Member Info for Metalhead25

Nice holding :-)

If this goes the way Colin thinks it’s going to, you’ll be one happy guy. As will I tbf, despite a much smaller holding than you. Here’s to a good 2024

Swanny, are you the subject of today’s RNS (if you don’t mind me asking)?

Forrest, no doubt both lithium ion tech and competitor tech will continue to develop. However, the article you posted states that sodium batteries currently have less than half the energy density and less than half the capacity of lithium batteries

I thought it was good but have largely given up trying to talk about this share. I’ve tried quite a bit on X/Twitter but it’s like shouting into the void. If/when we get major positive progress in Zambia, it’ll flip in an instant of course!

He’s really not a car salesman, you’re an idiot

I don’t care much either way about this, but I do think that if he’s now appointed COO at Bluejay then Bluejay’s “correction” RNS was an outright lie and those responsible for it should be prosecuted. Someone needs to drive the filth out of this wretched market

We now have confirmation that Troy is not taking up an executive or operational role elsewhere.

Also, contrary to speculation yesterday, it now seems unlikely there is a pending placing, since broker placings are usually done within 24 hours.

Doesn’t mean there couldn’t be a placing at some point, of course - there might or might not. But that’s not the same as one being currently happening.

So it would seem the two causes of panic over the past few days are resolved?

I have just read today’s 52 posts and am going to venture to suggest that none of you have said anything of any substance or use whatsoever. None of you know the reason for the drop, unless you’ve been phoned for a placing, in which case you can’t say, and you won’t know until something actually happens. That is all.

Https://x.com/metalhead2525/status/1735943249888493933?s=46&t=Jne_cUYLxmaxpafySDDQ2A

I think the cash position is fine. Remember that since the TVM sale we have paid off all debt and bought all the equipment for the HMS project. Previously it had been proposed that we would have to get a third party to provide the HMS equipment in return for a profit share. Instead we have bought it and avoided dishing out a profit share.

It’s grossly undervalued because we have cash and monies receivable in excess of market cap, plus two fully paid for projects due to go cash positive in the next few months, and no debt, plus a strategic shareholder who just paid three times the SP and wants to introduce projects to build the company

Aaargh, apologies, apologies. I saw quarterly royalty payment of 0.9% and assumed that equated to 3.6% per annum, but of course it doesn’t does it. Just dodgy maths from me - forget I spoke!

I haven’t looked into the research notes, but would have thought a reduction of that order is likely to be down to having given away a 3.6% royalty to KNAC, no?

Thanks all. I, too, am reluctant to get into predicting prices, particularly with something that is pre-revenue and will be for some time. Personally, my willingness to slice on a move up depends on my degree of conviction longer term. I also have an eye on the chart. Can’t be more specific than that really! GLA

Fourth, funding. There are three aspects to this point: (i) Blencowe has already obtained a $5m technical assistance grant from the DFC, affiliated with the US Government. This is funding a large part of the DFS costs. 15/n

(ii) The deal with the DFC is that they get first refusal to provide/introduce whole project funding. Thus, that relationship is likely to lead to a complete funding solution. The company is already in discussions about this. 16/n

(iii) Short term funding. It is widely perceived that Blencowe needs to raise some money, on top of the DFC money. In a recent interview, the CEO expressed great (tempting to say complete) confidence that this is going to come from institutional investment. 17/n

He also said he expects never to do a retail placing again. And he indicated that news on this topic is very close. If and when high quality funding is announced, that should in my view have a very reassuring effect on the market. 18/n

Fifth, share price. A couple of spikes and dips aside, BRES has been trading between 4p and 6p all year. For most of the last six months it has been between 4.6p and 5.7p. It is currently around 5.05p. 19/n

The notable thing about this is that in the last few months we have seen (a) the DFC grant, (b) the successful bulk testing, and (c) the successful SPG work, yet the share price hasn’t budged. 20/n

When a company keeps on delivering great news and the share price doesn’t move, the effect is like a coiling spring. When it snaps, there is a long way to move up to reach fair value. In my view, it’s only a matter of time with #BRES. 21/end

However, I can’t resist a few tidbits:

“ ‘near theoretical’ electrochemical performance… ranks Orom-Cross graphite as high as any other SPG product”

“positions the material from Blencowe into the class of super-premium anode grade graphite” 8/n

“with nearly 50% additional cycles, the Orom-Cross material is again highlighting its premium quality”

“the non-spherical portion of Blencowe’s material offered outstanding performance” 9/n

So, we have a top notch product. This will help with *everything*: project funding, offtake contracts, profitability - everything. 10/n

Second, size. The current JORC resource is 24.5MT at 6%. There is a plan to do some drilling as part of the DFS process which should double that. 11/n

But the bigger picture is that the current JORC resource is based on just 2% of the deposit. In a recent interview, the CEO was talking about the whole deposit supporting a 100+ year mine life. 12/n

Third, low-intensity mining. The resource at Blencowe is very shallow - drive along and scoop it up. This has at least two important implications. The first is obvious: low production costs. Orom-Cross opex is projected to be some of the lowest around. 13/n

The other is low carbon-intensity and strong ESG credentials. This is important generally, but particularly in the case of graphite, where natural flake graphite is competing with artificial graphite and the latter’s main shortcoming is its carbon-intensity. 14/n

Time for a long thread on outstanding investment prospect @BlencoweRes #BRES. As always, you must do your own research. CEO Mike Ralston has done a couple of recent interviews which are a good place to start. 🧵 1/n

Blencowe’s business is the development of the Orom-Cross graphite project in Uganda. They have a mining licence, a JORC resource and a completed PFS. They are currently working on a DFS. 2/n

Orom-Cross is an extraordinary project and in my view Blencowe is a great investment proposition. I’ll explain why under five headings: (1) Quality, (2) Size, (3) Low-intensity mining, (4) Funding, (5) Share price. 3/n

First up, quality. The resource is high grade and low impurity. That’s good but only the beginning. For a graphite product to be in demand in the EV/battery market, it needs to produce a high quality concentrate and then a high quality spheronised purified graphite (SPG). 4/n

In recent months, Blencowe has provided a 100 ton bulk sample to a Chinese plant for conversion to concentrate. It produced a high quality, low impurity concentrate. Excellent. 5/n

Better still, Blencowe has provided samples to two leading graphite firms for conversion to SPG. The market standard purity for SPG is 99.95%. Blencowe’s graphite produced 99.96% with one of the two firms and 99.99% with the other. 6/n

According to the CEO in a recent interview, the firm that produced the 99.99% SPG commented that this was one of the best products it had ever seen. There is a lot more detail in the RNS which announced the SPG results and it should be read in full. 7/n

Limited company risk from this Mcap, in my view. I suppose I think the most significant risk relates to possible macro changes in the graphite market

Hi all

I’ve done a Twitter/X thread summarising the BRES investment case as I see it: https://x.com/metalhead2525/status/1728057901921546722?s=46&t=Jne_cUYLxmaxpafySDDQ2A

Any comments welcome

GG says: “the numbers are the evidence. The past couple of weeks' continued falls, as NG spot prices rose, todays' rally as NG spot prices level off and signals a drop”

If anyone wants to confirm for themselves what an absolute hay cart of sh*t this theory is, just compare a chart of the natural gas price for 4 October to 20 October against a chart of the DEC SP for the same period. You will see DEC rising sharply as Nat Gas rose sharply and then falling sharply as Nat Gas fell sharply.

As of now, we are solidly through the trend resistance that has dictated the downward price action for the past three months: https://x.com/metalhead2525/status/1720041290706890964?s=46&t=Jne_cUYLxmaxpafySDDQ2A

The algos should now start to buy rather than sell. That’s the theory anyway!