Member Info for Bozmo

4) CGA acquisition: Still doing due diligence on couple of potential targets. Nothing new but it’s now a 3rd not 2nd CGA. 5) they believe the future’s really bright. Just had the most positive cycle of board meetings since DB and BP joined. I asked a few questions then we continued speak afterwards: He expects Vele to come back into play at some point, especially with SEZ; GSP, of the 3 coal fields, expects mining rights to be granted this year for 2 of them this year, other one in 2019. Local community there have investment with Makhado so supportive but 5-10 year plan; I asked about institutional investors buying in, as that was part of point of the share consolidation. They’re starting to see some interest, they were speaking with groups in March before government land expropriation failed. Obviously no interest after that. DB is very personable and had a good relationship with land owners, and probably down to him we acquired farms. He’s presenting at a mining Indaba in the new year and has number of potential investors lined up. We spoke for around 30 mins post meeting. General catch-up in the main. Chinese still keen on the project and pushing it forward, company seem to have a very good working relationship with members of SA government. I definitely left the meeting with a weird feeling, a belief this is now actually happening. Land acquisition massive step. DB did highlight flow of positive news in recent weeks, which he suggests will continue. It finally looks as though our patience may be rewarded. Happy to answer any questions on above.

Here are my AGM notes. Most will know lot of this but few interesting points. Present: MC Mining: David Brown (DB) and Bernard Pryor (BP) Investors: Me Others: Tavistock, Computerserve and Nomad (Peel Hunt) I’ve been last few years to AGM plus EGM so they know me reasonably well. They definitely had a spring in their step and before meeting started BP had a glint in his eye as stated ‘more good news to follow’. They were both bulled up by surface rights acquisition. Main business of passing resolutions lasted 15 mins. David Brown then gave a summary, I asked a few questions and then we continued for after 30 mins after meeting finished. He highlighted during main speech: Incredible progress been made over last 18 months against strategy: 1) Uitkomst: ROM going up y/y. Dealt with equipment issues by purchasing mining company, expanding additional funding, seeing benefits from increasing maintenance plan and new roster system. Favourable pricing improving quarterly results. 2 initiatives: a) plant modification leading to 3rd production stream, increase ROM volumes by 10-15%. Expected January 2019; and b) development of N Adit, testing q1 2019 and get IWUL granted q1 leading to increase in ROM by 20%. Expected 2020; Uitkomst has been incredibly profitable, in 24 months time these developments would see Uitkomst cover all company’s overheads by itself; 2) Mooiplaats: Sale made and all agreements in place so will receive balance of sale proceeds; Putting 1) and 2) together, i.e being in production, reduced liabilities and revenue coming in means they are very credible, viable business and banks giving the various loans financing. Definitely a sea change on that front, which leads onto: 3) Makhado: Super-excited about this. Acquisition of 2 farms has led to this move sharp higher in share price and more to follow. Debt financing framework to be agreed by February . They then plan to present plan for execution to the board in March. He expects a significant increase in share price when plans are released. Before then, they anticipate they will have another off-take agreement signed for hard coking coal before end of year, hopefully in next two weeks with ArcelorMittal. He said Arcelor in main AGM presentation so that’s public information plus they’re a share holder so expected they would have off-take agreement; Very confident the last remaining regulatory piece, the Environmental Authorisation appeal will be overturned by February; Funding has been underpinned by marketing of hard coking coal. Cash generative very quickly, will be predominantly debt financed. New CFO (Brenda Berlin) has provided fresh impetus in terms of debt funding; They’ve got on the Lukin and Salaita farms and checked everything secure etc in terms of fencing and security. They can get on with geological testing etc in February; 4) CGA acquisition: Still doing due diligence

20:1 consolidation so that’s correct (I’m afraid)

It’s a great sign there’s no newbies pumping this on here today

Another couple of days like this and might be on-side!

Happy for this to chug higher without getting much attention

That’s my point, should be above 60p, more like £1

.....where we are now, to where we were at this point last year, and then explain to me why our s/p is 50% lower?

The Peel Hunt view: This has come far sooner than we had anticipated and removes the final uncertainty over the project timelines. Gaining access will allow the final geotechnical drilling and other infrastructure related works to begin and also removes the final impediment in its financing discussions with lending groups.

Great news re: Lukin and Salaita

Now gets interesting....

Hemmings, I can’t really say a lot. From my update on 27-Sep “DB the most bullish he’s been since he joined the company 6-years ago.”

Anyone coming to AGM? Was only me last year. Saw DB a few weeks ago in London and think will be worth attending. That’s all....

If it’s not on the website then I probably can’t help you

That is correct.

Video worth watch too: http://m.miningweekly.com/article/mc-mining-eyeing-acquisition-project-access-2018-09-27/rep_id:3861

Nothing new or of note in the financials, presentation always going to be more interesting than numbers themselves. Probably worth a listen if you have a spare 40-mins. DB the most bullish he’s been since he joined the company 6-years ago.

I thought the interesting things were:

1) We all know land access has been problematic, but looks like we’re potentially thinking about mining on Makhado, but not on Lukin/Salaita farms. This is first time I can recall them talking about mining without these two farms. They were bullish they would get farms in due course through MPRDA, might just take some time unless make some commercial deal. Would have been nice to get some meat on the bones for offtake/financing;
2) Vele – good location for SEZ. Maybe worth keeping after all. I know someone had been doing due diligence that was going slowly.
3) Reminder that GSP asset is huge – should get Mining Rights within next quarter;
4) Uitkomst great purchase – fund itself for North Adit expansion.

Hopefully I’ll get to AGM in November

Reasonable volume gone through today, see what they say on Thursday. Cautiously optimistic but need to get land access sorted soon

It all appears to be coming together. Land access is what it’s all about. We should never be trading at these levels. Think rerate to 60p quickly. Move not justified given micro/macro. Averaging in but still like most here well offside.

https://www.businessinsider.co.za/the-new-coal-power-station-in-limpopo-will-only-be-used-by-the-chinese-heres-why-its-an-irrational-project-2018-9 Worth a read. We’ll get GSP NOMR soon. Huge resource. I’m beginning to think we’ll get taken out by a Chinese conglomerate at some point. Be surprised if they allow us to be key supplier. How can we be trading at 25p when Uitkomst prob worth 20p on its own. No sense. So much upside.