Member Info for Bebeto

RPdard, it will all come out when it's ready but I still think they'll be another producing asset coming to the company's portfolio.

Legalwolf ,. I wouldn't think they'd need an updated MRE.

They will have two options to pay back any debt, one through production and the other through dilution.

Companies only get into real difficulty when the above options are not enough.

Logistics will play a big part on production especially within the heap leach operation.

The chemicals used in a 5k pad will be 4 times more on a 20k pad. Multiple 20k pads and we're talking chemicals needing to be sourced on an industrial scale. It's not like they can just go to Tesco's, we're talking supply chain volume and associated issues.

Potential substantial interest rate rises is the stymie for gold.

After a clever marketing campaign people are now realising this is a slow burner and they're probably looking at loads of other opportunities.

Yes we need more information on AISC,

I'm presuming the AISC in the processing plant would be $1200 per Oz and the heap leach AISC is $800 per Oz.

Combined AISC of $1k per Oz.

I really wouldn't hold them to the 2koz and just use it as an aspiration.

Originally they were quoting 25koz and dropped it to 24koz, they could actually drop it further or raise it.

The company before them had 10koz aspiration.

We know they've used exactly the same data set to come up with 24koz because they had made this statement well before updating the MRE.

The main thing now is the company is going to take on a lot of debt and they have to be able to produce enough gold to more than cover the cost.

Legalwolf, we know to achieve 2koz per month it will be split 50/50 processing plant and heap leach.

We know Goldplat's ambition was 10koz per year.

So they're trying to improve on the Goldplat's 10k to 12k and then add the heap leach to make 24koz per year.

I'm pretty sure they meant capacity as there's 20% difference between two companies looking at the same thing.

When Goldplat plc carried out their MRE,their portfolio was producing 28,000 oz Gold per year and they had £4.59m cash in the bank.

But their MCAP was only £19m

What am I missing?

There's too much emphasis on what RM says and not on what he actually does.

A lot of his speak is marketing and I believe he was a marketing director in a previous employment.

Everyone has been directed to look towards the 2koz per month and away from the potentially 1.2bn share dilution.

The current SP is primarily where it is because of the 440m+ shares already diluted.

I'm glad the upcoming funding will be through debt and hopefully at the next AGM shareholders can vote against them having the authority to drastically dilute us further.

Don't take it the wrong way, I'm just saying I'm not going to hold RM to the 2koz , I'd be delighted with 1750 oz as it's far more realistic.

The 2koz per month is just a sales pitch IMO. Here's my reasoning:

Gold in the ground isn't a constant, it's variable and patchy at best .

Production also won't be a constant, it's variable and patchy at best too. There's always going to be breakdowns, shortages, problems that will affect the production rate.

To date they have not produced 5koz in over a year and want to produce 4 times that per month.

Half the production will be from heap leach and the other half through the processing plant.

Goldplat, the previous owner, they had a verified independent MRE and then came up with the ambition of 10koz per year.

We've done it the other way around , came up with 2koz per month and then had a MRE.

I think when they say 2koz , what they are actually refering to is the rate they could produce at but it won't be a constant.

I'm not confident they'll make 2koz , I think they'll make 1750 oz area.

They were 128 oz short of their 1koz target last year and now they are going for 2koz whilst dropping the grade to 1.5g/t.

Cash depreciates so if they have it they will use it. It's all down to the structure of their deal.

Mickey 1122, that sounds good..

$15m+

They'll probably need $5m to complete current expansion and provide working capital.

That would leave $10m+ to invest.

We know it's to invest because the only debt they'll have is the funding.

Tanzania, needs a lot of work drilling pre-feasability , feasibility etc and a new mine construction would be $30m, so not there.

They are not going to give cash to shareholders or do a share buy back at this stage.

So I'm certain they're going to deploy the remaining funds into an asset(s).

I do feel now if they've only raised enough to finish the current expansion (upto $5m) I'd be slightly disappointed.

I want to see another producing gold mine as in the Align research suggestion. We need another expandable revenue stream.

I'm also expecting more gold to be found in the prospecting license because there's a director on record originally saying 2moz+ and recently saying 3moz+.

The market is currently valuing us at £10 per gold Oz so another 1moz is another £10m to the MCAP.

Where's all the people topping up gone?

I've put enough in and sitting on a loss waiting.

They've got to have a producing asset lined up IMO has to be something tangible to move SP far enough to trigger them warrants.

With that in mind if they generate enough funds from this deal, it would make a producing asset more likely to be next purchase.

There's too many variables to any deal. It's either an agreed price for cash back or physical gold.

The main risk is in what would happen if the production plant has to shut down for a period.

It would either be a placing for cash or placing for cash to buy gold on the open market to meet the repayments.

Yes the funding situation will be concluded this month.

I've said numerous times $5m would finish the current expansion, $10m would give us at least the potential to buy another asset.

When you look at the gold contained just within the mining license, there's well over £100m of profits to be taken over the remainder of the current license.

How much , how long and how many times they'll tap into the cash generative asset we'll have to wait and see.