Member Info for moneyhawk

3card, lol, completely agree! Think it’ll just be more of the same until mid June now, not much happening until all the designs, plan and costs are finalised. But maybe they’ll get it all sorted out a bit quicker or maybe there’ll be some good news on another project before then.

Strange day of trades here. Surprised to see the SP down, so added a few more this afternoon at just over 2.1p. Glad I did now seeing those large buys later on! Surely it'll get moving up again next week if this level of buys continues, fingers crossed!

Interesting post Bring. The bit that raises concerns is the approach of disclosing everything that needs to be disclosed. I hope they'll be considering this a bit more carefully in future, after all the BoD were previously of the opinion that a notice for licence revocation wasn't something that needed to be disclosed, and we all know what happened there!

One of those 200k trades was mine, so I can say not all the seller. Just locking in an end of the week profit from a top up a few weeks ago when I thought we'd hit the bottom. Maybe a few others thinking the same. May regret it next week, but I'd only planned for a short term top up and stuck to it, and even though I think the price should have moved more after the JV news. The trading generally doesn't look to be anyway near the levels needed for BMR to be selling their holding.

Someone’s keen, 2.3m bought at full ask price.

Well we know how much Hernic cost us, £13m. Very different processing plants and costs will be different, but that’s the kind of scale Kabwe needs. Might be possible to scale up in stages, guess we’ll just have to wait until June to find out.

Hi TBTT, yes the closer you look at the kabwe deal, the better it looks. Even if we stay at a 40% share, its still a very good deal. BMRs 60% share should, in theory, substantially the mcap there, which in turn increases the value of our stake in BMR. But I agree, I think we will be increasing our stake in kabwe above 40%. Look at how LC has approached all of our projects so far. He's quite prepared not to immediately press ahead with a project until he knows what the best option is. At kabwe, he must be looking at plans for the 5tp/h plant knowing its not good enough. I think that will only proceed if he's certain that it can be easily added onto without massive future expense, or scrapped completely for another plant to built as its replacement. Otherwise, new plans are going to be drawn up for a bigger plant from the start, which will cost more from the start. The government deadlines certainly help with this, there's no time to be messing around spending a year or more looking at options, its got to be quick decision here.

Yes the news has been good recently, for the longer term prospects. Short term traders have probably been put off by DCM slow down while improvements are being made, Hernic not hitting the target of 2500oz a month, and uncertainty about Kabwe and how it’d be funded. But look past that, and we were at a higher mcap before Kabwe was first announced. Now Kabwe is much clearer with a government imposed deadline, and we’ve basically got 40% of a project worth 100’s £m profits for nothing, and it’s now clarified that further costs will be funded by bmr/Jlp according to their % share, with a clear path to gaining a higher % if we have to fund the extra costs. Add to that we must be close to completely paying off the Hernic debt now, DCM platinum is moving, and platcro now has a plan that doesn’t require us to spend anything on building a new plant. All in all, everything is starting to look a lot better.

Need to read both RNS's. BMR have said that they will be announcing the timing and the total cost of construction, but JLP have been assigned the role to develop the designs, business plan and budget. Theres no 'plan b' provision, its basically JLPs plan, budget and decision to proceed, or there's nothing, when it comes to the decision to proceed and how much it cost.

The final kabwe deal we've signed off on appears to give decision making control to JLP on how to proceed and how much it will have to cost. The deal also gives BMR every opportunity to maintain their 60% share of kabwe opperations if it will cost more and someone is willing to provide the money (either through placings or loans). But if BMR can't raise the money and JLP decide it will cost more than initially set out (�2.3m), then it opens the door for JLP to increase our % share by providing the short fall on what BMR can afford. That's my take on it anyway.

Update on the business rescue, not completed yet, but still proceeding according to the plan announced. http://www.hernic.co.za/wp-content/uploads/2017/09/Status-Report-to-Affected-Persons-30-April-2018.pdf

lol. Since BMR will remain suspended for another 6 weeks, its safe to say that JLP have a better chance of getting to 3p before BMR do!

Very true, and we're unlikely to see 6.1p in the next few weeks/months unless something very unexpected happens. But the warrants are for 5 years. With the current projects plus further projects very likely in that time frame, we could be looking at a very different company in 5 years and 6.1p may be a real bargain. Then again, it might not be, and that's why the SP is where it is, and why the warrants were at 6.1p not the placing shares. If it was all 100% certain, the SP would be much higher right now.

Don’t forget the warrants at 6.1p as part of that investment, clearly they felt there was scope for the sp improving well past 5p, or what would be the point of having those warrants?

It’d be good to have the vanadium circuit from the start, but not sure that will be the case. The Jlp RNS says they’ll be taking to the Zambians about the timing of construction and commissioning, rather than new designs. So I think they’re most likely pushing for extra time to complete construction with less time needed for commissioning, and still to get into production by the December deadline.

Yes TBTT, does look like the deal has improved for JLP, and its also clarified how further costs are going to be funded. Perhaps also why the BMR placing is delayed, as they might be wanting to try and raise addition funds on top of the �1m to fund their extra share of the costs, which are as yet unknown. We should be fine for our share, we have the $50m facility to draw down from.

What I can gather is that there's a plan for vanadium to be a later addition, but some of the BMR posters have said they don't think there are currently the permits/permissions in place to process the vanadium. So some extra work will be involved, and I don't think it will be part of the initial plant design. But you never know, that could be part of what they want to talk to the zambians about, and why the extra time is needed. If it can all be done together, than it would be better in the long run,

Interesting points in the RNS, and also BMRs RNS Key points for me: 1. More design work required, and construction now not starting until June (still within licence conditions to commence within 3 months). So we might get a more suitable plant built initially rather than the 5t/ph plant. 2. Provision has now been made for how a bigger more expensive plant is going to be funded. JLP will only be required to fund 40% of the extra cost, BMR will have to fund 60% - in line with the project split. If BMR can't fund their 60%, then JLP can fund the extra with BMRs 60% shareholding being diluted. So JLP could end up with a bigger share if we have to fund a bigger plant that costs more than the amount we've already agreed on. 3. See BMRs RNS, JLP have been indemnified against any non-compliance with environmental or regulatory requirements (except the new licence conditions)

Report jlp for what? They said the deadline for completing the JV was yesterday, not that they would issue a statement by yesterday. Its not exactly out of character for JLP to be a bit slow with releasing news, and they're probably taking the view that (if the JV was signed off yesterday), all they've done is exactly what they've already told the market they would be doing so there's no immediate rush.

That article (from share prophets) is over a year old. True that box haven't been living up to the promise and the previous acquisitions to leave question marks. But the recent developments in the past few months suggest some changes are afoot. There's a new person being bought in to head up a new division, and will only be getting shares if he brings in profits, which is very different to the other acquisitions where large numbers of shares were issued for something unknown. The recent payments in shares to directors also marks a change. About 40% of the company is now held by directors and major shareholders. There's now a substantial benefit for the board to deliver on the strategy. Not holding out massive hope for this turning around, but worth keeping an eye on.