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Not sure there’s any particular reason for today’s little rise, perhaps the sp fluctuating around this level until news comes in is likely. Agree with the vanadium comments, that’s really going to add value to Kabwe, perhaps even double the earnings without a huge amount extra to do. But I gather that BMR doesn’t have the necessary permissions in place to process it at the moment, and the plan seems to be get the lead/zinc running first, then apply for vanadium permission. Unless of course that’s all part of what LC has been discussing with the Zambians, to see if we can fast track that part and get it all built together before committing to the final plant designs. Not long to wait to find out what’s happening.

Not completely unexpected, I think its more surprising the SP hasn't moved for so long. No news expected until mid June with Kabwe up first, and most of our projects are in a bit of limbo while we wait for news on whats happening. I'm of the view that Hernics earnings alone should support the MCAP at around the �40m mark as a minimum when the next quarterlies are released in July, so don't see much need to worry about it at the moment. More clarity on whats happening and the timescales at the other projects should add value, and another project without needing a placing would be a bonus.

To really get the interest of big investors, and perhaps for any sale/farmout, won't the flowrate, pressure and decline over time will be of more importance than the initial flowrate to prove its commercial viability? That's part of the testing plan announced, so appears to be what we're aiming for.

Bjlabuk, my take on it is that the BoD believed that there would be huge interest in the shares following the JV and licence being restored, and that they could get enough interest in the placing so issued the statement without actually having the placing sorted out. Perhaps they were rushed into it by JLP making the announcement about the licence. But I think they underestimated the damage to investors confidence caused by the licence being revoked and circumstances surrounding it, and perhaps also investors confidence in JLP being able to deliver on the time scales imposed by the new licence conditions. JLP isn't suspended, and had a higher market cap and SP before getting involved with BMR, which gives an indication of the value the market is placing on Kabwe at the moment. Added to that, the plan for a 5t/ph plant is very small scale, and there doesn't seem to be much of a plan at the moment setting out how and when it will be expanded to a size to process the amount of tailings at the site. JLP also moved the goalposts somewhat, and BMR may end up having to raise more than �1m to maintain a 60% share if the costs rise beyond the amount already agreed on. But hopefully any additional cost will be to expand the capacity of the plant so it would be worthwhile expenditure and see a good return. So I would assume that until the plans and costs are finalised, and its confirmed that it can be done in time to meet licence conditions, there won't be many people willing to commit to the placing as its a bit unknown at the moment what they would actually be investing in.

Could be some interesting developments soon then. I think it was one of the recent interviews LC was talking about a process JLP had developed to extract cobalt from copper tailings, and copper/cobalt projects have been mentioned a few times now as targets. Depends on the numbers and scale if it’s anything to get excited about though.

Thanks for that, useful background. Does seem very strange that they were chasing copper tailings to transport and process at kabwe, rather than getting on with building a plant to process the lead/zinc tailings already there. I'm wondering if there may be more to it that we're yet to find out. When we bought the stake in BMR, part of the reason we were given was to benefit from BMRs established presence in Zambia and fast track other targets. So far we've not seen much benefit from that established presence!

It does look like it’s being lined up for news on two fronts in quick succession. Guess it doesn’t really matter in the long run, but perhaps if the flow test doesn’t quite go to plan or takes longer than expected, then 3D results could help counter any panic. But hopefully both will be positive, and then the 2nd (whatever order they come in) will just add more value.

Thanks troajan, can’t see anything about copper on BMRs website. Guess if those tailings and mines were really there they never completed on the deals.

Yes the Vedanta link does look plausible and will hopefully be true. Although all the bmr targets they announced also look like the kind of options Jlp would be pursuing (if they actually exsist!)

Any thoughts on what’s going to be first, 3D results or flow test results? The RNS today gives ‘mid year’ for 3D, but the timetable for flow testing could also be classed as mid year.

Anyone looked through BMRs old RNSs about copper? Between 2011-14 they had quite a few announcements about copper tailings piles they had options on, and which look to fit the bill for JLP now. Having to view the RNSs with a lot of scepticism though, including claims that a copper plant was constructed at kabwe and was operational in 2014. That plant looks to have been fictional, but were the copper tailings they were chasing? Perhaps it’s these tailings JLP are now pursuing, hence the various mentions of copper and several targets in Zambia?

Very true brom! And why I didn’t invest in 88e when it was sub 0.5p, just seemed too far fetched at the time. But things have moved on since then, oil price is up, more land added, progress is being made in proving up the reserves, and looking like this is getting close to one or more farm outs. So looking like it’s much more realistic now than it was a few years ago.

Interesting comments about aberdeenman. I remember first seeing 88e tipped by him a few years ago on another BB that I was following. The Sp was in the sub 0.5p range, and he was talking about a potential 100 bagger, but gave a view it would take 2 years or more to really get moving. I had a brief look, and decided not to buy in, oil was very low and I wasn’t convinced by 88e at that point. Regretting that decision now! But added a fair few over the winter when the SP dipped, so not completely lost out. On the other share, he said he was exiting as he didn’t believe it would live up to promise in the short term. He has since been proved right on that call and got out at a good time. So maybe he was just a ramper with a hidden agenda, I don’t know, but the two main calls I remember him making look, with hindsight, to be pretty good to me.

Looks like we've stabilised around this level, with a Mcap of around �40m. Could take the view that's pretty good going for a company still to declare a profit and with none of our projects operating at full potential yet. Hopefully LC is correct with an estimate of 20% increase at Hernic, and then very roughly we could be on for about 2,000oz per month on average going forward, allowing for fluctuations in output over the year, or about 24,000oz per year. At the current revenue/costs per oz we're getting, I reckon that equates to about �250oz profit after currency conversion, or about �6m profit per year going forward. If we started to look at the Mcap on a future P/E basis, then potentially we're valued on a P/E of about 7 just from Hernics earnings. At some point we're start to have a reduction in Hernics earnings when the profit share starts, but then we also have earnings from DCM, Platcro and Kabwe to factor in which will start to show in 2019, plus an extra project or two at some point. So on balance, perhaps a �40m Mcap is a fair valuation at the moment with the temporary slow down at DCM, and why we've settled at this SP. But once the level of earnings potential from other projects start to become clearer and more certain, then looks like this has a good chance to improve quite significantly if we can progress without huge dilution. GLA

The hernic figures will be interesting, LC said he’s expecting a 20% increase this quarter. I don’t know if he means a 20% increase from Q1 as a whole, or a 20% increase for monthly production compared to March though. But whichever it is we should see pgm production increase to between 5800 - 6600 oz for Q2, and hopefully the debt will be fully paid off so we’ll start to see decent earnings being generated from here on.

Very quiet here at the moment! Not many trades going through either, but good sign the the sp is holding around this level. Another month to go for the Kabwe plans to be finalised and then work to start, next quartlies in July sometime. Maybe some news for the dcm pgm plant soon as well, and possibly a new project. So it could be an interesting summer with some positive developments on several fronts, fingers crossed.

Sounds like a load of nonsense to me. Where’s the notice that would need to be made if bmr sold any Jlp shares? The volume just doesn’t support any substantial amount of shares being sold off.

If it gets back to 2.5p I might be tempted to add a few more again. But don’t think I’ll be risking selling anymore at the moment. Not expecting much news for at least another month, so it could drift down, but we could get news on another project anytime.

He did seem keen to empathise that we’re generating earnings, but looking at the sp performance I think the market is still to be convinced. End of year in June, so maybe the Q2 update in July will include enough figures to indicate what the final results for the year will be like. A combination of positive financials and a new project not requiring a placing could finally convince the market that the business model is working.

Good link for the presentation, thanks. Some interesting points, expecting hernic to reach full capacity in Q2 and a further 20% growth. Not clear if that means a 20% increase from Q1, or a 20% monthly increase compared to March. A big hint in the Q&As that the next project very likely to be cobalt recovery from copper mining waste material. And also that they're in many discussions to "dramatically balloon the project pipeline", so maybe more than just one extra project to come this year. LCs comments about being able to meet the Zambian Government is interesting, and hopefully has turned a bad situation into a big positive for the future. And tjate gets a mention, with a comment that its attracting interest from very large mining companies, and JLP will be looking to partner with one of those in the future. Guess that ones going to be a long way off though.