Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Sold most of my holding after the last Strategic update. Keeping a few back not because I believe in the company assets and its management, lol, but for the potential change in sentiment drawing in a few new punters. Robs expertise is just that, and managing to do it part time like the rest of the board.
The mention of hydrochemicals and helium made me chuckle. Suppose it is vogue. I thought they would go chase gold. The punters love that, but I see some positive response already to the news. Rod has his finger on the pulse!
Now they have managed to turn the bad news about Disko into a positive to string some along for another 18-24 mnths until some drill results are available. I'm sure they'll find something with their flying metal detectors this year to keep the story alive.
So the strategic plan after 4 months of scratching ..something, is they have expanded the remit and the number of haystacks to investigate and which to discard. Unfortunately a lack of funds limits them to a token flyover of Disko for more sites to ponder to drill, while I ponder whether there is anything of substance down there, how long before I ever find out, and how much dilution will I suffer waiting. I wont but you know what I mean.
A fund raise in on the cards. It may be delayed until the end of the year now as they have enough for the current meager plans. But you can't search all these haystacks without cash. They will be expected to have crystalised a real plan of action by then. Can't wait!
Yet the price/demand has crashed and yet to reverse. The US steel mills have been pretty busy over the last couple of years. Europe has and is still very subdued. China is supposed to be increasing production again, but not its property sector - its greatest consumer, and is being threatened with tariffs/sanctions in the West, because it is getting cheap oil/gas from Russia to make its steel. So may not reach previous production levels again. China has a lot of problems and may never recover that capacity. How quick will India/Europe/ROW fill the vacuum and what state will BMN be in by the time $40 kg/V comes back? I agree it will happen, but time is ticking and patient is on life-support. You are a dreamer if you are not worried.
With a credit facility they can limp on, but its all deferred debt added to its other obligations. Sooner or later it will all catch up with them.
There are signs that things are reversing. Lots of orders being generated. eg Arms Manufacturers have the fattest order books they have seen for years. British Steel won a big order from Egypt for rail tracks. Baltimore needs a new bridge, cities need rebuilding. It will all slowly build up demand for steel. But will it happen soon enough to save BMN?
Cant see a reason to buy at this time and you'll probably get them for less than a penny next week anyway. Best wait for the V price to start moving up first.
I'm off to buy lottery tickets with my remaining HZM share money. ATB!
"The termination as of 28 January 2024 of the employment of Mr. Joshua Hughes, Vice President of Exploration, due to gross misconduct. Following an investigation, the Company found that Mr. Hughes had set up a competing business intended to operate in Greenland and, in breach of his employment contract, found that he had (i) misused Company confidential and proprietary information in securing exploration licenses surrounding the Company's Dundas Titanium project, and (ii) sought to conceal certain of these actions from the Company."
Mr Hughes actions suggest there is some value in the project, but IMO no one outside of JAY is going to trust any historic Dundas results now without further drilling.
Time they started extracting value from their existing acquisitions instead of spending on more opportunities in Greenland.
I'm expecting another placing this year (soon!), so that they can drill something, esp if Kobold dont drill Disko. They cant/wont sit on their hands waiting for an asset sale. which could take years.
If the BOD was to be challenged on the two points Ailean rumoured, and they denied it now. Would you be able to sue them if it transpired later that it was true? I would like to hear them deny it ASAP, because I can believe it after that free award, no strings attached, move today.
Unless they have news, its hot air. The price is falling because the BOD is failing. The Market is reacting. No confidence/trust/belief.
They will run of of time and rope eventually unless they start earning. No sign of that, no orders. Only that or news of a real offer will raised this share.
They have been raising cash easily enough over the last few years from insiders, so not worried about administration just yet. IMO, think they were always hoping for a quick sale rather than actually operating it.
Added costs to transport to coast for shipping not helping to overcome lack of interest more locally. Think the Chinese have that sown up, as no orders after all this time.
3 months in and we are stil clueless.
From 20 December 2023 RNS - Michael Hutchinson, Non-Executive Chairman of Bluejay Mining, commented:
"In due course, the new Board will update shareholders regarding the implementation of a new strategy that will focus solely around developing the Disko magmatic massive sulphide project in Greenland."
I interpret this as: "As we are skint and cant afford to do squat this year until we have an asset sale and come up with some ideas or luck, so we are wholly reliant on Kobold to drill in 2024 as agreed in the joint venture."
Would he have stated that if they were still unsure of Kobold's commitment to drill this year or based on naive expectation or AIM directors habit of telling us any old bull for now?
Not a lot of reason to buy or average down at the moment.
There is still a smell over Dundas that needs to be cleared. New boy is going to have to work hard to earn my trust or money.
Dont worry. SPR will advance BMN the credit it needs, at least for another year, when it will assume the whole of Vanchem in exchange for the debt. Assuming they have the financial backing and credibility to offer the credit facility as promised.
Vametco on its own could survive nicely but profits very limited compared to the dreams of old. At least BMN now own 100% of it and have a mini grid after all this time and money.
Meanwhile, I'd wager Orion have started an orderly sale of its shares. Do you think the BEE consortium will continue to hold theirs?