Member Info for BringMyReward

The agreement with BMR to acquire the Kabwe Residual Rights expired on 28th Feb 2019. I'm surprised that CB hasn't updated GLR shareholders on this. I have copied the extract from the RNS dated 13th Sept 18.

"The exclusivity period runs to 28 February 2019 with completion of the agreements required ti give effect to the Proposed Transaction (Transaction Documents) to follow as soon as practicable thereafter and in any event by 30 June 2019."

It was Jeremy Hawke that designed the plant and had it all peer reviewed. Although the plant design wasn't great, it was the best he could come up with, especially on the small budget BMR had. I consider JH to be a trustworthy individual.

There's no point comparing the two plants now but I'd like to know why LC initially said 26k tonnes of Zinc and now it's dropped to 8k.

Hi Rosewall, I was referring to the comment TBTT made about JLP relinquishing their BMR shares to reduce the Royalty percentage. The only difference that would make is JLP no longer being associated with BMR in terms of shareholding.

The plan is to move the Royalty into a separate company, of which JLP will own 29% of. They will also get 29% in the new acquisition company but they are likely to be diluted below 15% in that so I reckon Colin Bird will be leaving BMR once that happens.

3card, from what I know the Royalty can't be diluted, it is now fixed at 11%.

I like the idea of it being moved to a separate company so current holders won't be diluted where the Royalty is concerned. It also gives the opportunity to pay us dividends for potentially 10-20 years. Even if it's only £2m a year, that's multiples of BMR's MC pre suspension and de-listing.

Hopefully in 2-3 years time we can all benefit financially from Kabwe. I'm sure the locals will be happy to see the mine site being cleaned up too.

TBTT, BMR were planning to produce 13,500 tonnes of Zinc Sulphate Heptahydrate (which contains over 3,000 tonnes of Zinc) with a 5tph plant. So 8k tonnes of Zinc metal is very low for a 40tph plant.

I suspect BMR's figures were fairly accurate as it was all tested and peer reviewed in Zambia.

Maybe the Zinc production figure quoted in the webcast was inclusive of ore being introduced to Kabwe from Star-Zinc? Colin mentioned in the below interview that he envisaged revenue from SZ in April/May 2019, this ties in with what Colin said in the Webcast about Kabwe being in production by April/May 19.

It would make sense as GLR will want revenue from SZ ASAP. I have a feeling an update on SZ won't be too far away now but it will be closer to Xmas by the time Kabwe is producing anything, what's the rush?

https://www.proactiveinvestors.co.uk/companies/news/209589/cash-flow-from-zinc-mining-is-now-only-a-matter-of-months-away-for-galileo-resources-209589.html

Hi Fireball, the Webcast was from 30th November 2018 (link below). Leon talks about Kabwe from 12m 40s in and starts talking about metal production forecasts from 14 mins in. His forecasts are based on a 40tph plant.

I can't quite understand how the Zinc production goes from 26k tonnes to just 8k? It doesn't make sense.

http://webcasting.brrmedia.co.uk/broadcast/5bfc0a9dde87317597836b02

https://twitter.com/BmrWatch/status/1108839268502376451

Just been reading the JLP Kabwe RNS in more detail. I noticed that the production figures for the 3 metals is lower than what Leon C mentioned in JLP’s webcast.

The quoted figures from the webcast were (tonnes per annum);

26,400: Zinc
15,600: Lead
2,040: Vanadium

The figures from today’s RNS are;

8,000: Zinc
15,000: Lead
1,500: Vanadium

Are today’s quoted figures based on the initial 20tph plant or the targeted 40tph? Obviously these are just quoted figures but the Zinc seems quite low in comparison.

Also worth noting I am informed that the 17m share trade for JLP this morning was not BMR. We still hold shares in JLP.

And it only cost BMR £800k - Bargain.

Now would be a good time for Directors to start buying some if they haven't already. They need to show some confidence for the future.

Could be worth holding on a little longer. I think Mark Browning will sort the company out. He'll know what needs to be done.

Failing that, if they win a large commission with Netflix it should create an opportunity to sell some.

The report isn’t quite as good as expected but it ain’t too bad either...

Negatives:

Cash lower

Small loss for the period

Popular Factual not performing well

Digital business lost 50% of its revenues

Positives:

Order book very strong at £20.5m

Tern TV is turning out to be a real gem

Growth in international orders

Still in talks and pitching with Netflix and other SVODs

Company re-structures on-going to reduce overheads

Very strong board, soon to be headed up by Mark Browning, consisting of Will Sawyer, and Harry Bell

It doesn't fill me with confidence given that results are likely due this week and we're only sitting just above the 52 week low.

Having said that, there's no reason that the results shouldn't be good. We've seen what Tern is capable of now and the rest of the business units seem to be doing well. It's possible that we've already done close to £20m in revenue in the first 6 months of the financial year. Full year 2018 was £21m.

It's my understanding that BMR were not looking to use the Sable Zinc plant. They were looking to lease land and equipment (mostly storage tanks) and build a plant on-site Sable.

If I'm not mistaken, the plant in question cost Glencore $30m. BMR has never had that kind of money to buy a plant of that size. JLP on the other hand has a decent amount of cash with access to debt and equity. I hope they've managed to secure it, as it will mean production comes online sooner, at an initial higher rate.

3card, I'm not sure if the former management linked to the litigation case will be named or not. I think if we were still a listed company they would have had to disclose the amount at the very least. Unfortunately we're not subject to AIM rules anymore. As I've stated before he said the figure will be published in the accounts. look out for those around May.

It's also worth noting that we continue to discuss legacy issues with the board. We certainly haven't forgotten about past events but we are mainly looking to the future.

Hi Eric, I appreciate what you say about shareholder communication but I’m sure AB will be able to provide more detailed updates once JLP/GLR have made their announcements.

The individual shareholder certainly shouldn’t feel that they have to ‘contend’ with us. We are here to act on behalf (and in the best interest) of shareholders. We have expressed our concerns about the Royalty, we recognise it is of major importance to holders. We were assured that once the Royalty has been put into a separate company it will be safe and it will not be sold off without shareholder approval.

I’m sure you can appreciate that we must update our members first and foremost. Although we are here to support all shareholders, it is easier for us to do this within BMR Watch. Our members support us, which in turn enables us to support them.

When BMR de-listed and Kabwe was given away, it was clear we had problems and BMRW was resurrected as a solution to some of those problems. I don’t mean any disrespect by this but as the saying goes; if you’re not part of the solution, you’re part of the problem.

Of course he knows. The reason should be obvious but I'm sure it will all come out with the next JLP update.

No point asking Borrelli about Kabwe. It's in the hands of JLP. Obviously there has been a delay but it's not down to BMR.