Member Info for Bozmo

I emailed a couple of people I know at the company regarding GSP to follow up on the statement they made in the August RNS/SENS release where they are considering their options. (For those that are new here, GSP is 5 times bigger than Makhado). And as you correctly point out we bought this for $75m when coal prices were lower and we didn’t have some of the permits. I don’t think Senosi will want this asset to sit idle, and should be generating revenues. The priority has always been Makhado but now MMSEZ is a go-er the new board might see things differently, especially with Vele potentially generally $8m/year and the Overlooked agreement for Uitkmost meaning our financial position is a lot healthier.

Vele got put on care and maintenance because of falling coal prices, water permit requirements, issues with the wash plant and investment needed for improvements.

At that time, they would have needed $25m (and higher coal prices) to update the wash plant etc which would then allow them to process 2.7Mtpa ROM coal at an overall product yield of 44% to give ~1.2Mtpa product

This was taken from 2014 Peel Hunt update. I'll go through article fully next week and try to update for today's prices/exchange rates etc

Most investment banks are predicting another bumper year for commodities, thermal and coking coal are both at the top of lists for best expected performers. Global demand for coal in 2022 was the highest on record and this is expected to continue in 2023.

Weather in Europe is unseasonably warm and European gas prices have come off considerably. A cold blast or deterioration in the Russia/Ukraine conflict and we'll rally back very quickly.

300k gone through on London that not been reported. Assume that's a buy given we're up

Good luck all for 2023. Think this is our year!!!

this was the last update from August:

MC Mining has interests in various exploration assets in the Limpopo province, including the three project areas comprising the GSP, namely Chapudi, Generaal and Mopane. These are all longer-term development opportunities and the Company is in the process of re-assessing the carrying values of these projects given their longer-term development horizons and the current focus on other projects.

Will try and follow up with them. Not as clued in as when Brown/Berlin were there but will see what I can find out

Still here – everything in place for a stellar 2023 in my opinion.

Wasn’t anything to really report back on from the AGM. Unfortunately was held in SA so couldn’t attend in person – always better to see these people face-to-face and find out exactly what’s going on.

Initially they went through the routine business of the AGM (very time consuming and nothing interesting here). Then it went to questions and some other punter got in before me. He rambled on for 10-mins without asking anything directly and they loosely talked around what he said, and by that point, an hour in, I had to go into another meeting and it concluded.

They placed emphasis on Makhado, but there was evidently something going in with Vele, which they seemed bullish about but didn’t give any further info;
They were bullish overall. Senosi was there – believe there was a site visit, hence the AGM not in London;
Were friendly to coal prices;
Nothing mentioned on GSP
Doesn’t sound like they’ll remove any of the 3 listings soon. London listing looks safe

Regarding recent developments. Well the Vele news is great, $8m in profit/year against $1.2m care and maintenance. Not only that, come December 2027 we’ll have a fully functioning colliery with 35+ years left.
Senosi seems to be taking us forward and scooping up available coal assets in SA – positive to me that he was at the AGM.
Added a few more recently, everything in place for a move up, hopefully we get some decent press and recommendation as stock for 2023

Don’t know unfortunately. We can ask at the AGM next week. Not heard anything about its disposal.

Reminds me, if anyone has any AGM questions I’ll be happy to ask, will remote in as being held in SA this year.

Equivalent of 14.4/14.8 on JSE - Oz perking up again overnight. Worth a punt from here, downside limited, news flow could take this back to 35p pre-christmas

yes, time to get involved again. JSE line picking up

Some cold weather on the way in Europe, should get things moving here

Regret no lobbing everything out above 30p. Would be re-investing it back in here now.

yes, with Senosi owning almost 20% definitely feels that way. Wonder what his plans are? Notice he acquired Mooiplaats recently, which we sold in 2017.

Can any of the South Africans on here attend the AGM? Shame not in London

From today's update:

The MC Mining Board approval to build a new CPP at Makhado thus created optionality for the
potential recommencement of operations at Vele. The Company has previously reported that when
market conditions improve, the reopening of Vele would be considered and options being evaluated
include the possible outsourcing of operations at the colliery. The Company is currently assessing
potential partnerships in this regard and any development model that includes elements of
outsourcing will reduce the start-up working capital funding and prioritise resources on the
development of the flagship Makhado Project.

looks like we're nailed on here for ZAr2.36 and A$0.20. fairly predictable i'm afraid

rights now tradeable, worth about 5p/share. ridiculous not given to AIM holders. Getting screwed in my opinion

Well its very disappointing the company didn’t extend the rights issue to holders of AIM stock. It’s free money.

There was always going to be some form of equity raise and debt issuance to raise for Makhado funding

was announced 27-Sep

Hemmings - good to see you still here mate. If they want to raise more than 8m Euros then they need to issue a prospectus and its a lot more onerous from a regulatory, timing and cost perspective.

I was talking with a research guy at Macquarie today, not MCM related. They have coking coal and thermal coal as their most preferred commodities with the market tightening further on the back of gas and power markets. Despite the global turmoil we're in a great spot here. Hopefully we'll hear something positive about over API4 sales tomorrow and close the week above 30p