Member Info for Computer909

DP has been keen to attribute the SP fall to wider macro market affects, comparing Amazon, google or Microsoft,

S&P500 has recovered nearly 15% since mid June !

Q2 Trading Update?

Where is it ?

“How could eqtec based in Ireland and London have had any control over that? ‘

If we have committed $6-$8m we sure as hell should have had at least a degree of control/visibility of the issues.

Problem is DP is all too keen to keep spending cash , and getting the begging bowl out when something “unplanned’ goes wrong

Securing the required $62M funding required for full production giving away only 50% would be a massive win for BRES, valuing its other 50% at a similar figure.

I would expect that we will first hear about a much smaller agreement for the funding needed for the pilot plant and would expect this to be a much smaller percentage give away, Mike did mention that a proportion this could be covered by loans from the bank rather than having to give too large a proportion away at this stage. (This would also give us an idea as to what the perceived value of Orom-cross currently is, as the bank due-diligence would surely want to know what it was lending against)

We wait to see what BRES can pull out of the hat, one thing for sure though is as soon as they have secured pilot stage funding and a number of off-take partners declare an interest 3p will be long in the rearview mirror.

"What stops a greedy major just stamping over the minnow?"

We can see from the volume that not many shares are moving at this level, if they wanted to buy the whole issued (and non-issued) equity it would cost them a lot more than 3.1p

I also asked that question: (And whether any raise would be open to PIs)

Q: "It is looking increasingly likely that BRES will require a cash injection and I do not want to be rewarded for backing the company by receiving a dilution, without also being offered the same discount as institutes that have yet to offer similar backing to BRES"

A: "The company is not presently in any talks relating to an equity raise nor is it an immediate focus. Do note that the last equity raise was set at a premium to the price at which it was negotiated in the days prior to that raise. Open offers are something which I am happy to mention though but again the focus is marketing to end users and strategics at present"

Make your own interpretation of "Immediate" i suppose

My assumption is that each decision to move into the next stage is done at the end of the previous stage, not sure if there is the option to delay or pause the start of any particular stage, (i.e extending the overall life of the earn in)

Also its worth clarifying that the current cash in the bank according to MR is £800K whilst the stage two requirement is $500K, at the current exchange rate approx £410K

@Legalwolf : "I think the first tranche of 350k shares will in fact need to be issued at the conclusion of stage 1"

I asked directly that question:

Q: If the SP remains pinned at current levels, By the end of August 2022 BRES will issue at the current SP 10.6M shares to Rio Tinto / Spia after spending $250K on Akelikingo, representing 5.625% of the enlarged equity of BRES?

A: "This is not the case and the company won’t be doing this, if you refer to the terms of the acquisition details SIPA ONLY get paid first acquisition shares AFTER BRES completes Stage 2, which is the completion of $250k spend (Stage 1) by end-Aug AND the completion of $500k spend (Stage 2) by end-Feb 2023. The company specifically set up this agreement to allow for them to have break-points at every step along the way so we could walk away if we do not see enough value in continuing. Up until end-Stage 2 there is no payment to SIPA whatsoever. So quite a runway from now until any shares had to be paid. "

@Legalwolf, I have taken you comments regarding AK commitment at tried to get some clarification from the company.

As MR stated in his recent presentation we should get some drill results in the next couple of weeks, this is part of the stage one commitment to the project. (Stage1 = Feb 2022 --> August 2022), the committed spend in that period is basically done.

If BRES decide to move to stage two (I assume we will hear when we get the drill results) they will commit to spend a further $500K on the project before the end of this stage (Stage 2 = August 2022 --> Feb 2023), the first $350K worth of considerations shares will be issued at the end of the stage, i.e in Feb 2023.

If BRES decide to move to stage 3 (Again based on what they have discovered in stage 2), they will commit to spend another $1M on the project before the end of this stage (Stage 3 - Feb 2023 --> Feb 2024), an additional $500K of consideration shares will be issued at the end of that stage, i.e Feb 2024

If BRES decide to move to stage 4 (Again based on findings but we hope that this would be a no brainer by then), they will commit to spend the additional $1M by the end of this stage (Stage 4 - Feb 2024 --> Feb 2025), the final $650K in consideration shares will be issued at the end of that stage, i.e. Feb 2025

So basically immediate concern is that BRES need to spend $500K before February 2023 (which they have in the bank) and that the progress on Orom-Cross needs to push the shareprice forward by that time so as to minimise the effect of the first tranche of $350K shares.

The movement isn't volume driven, as you say very low again today and 3% drop, £750 sold one day last week and a 5% drop. The MM are just working the poor sentiment

The market sentiment at the moment is they want to see immediate progress, that isn't what we are going to get with BRES in the near term. Whilst the PFS was outstanding that is basically a presentation/spreadsheet we need Mike to now deliver on some financing that turns BRES into a much more attractive proposition

With a six month agreed locking when/if the consideration shares are issued for each tranche of Akelikongo, we have to hope that the expected progress with Orom-Cross will push on the shareprice from where we are at present.

And we don’t know at what price they have agreed to issue the shares at, we know that Rab took their latest slice at a premium

Have to admit, not liking the 5% drop on a daily basis, pretty disappointed we can't hold 4p let alone 5p

Mike already admitted that Akelikongo will be taking a back seat for the moment, so i don't think any further buy in will take place in the short term.

We really do need to see some substantial progress and not the same rhetoric regurgitated though, as at the moment the market is hammering BRES from all sides, £15K sold against £5K bought and another drop of 5%.

The First Equity broker note doesn't really add any weight to the market perception, as they are the "poundland" of brokers

With regards to investment, we should hope there is no shortage of interest from deep pockets.

China for example is committing billions of dollars into synthetic graphite production, which is extremely expensive compared to natural graphite (especially if you look at Orom-Cross where it is lying on the ground !)

https://www.benchmarkminerals.com/membership/chinas-anode-players-announce-3-9-billion-for-synthetic-graphite-projects/

With all that is going on in the world it surely can't be long before western companies look to secure their supply of graphite and when they do capital investment shouldn't really be an issue.

Have to agree, in the current market the timelines that BRES are working to, arent to the taste of many that want to see an upward trajectory of the SP rather than us bouncing along the bottom like we have been for months. Realistically the target support level from the company should at least be the 5p they offered Rab.

This is however the timelines that are involved with this type of project, what is important though is that BRES do something to support the SP otherwise as you said the option for any "JV partner" looking with interest at Orom-Cross just looks at a £7 mcap and thinks it makes sense just to snap up the company (and we don't have enough shares in "safe" hands to block that if it comes), China have already started snapped up many non-producing graphite projects in an attempt to control the market.

Have they really got JV partners and Offtake customers knocking on the door, well if we have we could do with securing something in writing and taking that risk away.

More than happy to wait for the end of 2023 if we are going to get rewarded, I won't be ecstatic if we wait that long and we get bought out for peanuts after trusting them with my cash for three years

This picture seems to be doing the rounds

Southport visitor in Feb 2022
Eqtec twitter March 2022
Standup for Southport today.

Problem being absolutely zero progress has been made on the project in that time, so may as well keep using the same photo.

Probably see it again some time in early 2024

This market is a joke, £700 sold and a drop of nearly 5%

i'll take +5% per day between now and the end of the year !

"Profit would come in the 4th year....and it would be clean energy."

We wish it was that simple, without knowing the likely margin we can't tell how long it would take to be in profit, with a margin of 20% we are looking at year 16 to see a profit on £30M investment.

So ...

He releases a proactive interview where basically the whole content was, "How difficult the market is", and how difficult it is to secure funding for projects in a yet undemonstrated technology.

Then within the hour ....

"Expressions of interest for the full funding required including Letters of Intent (the "LoIs") from institutional infrastructure investors have been received for the project"

so raising $30M isn't that difficult?, The mixed messages just aren't going down well FFS.

Is this just another mouth to feed ?

For me there was a marked difference in the demeanor from both of them, compared to previous interviews.

Previously they both came over as enthusiastic and energetic as to the challenge ahead of them, This was somewhat different their whole body language just screamed they didn't want to be there discussing what they were being asked.

For me the next milestone is the August payment of the Riverport loan and what they do with that, (for me i still think some of the cash was needed because the can no longer expect to settle that via equity). it appears now that whilst we had rumors North Fork would be firing up in August that now seems unlikely to be the case.

The interview has done nothing to allay and fears we have over cash burn rate and the financial standing of the company, why when the main issues are financial did we not hear from the idiot Baber (or perhaps i just answered my own question)

DPs continual insistence that it is all market conditions and not really a consequence of anything they have done, that has seen the share price plummet is a little disingenuous to say the least.

If they had just said the two sentences.

i) Expected to pay Riverport by equity, but market conditions means they have rejected that, so we need to place traditionally or redirect cash from elsewhere.
ii) We have some unexpected cash demands that are needed to keep everything for MDC ontrack, so raised the minimum we needed (not the maximum we could get away with)

I would have been satisfied with the explanation, locked the bottom drawer and taken another look at the end of the year, but no we get.....

Difficult market conditions (We can't pay for it)
Strategic net-zero change by global economies, (They no longer want it)
Modest request (Lidl's own brand not Moet)
its all likely to be sh it for at least 9 to 12 months, (So we needed to secure our remuneration sooner rather than later)
Even more talk of new projects being started (Drumroll : More pipeline!)
We are not a one project company (We are a company that can't close one project)

But it's never anything the management have done because we are steering the ship not holding on for dear life.

Still confident, I think (but much less than before, will reassess with August news.), Time will inevitably tell whether we all have to start worshiping at the altar of @swazers magical crayons or not.