The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
I have a sneaking suspicion that they've already got the wink for the licence and the plant construction is already underway. This is pure speculation on my part of course but I don't think it would surprise anyone if this was the case.
On a lighter note, I did have a dream about the AGM last night. We were all there, Ned and Ray in their Saville Row suits and were sitting around waiting eagerly for Bernard to enter. Only somehow everyone had managed to get the wrong room and the CEO of some Water Utility company came in and started giving a presentation instead. The dream then cut to Bernard giving his presentation to an empty audience wondering why no-one had turned up. I'm not quite sure what my brain is trying to tell me with that but hopefully it's not prophetic. I'll be double triple checking the address come September!
I think the answers regarding SC were a little lacking, but then if the reasons behind it really are what we suspect then I don't suppose he can really come out and say that flat out. Also the steps concerning the share price and a strategy surrounding that were a little thin on the ground, but then the plan always has been to up the share price by developing the project. A little disappointing on that front but it was pretty much what I expected.
On the up side I did think the information giving a much more detailed roadmap and specifying a more accurate roadmap was very encouraging. As you say, JORC by the AGM is definitely promising and while we've all suspected that, it's nice to hear him come out and say so. It was nice to hear what the hold up with the bulk sample was too but I think that information could have been communicated at an earlier date in all honesty.
Also it became pretty evident that they DO read the boards, so I'd just like to say, "Hello Bernard."
It's certainly given me some confidence going forwards, but I think there's still going to be lots of questions at the AGM.
In all honesty I hadn't got round to emailing Bernard yet but I'll happily take the credit. I can only assume that they read the boards unless someone else owns up to taking the initiative. For me questions will be: - Reasons behind placing at 0.13 - Status of JORC and Bulk Sample - What the plan is to mine / sell. I'd also like to query something that Meyer said in one of the earlier interviews, that there might be an intention to mine and ship raw, without on-site processing. This seems in conflict with what we've been told about plans for a processing plant so I'd like some clarity there.
I would settle for .5 in all honesty. It vastly undervalues what I think we have here but it allows for everyone to make their money back plus a little compensation for the time that will have been wasted holding here. In September I'll actually have been invested here for 2 years!
When I spoke to Bernard at the Investor show, on the back of the calls for an EGM, he mentioned to me the possibility of setting up a conference call between himself / the board and the investors. If people are unhappy to wait until the next AGM (most likely in October some time) then that might be an avenue we can pursue to get some questions answered / fears allayed.
Is this something that people would be interested in?
What would this actually mean for our income? Obviously it means we start getting it a lot sooner, but it also means that the price we get is lower, and the logistical costs for shipping it is far higher. This news, again, comes slightly out the blue for me. The line for months now has been about developing a processing plant on site for the ore. Is the intention to ship it raw to China until Birimian's plant is online and then use theirs? Are the Chinese going to pay for the costs of shipping it to China? Shipping it off-site even? Or do we take up those costs and therefore just get less for our money? It does of course mean we don't have to raise capital for a processing plant but I'm concerned we'll end up mining the stuff for basically nothing. Lots of questions to be answered but I suppose we'll have to wait for the PFS before they're even acknowledged.
Personally I am expecting everything to be wrapped up; JORC, Off-Take and PFS by the end of October in time for the AGM. A lot of it, as you say, is likely to come sooner, but BA knows he'll have some hard questions at the AGM if its not all sorted by then. I am expecting the MCAP to reflect Birimian's at this point in time. Give or take the difference in the resource size. AIMHO of course.
No, I concurr jamesroo. While I feel that ultimately this will probably work out well for us, I don't appreciate once again, being left in the dark regarding such matters. We were, as you state, told that we were fully funded until the end of the year. What then is the reason for this placement, and why was it not offered openly? What does this mean for the future of the company and what assurances can be made that we're not going to get shafted by it? We all knew Bernie was going to China, but this news is pretty out the blue.
I'm not too good on the whole corporate stuff but doesn't stuff like this usually have to be voted on at a GM before it can be approved? I've certainly seen resolutions for subscriptions be voted on at other companies' AGMs. Anyone shed any light?
Indeed, this would be incredibly positive news if it wasn't for the lingering doubt that we're going to get sold out on the cheap. On the one hand it seems like they've given us as much money as they can WITHOUT having to offer so it might suggest that isn't their intention. On the other they're very close to being able to if they want to now. Again, a little more clarification on the reasons and intents for this move would be welcomed. With any luck this will make other investors sit up and take notice of what we have here.
What actually constitutes the start of the rainy season? I assumed there would be no rain at all until it starts but looking at the weather charts that doesn't seem to be the case. https://bit.ly/2LwcADt
If I remember correctly someone worked out we would be paid ~300k for the material in the bulk sample. Of course that's if we hit the full 5k Tonnes, and most of that will go towards mining / shipping / processing costs. But I mean technically we will still be getting paid for stuff we've dug up. Can't wait for my 0.00001% Dividend.
What do you mean by a meaningful commentary? It seems pretty clear where Bernard sees this going, and I think that's been communicated. >Drilling and Assays up until the start of the rainy season. >Mining of bulk sample up until the start of the rainy season. >Bulk Sample shipped to China for processing. >Metallurgy and Results come back. >Definition of JORC with these results during the rainy season. >Finishing of Environmental Assessment and other neccesarys for the PFS. >Finalisation of Off-take agreement with SC on the back of this. >DFS and Plant Specification using results from the Bulk Sample. >Raising of Capital to build the plant. >Development of the site. >Digging stuff up. >Making lots of money. I am expecting to have the PFS and therefore the finalised off-take agreement by the end of October. (Which is when I suspect will be our next AGM.) Yes the shareprice is incredibly frustrating. I am 50% down too, but there is promise in this prospect and BA is doing what he can to realise it. If you think it's totally lost then sell up and move on. The constant day in, day out negativity that is rife on here certainly doesn't help either the shareprice or our sanity.
I suspect you're right. I think we could probably do with a bit of a PR makeover too. As Sxxswe mentioned yesterday, our presentation does look rather feeble next to Birimian. I really think our IR should pull their weight a little more in that department. Bernard has enough on his plate already.