Member Info for Bebeto

The rules surrounding updating the market are ambiguous, there is not set time merely in a timely fashion.

Therefore (even if the company had a pot to pee in) it's doubtful that anyone would actually take on a libelous case in this instance, as it's likely to be thrown out.

Regarding the FCA, if anything untoward was found and presented to them, they would first decide whether to investigate before doing an investigation, which would take ages before it would come to a conclusion, so shareholders would not probably be informed in the near term.

PKF are going to verify the mine expansion plan and would most likely have to out source this to a qualified competent persons report. This would take additional time to achieve and not as straightforward as the company would like.

We're all just going to have to wait and see how this all plays out, it's noted that in the last two updates there's been no mention of any gold sales.

There is an element of PKF delay but that argument unravels, when you consider, the audited results are meant to be published by the end of October and therefore there's an additional 4 calendar months before suspension.

The audited results are only a few weeks away from being 12 months behind (ask anyone in the city centre lol).

People aren't stupid or gullible, they know that being for suspended for 8 calendar months over an audit is BS.

There's clearly deeper problems.

The Company needs to give transparency.

It's definitely debatable whether rules, regulations and processes have not been adhered to here.

Authorities like the FCA are there to make sure that companies comply, like I said earlier there should already be enhanced scrutiny in GCAT but any serious allegations would require them to carry out a full investigation.

The delays etc doesn't bode well for receiving financing but we shall see.

Yet another little fish refuses to use the filter option just posts to ridicule and make no attempt to discuss the company.

I do think posters like JC are under immense pressure at this time and they are becoming emotionally unstable.

In their previous post, I was mentioned a wapping 7 times, it comes across as obsessive in an overly confrontational tone.

I must stress that it is not me who has put this company (and shareholders) into this situation and it is not me who can get it out of it.

I believe that by focusing on transparency and regular updates, the company can dramatically improve investor sentiment and trust. This is not about being negative; it's about advocating for the best practices that can help all of us as investors.

Recently RM emailed a poster on here and gave an assurance the company would come back fully funded.

I tested the validity of the poster which proved true (same email address that's been on the bottom of every RNS for several months).

A week or so later RM updated the market via RNS and notably had withdrawn the 'come back fully funded' segment of the email.

Make no mistake, this is because and or due to the extended length of the failure to comply suspension, the company is now under enhanced scrutiny to adhere and comply to all relevant rules, regulations and processes.

This is reflected in all of the most recent updates, where you RM was once adverse to providing transparency, now it is contained.

Certain posters have clearly over invested and most likely to have encouraged friends and family to do the same. They can't take criticism of the company's actions very well, even though they know they are well founded.

Nobody knows at this time whether the company will indeed get the much needed funding as assurances from the CEO only gives a limited amount of confidence, the majority of the process will be upto the Lender to decide.

RNS containing a non-binding terms agreement would provide a more substantial basis for confidence.

Official announcements through an RNS are verifiable and reliable. They provide concrete information that investors can trust, unlike informal assurances.

Even a non-binding terms agreement indicates progress and intent. It shows that the company is actively working towards securing funding, which is a positive signal to the market.

They can prevent rumours and misinformation from spreading, contributing to a more stable investor sentiment.

Official releases hold the company accountable to its statements and plans. By committing to certain actions or negotiations, the company can instill greater confidence among investors.

The mine plan audit is very important and I've did a comparison with current production, which gave around 14k oz discrepancy, so we wait and see but they'll be several factors for the discrepancy.

JC,

I'm only on here to talk about the company, I really don't care if I'm blocked or not as people are entitled to their opinions and even if I don't agree with them I'm prepared to respect their views and don't feel the need to ridicule / discredit them all the time or react to the many jibes thrown my way.

The only thing I want from the company is for them to provide transparency, give everyone a clear understanding of the company and not shy away from bad news.

Quarterly updates in the same format, whereby they are all easily comparable.

I expect as standard practice for the company to follow their listing obligations in a timely fashion.

If the company gets the above basics right, it would dramatically improve the sentiment.

I actually said :

'So far RM has delivered nothing material to escape the above situation and only prolonged it. IMO'

Transparency is something material, substantial funding is something material, another partner is also something material. IMO

Having several funders in the background might mean something to you but having a RNS containing a non binding terms agreement would give everyone much more confidence than basically nothing more than hear-say.

Enjoy your weekend

So it's there in black & white, from November 2022 and written by or on the behalf of PKF:

'these events or conditions, along with the other matters as set forth in note 2, indicate that a material uncertainty exists that may cast significant doubt on the Company's ability to continue as a going concern.'

Looks like the company has already maxed out the additional prospectus shares and they'll require another shareholder vote to issue more.

The mine has a small mortgage through a debenture.

Upto 50% of free cash flow is currently being used to repay another separate loan.

The audited results is holding up the potential for further funding due to the lenders ability to complete due diligence.

The Company admits the working capital is very tight and production is intermittent.

They're in negotiations with stakeholders for potential funding solutions and the Company is also looking into an asset sale.

All of the above provides the writing on the wall for a very precarious situation, it's upto you whether you chose to accept this or just burry your head in the sand and live in hope.

So far RM has delivered nothing material to escape the above situation and only prolonged it. IMO

From the audit 8th November 2022,

Bearing in mind that since then the company has raised over £3m and the production has also significantly declined further.

We draw your attention to note 2 in the financial statements, which indicates that the Group's assets are not currently generating substantial revenues and therefore an operating loss has been reported. Additional funding is required to bring the mine into profitable production and as the date of this report, whilst management are confident that these will occur and are in active discussions to secure such fundings, there is no guarantee that they will happen within the required timelines. As stated above in note 2, these events or conditions, along with the other matters as set forth in note 2, indicate that a material uncertainty exists that may cast significant doubt on the Company's ability to continue as a going concern.

Yes, it doesn't take a genius to work out they have raised £3m in just over a year and are dependent on further funding just to continue operations...

RM has painted himself into a corner, well he talked a good job and delivered Sweet FA.

Surprised not many people complaining about the suspension.

I'm not buying it takes more 7 calendar months to get an audit over the line, this all suggests there's deeper problems. IMO

We'll know a lot more about the future direction within the next 6 weeks.

Due to the prolonged suspension of a main market listed company, the authorities are most likely to be duty bound to have a close look at the Company.

We should know how the discussions with stakeholders are going because to issue more shares, it's most likely a general meeting will have to be called.

Substantial funding would most likely require a non binding terms agreement signed.

The publishing of the audited and non audited financials will most likely needed to be completed, in order to maintain the Company's listing.

RM's tardiness meets PKF's tardiness.

Perhaps RM would have been better suited to asking the questions they could answer, unless he's otherwise engaged.

RM has raised £3m over the last 15 months and the Company said in it's latest update

' The Company is dependent on receipt of further funding to continue operations'

This suggests critical financial challenges are maintained within the Company.

People think with the publishing of the financials the Company will automatically complete further funding, the Company said in its latest update

'The delay in completing the Company's audit for the period ending June 2023 (as announced 9 May 2024) has affected the Company's ability to complete the financing'

This does suggest any funding agreements can only progress so far without the published financials and therfore they will be unable to close a deal without them.

The Company also stated

' We have continued to engage with possible JV partners for or on a sale of our assets in Tanzania'

This suggests that the current funding path could take considerably more time than expected and or the funding being offered is much less than previously agreed/asked.

PKF will do there thorough audit and entities like the FCA (due to the prolonged suspension) will make sure the Company's processes are followed correctly.

Unlikely this will return anytime soon.

Unlikely to return any time soon.

UK Listing Rules

Listing Rule 9 (Continuing Obligations): Requires listed companies to maintain high standards of disclosure and transparency. It mandates timely publication of financial reports and disclosures of significant events.

Listing Rule 10 (Significant Transactions): Governs disclosures related to significant transactions and ensures that shareholders are informed about major changes affecting the company.

The Financial Conduct Authority (FCA) Handbook

Disclosure Guidance and Transparency Rules (DTR): Set out the requirements for disclosure of inside information, financial reporting, and significant shareholdings.

DTR 4 (Periodic Financial Reporting): Requires timely and accurate publication of annual and interim financial reports.

DTR 7 (Corporate Governance): Outlines requirements for corporate governance statements, including compliance with the UK Corporate Governance Code.

The Companies Act 2006

Directors' Duties (Sections 171-177): Imposes legal obligations on directors to act in the best interests of the company, avoid conflicts of interest, and exercise care, skill, and diligence.

Shareholder Rights (Part 13): Provides shareholders with rights to information, to convene meetings, and to take legal action if their interests are prejudiced.

UK Corporate Governance Code

Principles and Provisions: Sets out standards of good practice in relation to board leadership, effectiveness, remuneration, accountability, and relations with shareholders.

International Financial Reporting Standards (IFRS)

IFRS Compliance: Listed companies must prepare financial statements in accordance with IFRS, ensuring transparency and comparability of financial information.

Over six months suspension and the Company is hitting every indicator :

Investor Confidence

Severely erode investor trust and confidence in the company's management and operations.

Market Perception

Negative perceptions about the company’s stability and future prospects.

Financing Challenges

Inability to raise funds, lenders will also view the suspension as a significant risk.

Operational Constraints

Cash flow issues and project delays.

Regularity and Legal Risks

Compliance issues and legal consequences. Shareholders and creditors might take legal action if they believe the company has mismanaged funds or failed to meet its obligations.

The audit process may not have been initiated within a timely fashion as required in following regulations.

RNS 9th May 2024

As part of the Group Audit an independent review of the Kilimapesa 3 year mine plan was required to be undertaken.

Seeing that it's currently being reviewed and we have enough data for the actual Gold production, I thought I'd run the numbers through the computer on the estimated production from the mine plan and compare the two.

Whether the independent review will do this, I've no idea but it would highlight discrepancies and areas to look further into.

While the operational data indicates that the mining and processing volumes are consistent with the plan, the actual smelted ounces are significantly lower than the calculated recovery based on grades and recovery rates.

Estimated production 49,155 oz

Operational production 34,847 oz

So there's a discrepancy of 14,298 oz

While smelting losses are a significant factor, the overall discrepancy between calculated recovery and actual smelted gold can stem from a combination of factors throughout the entire production process.

Losses during processing or smelting.

Inefficiencies in recovery methods.

Delays between recovery and reporting of smelted gold.

The result of the independent review will be interesting.

So I estimate approx just under $300k of sales profit available but if the current AISC is higher it will eat into this and so will the information below :

RNS 14th November 2023

The Company shall make monthly payments and each monthly payment shall be calculated as the higher of US $50,000 and 50% of free cash flow of the Company.

RNS 13th May 2024

The production ramp up from the Kilimapesa Mine has been impacted by various factors and with operations running intermittently the Company's working capital position is constrained.

The Company may have predicted a sales profit of between and upto $600k - $800k at this time.

Heap leach average 110oz per month 330oz per quarter, that isin gold recovered.