Member Info for candler

14m, honestly with the amount they’ve been discussed on this board you’d think it’d be 10x that number. At least we’ve got another 6 months to blame the fact we’re not yet at 40p on the warrant overhang..

Agreed that differing opinions are fine and valuable when they’re conveyed logically and with evidence based points, rather than just pointless ramping or deramping

Fwiw I think it’ll have been something like this

1) get DFS out for December deadline

2a) get in front of key potential funding partners inc DFC, with view to sorting both P1 & P2

2b) oh wow those new drilling results are amazing aren’t they maybe we should be including these

3) western based potential funding partners convey their timelines and they’re longer than hoped/anticipated

4) let’s optimise DFS in the meantime and keep adding value

5) P1 needs to get sorted asap for first mover advantage and to meet 2027 timelines so focus on that

Would therefore expect to see P1 equity based (eg 45m for 20% orom cross) confirmed in the shorter term. Personally I didn’t perceive Mike’s comments to be negative at all in respect to getting something over the line soon. The RNS was great and imo he was just cautious in overpromising.

Also it’s fair to say that news flow related hype (which we’ve seen a huge amount of in the last 6 months) will mean we get lots of retail traders - buy on hype, sell on news types. This is fine and has helped with continued momentum and helped fight through the warrant overhang. We are near all time highs.

I’d hope we are now reaching a point where large institutional buyers with sticky hands (less news flow reactive) would be interested in making real money on Orom Cross longer term and that’ll kick us on to new levels.

I’m especially glad to see a focus on attracting institutional buyers as I think that’s what’s been missing in the last few months terms of driving the share price into the teens. Not sure why it hasn’t happened as they have mentioned the desire for it before but glad it’s in focus now. At current market cap, imagine an institution got sight of the project and the planned numbers and decided it wanted to buy 5% or 10% on the open market to get in early (as this is still early by institutional standards - it’s pre production).

That would be 10s of millions of shares that need to be found by the market makers to meet that institutional demand. Would be such a strong catalyst for a rerate.

That RNS is so professionally put together, with so much value clear and so much value still to expand into, it’s befitting of a £500m company not a £50m company

The share price will catch up and we will have a good pre-news run but as the big news starts arriving in coming months (specifically funding and offtakes) that’s when we will start to see some fireworks here

Very glad to see some specifics around complementary P1 and P2 production funding pipelines and the strategy for each of these

The market loves to hear “funding signed” and “offtake contract signed” so it’s great to hear that we’re into due diligence on funding agreements and that there are new offtake agreements already signed that they’re waiting to be able to release the market

Up the BRES!

Only time will tell on the form that P1 funding takes but Mike and team have seemed to be quite confident they won’t need to dilute existing shareholders to get that money

Project level equity via strategic partner is in my opinion the more likely route (aka giving away a % of orom cross, but crucially not diluting existing shareholders via release of more shares)

80% of a graphite producing orom cross is worth far more to us than 100% of a non producing orom cross

Personally not a big fan of the “pre rns rush” which we’ve seen quite a few times here where momentum stalls on the day even when the RNS is a stormer

Let’s hope if there is an RNS tomorrow that trend breaks! I think naturally as we become less speculative and get closer to production, momentum will stay stronger. There’s nothing pump and dump about BRES, it’s a hold-for-many-multiples play.

You’re right that warrants don’t appear on the books as normal share trades. When people here refer to warrants being sold, what they’re meaning are that the warrant holder paid for and was subsequently given their shares (not seen on the book, or via RNS due to the large equity release described below), and then that shareholder chooses to sell those ‘warrant shares’ on the open market for current market price

The value generated by moving to P2 would definitely be of interest to anyone looking to fund P1 (eg a strategic investor might put up 40m in return for a % of the project as they think when we get to P2 they’ll make a handsome return on that 40m)

But I don’t think necessarily that the P1 funding party has to be interested in funding P2 as well - maybe that would be beyond their means as it’s much more money required.

If it was to be a Samsung/Tesla funding P1, for project level equity & guaranteed future offtake, then yeah I’d expect them to follow through to P2 if successful in P1.

But if it’s a less established company/institution funding P1 then they may have no interest in funding P2 as well.

Mike mentioned lots of moving parts and multi-partner discussions across P1 and P2 quite recently so I’d assume he’s referring to this kind of situation.

Very hard to predict but I’d be leaning towards us seeing project level equity funding P1, probably also with guaranteed offtake in the future at agreed prices (eg xyz to give us the 40m and in return they get 20% of orom cross + guaranteed graphite every year)

And then a bigger institution (including possibly the DFC) to be more interested in P2 funding when the project is derisked by reaching P1

Agreed, as I think it’s been slightly up in the air with the approach BRES is planning to take with regards to moving everything to the West (from offtake contracts to capital expenditure to the downstream processing factory), or whether the Asian markets are still available to us at the same time. And, if everything was to move to the West, how big the rebuild job would look like in terms of getting all those things planned and up to speed.

This RNS reads really well and broadly indicates all is fine, going as planned, DFS due for an update following the great drilling results, cash in the bank, & multiple potential lenders in due diligence for first production 2027.

The only thing I didn’t see explicitly mentioned on first glance is whether the funding package will be P1 45m only or whether there will be a pathway included to P2 funding too.

Well people think there are delays because they initially mentioned Q1 as a funding timeframe and also aiming for first production by the end of 2026! Realistically especially given the war etc that wasn’t going to be achievable and imo they are not yet “delayed”, and all is still going to plan, but for newer investors who may have bought in during the DFS build up I can see why they may think as such

On noodle’s comment on no DFC initial involvement, I did infer Sasha’s comments to possibly say exactly that - he said project level/strategic route to P1 funding. I’m no expert but in my mind that’s saying the preferred (or necessary) route is going to be a strategic partner to get us to P1 production, at which point a larger debt-based DFC funding solution comes into play to ramp up quickly to P2. That would make sense to me based on the wording of some of the RNS too including today’s, where the hints seem to be around creating as many links to key US departments as possible to maximise the likelihood of a longer term partnership.

I’d hypothesis that it’s this level of complexity across different phases with different partners that is causing delays in getting funding finalised rather than the wait for the drilling results and JORC update, which whilst I agree are crucial, I just think BRES management will have been able to hint at what’s coming when in partnership discussions.

Thank you for sharing Sasha’s comments from the telegram chat, these are always useful to read

Imo everyone needs to stop sh*tting the bed. We reached all time highs and are now in a quiet period whilst the company tries to get complicated multi-partner funding solutions over the line. There’s also been a war and a large warrant overhang as we only recently exploded to all time highs (meaning all warrants were newly in the money).

Instead of crying about the ‘boring’ and ‘delayed’ drilling results maybe let’s be thankful that we’ve been able to see strong news flow in this area that has filled a time gap and allowed strong warrant churn in prep for the big news.

No one wants to see a 30% drop but the nature of the game is it goes up and down over time. We buy our shares and are betting it goes up more than it goes down. If you are so concerned about short term fluctuations, and they are short term relative to the project we’re investing in, I encourage you to fully sell out tomorrow and buy back in the day before the funding RNS drops (note - if it was that easy then we would all do it!!)

Cheers pic12 I appreciate the response

Has there been any word in the telegram group around why it’s gone so quiet?

I hope you’re right FF and that the delays with drilling results are due to getting a funding solution over the line. However, we have had constant delays with the drilling results coming through for many months (even back to pre DFS release) so it could well just be that we’re stuck waiting for those again.

Either way, the beehive results won’t shift the share price (which is exactly what I said about Iyan results - geological results won’t affect the share price here on their own)

Honestly whilst it is hard watching the share price fall with absolutely nothing negative having happened, you just have to accept it’s a bad month, can’t control it, no idea why it’s affected us so heavily… but that as nothing has changed here, you have to have faith it’ll reverse as the investment case is so strong.

We’ve already motored through these levels, shares changed hands, profits taken, & all warrants were in the money a few weeks ago, so I’d like to think it’ll be low resistance when it gets moving again.

Yeah “fully cashed up” should’ve been in my list from both that raise and from constant warrant churn. The warrants have been frustrating because of the sentiment more than from the extra shares themselves - the buying pressure should be able to eat them all up but it’s the fact there’s always been a negative force on the rising share price that’s suppressed any rises. We barely even mention the 96% IRR or the low decile capex/opex too at this point.

Luckily I think we’re coming to the end of the BRES ‘warrant era’ with all warrants having been in the money following recent all time highs.

Just my opinion… but BRES at this share price given the news flow in the last 6 months is beyond a joke. 1bn NPV, project JORC doubling in size since then, 99.99% purity, perfect macro headwind, in talks for not just p1 funding but potentially p2 fast-tracked through too, still on for first production early 2027… and at 8p a share, market cap is under £40m.

£40m for all that!! There are countless examples of much higher market cap companies that are in a much ‘worse’ or less developed position. BRES might make £40m revenue next year if the thing is build in time!! Of course the war etc have an impact on global markets but nothing has changed for BRES and if anything the need for ex-China supply chains is only strengthening further.

Maybe I’ll be proven wrong in months to come but anyone selling anywhere near this level is going to miss out massively.

Https://www.usitc.gov/press_room/news_release/2026/er0312_68281.htm

Providing the link in case anyone missed it. Weird one after the DOC recommended the tariffs’ introduction. Quite hard to know how it will impact BRES, as these were only on AAM aka further downstream than product that BRES will be supplying (at least in the short term).

In terms of economics, you’d like to think BRES will be least affected as it was already a very strong project economically compared to its Western peers… although I’m struggling to see how no tariffs on Chinese dumping of AAM product can be a good thing overall even given the strong economics! Perhaps you could take the view that now only the strongest projects economically will have a chance of getting to production, so other uneconomic projects are not propped up.

Yep for me this was the biggest takeout from Mike’s interview, he was quite explicit and put focus on offtakers + “brands” - potentially a Panasonic, Samsung, LG etc who build the batteries maybe?