Member Info for Daisan

The VAT situation is referenced in every quarterly update and today's is no exception. The outstanding amount continues to grow and is now greater than the outstanding debt. On the conference call Eric indicated that there had been no change with this but that the operational environment in Tanzania is improving with the Barrick deal seemingly key to this.

If it wasn't for the size I would have suggested that it was a rollover.

The interest on their debt has only a marginal impact on their profits. It is their operational environment that has caused the drop. I would expect the operational benefits for BMN to far outweigh the interest on debt.

I think that ASOS share price reacted favourably because they were pretty upfront about the issues they are facing and the market is giving them the benefit of the doubt in being able to address them. I confess that I don't share the optimism as I think tha the issues are pretty fundamental. They should not be priced for rapid growth.

The price finished at a high yesterday on the back of an afternoon rise which usually is a good sign for progress the following day. Let's hope that we return to this 'virtuous cycle' rather than the rather less virtuous one we have experienced over the last few months.

Fantastic match and a credit to both nations.

As you can see, this poster has had it explained to him several times what the current situation is and has not responded to these explanations but merely restates the initial post. As such, his only purpose is to disrupt. Probably best just to ignore his posts unless he can come up with something somewhat more original!

That is not a simple question to answer. It depends on the level of process change that is required to switch as it is not a direct substitute.

Stonefold,

Unfortunately on these boards you do get people posting points, not engaging in discussion when those points are disputed/disproved and then just posting the points again. It is a clear indicator that the sole purpose of the posting is to disrupt.

I suspect that you will indeed be filtering!

As the large, round number transactions seem to have little impact on the share price one potential explanation is that the declared short is being closed whilst the REMX holding is being reduced (as BMN are no longer in the 'index' that the REMX trust follows they should not be holding currently). The one thing about this is that the REMX holding is smaller than the declared short.

He does understand the concept of 'buy low, sell high' doesn't he?

I thought that this 'not much cash' thing had been debunked ages ago. Yes, there is little cash on the books at the end of the half year but there was hardly any the year before or at the end of the full year. That didn't result in any dilution then and is unlikely to now as the majority shareholder is hardly going to want to dilute its current holding at these levels when they have paid substantially higher.

The loan solves the immediate need for capital. What we now need to see is the production levels rising on the back of it.

You can see the beginnings of a tobacco like litigation process here. Oil companies are likely to be buffeted, at the very least, by the winds of uncertainty about their future for years to come.

I suspect that they meant 'excluding' rather than 'including'.

RetiredBanker,

We have already been told how the first money has been deployed and that this already started to make a difference to the ore produced in July.

I suspect there is zero chance of the majority shareholders selling off that amount of stock to institutions so I don't believe that this is a price driver.

What will drive the price is evidence that the production profile is following the ore profile and that the funding is being deployed. That way the market can start factoring in a considerably increased production profile.

CPRs

Expert10201,

BMN will resell the VRFBs manufactured by a third party. I think it very likely that the third party will be UET and I would expect the tender to be a joint one with UET as the project is very high profile and both the bidders and the tenderer will want to ensure that everyone is fully committed. If UET aren't committed to making this project work then they are fools.

Well, I have looked back at the posts and I am struggling to see any saying that the share is going to rocket so I presume my sight is failing me. There are posts hoping for a high price to sell at but I think that most people caveat this with the price of gold going up and the VAT situation being resolved. To be honest, if this was anywhere other than Tanzania currently I would expect the price to be 2-3 times higher than it is today given the fact that it would be debt free.

The US try at the end looked like everyone was playing in a big bathtub and the ball had been replaced by a bar of soap!

Bigger than I was anticipating but exactly when you would have expected it. Unsurprising that the continuous buying had little impact on the price.