Member Info for moneyhawk

Scanning through the many comments on here today, i'm surprised there aren't more posts trying to tell us some nonsense about no drilling occurs during the winter, we're now shutting down until next summer, no one fracks in Alaska because it's too expensive, and there's no oil because we've only found water.

Why wouldn't there be any takers for a placing at 1p for any shortfall shares? If someone was taking a view to what's coming up in the next 6-9 months and wanted a lot of shares, say 50-100m, they wouldn't be able to buy those on the open market without driving the price up.

Thanks Brombarb, interesting to know a bit more about the rationale for a dataroom. From reading the linkedin article, it would seem to make more sense having it in Perth, so that its easier for 88e employees and senior management to be there. In terms of who could be visiting though, I don't read too much into the location. They're going to be operating on a global basis with assets and offices around the world, so traveling to Perth wouldn't seem like such a problem. But then again, maybe it is to do with who they think is likely to be more interested, who knows!

Maybe a daft question, but is there any significance for where the physical data room is located? Is not as though we're going to be dealing with companies that wouldn't have the ability to download and transfer data to their own computers. Nor would they not be able to afford to put some employees on a plane, whether that's to Perth, Houston or London, it doesn't seem like it'd make a huge amount of difference to me.

Yes, and the winx joint venture proved that they keep negotiations and confidential news closely guarded. No one had a clue that deal was even a possibility until it was officially announced.

I think it's too early to worry about lack of interest from tier 1 companies. The timetable set out is for a farmout expected by end of the year, but DW has also stated that if someone wanted more time they won't be rigidly sticking to deadlines at the expense of a deal going through. Gives an indication of the time required for analysis and negotiation, we're talking months rather than days or weeks.

Many different ways to look at it. My gut feeling is that it's risk management. The BoD will have a pretty good idea of what news is coming up for release, but some of the timing and outcomes of negotiations can't be known for certain at the moment, and they won't know for certain how the market will respond to any news, good or bad. A difficult financial scenario for us would be a delay on the farmout together with cost overruns at winx, which would no doubt see the SP drop further at the time when we most need extra money. Other possibilities could include further acreage being negotiated on at the moment so extra cash is needed (maybe some more of the great bear leases). Certainly a positive in it is that the BoD have signaled their intention to take up their full allocation, so will be putting their own money in as well.

Hi BB, I think the timescales are a bit uncertain at the moment. The JLP website project page currently says they're negotiating terms to start production in Q2 2019, so commissioning would need to be before then. I guess it's largely dependent on what they've managed to agree with the zam government.

Thanks Brombarb, not sure if the 22nd is the date for us to pay if taking up the offer. I normally get a letter for rights offers setting out the options and response dates, so will have to watch out for that. Most inconvenient timing, I'm selling a business and moving house this month, so hopefully that letter won't get lost!

Bluebelly, no I can't be sure construction is definitely underway or what is being constructed. But we have been told on a couple of occasions that construction has started. e.g. on 2nd July, we were told

"The construction of the zinc recovery circuit of the Kabwe project is progressing. Our initial focus is on the completion of the zinc recovery circuit while our research and development teams conclude the testing of the lead and vanadium circuit design parameters."

Exactly what is being regarded as construction could be open to interpretation though. Is it just foundations? Is any plant being installed? Did they start some construction based on BMRs old plans, and then stop? With the history of the project I think its fair for there to be some scepticism on how much progress is actually being made until we have news on a plant that is operational and producing.

Anyone clear on the timetable for taking up the rights issue? Just wanted to check I've got this right:

- Shares held at 6pm on 10th Oct qualify
- Deadline for submitting instructions and making payment 11am 26th Oct
- Shares issued 31st Oct

There should be a lot going on in the background, just waiting for news to confirm it. Have to assume for now that it is all going ahead as per the RNSs. Platcro tailings getting moved should be quite far advanced now after starting in June, DCM upgrades should be nearing completion, Hernic hopefully still producing reasonable amounts of PGMs, Kabwe construction for Zinc underway and designs for the lead and Vanadium progressing.

I'm hoping all of the above will be covered in the quarterlies this month.

Well I had been thinking about adding a few more with the SP staying this low. The rights issue makes that decision easier, and can do that now at less than I thought I'd be having to pay.

Fund raising is always necessary for small companies in this stage of development, so I'm glad they've given current shareholders the chance to benefit from it rather than doing a placing none of us small private investors would be able to take part in.

Yes, they all cut back a lot on exploration when the oil price was low so they could maintain their dividend pay-outs. Now they need to start building up their reserves again to be able to maintain production levels and dividends in 5-10years+ to keep their shareholders happy.

Interesting times ahead, we've 2 big potential reserves in the conventional and unconventional, and 2 smaller in Yukon gold and the western blocks. All of which could be attractive to the major players looking to boost their portfolios after a few lean years.

They've never been in the habit of releasing news just for the sake of it. The track record suggests that their approach is that if they've said they will do something we won't be getting RNS's for every step of the way, but equally if there has been a slight delay in something we won't be getting that news straight away either unless its a significant problem. I expect an update on Kabwe will just be included with the quarterlies within a few weeks.

However, in this case, no news is perhaps good news. 30th Sep was the deadline in the conditions for commissioning of the plant to be commenced. They said they were in discussions about amending the dates and indicated that the Zam Gov were in agreement. So no RNS to say the licence has been revoked again for breach of the conditions would suggest they've either started commissioning for part of the plant or an agreement has been reached for extending the deadlines in the conditions.

Not wishing to state the obvious, but we have already fracked the HRZ. The fact that we haven't seen a representative flow rate yet would appear to be more to do with the characteristics of the shale formation rather than it not being possible or too expensive.

They did say that they expect to complete the plans by the end of Q3, but I don't think they gave a commitment to announce when those plans are completed. Agree it would be nice to know, but it's not critical an update is given before the end of Q3. If we don't hear in the next few days, my guess is an update will be given on Kabwe with the quarterly results around mid-October.

The presentation does say a drill is being targeted in Q3 2019 for the hrz, subject to farmout. Also drills targeted for the conventional in 2020, again subject to farmout. Worth remembering that the conventional resource estimates almost doubled following 3D across 25% of the acreage. So the farmout plan to acquire 3D across the remaining 75% in 2019, and then drill in 2020 after they know where the best prospects are makes sense to me. Could be a lot more to find, and could be a lot more close to the pipeline. However, all depends on the farmout and partner, maybe they'll want to drill in 2019 where we've already got 3D, and before the rest of the acreage is covered.

Interesting, the way it was first bought up I had thought it was still a live issue. Didn’t occur to me that it would have been covered in the accounts back in 2015. From that it seems to me it now just appears in the latest accounts as somet that ‘may’ crop up in the future, but doesn’t really have much significance and isn’t worth worrying about.

In Q2 we saw 5,800oz of platinum produced, up 18% from Q1, including 2,100oz in one month during that quarter. This resulted in revenue of £3.3m and earnings of £1.6m.

If they've carried that on we'll hopefully be seeing 6,000oz or more for Q3