Member Info for johnpwh

You make good points nomad. BCN is the junior partner now and the stronger partner is getting a very good deal. Same is happening at AAU. But in many ways this is better than a small company with a good asset trying to go it alone. In my hard earned experience that invariably leads to lots of dilution and bond issues at ludicrous coupons, which in turn usually then leads to the original equityholders getting wiped out as the company runs out of cash. Of course their replacements who buy from administrators/ liquidators cash in big time. BCN now has an interested partner to share the development costs with an eye on the schedule, have their own financing in place and are supplying a growing market. Just watching the telly tonight it is surprising the number of ads there are directly or indirectly mentioning EVs. It is the future.

Mr James
In fairness I've been here over a year. I don't usually post much, there's not always that much to say. However tonight is rather an exception, as I'm sure all will agree.

Mr James
I could get to like you. In a slap on the back and have a pint of real ale sort of way you understand.

Brains scrambled now r. Had the beer, now on the red. Have had enough of BCN for one night. Only the big guy upstairs knows what will happen in the morning. Night all

Think youve got your decimal points in the wrong place 'r'
The MC at the closing SP is £125m according to the Fundamentals tab above so £44m is rather more than 4,7%

Who knows. In the onslaught of the last hour I have tried to read the RNS', join whoever it was (Primary Bid?), shift money around and apply. Now I interpret the RNS as saying the Retail offer closes at the earliest of the Retail Offer being oversubscribed and the Bookbuild being oversubscribed. Either way means that the shares were snapped up, but the effect on us PIs allocations will depend on which caused the early closure. Thats my take anyway.

Just regaining composure.
I guess there was always going to be a fund raise, it was always going to be at a discount, the funding is now secure (unless Ganfeng cant keep their side of the bargain due to their Governments intervention) and the way forward is more positive.
Plus the SP was fairly robust today, the old boys act in the City is alive and well so this wont have been a surprise - so if severely undermining todays closing price is likely a weaker SP performance PM could have been expected.

Bizarre thing is that I've just done whatever I have done in a mad panic without time to think. Cant say I enjoyed that . Also how many people even knew about it given that the RNS was (like yesterday) sneaked out after hours? I need several beers and some intravenous wine.

Altogether rather odd. What sort of allocation is likely? I was asked about my current holding, what's that about? Allocation dependent on current holding? I assume you could have applied in the public offering even if you currently held none?
I read as a total raise of $60 plus additional as Ganfeng can also elect to increase their holding in BCN to 29.9% at the placing price of 45p. Anyone agree? As for what price they will be tomorrow - gawd knows. I suppose there will be relief that fundraise is now (hopefully) done and dusted, reinforcement that production will be 2023, dismay at the discount, possible overhang from new shareholders taking a quick profit. Any ideas?

Hi stroga
I see your point, but given your posts I'm surprised you are still invested here.
I have only been invested here for about a year and I agree that in the time little has happened on the ground despite the promise. There really has to be a bit ( a lot) more dynamism here if there is to be any chance of production occurring in 2023. With such a massive resource the supply is effectively inexhaustible so surely it makes sense to get into production asap. I suspect within a generation there will be little demand for lithium - same as happened to fax machines, pagers, coal, steam engines, filofax, compact cassettes, VHS videos etc. !

Think we will have to agree to differ Van. we go back a long way and have 'broken bread' together :)
Perhaps I should be a bit less 'negative' and question less, and you should not be quite so 'positive' and question more?
Business is brutal and it is rare in the 21st century to succeed by taking a moral high ground. Nice guys don't win. For whatever the reason the conclusion of the deal was delayed, and the terms of the MOU were negotiable, and I would still suspect that Ozaltin would have had no hesitation. Don't forget AAU is now a minority shareholder across all of its interests apart from Cyprus, I/ we all need to know that AAUs BOD are not going to play the decent Englishmen role (ok most of the Board are from lands far away!) or AAUs shareholders interests will get trampled on.

I certainly would have thought that accounts have to be drawn up in the 50/50 JV at close of play of the day before the new JV structure becomes effective. There will clearly be profits in the JV at that time as, since April 2020, there has been (debt free) around 15,000 oz of gold (plus silver) produced at operating costs of around $500 per oz AU. I am not going to attempt to calculate the positive balance that implies, especially as my figures are approximate at best, but if that isn't done I really would really lose confidence here!

Just a bit of momentum hopefully. Even with no change in fundamentals or prospects a daily decline will see sellers emerge to protect their profits (especially if slender) and buyers dry up rather than catch a falling knife. Without an injection of positive news its hard to predict when sentiment will improve.

Sorry Van but, if only for balance, I have to put an alternative view.
When the deal with the new partner was announced Gold was around $1400 and silver was around $16. Gold has been higher than todays price in the interim but and is still c.$1850 , silver has around the current level of $29 for months. Yet the terms of the deal are fundamentally unchanged. So suppose for a minute that Gold was now, say, $1000 per oz and Silver at $12. You think BigCo would have kept its offer on the table unchanged? I for one don't, and judging by the retrace from 6p+, I don't think I am alone in that thought. Plus of course the 50% share mentioned is effectively history because (presumably) very soon we won't have a 50% interest but a 23.5% one throughout the (non Cyprus) portfolio - it's going to need a very large increase in precious metal prices to compensate for that! I'm not being a doom monger here just stating facts. I like the management but I don't think they have excelled here, and as others have mentioned the level of communication with the shareholders is becoming poor.

Anyone care to briefly run through the figures? I've had a look at myself but failed to reach a conclusion - the company obviously has a balance in the in the bank, is expecting the consideration from Ganfeng for taking their JV share to 50%, they have the credit facility, but in the other direction have running/admin costs until cash flow from production is achieved. Is there any saleable product from the trial plant which I understand has been in operation several years? There seems to have been time wastage here for several years and, while it seems Ganfeng have had one hell of a bargain in acquiring what they have for apparently little money, at least our Chinese party will put a much needed rocket up the **** of this project that it seems to sorely need.

UK not UL

Disappointing BCN wasn't mentioned, especially when he talked about UL listed companies.

Well fellow Bacanorians, I will be ending the week with the same number of shares I started the week with, having just bought back the remaining that I hadn't already repurchased on Wednesday. A cheeky 30 day CGT profit. Obviously not happy that we end 10p ish down on the week but fundamentals seem sound and lithium commodity price appears to be rising (I just look at Asian Metals to get a feel of the Li. Any other (free) suggestions welcome).

Ill be honest bluegrass, it was not my intention to trade! I couldn't help buy a few more, a few more.... until I went a bit higher than I wanted. Then with what I regarded as storm clouds brewing I exited my overbuys on Monday and the prices have dropped since (despite Lithium apparently carrying on it own upwards momentum). So being an opportunist its obviously tempting to buy them back. Trouble is where is the bottom? its 54.5 as I write this, tempting.......

If they raise do you think it will be via a placing or a rights issue? With several large shareholders it will be tempting for them to do so by a placing I suppose