Member Info for Gallmat

They have no way out other than hoping for this development bank funding, or selling mozam.

Sadly natural graphite is saturated in the market. All other players have lots of reserves they do not need more.

Amazed there are buys.

They confirm.

1. They cannot have continous production

2. Vat refunds are held up

3. Limited cash

4. Now just engaging for development financing.

5. Thier capital markets are closed and they cannot access equity.

Anything can happen. They go under. A predetory bid that wipes people out.

They could have gone to a few larger customers. Given share of business to them and favorable pricing.

The ceo basically built this without a dfs, contingencies. Then gets all excited about empire building and gets assets while burning his cash

Sadly nobody wants to lend 2m gbp to a company even with high fixed assets.

This is directly related to story of graphite and the CEO.

CEO has not kept his word, so nobody wants to trust him

Unbelievable the value destructed for 2m.gbp.

Could have raised a convertible during commissioning when story was good.

Government.has no cash for refund.

He blew the resources to aquire a new project without considering how to run the current operations.

An empire builder with no common sense. Who is only now engaging DFI. That might not be fast

Your point i suppose is excellent if we can hit an economic resource

I assumed because it is low grade we might need say 2 or 3moz or more to be found. And i assumed lots of drilling is needed, as we might have to hit multiple targets

Probably a great question for the CEO. To understand the cost benefit rational.

Maybe the geology points to a target resource that is easy to find. My gut is saying that the other side gave it up for unproven assets that it is unlikely.

The only benefit of diluting for exploration. Is to protect the downside, by making 7p now backed by assets. The cost is to sacrafice alot of upside.

You might also argue a long term benefit as we have a mine to develop if we win the case.

My personal view is that don't dilute. The money you save from diluting can then be spent later to pick and choose a lovely project. You could have 30m extra to pay.

There are counter arguments and i fully accept this is just my opinion.

We might drill and do really well.

But the rational.side tells me if we did get a massive windfall payment, our real power them is that we can choose to buy into the most exciting explorers or projects that are much less risky.

Bhukia is hitting gold already, no reason to dilute that to double up.

If we get the settlement we will be in a super strong position to choose which junior to work with

The point is about efficent capital allocation( notn

worry). If we fund say 4m usd for exploration via 20pct dilution. You just gave away 20pct of 800m g bp to dig some holes.

Will 4m usd give 160m gbp return? If it did is one of the most amazing drilling campaigns ever

Yes we can do this and make money, but we have to realise we make alot more if we do.not

I dont want to labour the point but our partner who had 40ct share in this and other assets cascades was trading at 8m.

I love the litigation here, and also would say i like the ceo. I am less keen on our other assets. All have potential to get to high value per oz. But you can see we might need to spend to do that and i am 100pct against it, unless we can split litigation and mining assets.

I think our bhukia asset would probably have had a good valuation, even back in the day. Because what they found had great quality and you could imagine it being very economic.

One thing, our CEO used to value mines and even lectured in the topic. So i have great faith he is selecting good assets.

Check out hummingbird resources. 80m gbp, working mines, millions of oz.

It is really about quality. Oz's in themselves do not imply alot.

If they are too spread out, low grade, in remote location...not valuable.

That is why bhukia was so great. Shallow pit, near infrastructure. Good grade

One left field idea

We give options to share in our court case.

They use this implied valuation upflift to raise equity to perform the drilling.

We have right to increase our share in project if they exercise options.

1. Cascades can raise money off the back ofnour court case.

2. Cascades can drill

3. If the court case wins we get out stake back at reasonable cost

Cascades can issue share for exploration, for us it is harder because we dilute the court case

Being a bit evil this am.i am kind of hoping dfr gold have a little miss on cascades drilling and can pick up our interest there cheaply

Dfr gold are sitting at circa 8m market cap

Their ceo has changed and he cut overheads to focus on exploration.

From all the events they might be struggling to access capital ( ceo just made 0.5m loan).

That said, if we do get underway and have a rerate maybe there is a chance to get some assets back on the cheap.

Personally i think our partners are having cash issues. We are just getting the interests back on the cheap. Why not.

You can google price of cascades partners.

Not what i was expecting. Seems like a help your mate out transaction.

Very cheap way to increase our share. Why not.

Thanks that was useful to see, especially the timeline.

I can see why you need good lawyers, reading around the subject of BIT gets very complicated.

This is a bit frustrating because the broker implied the announcement of the value of our claim in q1.

However, that broker note put minimal effort into even calculating fair value - just some rough comparables.

I can understand why. This is a micro cap so they do not get a huge return from the work.

My guess is we might have to be a bit patient here. But honestly, every month that goes by we are making interest on the claim so hardly a kick in the teeth. Could be 0.7% a month!.

I reflected alot on this. Really we just have to wait and truat our world class lawyers. The timeline will be what it is. A couple of months extra would not be end of the world.

Planning for the worse ( which is still good) hoping for the best

The election ends june 1st!

I work to worst cases. So big decisions do not get made during elections. Elwctions end june 1st. Some time for fist bumping each other. Mid june.

I still think the auction is not that important. I read these things are won based on a royalty. I doubt they are going to throw out a dollar value that is comparable.

I just hope we announce starting the action