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I’m not sure where you get that figure from 3CB? BMR has 335,710,864 shares in issue – so at 5p we are valued at £16.7m. From what BMR Watch have been told, the Royalty is worth more than double that.
The Royalty is valuable over time and will cost JLP millions. How many Companies want to shell out 11% of profits from one of their projects - for the lifetime of that project?
JLP might want to get rid of the Royalty sooner rather than later. Is it just a coincidence that BMR are now registered at the same address as JLP in London? And JLP have just hired an M&A specialist? I'm not saying they would need to hire someone just for that reason, but it's obvious LC and CB have little to no experience when it comes to M&A activity. It could be just a coincidence, or JLP are about to acquire BMR in some sort of deal. It would be a lot less costly and complex compared with paying out on the Royalty.
The Royalty is valuable over time and will cost JLP millions. How many Companies want to shell out 11% of profits from one of their projects - for the lifetime of that project?
JLP might want to get rid of the Royalty sooner rather than later. Is it just a coincidence that BMR are now registered at the same address as JLP in London? And JLP have just hired an M&A specialist? I'm not saying they would need to hire someone just for that reason, but it's obvious LC and CB have little to no experience when it comes to M&A activity. It could be just a coincidence, or JLP are about to acquire BMR in some sort of deal. It would be a lot less costly and complex compared with paying out on the Royalty.
3CB, Interestingly there's no mention of Vanadium. Leon recently said that Zinc would be produced first, followed by the Lead. Does this mean Vanadium will require an additional licence? Or perhaps they don't intend to produce any for the foreseeable...
I've always said that JLP will not want to pay out an 11% Royalty from the Kabwe profits, so I believe some sort of offer will be made. I think I'd be happy with 5p too, but we deserve so much more.
That confirms it - JLP are using the Kabwe licence to produce Copper and Cobalt...
"The Company has received notification from the Minister of Mines and Mineral Development in Zambia of the approval of the Company's application for the renewal of Small Scale Mining Licence 7081-HQ-SML in Kabwe, Zambia (the "Licence"). The Licence is in respect to the minerals lead, zinc, copper and cobalt."
Just waiting for Borrelli’s mid-Sept update… He said the Co has never been in a better position, so I’m expecting a re-listing shortly at 5p, and the SP to hit 10p within days of relisting... Am I giving him too much credit?
"The Licence renewal has been approved for a period of ten years and is subject to a number of customary conditions specified by the Minister of Mines and Mineral Development. "
I wonder what the conditions are attached to the renewal? They haven't stated, but assume it could be deadlines for getting Kabwe tailings into production. We might see a separate update outlining plans for Kabwe - although JLP have given dates before which have long passed... You can't trust everything they say.
They also highlight "significant" progress made in Zambia since acquiring Sable - yes, but you acquired Kabwe first, and Sable was acquired to produce the Lead, Zinc, and Vanadium (or so we were told) - yet no evidence of any progress on that front!
The website has been updated. Confirmation statement was dated 6th July 2020 - next one due 6th July 2021.
Panic over, you can all go back to bed and await the imminent mid-Sept update.
Is Borrelli trying to get us struck off Companies House? This could render the shareholder register null and void…
https://beta.companieshouse.gov.uk/company/02401127
What happens if my confirmation statement is late?
The confirmation statement must always be filed however, even if this is overdue, as failure to file the confirmation statement is a criminal offence. If you file it too late Companies House may strike off the company (close the company) for non-receipt of the confirmation statement.
You've done pretty well out of JLP, 3CB - well done. Initially I wasn't interested, but must admit I was tempted to buy when it recently fell to around 2p.
I was too busy buying other shares at the time, most of which went on to double or better, so can't complain too much.
Remember who we are dealing with here…
09/01/2019
“Shareholders should note that the Directors and CFO continue to work tirelessly in the best interests of the Company and its shareholders for a successful 2019; in the meantime there are slanderous accusations being made by shareholders...”
“We are reviewing these slanderous accusations with lawyers and may take legal action; it should be anticipated that any repetition will be met with a very robust response from the Company”
“We had secured the services of Blue Square which has also been a vital part in the return of the licence
No BMR personnel are connected with Blue Square and no BMR personnel have any benefit in any fees paid to Blue Square”
“We are working on a circular with proposals subject to shareholder approval for the acquisition of a further licence and the demerger of the royalty agreement into a separate company to be owned pro rata by shareholders to protect value”
08/03/2019
“Update 1 of 2: BMR is meeting with its lawyers next week to review the draft circular for the deals per previous tweets that will be subject to shareholder approval; the Board is prepared to meet shareholders at any stage to discuss”
“Update 2 of 2: BMR met recently two representatives from BMR Watch and they seemed fine with our proposals - not sure why they are stirring up for action on the proposed royalty agreement; otherwise, pleased to note that a harassment warning has been issued by the police”
06/08/2019
“Shareholders should have received all documentation for the meetings so please sign and return your proxies; without your support, BMR could not pursue the acquisition, fund raise and re-listing which would result in a necessary sale”
Anyone remember this update from JLP from 18 months ago? Not a grain of Lead, Zinc, or Vanadium has been produced to date… I still question how they were able to produce Copper at Sable – are they doing this under the Kabwe mining licence?
"Sable Zinc Kabwe Project (“Project”)
The combined secured funding fully funds the Acquisition as well as the project capital required to implement the Project to produce zinc, vanadium and lead from the surface material at Kabwe. The Project targets an initial processing rate of 20 tonnes per hour producing a zinc concentrate and vanadium pentoxide before ramping up to a targeted 40 tonnes per hour producing zinc metal, vanadium pentoxide and a lead concentrate. The Project targets to produce annually over 8 000 tonnes of zinc, 1 500 tonnes of vanadium and 15 000 tonnes of lead as it ramps up to full capacity over a 2-year period.
Jubilee has already secured Zambian ministerial approval for the transaction. The Minister also waived previous conditions placed on the Kabwe mining licences. "
I think you're being a bit harsh, runman. It's been over 2 years, give them a little more time. We have to factor in the Covid dalays too. Covid has been around for about 9 months now. BMR needs time to adapt to the changes. Give them another year to complete this deal.
The Covid excuse is poor. The listed Co's will be JLP and GLR - most previous meetings would have been done remotely due to all parties living in different countries, so nothing to stop them holding meetings via video conference calls.
Same applies with Lawyers etc. Discussions and paperwork can all be done remotely. Covid is not an excuse when it comes to most corporate activities. There are literately billion dollar deals being done in the middle of a pandemic. Stop lying to shareholders.
The next phase is telling us what the plan is. Phase 2 will be execution of the plan which will take another 2 years.
I'm not sure how it will work in terms of JLP's exit. We aren't a listed vehicle, so I have no idea how they plan to sell their shares or who will buy them. I don't think Companies House will have anything to do with that... Speaking of CH - I note the confirmation statement by BMR is late, it was due on 17th August and is yet to be filed on the CH website. The only recent filing is to do with BMR's registered address moving to the same office as JLP...
In terms of what BMR have planned next, I believe any proposals will need to go to a shareholder vote.
I find it interesting that firstly, JLP haven't managed to build the Zinc circuit during the 2+ years since they took over the Kabwe project - and secondly, they have used the Covid excuse as a reason to halt the project for the foreseeable. I think I recall Leon mentioning a supply issue, but in the recent presentation he seems to refer to regulations relating to Covid for being the reason why they halted the Zinc circuit.
Leon Coetzer: "As stated we were forced to suspend construction of the zinc refinery circuit due to the COVID regulations that kicked in in March". - What Covid regulations are those, Leon?
I find it hard to believe that "regulations" have caused them to stop construction in regards to the Kabwe project, yet they are able to continue constructing new plants in Zambia for their Copper projects. I don't buy it at all... Leon also mentioned that the small scale mining licence was due for renewal, and that it was already done and would be issued by the Ministry end of July. We are now end of August and nothing has been said about the Kabwe licences.
They also plan to help GLR in transferring the large scale licence out of the BMR subsidiary and into their Star-Zinc holding. I reckon a few brown envelops are doing the rounds to ensure a 'smooth transition' of the licences. No doubt it will be announced by JLP once the transfer process is complete and we will get our update on the Royalty, and what JLP/BMR plan to do next. We await the "imminent" update from Borrelli...
Hi Scottie, I'm already aware that JLP plan to exit BMR. It was stated by Leon in a recent JLP presentation. I mentioned it here a few weeks ago and also posted it on BMR Watch. Click this link to see Leon's commentary surrounding Kabwe and BMR: https://tinyurl.com/y5zrj4u9
Jammer1 posted a theory on the JLP board which might actually be plausible… We’ve all expressed an interest in swapping BMR shares for JLP shares in return for the Royalty, but what if a similar deal could be done with GLR?
We already own over 24m shares in GLR, these could be sold for cash, then BMR reverses into GLR bringing cash (which can be used for exploration activities or fund Star-Zinc setup) and a Royalty that will initially pay 5% of all profits from Kabwe, and eventually 11% after JLP recovers their costs (the terms of this could potentially change). Alternatively, the Royalty could be put up for sale, and again, cash used for operational activities.
GLR’s current MC is £7m with 766m shares in issue. A 1-1 share swap would be circa 40% dilution to GLR. 2-1 would be circa 80%. Would GLR shareholders be happy with those levels of dilution? Also, Bird owns almost 9% of GLR, would he be happy with that? I’m not sure how JLP would play things regarding their 29% of BMR.
From a BMR shareholder perspective, a 1-1 would only value BMR and the Royalty at circa £3.5m and I would be more inclined to accept an offer of 2-1. I believe it will become much more difficult for micro-caps to raise funds going forward. GLR aren’t likely to see any revenues this year, meanwhile cash is burning and it won’t be long before they need to raise again. A deal like this would pretty much guarantee them getting Star-Zinc online and would give an additional long-term revenue stream from the Royalty – you can’t really put a price on that kind of security in the current global economy.
I know JLP is a much stronger business given they have cash, revenues, and profits, so many would probably prefer a share swap with JLP. I just don’t see that happening, especially as it would seem JLP want to distance themselves from BMR as much as possible. If we compare JLP’s MC of £109m to GLR’s £7m – you could easily argue that GLR has a higher chance of their SP multiplying compared to JLP. If GLR can successfully bring Star-Zinc and Kash-itu online next year, you would have to assume a major rerate of the SP. If they had the Royalty on top of that, you can see why a share swap with GLR could be very beneficial to BMR shareholders.
Obviously this is just speculation, but something to think about and gives an idea of the type of deal we would like to see happen.