Member Info for moneyhawk

Well we're probably never know exactly what everyone involved knew. However, I'm more inclined to agree with Bandit now that it would've been too high risk agreeing the JV if CB had known exactly what the situation was. We could have just waited another few weeks and then got an even better deal, and maybe even 100% ownership of kabwe for a fraction of the cost, and without such a negative impact. But playing devils advocate, not completely ruling out the possibility. The view could be taken that it'd be easier to get this licence back on appeal with JLP coming on board as a JV partner than for JLP to apply for a completely new one, especially with the new ownership rules for small scale licences. And good link MM - I'm sure I'm not alone in hoping that JLP will one day have a comparable market cap to Kiwara when CB sold it.

I wouldn't be surprised either if CB knew BMR was in a complete mess and saw it as an opportunity to get a good deal. If not told directly, he probably would have picked up some inkling of a problem from his GLR dealings with BMR over star zinc, since the plan for that is to use processing capacity at kabwe. Possible that he might have even known/suspected that BMR was under government pressure to get the project moving and they didn't have the finance or capability to do it themselves. But I don't think he'd have been expecting BMR to mysteriously find a 6 week old licence revocation letter the day after its announced that the project is going ahead.

Appeal being submitted within the timeframe allowed, so no problem in my view. Of course it'd be preferable the appeal was already submitted, but we don't know why it was revoked and what needed to be addressed in the appeal. Better to get it right than rush it. Interesting that for the 2nd RNS in a row JLP seem to be taking the lead in the government meetings and sorting out a way forward. BMR only look to be in charge of sending the paperwork off and have no comments other comments to make. Don't know what to make of that!

lol troajan. I'm assuming of course that someone willing to lend JLP $50M may have carried out more thorough due diligence on what it might be used for than JLP carried out on BMR and their licence! But maybe they didn't, and are content to just approve specific lending for projects as and when the details become known.

Certainly been a frustrating time. But the benefit of having the funding in place should mean quicker starts to projects once we have them. Currently it looks like part of the 50M pot is going to be used for Kabwe (10M?) and DCM platinum (another 10M max?), so that probably leaves at least $30M available. I find it hard to believe anyone would agree a $50M funding package on the off-chance something might come along. JLP must have given some good indications of more projects being negotiated/investigated in my opinion, doesn't mean they're all come off though. But of course we'll never here about the ones they don't get, only the ones they do.

Shouldn't we have appointed a new director on BMRs board by now as well? Maybe CB/LC want the current licence problems sorted out by the incumbents first.

It could be read that phase 1 is already complete as per the RNS on 6th feb with JLP confirming they want to proceed, and we’re now in phase 2. But of course there was no mention of the works programme being completed, so it could be read both ways.

Sorry about that, LSE seems to block links to that site. Replace all the * with beaufortsecurities dot com

All very quiet here while we wait for news, but for anyone wondering why we've rushed into this mess with BMR check this research note from Beaufort, https://www.**********************/shp/research.php?vid=511 Highlights of the Kabwe project: $2.5B insitu value, $500M revenue less costs of recoverable metals. $10M project cost So we have a 40% share of $500M, making it worth $200M to JLP. Assume for now it'll have a 10year project life, that's $20M a year to JLP. But it could be worth more with the following: 1. JLP will be the contractor on the project, and assuming we're not providing services at cost price that should add further earnings. 2. Possible other sources of feed material (namely star zinc) either increasing project life and/or yearly revenue. 3. 30% share of BMR, but only really a relevant factor for earnings if they start paying dividends.

Emexgo may possibly be doing something, described here as "a rapidly growing payments platform": https://financialit.net/news/payments/3rd-nextgen-payments-forum-led-emexgo-way-banks-should-be An update would be better though to see whether or not BOX is actually receiving revenue from it.

Good question klueloss, I can’t give a definitive answer. But with many forms of licensing is this country where there’s a renewal process, a licence doesn’t expire if it’s renewed. Hopefully the same will apply in this case, can’t see any reason why not at the moment.

Yes, good news from the RNS, hopefully the start of a very good few months of progress on several fronts. Still a mystery why the small scale licence was revoked, and not the large scale licence. But some more good news after a bit of further reading into the mining laws, and a clause in the current Act means that licences granted under the previous mining Act continue to be valid until they expire. So the issue of requiring citizen ownership/influence in the company doesn't apply here, as the licence was granted long before that requirement came in.

Yes looks like some positive news on this at last. BMR have also paid the balance due for star zinc, so the assets at kabwe are no longer under threat. Interesting that they've not taken up an extra 10% of star zinc, and choose to take �100k instead. Remains to be seen what the Zambian recommendations are that will allow for the licence to be reinstated though. Hoping for the best, but not ruling out some more nasty surprises, especially in relation to the issue of Zambian citizen ownership/influence for small scale licences. All fingers crossed that this won't be an issue.

If BMR start selling we should see a holdings RNS shortly afterwards, and the JLP list of shareholders should get updated - the BMR shares look to be held by Pershing Nominees Ltd. The list updated today suggests that no shares have been sold by BMR so far. The deal was made on the basis of the JLP shares being valued at 3.65p, they've lost 20% in value since and that number of shares getting sold off now could drive the price lower still. So if they do start selling it could be an indication that BMR are desperate for cash and their options are getting limited, which will also be bad for us since they're supposed to be our JV partner and we're their biggest shareholder.

I see the JLP list of shareholders on their website has been updated, and a new name has appeared - Pershing Nominees Ltd with 63,166,969 shares. The exact number that BMR were given as part of the deal for our 29% of BMR. Any significance that BMR's holding is being listed by JLP in a different name?

Maybe a strange coincidence, but have you noticed that the number of shares from the two large buys yesterday exactly matches the number of shares in the one large sell today? Someone transferring their holdings? Or maybe having a sudden change of heart today having bought in yesterday?

Having looked into this some more, it seems more likely than not to me that BMR aren't entitled to hold the small scale licence in question. Looks to me that appealing will be a waste of time. Its possible that the first letter BMR say they got and responded to was a routine enquiry to all mining companies to check that they were still entitled to the licences that have been issued, and BMR didn't understand the issue/legislation. I don't think the project is dead, but I wouldn't expect to see any revenue coming in from this for quite some time. I would guess at two courses of action being possible, applying to amend the large scale licence which hasn't been revoked, or applying for a new large scale licence (which BMR/JLP would be entitled to hold). I doubt we'll have any update on this until they've got official confirmation that a large scale licence could be granted for the tailings project and they've got the application in. A summary of the relevant Zambian law is: 1. The Mines and Minerals Development Act 2015 29(3) - Small-scale mining shall only be undertaken by a citizenowned, citizen-influenced or citizen-empowered company, and 2. The Citizens Economic Empowerment Act 2006 - "Citizen empowerment company" means a company where twenty-five to fifty percent of its equity is owned by citizens; "citizen influenced company" means a company where five to twenty-five percent of its equity is owned by citizens and in which citizens have significant control of the management of the company; "citizen owned company" means a company where at least fifty point one percent of it equity is owned by citizens and in which citizens and in which citizens have significant control of the management of the company; What we know is that: 1. Enviro Processing Ltd holds the mining licence and is a wholly owned subsidiary of BMR 2. A joint venture company will be established ("Kabwe Operations") which will be assigned all intellectual property developed for the execution of the Project as well as the right to fund and execute the Project on behalf of BMR. 3. Kabwe Operations will be appointed operator of the Project, with responsibility for commissioning, funding, construction and operations of the Project. Kabwe Operations will sub-contract operator responsibilities to Jubilee. I can't see how BMR, JLP or the wholly owned subsidiaries can fall within the definitions given in the 2006 Act, and therefore aren't permitted to hold the licence or carry on small scale mining.

A question was bought up a few days ago about whether there is copper at Kabwe. Now found the answer in an old article below from 2014, and there is no copper at Kabwe. But there was a plan to process copper ore, to be sourced from within a 150km radius of kabwe. http://www.miningnewszambia.com/epl-plans-to-re-open-kabwe-mine-says-report/

Looks like the sellers are out in force too, massive trade of 198 shares for £5.5 just gone through! Lol.

That could be an option that makes sense, all 3 are now linked to the Kabwe project (if we can actually start work there), and the other 2 are both small enough for JLP to take over. But if that was in CB’s thinking, we’d probably have done it already instead of just buying a large stake, and we don’t really know what other problems BMR could come with. Another possibility is that BMR are going to need to be bailed out soon or they’ll go under, as it’s starting to look like this licence issue is going to drag on. It could end up being that both JLP and GLR pick up the pieces of what’s left, or JLP bail out BMR for a much larger slice of Kabwe.