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What could be current cash flow situation, making some assumptions of course? Forgive me if I don’t go anywhere near that one! There is unsold gold too that could add.

Must be getting a return from Kakuyu by now to contribute too whatever it amounts to. Early indications are that as of Jan RNS they were ready to ‘source’ a drill rig. To start sourcing would be premature without any confidence that it would soon be receiving cash flow as March presentation states, “project economics must generate free cash flow within 3 months of start up and sufficient income to fund step out exploration.”

Also at that time, they were pre stripping and a 185t bulk sample had been sent to Kabwe refinery. As of the March company presentation it clearly states that an agreement has been ‘reached’ with the refinery to treat and sell the ore.

The signs from this really lean period of BR news recently could point to the potential there is still financing overhang to move BR toward the AA option. While there is still a lack of any real volumes of shares being shifted across the markets, the need for funding is going to be very difficult to pull off without too much dilution if they can’t draw in new money with any positive news releases now to lift the share price with more importantly, seeing it sustained for any period.

Confidence in the market has got to return first imo.

Not being economic as a reason for not reporting, I would say is not a fair assumption. Companies can end up producing a number of pre feasibility studies on the way to achieving a ‘desirable’ economic model. With Xtract confirming there will already be an optimisation phase anyway, and with infilling and both resources open ended on strike there is ample opportunity to achieve the necessary positive outcome.

The hopefull and more obvious scenario is of course further work can all be done from treasury and so are building cash reserves to have funds in place up front to cover all the contractual obligations when ready. As per phase 2. Potentially split with resource optimisation firstly, followed by resource upgrade and study later.

Agree NtM although I’m predicting ‘25 the later it presumes this year.

>>Has been pointed out that the 8.5p and 10p warrants

Should say 5.6p and 8.5p warrants btw. ( that haven’t expired yet) 🤦‍♂️

Da

If I understand uk warrants correctly, they can only be exercised on the expiry date. So unless the share price exceeds the strike price of the warrants or very close to it (?) they may not all be taken up if any as is no obligation to. I still consider £4m+ for resource optimisation and upgrade, further metallurgy and bulk BOS testing (if compatible) and cost of the pre feasibility study. ( not cheap)

Means well and truly kissing goodbye to sub 1p tho unless it’s a quick dip, wham bam thank you Ma’m to significantly average down before heading off north. This time round will be off the back of far better fundamentals to support a higher mc.

Now there’s a dreamy scenario to think about over the weekend.

Has been pointed out that the 8.5p and 10p warrants for a potential £4m were subject to approval at the ‘21 AGM in late October so interestingly they may still play a part in the next push.

Hopefully with a decent economic evaluation to come from RC pit model, confirmed, meaningful income from Fairbride and some positive signs of global economic growth as a tail wind. There is plenty to work with in a new PR drive, is s big ask but have all seen how market can react, with sometimes the most innocuous news having a profound effect on buying pressure.

Xtract shares are likely traded automatically using algorithmic trading, which are designed to act in a particular way and under specific market conditions to continually create liquidity.

There must be some human oversight you would think.

Ok I’ll say it……could be a tree shake, not heard of one of them there things for a while.

A thing, or just one of those cliches that is used like , “wouldn’t want to be out of this over the weekend!”

Staff incentivised warrants at 8.5 and 10p

The company either anticipated a rising share price, as the assets developed , which seems unlikely as that would be placing a market cap of 85m on project fundamentals for 10p prior to a BR sale.

Or they clearly expect a BR sale to happen with staff incentivised with those options to achieve it as they are performance targeted, and not primarily to increase working capital.

Would that mean further raising of funds is not deemed necessary as is expected that income will support future working capital?

There is the matter of £4m missed from expired 6.5p warrants that looked as though it would have covered expense’s to get BR to the point saleable.

Any guesses on strategy to do that now?

Just offering an alternative view on that particular comment of 3-4 weeks Ben. But maybe I should have put “in the world of Colin” and not PR! I agree with your points totally.

Have said before that I personally don’t expect it to be released even if it is back yet. As will just be a proof of concept study only that may not have the necessary data to input into the flowsheet to be of any real significance to actually support the economics on its own. From the pre concentration study that is being done from the 4 drill core samples, assumptions will need to be made. Hence could even be looked upon negatively by the market as Colin was talking of lower cut offs etc. Bit early for this particular study even though the technology could eventually allow it.

It will be fine for the conceptual study but could likely see ‘later’ more intensive test work done from a bulk sample to test various primary crush sizes and how the ore presents itself on a conveyor with the more advanced and extensive test work results being critical for PFS inputs no different than the requirement to upgrade the part of the resource that will be included in the initial mining phase the decision to mine will be based on.

Could well be wrong of course and it lands at 7am. (Insert day, any day)

>>Yes anyone can leave at any time, you won't get to leave with the same amount you invested though, far from it.

If you are staying for that reason alone then that is clearly the wrong reason to stay. You must believe in the company to produce the results that would cause rerating to get back to your average and then some. If you don’t believe that is going to happen here soon and you think there are better opportunities out there to get your money back quicker then that is what you should do.

I know it’s easier said than done.

Hi LW I initially invested for just BR after doing some basic research on porphyry’s and admittedly got swept along on the whole 2mt bandwagon. After time, extensive research and experiencing coin birds brand of PR to minimise dilution, along with taking on board the AIM rodeo experiences and knowledge gained from NtM and the warning advice from LTH’s such as yourself, Andrew, lucky gixxer and others to ironically, ignore the noise!

The door is always open to leave at anytime Eastern. And I think that is where Colin is clever in what he says by putting out some nibbley bits to temp people from leaving the party early. So where you say no one fell for it this time, you could say they have, if they ‘were’ expecting the pre-concentration study to be released.

What he said was they were expecting it back in 3-4 weeks! In the world of PR that doesn’t mean it would get put out then.

So it may well have been the point to keep the disgruntled hooked and not necessarily to ‘directly’ prompt more buying in which case could well have been a successful episode.

Failed PR, as in the inability to drive the share price up to warrant strike price.

Would be naive to assume there will not be a further raise to take BR to PFS after missing out on warrants now expired. If is the case then to release any news now will be wasted if can be used for a new PR drive when market conditions are more favourable to keep any dilution to a minimum. That’s not to say they are holding back news from BR or Kakuyu as being nothing to report yet.

Just one theory if asking why.

LW I agree expectations are now skewed from failed PR strategy, but it doesn’t mean BR is a dud,

I cant comment on the Mozgold deal was before my time, I understand Kalengwa needed a few million to develop that was never mentioned or xtract ever agreed to pay towards. So the deal with KPZ could well have broke down taking eureka with it. Kakuyu early signs are promising but until there is cash flow there will be doubters, granted.

A million a month from Manica ‘may’ very well be in reach if and when deeper sulphides are mined and plant capacity increased to bring down LOM at current throughput from all mineral reserves. But currently at about half that soon, so will be in line to be within DFS output figures.

Company looks fairly well positioned to me and imo undervalued at present mc.

It’s a successful diversifying strategy for that very reason LW.

Imagine if the company had only stuck to Zambia and ‘not’ diversified?

>>Many of the other CB failures seem to be in Zambia and for the life of me I can't see why CB keeps going down this route

Andrew ‘apparently,’ It’s wise to diversify 🤔

I am only interested in what the company can deliver to its shareholders from the assets it currently holds and with the view of adding others under the current growth strategy. That is what is important going forward. As has been pointed out, many will fail, but some will win. Nature of the beast that is exploration.

It’s not the point I was commenting on or be inclined to. My point was >> I see no reason to not be confident in the company to deliver good news.

I was referring referring to current deals/assets not current share price LW

Sorry for not being clearer.

What have other deals got to do with the current LW?

Not seen the board so negative before, but at least let’s wait until the updated conceptual feasibility study is out with the economic assessment before writing BR off.

Pre concentration of some kind or other is a normal and serious consideration for any project for resource optimisation. Amongst them BOS can have the biggest effect on economics overall to reduce the CapEx that will have a major impact on discounting that cost to build the mine, (normally about 20%) on top of the 7-10% discount rate to ascertain NPV. So it could be really important for the projects IRR desirability, so hardly done just to kick the can down the road that was posted earlier.

I see no reason to not be confident in the company to deliver good news.