The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
I finally sold my last BEM shares last week after 10 years, at one stage I owned 0.5% of the company! Made a big loss and now it's 20% up on nothing. You gotta laugh! Still watching, if anything changes substantially I'll jump back in, if I can. GLA
Two massive sells this morning approx 600k each @ 3.20. I expected the share price to bomb on this but I can sell 300k in a single trade for 3.5p. Given the big discrepancy in price between here and Sweden I suspect these shares are winging their way over the Baltic (metaphorically!) as we speak. Nice they are in demand somewhere at least.
Andy, what do you think the chances are of n early election? It's pretty clear that the govt are stalling on Kallak and others because if they lose the support of the Greens then the govt could fall, but could that happen anyway? I'm wondering if BEM board have looked at the timescales of legal action vs. potentially a new govt in power and decided to sit tight. If so, risky strategy of course because they could end up with the same govt, as before.
The Greenland ice sheets are moving faster than the decision on Kallak, nevertheless I think there is incremental movement. If the sp goes down further I'll be tempted to buy back some of the shares I sold a while ago!
"Can the Minister explain why this decision has been unreasonably long and also
account for when the Minister and the government will decide on possible
mining in Kallak and Laver?"
If the 'when' is answered that could be a massive buying opportunity at current prices. I wouldn't hold my breath though.
This one is far more interesting than the placing RNS. Right now, why would you pour more money into Kallak? What is going on behind the scenes? It casts my mind back to the CAB ruling and their objections. First, the importance of reindeer herding. I think they've lost that one as we have seen a number of key people state that both can be accommodated, as they have elsewhere. Secondly, the proximity to Laponia. That was never a valid argument due to Kallak being outside the exclusion zone and, as a number of articles pointed out, much further from Laponia than currently active mines. Thirdly, CAB disputed BEM's expected mine life and claimed that the mine would only last for a short period of time, 12 years I think? That was for Kallak North only of course, and only using indicated resource values (there is undoubtedly much more at K N+S). I believe this move is to prove that Kallak has the potential to become a long term iron ore mining region on a scale to eventually take over from Kiruna. My only concern is that if the company is investing more money in the Kallak region, there should be legally binding assurances from the Government i.e. prove the resource size and we will grant the mining concession. Of course it could be argued we've already done that!
Up 12.5% over there, meanwhile we've had a handful of small transactions and barely moved. After all these years it's off the radar of all speculators in UK. Really need more trades to keep it moving in line with Sweden.
"Mattias Karlsson's own speculation is that the government will not agree. "
I read that to mean that the government will not agree among themselves i.e. Social Democrats and Greens don't agree, not that they will refuse the application.
Moderator Mattias Karlsson in Luleå reports the government to the Parliament's Constitutional Committee (KU) to pull its legs behind in terms of permits for a mine in Kallak in Norrbotten.
Karlsson suspects that there are political barriers between the Social Democrats and the Environment Party in the government.
- The matter seems so clear, therefore it is extra strange that the government cannot reach a decision, says Mattias Karlsson to TT, pointing out that the government got the case on its table in the summer of 2017.
He believes it is irresponsible to the company that applied for the concession, Beowulf Mining, to pull off the process for such a long time. The company began drilling in 2010 and submitted an initial application for a license to mine iron ore in the area in 2013.
Karlsson writes in his report that he wants KU to review the government's "inability to make a reasonable decision." The report is directed at both former Minister of Trade and Industry Mikael Damberg (S) and his successor Ibrahim Baylan (S), as well as against Prime Minister Stefan Löfven and his responsibility for the proper handling of cases by the Government Offices.
Key statement: "Vardar has, in the Board's view, already created significant value for Beowulf's shareholders."
The problem is, of course, attaching a value to that investment. We have no idea, and for that reason I do not think the share price reflects Vardar or the other prospects in Scandinavia at the moment. It's all about Kallak until we get JORC'd up elsewhere.