as I understand is as follows
$1m business had at DFS kickoff plus $0.5m African syndicate Feb and $5M from DFC = $6.5m so a shortfall of c$2m
Mikes own words are we will continue to raise along the way (as and when required which isn't right now) with the right parties "certainly not retail at a big discount"
Mike has said this multiple times and there are multiple parties who can fill the gap as and when BRES choose according to Mike and I recon this is because he thinks the SP is silly cheap and will likely do it higher
The drilling would only be $1.5m as the driller will accept BRES shares with a lock-in and again this is when BRES wish to do it
Lastly Mike has confirmed and (has on interviews) they are talking to multiple strategic parties - any of which could easily fill the $2m but Mike wants to onboard those at the right time and limit dilution
I hope this helps - I hold a decent amount of shares hence why I can get to chat to Mike - he's conscious of mis-information and sees the BB's !
Any questions I can certainly forward them!
Thats what I am wondering with what might be coming... with the spread back at a very cyncal 15%
COO Iain Wearing at American Energy Technologies Co - https://x.com/BlencoweRes/status/1803334446646513906
I notice in the half year report the mentioning of "military grade" graphite, now a tweet about "Department of Energy" and "Department of defense".
Interesting
I trust that people are concluding the DFS is $12 based on the following comment (taken from half year report):
"This is a US$5 million grant awarded to Blencowe to assist with DFS costs and it is with pleasure I note that Blencowe is the first pre-production graphite company to receive such a grant from the US Government. Aside from the obvious advantages of having approximately 40% of our overall DFS costs being funded for free the credibility of both our Company and our Orom-Cross project are both significantly raised by having a partner of this calibre. Blencowe wishes to state once again our appreciation to DFC for this grant and all efforts will be made to deliver a first class DFS as a result".
Therefore, $12 x 0.4 = $5m
So that leaves $7m remaining, toi fund the whole DFS. What people arent grasping here, is that the DFS started in September 2022:
https://www.mining-journal.com/exploration-development/news/4072045/blencowe-starts-ugandan-orom-cross-graphite-dfs
Since September 2022, BRES has already invested a substantial amount into the DFS, including the 600 tonne shipment to China. We are potentially within 7 months of the DFS completing, and as such, I expect that there is only a reasonably nominal amount of additional capital to find, say $2.5m from BRES side.....queue Strategic Investor.
However, that said, MR has already spoken to a number of Korean banks (note, Korean banks, not Chinese banks), about funding. I think this is important as it will provide debt (not equity funding). I do expect that MR will raise further funds (with IIs) along the way, but dont expect these at lower than 5p and most likely at significantly higher (note warrants are at 8p), which would provide additional funding too. Also, MR got the funding terms at 5p when the SP was at 3.8p, so that reflects the appetite for those want wanting in.
I also think that some dont fully appreciate the nature of the first offtake. This is non-binding, of course it is, it has to be because BRES doesnt yet have a mine. Also, this agreement is likely to come into place in about 18 months time. So those suggesting that an agreed price or proce range should be set, are taking rubbish because BES doesnt have any control whatsoever on the price of graphite 18 months down the line. We have seen the erratic price of Lithium over the past 18 months, so why on earth would BRES comit to something that they have no idea about??
So what is the use of a non-binding offtake agreement and why is it so important?
Ju,p back to the funding question, what is the one thing that banks and financiers are likely to ask for when offering terms for finance? Erm......any orders in the bag? Well yes we already have a non-binding agreement in place with a huge graphite company for 15k tonnes pa. That would provide some comfort to me.
Secondly, it validates the product quality and the network that BRES has. I am a big holder of BRES, and I am very relaxed and looking to ad
My understanding from the company is that they are looking at incorporating an additional strategic investor alongside the African investment fund which is one reason the publication of the prospectus has been delayed, I don’t think they have any problems raising any amount of cash they need, and as long as they aren’t having to offer large discounts I’m comfortable with more sticky hand strategic investment getting on board for the long term.
MR said during the FocusIR interview (when asked about the strategic investor, further funding etc) that there's 'a lot of interest, literally from all over Africa to be involved in a battery metals project in Africa'. I'm not overly concerned, he's well connected in Africa (with high net worth investors / syndicates - I think he implied during the interview) and keen to keep dilution to a minimum and has sufficient funds from the DFC to make good progress in the meantime. If I'm not mistaken he has an accountancy background?, I would imagine he's on top of funding and being very prudent, just my thoughts.
Any thoughts on the total DFS cost of $12.5m (from last RNS) and how we fund the gap ?
DFC $5m, SI $2.5m (hopefully) still leaves c$5m to find to complete DFS in next 6 months (as per timetable). Possible reduced slightly if have already self funded some of the 12.5m
I am wondering if this in part relates to the hold up on the prospectus as Bres want the SI to come in for more and at a higher SP. The original plan with the SI was for c20% of the business for only $2.5m; hence if they do need another $5m on top of this it would be giving away too much. Perhaps other plans to fund the gap therefore.
Up nearly 25% from Fridays low, very impressive bounce but still seriously undervalued considering the extent of the discovery, outstanding sample test results, prospects for numerous additional offtake MOU’s in the coming weeks, and recent confirmation of sufficient funding. Far more positives than negatives make this an excellent risk/reward play
Yes it was a great opportunity on Friday, but one that wasn't permitted. Literally, was trying to buy volume for hours and kept moving my limit above the offer, eventually got done and long term I'm hoping I'll be very happy with the top-up
So now haven taken an easy profit the MMs push the spread back up to 11..111% any one surprised by that given recent past??
five digits in a row.... that's interesting in another way
come on BRES
Very interesting day on Friday. Clear effort to push shareholders into accelerated selling. As many have already pointed out it was near impossible however to buy on the dip and to pick up any size you literally had to be part of the move to push the spread upwards.
Will be interesting to see if this tactic is executed again in June or if events on the ground overtake and we convincingly push through the 6p.
Did I top up sub 5p? No, but I did buy 20k shares at 5p. That's all those snakes mm's would let me buy...
If you sold today and contributed to the drop - I thank you from the bottom of my heart.
Korriban
just seems to typical market we are in lazy MMs not letting the share go up as it should have done already. then let is go up a small amount and then push it down futher.... rinsing the punters basically
same thing on KOD of late as well :(
not selling or buying come on BRES true market value please
Have to say I did take advantage of the dip and topped up
People need to learn how to read an rns properly & understand how MM's play their games. People sold & this was 12% down when I work up (late might I add at midday or round about) now it's only 6% down. No doubt these people sold for a loss & will repeat this elsewhere or buy back in here at a higher SP than they had before. I've held it's been up above 6p down to 4.5p & back to attacking 6p this is what markets do.
The same pathetic fear / greed we see in many shares now... MMs push down and them lemmings sell... people are me are no buying any more shares.. pure stupidty
Spoke to CEO this morning
Regarding the prospectus it'll come when required, the fund who are going to invest are completing DD and Blencowe will bring them in when they and Blencowe are ready - this is the only need for the prospectus as it brings them in over a certain threshold. Mike also wants them at the right price ie higher.
Mike says he doesn't understand why the market is dwelling on this right now as they have plenty of cash and have another tranche coming from DFC shortly (I should imagine on completion of test work milestone)
The MM's have played this today clearly as they still won't let you buy any meaningful amount sub 5p!
Interesting reactions and views on the update. Clearly, the bears have it today.
Will be interested to to see if we settle below 5p.
I must admit the underlying tone was not quite as positive as more recent RNS'.
The market reaction for me is a realisation that Bres need to raise a further c$7m to be able to complete the DFS over the next 6 months. $2.5m was supposed to come from a SI but that has seemingly gone a bit quiet. Even if this is forthcoming it still leaves a gap of $4.5m so where is this coming from and at what price.
Mike has not really put a foot wrong to date but this update did feel a bit thin on the ground re. financing; especially given the 6m or so timelines to complete the DFS.