Member Info for CaveatEmptor

Based on the Board's assessment that the Company will be able to raise additional funds, as and when required, to meet its working capital and capital expenditure requirements, the Board have concluded that they have a reasonable expectation that the Group can continue in operational existence for the foreseeable future. For these reasons the Group continues to adopt the going concern basis in preparing the annual report and financial statements.

And then there is that Mozambiqe weather to contend with...

Hello Richard,

As I have said many times, we are an AIM company with no income - of course there will be fundraising - that is the lifeblood of all non-producing AIM companies.

Where we do not agree is that I believe in order to get funding there has to be diversification of our portfolio so as to create more interest from investors.

Please remember that even were we not to get involved in Zambia, that would only delay the need for cash by a few months so a fundraising would be needed regardless.

Hoping to get any cash out of Mancayan or Eureka in the short term is, in my view, pie in the sky as the only way to get fair value is to put in the effort and wait for the right time to act. This could well take many months or even years...

The Zambia prospect is a different kettle of fish as it can turn us into being a producer generating cash for a relatively small outlay - often third party contractors will be willing to pay this outlay then work the prospect in return for getting the lion's share of the profit. This is not a problem as it means that the company continues to be funded whilst working on the main end-game. This, of course, means less need for dilutive fund raising.

Sadly the only affordable alternatives for non-producing AIM companies to raise cash tend to end up by diluting current shareholders, but this is better than the company going bust and all investors losing everything...

On the whole, I do not think that CB is doing such a bad job, considering he has only been in the company for a year.

Sorry, that should read "Mankayan and/or Eureka"

At the time of the last interim statement the Group overhead was around £600,000 PA for ongoing projects. CIB at the end of June was about £1M.

CB has a history of being able to run a company on fumes when needed, so I would not worry too much about the cash position in the short term.

LR has stated that he has measures in place to increase the SP before initiating any fundraising later in the year. I have no reason to disbelieve him.

It would be within CB's normal modus operandi to be working on a JV scheme for the further progression of Manica and/or Eureka with a buy-in option to raise cash for BZT in the short term.

Also it is important to remember that a huge wadge of the cash that is currently being spent IS CB's own money invested at much higher levels of SP than the current price!

Add to this that both CB and LR have millions of share options exercisable at 0.5p and 1.0p and I think we can be sure that BZT has a Board that is very well motivated to deliver shareholder value.

It may take longer than many would like and it may include some dilution on the way, but providing the Board gets BZT to the point where it is worthwhile to exercise those options at 1.0p then I think that many current PIs would say it was worth the wait...

BAG seems to be very quiet today - I should have thought that the committee would have a view on this RNS?

Yes, CB does seem to be good at negotiating potentially lucrative deals with very low financial exposure...

On the face of it looks like a good deal for BZT. Low investment, stable mining environment with a get out clause to limit expenditure in the event that initial investigations prove less than impressive.

Good potential to increase shareholder value (the bit about "all shareholders" is interesting - a doff of the cap towards BAG?)

Hello Ismalia,

A pretty good summing up of our current position IMO.

A £10M MC does not seem unreasonable if the BOD are willing to spend the time needed to realise shareholder value - that would mean an SP of about 1p - not so good for some of we long term shareholders but it represents a reasonable profit for CB so is realistic and therefore it is definitely on the cards...

We should see, over the next week or two, whether or not the market agrees.

ATB.

I think the phrase used was that dispite the low grades and rain alluvial production would just about wash its face in Q1.
I do not remember CB claiming that total corporate overhead (55k per month) would be covered?
However, in the scheme of things, I am happy with that.

Hello Richard,

I hope you are well on the mend and getting back your good spirits.

I think that you may have missed my point. Goldfields have lost interest in BZT and are very unlikely to make any further investment or contribution to the company. CB, however, has already shown that he is happy to invest significant sums into BZT and he has openly stated that he fully intends to protect his investment with additional funds.
Of the two, I would by far prefer that it is Goldfields that has decided to throw in the towel, as at this stage of the game the loss of CB to the company would be much worse for we investors.

All IMPO, of course.

All the best.

That is also what I took away from the Investor Show meeting, which is why I have made significant additions to my holding since then.
I am confident that this will be a very different company by the end of this year.

Of course that is only my own personal opinion and I have put my money where my mouth is.
Please, DYOR as you may come to the same conclusion as I have, or you may come to one that is completely different - that is one of the many joys we PIs get from managing our own portfolios.

ATB.

:-)

Have a good weekend, All

So, another 38%+ rise on Tuesday? It would certainly be very welcome, but...

I wonder how LR's visit went? - BZT can't get much more counter-cyclical than it is at the moment...

And a few of we oldies too :-)

Can easily sell 10,000,000 shares in one go, so there must still be quite an appetite out there for BZT shares...

Either way, as 43MM shares is over 4% of the company there will have to be an RNS as significant thresholds will have been broken - either up or down. So we will find out who the mystery trader is.

More than likely a sell IMHO - that would account for the SP staying down regardless of heavy buying over the last few days - Makes you wonder who can be selling, as not many holders have that many shares - must be either Goldfields or CB. Doubt that CB would make such a big loss on his investment so. with luck, we may be seeing the back of Goldfields...

Been a while since we've had this sort of movement in SP - good to see!