Member Info for BillFence

There is no problem mining all year round at New Departure. It is Conjecture that can only be mined for 8 months per year. I have read through the annual report also and I cannot see anything that says that there will not be mining in 2014 anyway (rtg could you let me know the page that you read this on so I can double check) so I do not see that there is any danger of this at the moment. I am disappointed that there has been no new of funding as the company announced that they would get this sorted by the end of December but judging by the chatter on hot copper then the funding is in process. They just need to sort it ASAP and get into production.

The company said in the August 1st RS that they hope to have all the funding sorted by the end of this quarter (which is Sept 30th) so it should be in less that 2 weeks. RNS details here - it is at the corporate paragraph at the end. http://bmz.live.irmau.com/IRM/Company/ShowPage.aspx/PDFs/1092-14677335/QuarterlyActivitiesReportandAppendix5B If they deliver on this is will rocket. I believe that they will and so am buying at every opportunity.

Hi RTG - I know what you mean but this share is all about the funding and as soon as that comes in then we should see the share price going in the right direction for once. Fundamentally, if you believe that the funding will be sorted then this is a no-brainer of a buy at these prices but if you don't believe that funding will come in then it is a bust. Personally, I think that the funding will be announced before the end of this month as the company promised and there are some rumors doing the rounds on the Australian boards that imply it could be much quicker than that. When funding is announced then this share will bounce significantly and when production starts then you will see your 18p back plus more IMO

Hi All, Just back after a lovely month away in sunny Sicily. The clock is very much ticking on BMZ but I still think that we will hear funding news by the end of September and if that news is good then this share will take off. Later this week once I have managed to push myself out of holiday mode I'll do a bit of digging and see if I can come u with any more information. in the meantime, if anyone has heard any rumors please let me know. Bill

You say that funding will never be forthcoming, I say it will be in place by the end of September. Let's see who is right shall we?

However, the most important difference between COOL and BMZ is in the other people who sit on the executive team, the guys doing the work. The most important of these is John Ryan who owned the assets before they got transferred over to Black Mountain. He holds 4,000,000 ordinary shares in the company and another 5,000,000 performance shares. However, the total purchase price paid for the assets was 25million ordinary and 25 million performance shares. These were all transferred into unidentified entities but I am pretty certain that they consist of: “Park End Ltd”, “Cork Investments Inc”, “Texas Energy Advisors LLC” and “Bush Prarie Minerals INC”. These four companies plus John Ryan control over 25% of the company. They all appeared at the same time on the company shareholders list, just after BMZ confirmed that the assets were bought for 25,000,000 shares. All still appear on the 2013 Annual Report. The point that I am trying to make here is that John Ryan has serious skin in the game alongside his associates. They are not going to allow themselves to be diluted out of their shareholding and they hold enough shares to stop this happening. In this sense, their interests as shareholders and our interest as shareholders are identical. Even if Landau just wanted to keep himself on the gravy train with no regard to shareholders (and I don’t think he does for the reputational reasons stated above) then he wouldn’t be able to with such large shareholders wanting a return. As I said before, I think that the Alcoyne funding will be the model for the next funding that comes in and I think that the funding WILL come. The opportunity is just too good for the funders to miss. FYI at, while I can appreciate your caution and your worry about funding I would genuinely advise you to put a small punt in at these prices despite your reservations. No need to go large but just something to keep you happy if/when the funding does come off. I simply can’t see how it will not happen and I think that it will happen by the end of September at the latest. As ever though, it’s your call and good luck either way.

I hadn't seen the COOL information as I have never been invested there, but bloody hell. Ok the company is still there but if I read the RNS correctly then existing shareholders will be all but wiped out unless they take up the rights at 9:1. After this there will be over 7 billion shares in issue in this company. Ouch. All I can say is that I really hope that BMZ doesn't go like COOL. However I can't see that happening, the company has always said that they intend to keep a tight capital structure on BMZ and, to be fair, they have done that so far. I think that the Alcoyne deal will be the rough model for funding on this - a loan with a small amount of equity issued as a sweetener rather than an equity-led fund raising. The reason that I think this is because BMZ has good fundamentals, easy cash generation and is not in financial trouble. After a quick glance at the COOL RNS's their shares were suspended and they had to appoint an IFA for an insolvency review. It also looks to me like Landau came back on board in January 2014 to sort out some sort of rescue package. I know he was a director there before but I don't know how much he was responsible for the company going wrong - I don't even know what did go wrong with COOL, so it would be helpful if you could tell me in a paragraph or so. Regarding Landau and his “touch of death” (lol) I can see what you mean, but these things are cyclical. It was not long ago that David Lenigas was untouchable due to previous failures but now with LGO having struck oil he is once more a hero to PIs on these boards. I think that because of his recent failures Landau really needs to deliver for BMZ or his reputation really will be shot – He needs to deliver some success and serious returns to shareholders to be able to carry on long term in the industry and I think that he will through BMZ – particularly since the share price is so low that the only way is up from here on the slightest bit of good news. There are also some important differences between BMZ & COOL: Unlike COOL BMZ have not debt dragging them down so they can fund themselves with debt rather than having to issue more equity. Unlike COOL BMZ are mining in one of the safest legal jurisdictions in the world. Unlike COOL BMZ do not have to spend a fortune on transportation to get their product to market.

Jimmy & RTG - If you look at my post I have never said that funding is not an issue with BMZ - in fact, I think that funding is the single most crucial issue facing the company. BMZ is a binary proposition at the moment. Without funding the shares will be worth nothing but with funding then they can go straight into production and start generating cash instantly from the silver reserves that they already know are there. The only difference between us all, as far as I can tell, is that I have faith that funding will happen and it will be a good deal (as I maintain that the Alcoyne deal was). Landau may have many faults but being unable to raise money for any of his ventures is not one of them. I'm convinced that he will raise the money and that he will do it before the end of September - as per the quarterly report. My only concern is that the deal done is a debt deal rather than an equity deal as there are only 98 million shares in issue at the moment and I want it to stay that way. Interest on loans will be really easy to service from cash-flow once production starts, but equity can never be got back once it has been given away. Another deal like the Alcoyne one would suit me down to the ground. I just production to start and I want it to start sooner rather than later. Once funding is in place this share becomes a no-brainer - a money making machine that will generate over £65,000 per day in cashflow. It is for this reason that I have been investing at these levels even with the (in my opinion very small) risk that funding might not happen and the share will be a write-off - as when funding is announced you will not be able to buy at these prices.

I agree that funding could be an issue, but I am working on the assumption that Landau has always got funding for all of his projects and 90% of them have been pretty good deals (certainly the Alcoyne deal was good compared to say BMR's funding costs). I think that the company has been a little bit screwed over by Alcoyne and this has set the project back 6 months - but my thoughts are the complete opposite of yours: I think that the mine is such a good proposition that getting funding is inevitable and they will achieve it before the end of September as mentioned in the last quarterly report. I suggest that if you or anyone else are worried about funding then hold of on investing until the funding is announced - but don't expect to buy in at these prices then. I said this to Jimmy No Mates last week as well: As soon as funding is in place this is virtually a no-lose proposition as the company knows that the silver is there and it also knows roughly what grades the silver is there in. The only difficulty is making sure that they focus on the best grades first to being in the most amount of cash as quickly as possible. As you already hold shares I would either use this as a chance to bring your average down but if you lack confidence in the company just hold and wait to see what happens over the next 5 months Definitely don't sell at this stage unless you have to though. Good luck with whatever you decide anyway. I know that I am going to keep buying whenever I can here as I think that serious returns are just around the corner.

W4C - I've had this conversation on here before with Jimmy No Mates. There are plenty of people out there who hate Landau because of Range but that shouldn't blind them to the opportunity that BMZ presents. Everyone seems to forget that although Landau took the RRL share price from 20p to 2p, he was also the guy that took RRL from 2p to 20p in the first place. Sometimes people mess up but that doesn't stop them coming back and doing it right next time - look at David Lenigas. If the BMZ share price was currently 20p then these concerns about Landau may be pertinent. However, the share price in BMZ is so low that the potential benefits massively outweigh the downside. This is RRL at 2p not RRL at 20p. Re your other points: Financing: You are righto say that if there is no funding then this will go pop. However, financing was in place in December and it is not BMZ or Landau's fault that Alcoyne spunked their money. The financing was a good deal too (see my previous posts on this) and certainly a lot better than anything that BMR or OXS have come up with over the last 4 years. Production Delays: Yes annoying, but without finance there is no production. Also, in the junior oil and mining sector there are always production delays, it is just the nature of the sector. For real production delays look at BMR - they have been promising production since the second half of 2010. Over-Inflated Potential Your opinion. Personally I don't think that 8 times the current share price is particularly over-inflated, rather I think that it is perfectly manageable by Feb 2015. Happy to debate this with you if you have anything further to add. I have done by own research. A lot of it and I think that this is one of the very few AIM shares that have a chance of making 8 times investors money in the next 5-6 months. BMZ knows that the silver is in the mine, there is no wildcatting involved, and all they have to do is get funding in place for production to start and there to be zero risk to investors. Landau has always been good at funding and that is why I am in already. Production by the end of October IMO.

Clearly not every part of the mine is going to hold ore at the exceptional grades of 422oz/t that were shown in the channel samples RNS on July 22nd and the average estimate of 22 oz/t is a much more realistic way of going about establishing BMZ’s profitability – but nonetheless the channel sample grades should not be ignored. Why? Because of the money involved. Although the company may well be right in their initial assessment that the average grade of all ore in the mine is 22oz/t this doesn’t preclude the existence of high grade sections such as the 422oz/t in the channel samples and this is where they should be mining first. Even if they only get one day’s worth (250t) of ore at the channel sampling grades then this will still bring in nearly £750,000 mining profit in that single day which will be great for cashflow. Realistic Value Now we get to the crunch. Assuming that the company is correct and the conservative figures of 22 oz/t are correct then we can give the company a discounted cash flow (DCF) value of the following: Ref: Annual mining profit: £14,294,280 / Mine Life: 1.5 years / Shares In Issue: 98,100,000 Conservative Value: £14,294,280 x 1.12(y) (where y is the 1.5 year mine life) will give us a figure of £24,000,000 or a share price of 24.48p per share. I would anticipate that BMZ should reach this within 3 months of production commencing. BMZ needs to get the funding sorted - which according to last week's quarterly report should be no later than the end of September. Then they need to go into production as quickly as possible. Assuming funding is sorted by the end of September an production is started by the end of October then we could be seeing a share price of 24p per share by the end of Feb. How is that for upside?

Return at Grade 11,816g/t (422oz/t) – As per channel samples published July 2014 Processing 250 tons per day would give 105,500 oz silver per day = 105,500 x £11.89 = £1,254,395 Based on estimated costs of $8/oz (£4.75) including transport & toll treatmen) the costs would be: 105,500 x £4.75 per day = £501,125 Mining Profit would be £1,254,395 - £501,125 = £753,270 per day. Assuming that the company’s historical reserves are right and they have 2.5 million oz to mine in New Departure then at this quality of ore it would only take 23 days to mine it out. 23 days x 105,500 = 2.5 million ounces 23 days x £ = £17,,778,600 in less than 1 month, The current market cap of BMZ is only £2.3 million. BMZ would be making a mining profit more than it’s market cap every 3 days.

Return at Grade 1684g/t (60oz/t) – As per samples published in November Quarterly Report. Processing 250 tons per day would give 15,000 oz silver per day = 15,000 x £11.89 = £178,350 Based on estimated costs of $8/oz (£4.75) including transport & toll treatmen) the costs would be: 15,000 x £4.75 per day = £71,250 Mining Profit would be £178,350 - £71,250 = £107,100 per day. Working for 365 days per year would mean that we had 6 months worth of mining 166 days x 15,000 = 2.5 million ounces 166 days x 3107,100 = £17,,778,600 in less than 6 months. The current market cap of BMZ is only £2.3 million. BMZ would be making a mining profit of just shy of £3 million per month, Once production commences then BMZ would make more than the current market cap every month,

Return at Grade 620g/t (22oz/t) According to the company presentation from July 2013 they reckon that thee are 2.5 million ounces on the mine at an average grade of 620g/t (22 oz/t). For these figures I am going to make the average cost of silver $20/oz (£11.89) Processing 250 tons per day would give 5500 oz silver per day = 5,500 x £11.89 = £65,395. Based on estimated costs of $8/oz (£4.75) = the costs would be: 5500 x £4.75 per day = £26,125 Mining Profit would be £65,395 - £26,125 = £39,270 per day. Working for 365 days per year would mean that we had 15 months worth of mining (455 days) 455 days x 5,500 = 2.5 million ounces 455 days x $39,270 = £17,867,850 in 15 months. The current market cap of BMZ is only £2.3 million. BMZ would be making a mining profit of £1,191,190 per month. Once production commences then BMZ would make the company market cap in mining profit every two months.

Announced in the quarterly report today - http://bmz.live.irmau.com/IRM/Company/ShowPage.aspx/PDFs/1092-14677335/QuarterlyActivitiesReportandAppendix5B "Black Mountain is confident that it will complete its financing arrangements in the current Quarter." We will be in production by October and then this thing will fly. If I were you Jimmy I would get in now as you will not get these prices when funding is announced. PS - Jimmy, I bet the funding deal will be better than that which BMR has done and I bet that Black Mountain will be producing before BMR do. PPS. I reckon that this share will be worth between 10-20p by December...

Jimmy, I can kind of see where you are coming from with your concerns about funding and you are right – without funding there will not be production. However, I just cannot see funding being a problem. As to deal –making , doing deals is Landau's forte and he has never had any problems raising money in the past. You also said that the funding deal with Alcoyne “doesn’t seem too bad” but I think you are wrong there – the deal was damned good. The market cap of BMZ is £2.45 million (A$4.4 million). Landau was going to borrow $3million over 3 years at 12% and issue 4 million shares (about 5% of the company). If we had raised these funds by issuing equity then it would have meant issuing another 66 million shares ad diluting the equity massively. I have looked at figures for other small cap company raisings Over the last 2 years Oxus Gold raised £1.44 million in exchange for issuing 70million shares or 14% of the company. There market cap is £10 million so they only raised what the company was trading at. Over the last 4 years BMR raised £17 million and they issued 603 million shares to do this. Their average share price for the raisings was 3.3p which gave them a market cap at the time of approx £45million so they lost out by £5 million in discounts. Their shares in issue is 1,308,420,000 so they also gave away 46% of the company to raise 37% of it’s market value. If BMZ raised money in the same way as either Oxus or BMR then the deal that the did with Alcoyne would have meant issuing at least 66 million shares – probably more like 75 million when you take into account the discount that the investors would want. But they didn’t do that, they borrowed 1.65 million (67% of the company market cap) gave away £100,000 (2.45% of the market cap) worth of shares and £670,000 in interest (27% of the market cap)– total £770,000. Also, as soon as the loans are repaid then the only loss to shareholders is 2.45%. And as soon as BMZ start producing then the loan can be easily serviced by the cash generated. The company did a damned good deal compared to BMR and OXS. It is not their fault that Alcoyne fell over after doing the deal. Equally, there is no reason to assume that when they next raise finance that it will not be the same good deal. I just hope it is soon.

Jimmy, I can kind of see where you are coming from with your concerns about funding and you are right – without funding there will not be production. However, I just cannot see funding being a problem. As to deal –making , doing deals is Landau's forte and he has never had any problems raising money in the past. You also said that the funding deal with Alcoyne “doesn’t seem too bad” but I think you are wrong there – the deal was damned good. The market cap of BMZ is £2.45 million (A$4.4 million). Landau was going to borrow $3million over 3 years at 12% and issue 4 million shares (about 5% of the company). If we had raised these funds by issuing equity then it would have meant issuing another 66 million shares ad diluting the equity massively. I have looked at figures for other small cap company raisings Over the last 2 years Oxus Gold raised £1.44 million in exchange for issuing 70million shares or 14% of the company. There market cap is £10 million so they only raised what the company was trading at. Over the last 4 years BMR raised £17 million and they issued 603 million shares to do this. Their average share price for the raisings was 3.3p which gave them a market cap at the time of approx £45million so they lost out by £5 million in discounts. If BMZ raised money in the same way as either Oxus or BMR then the deal that the did with Alcoyne would have meant issuing at least 66 million shares – probably more like 75 million when you take into account the discount that the investors would want. But they didn’t do that, they borrowed 1.65 million (67% of the company market cap) gave away £100,000 (2.45% of the market cap) worth of shares and £670,000 in interest (27% of the market cap)– total £770,000. Also, as soon as the loans are repaid then the only loss to shareholders is 2.45%. And as soon as BMZ start producing then the loan can be easily serviced by the cash generated. The company did a damned good deal compared to BMR and OXS. It is not their fault that Alcoyne fell over after doing the deal. Equally, there is no reason to assume that when they next raise finance that it will not be the same good deal. I just hope it is soon.

No reply yet. I called the company in Australia yesterday and spoke to a receptionist who said that all of the directors were out of the country but she would forward the email on to Landau and ask him to reply. Apparently he is back in the office tomorrow so if I do not get a response overnight I will call again. I will post here as soon as I hear anything.

I just saw this on the General Section of chat - looks good for us if we can produce: http://tradermc.com/miners-metals-jul-9/

I can’t see what your problem is with Landau either to be honest. He turned a wildcat oil company with a tiny well in Texas a minority share in an exploration license in one of the most dangerous places in the world (Puntland) and a chunk of Georgia that nobody else cared about into a company with a major producing license in Trinidad. It is not his fault that oil was not found in Puntland and it was not his fault that oil was not discovered in Georgia either – that is the risk of wildcat exploration. With a new production focused management team in place Trinidad will come good in the end and all the scuttlebutt that I hear says that Range will sell Georgia for a big wedge of cash. Puntland may even play out ok in time. These are all Landau legacies. If you want an example of how it could have played out without him then look at RMP – all speculation and going nowhere unless Georgia sells and Puntland comes in. The Trinidad deal is what has saved RRL from being RMP and he deserves some credit for that.