Member Info for Bozmo

This is what I wrote at end of March. Few of my anticipated timelines have slipped but nothing too significant as construction wouldn’t begin until financing in place. Off-take 75% done so still think we hit my end June deadline. Think ticking the land access box would settle a few nerves but mining rights have been granted so nothing to worry about, just the frustrating process of SA regulation. On Peel Hunt valuations in my opinion implies £4 share price before GSP. Lot of press last week about Chinese companies investing $10bn in Musina-Makhado SEZ which should work massively in our favour. Worth a read if not done so. I’m still a believer and confident Makhado will happen. The company is as frustrated by share price as us shareholders. “As nobody has posted for some time, these are a few thoughts. i think we start moving higher shortly and maybe very quickly: Everything is going to plan currently, ticking all the boxes although we£re dealing with South Africa so things much not be going as quickly as we hope but we£re getting there and Makhado is definitely going ahead. So what are we expecting in near future? i) Land access to be granted; by all accounts this has been signed off by Minister so imminent; ii) Off -take agreements to be completed by May/June; iii) Financing completed Q3; iv) Vele to be announced as up for sale; v) Greater Soutpansberg Projects (GSP) to be granted NOMR; estimate ETA by end April; vi) North Adit at Uitkomst around end Q3; vii) Second CGA (?) Note: i) Once i)-iii) are approved then no question we£re going ahead. Peel Hunt only have 40% probability attached, and have a NPV of $206m for Makhado; ii) Selling Vele and increasing Uitkomst production with North adit development takes us into self-sufficiency. While Vele won£t officially be announced as up for sale until after the June board meeting maybe it already is?! iii) It£s been noted previously we are speaking with the likes of Glencore, ArcelorMittal and Vitol. Big players. One of these names will help financing. iv) No increase in share issuance to fund Makhado. No dilution. This is important. v) Development of North Adit going ahead regardless; vi) Once Makhado is completed, Peel Hunt estimate company will generate EBITDA of $80m (or ~40p/share assuming no dilution). Micro: i) New Mining Charter to boost Industry; ii) No development in SA mining sector in recent years so prices to remain high; iii) SEZ will boost demand for coal from GSP; Macro: i) Coal prices remain firm; ii) China have lifted overseas investment ban. Have strong demand for clean coal; iii) SARB cut rates yesterday and their model indicates limited appreciated for rand;”

Cheers for that. There’s a board meeting on June 6th so hopefully something positive after that. Selling Vele and we’re almost self-sufficient. Quite a contrast from 2012. I remember speaking with DB at an AGM and a few of his Glencore counterparts were amazed at the turnaround after they expected us to go bust. Everything in SA takes longer than expected and changes to Mining Charter, politics etc have not been favourable. But if we can tick the remaining boxes which we should then we’re in good shape. The low free float means we could rally very quickly. I’ve heard 75% of offtake is done, financing might take little longer, funds from Vele would help. Lots to look forward to, I just hate waiting.....

I think DB is frustrated by share price like the rest of us and by regulations and red tape.

Chinese government lends support to Musina-Makhado SEZ Government is making good progress in the establishment of the ferroalloy industrial park at the Limpopo-based Musina-Makhado Special Economic Zone (SEZ), as a result of the support of the Chinese government, Department of Trade and Industry (DTI) SEZ deputy director-general Sipho Zikode said on Friday. “I led a delegation to China a few weeks ago and we met several Chinese companies which showed an interest in investing in the Musina-Makhado SEZ. These engagements have borne fruits because today the Limpopo Economic Development Agency will be signing memorandums of understanding (MoUs) with many prospective investors,” said Zikode. As part of the international investment promotion and marketing of South Africa’s SEZs and industrial projects, the DTI signed an MoU with China's National Development Reform Commission in 2016. The agreement focused on specific projects such as investment promotion, industrial infrastructure, mineral processing, manufacturing and human capital development. “The Chinese have committed to a ferroalloy smelter, coal-fired power generating units, infrastructure and supporting facilities at the Musina-Makhado SEZ and we are impressed that this commitment is bearing results,” he noted.

http://m.engineeringnews.co.za/article/chinese-government-lends-support-to-musina-makhado-sez-2018-05-25/rep_id:4433

Information posted below was from Bloomberg and is current as per last filing. Next Friday we should have report as to who bought/sold on the JSE

Where you looking?

Shares out 140,879,585 So largest 8 investors hold 83.6% of company

8 biggest holders are: Prudential 23,625,091 Haohua Energy 23,120,879 Yishun 21,413,462 PAF 13,064,381 Summer Trees 12,894,231 TMM 10,750,000 Investec 6,634,525 Arcelor 6,306,672 Total 117,809,241 The company doesn�t believe any of the above are selling. Shares are held very tightly. Small selling is having a large impact on the market.

Bit perplexed about share price so called friend in SA. What I found out: 1) Vele due diligence progressing (been stated here before) 2) issue with Uitkomst being resolved, taking over contractor and now through the dyke which were the 2 issues that led to lower ROM 3) have currently offtake agreement for 75% of total production at Makhado. Working on financing. 4) company apparently not worried about access to land, mining rights grants access so will be approved

Here's a list of reported buyers/Sellers on the JSE in April with their holding. Sellers: Holding / April MLI GEF CLIENT GENERAL ZAR 1,436 -34,991 GUBB PETER JOHN DIGBY 27,958 -23,500 MCCLURE NIGEL 7,500 -7,500 RIMBAULT JOHN MURRAY 6,049 -4,669 MOTOR INDUSTRY PENS FD EQ 18,777 -3,965 CRICKET SETTLEMENT TRUST 15,517 -3,168 FERRUCCI MARCO 66,319 -553 BLACK SWAN SHARES 8,475 -225 GREEFF WILLEM D 2,365 -135 KATSEN TASNEEM 17,566 -91 Buyers: Holding / April BOTHA JOHANNES WILLEM 58,989 23 MARNEY GRANT 1,079 75 SALICK SANJAY RAJPAUL 19,000 400 VAN DE WEG DENZEL 11,777 414 VAN DER MERWE JAN ALBERT 500,457 457 SOLZ BASIL MANFRED 11,000 500 LANCE WILLIAM BRUCE 124,125 661 NEL DEON JACOBUS 2,000 1,000 INVESTEC SECURITIES PTY 47,258 1,300 PIETERS ELSIE CHRISTINA 1,500 1,500 KEYSER EMIL MANUAL 1,796 1,796 KEYSER EMIL M 11,883 2,061 AUTO WORKERS PROV FD IAM 16,651 3,057 VENTER RIAAN 9,835 3,836 PRINSLOO JOHAN 6,000 6,000 HSBC BANK CUSTODIAN 49,620 20,926

Still going up, and up another $1 today. https://www.barchart.com/futures/quotes/LVN18

Why should we be going bust when we made money last quarter? My personal view is by the end of this quarter: Land access process will be completed; Off-take agreements will be signed; Vele will be sold; NOMR for GSP completed; Look at the position we were in when David Brown took over to where we are now. We�re in a great position. Never forget that.

Peel Hunt reaffirms target as 88p (but that assumes don't sell Vele for some time)

Well I think this is now the proverbial gift horse. � Sell off recently was probably someone who knew about Uitkomst sales being down. � That�s not enough to justify the sell off. Uitkmost still returned operating profit of $2m, so net cash quarter-on-quarter is higher which is not to be sniffed at; � AIM caught up with the JSE which is closed today (Freedom Day); � Development of North Adit going ahead and we have stockpile of coal to sell this quarter which should get a premium given current shortages in South Africa; � The other negative yesterday was Makhado. But how much of a negative was it really? There was a rumour this had been signed off by the Minister. This could still be the case as the company aren't involved in the legal process � We need land access but does it matter if this is now or a couple of months. � Project Financing, off-take agreements etc need to be arrived at before we can start building. � We have the Mining Rights, which itself carries right of access so we can get on through legal means; � Alternatively, we could approach farms directly; � Don�t get me wrong this is disappointing. At the AGM they hoped to have process completed by year-end; � We�re still awaiting NOMR on GSP. This is imminent; � I�ve heard from someone in SA that due diligence is being carried out on Vele. � Weaker rand will help valuations;

Think we�ll get our land access RNS soon. Land expropriation process is complex legal issue and doesn�t involve MC Mining itself so they cannot comment until everything completed. If minister has indeed signed this off then can�t be too much longer. There seems to be a few more buy orders getting filled on JSE. A good sign maybe?

Nice to see some volume going through. Seller must surely be nearly done? Agreed, think land claim is signed off, as well as getting mining rights. Tick tock.....

Optimum would be too expensive. Glencore / Exxaro seem to be favourites to buy some of the Gupta assets

DB getting out there http://www.miningmx.com/top-story/32367-mc-minings-brown-weighs-vele-sas-controversial-mine/

Eskom Says Plants Run Low on Coal as Gupta Mines Undersupply (Bloomberg) -- South Africa�s state-owned power utility said it�s running low on coal at six stations as mines owned by the Gupta family failed to meet their contractual supply obligations. The Optimum and Koornfontein mines, which supply Eskom Holdings SOC Ltd. plants, are owned by companies linked to the Guptas that were placed under administration last month after banks suspended services. While the utility said there�s sufficient stockpiles at most of its power stations, the operational issue comes as it faces substantial financial difficulties of its own. �Currently, stockpiles at 6 stations, Arnot, Camden, Hendrina, Majuba, Tutuka and Komati, are low,� Eskom said in an emailed reply to questions. Additional coal contracts for the all stations �are being concluded and will add to the current supply,� it said. Some workers at the Optimum mine have not been paid on time, according to the National Union of Mineworkers. The labor group has urged business rescuers to sell the mines to avoid exposing employees to further uncertainty. �Optimum and Koornfontein are not supplying as per their contractual obligations and Eskom will follow the remedies as per the coal supply agreements to address undersupply,� Eskom said. �The utility is awaiting the finalization of the business rescue plan.� Eskom on Thursday had its credit rating downgraded by Moody�s Investors Service, which cited a lack of clarity regarding the South African power utility�s plans to stabilize its finances.