Member Info for Daisan

Not the best timed trade but these things happen unfortunately. They could have got £50k more this morning.

Block16legend,

I would have a look at the presentation that accompanies the acquisition where it talks about the 'short stop' and 'long stop' dates which equates to the dates you mention. There are some regulatory hurdles to jump.

In the morning update this morning:

https://twitter.com/proactive_UK/status/1123490524080562176

There is an incredible amount of information in those slides. I think that the situation is even more nuanced than evident.

Slide 15 is the best for me - shows the incredible opportunities going forwards. I won't reproduce it but I would urge people to read it as it opens the path to so much more than most would have thought likely or even possible.

I see we continue to reap the rewards of one of the most value destroying RNSs I have seen for a while. Now 0.055p under the price which the bonds converted. Oops! No they aren't - they are only 0.005p under as the BoD generously allowed the conversion to take place at a lower price. Lucky bond holders eh?

BMN and Fortune doing what they do best - fantastic strategy. Vanchem has been long speculated upon but to finally do it is fantastic. But we get not one but two pieces of news - Mokopane to be developed (and as has been stated previously, FM usually announces things when they are done so I suspect that the licence is a formality) to supply ore. And we get production immediately from one kiln.

All of this from current and future cash flows (and a bit of debt where required) so no dilution. I wouldn't completely rule out the latter at some as we have a lot going on with more likely, given FM's track record, that will demand cash and the JSE listing has to get access to some shares. But for now, no hangover.

Good luck unravelling them. They seem to be all over the place.

I note that they struggled to get a placing away in February so have resorted to 'death spiral' funding to raise $2m (which cost them $2.4m!). This is going to weigh heavily on the shares for the next couple of years unless they can buy out the bonds at some point.

Well, you have to think that IBIT have been burning through the cash so, sensibly, have decided to focus on one thing at a time. Vela's original transaction in IBIT was great and they started selling near the top which was also great. They then decided to catch a falling knife which was less than great.

The previous RNS was insulting and pretty much benefited very few people. Fortunately the prime beneficiary was Antony so that is OK then.

Well, the market capitalisation for EDL is small so I am not sure that it gives too much information to be honest. The rally today was relief that it hasn't gone under.

Looking back, quarterly updates occasionally go to the last day of the following month. They are also issued during trading hours occasionally so I wouldn't be too concerned just yet.

They seem to have their figures in several pies currently, all of which require funding. The farm in agreements executed in the last couple of months appear to require a total of $4m over the next 2-3 years. Added to the recently acquired gold prospect, this seems to be a lot of cash to be expended for a small explorer and the interims and strategic financing executed in November last year are likely to have been used up by now (the company administrative burn is relatively low but the gold asset required some case and going forward the exploration commitments will require cash). All of which suggests that they will require significant funding rounds (in comparison to the market capitalisation) over the next couple of years.

As this is currently traded on NEX (with a plan to move I believe) the prices on here (or on NEX!) are not particularly representative of the actuals. I can see that recently sells have been going through at 0.4/0.35p and buys at 0.624p which is quite some spread! Any transactions either way will cause considerable movement owing to the very limited liquidity.

It has been this way for some time now and still no clarity.

I'm always a bit cautious about mystery technology that appears to have magical powers! If it does what it says then it is transformative and it will make it through, if not, it won't. I'm leaning towards the latter currently.

Yes, very interesting. A couple of points though. They indicate that they want to be more geographically diverse as they are primarily SA focused so, whilst they want to move into battery metals (including Vanadium), BMN won't assist them location wise. They are also talking about years to do this, so a typically dynamic large miner, but this is likely to be a typical viewpoint for large miners. I would be quite happy to see M&A interest in BMN is 2-3 years as I suspect that it will be a very different BMN. It will enable them to fulfill their ambitions of production increase and VRFB penetration whilst still being in that investment 'sweet spot' so commanding a premium.

But not desperate enough to raise the bid! There is clearly a buyer but they are playing a canny game and unwilling to chase the bid. News required methinks.

Kabaa,

YA and Riverfort are 'death spiral' funding providers. They do not give a jot about the assets as their modus operandi is just to sell short and convert, sell short and convert, etc. They cannot lose.

Interesting posts BigBiteNow - thank you.

I suspect that BMN may have an interesting problem should all these plans come to fruition. The Eskom project alone would be enough to monopolise the output of the first phase electrolyte facility and it is clear that they wish to de-risk by having other projects serviced. It does remind you of Jaws:

www.youtube.com/watch?v=YFgZIH_01FA

Alfacomp,

Whilst your concern is touching, we haven't seen that behaviour for some time and I was not aware that it had re-emerged. I guiltily admit to having done something other than slavishly watch BMN trades over the last week so am only just getting back into the swing of things.

jimbo66,

The NPV for Vametco is less transparent than the Mokopane NPV. The only figure I have available is $211m at a FeV price of $30/kg and 10% discount. This will be considerably higher for FeV prices of $50+/kg.

I agree, cash should be a significant factor now and as it grows the EV goes lower and lower. Personally I don't see why a company should have an EV much lower than the NPV of its operating asset, particularly when the suggested output of the asset is set to grow significantly by utilising cash flows.