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BB, optimistic targets for the sp based on the past couple of years and the various set backs. But possible in my view. Just might take a another year or two to get there. If Kabwe, platcro and dcm platinum all start producing next year, will be a huge boost in revenue and earnings. But we don’t know how long each one will take to ramp up, and then the really meaningful figures most take notice of are from the interims and final results, so another 6-12 months after the jump in earnings to be shown in the accounts. On the other hand, may get recognition of the potential before then, it’s just a guessing game for when that will start.

Some good opinions over the last few days. In terms of recovery rates of the metals at Kabwe, BMR have given assessments for this, and they differ according to the type of tailings. None are anywhere near 100% recovery. But since JLP are now saying the previously proposed BMR processes are going to be changed, we should perhaps assume the recovery rates BMR have given aren’t worth considering. Actual recovery rates may be better, maybe worse, will just have to wait and see. And the big factor we have no information on is how much it will cost to extract the metals. It looks promising that some decent profits can be made from Kabwe, but difficult to determine just how much at the moment.

I don’t think we can blame MMs for marking this down. The way box have presented the update sounds bad. Maybe you’re right and it’s not actually as bad as it sounds, but box do need to clarify. There should be other revenues aside from payment processing, so hows the rest of it doing?

Very vague RNS, but doesn't sound good with a substantial decline in certain payment processing revenues in May and June, and raises more questions about what is going on at box.

So what were the revenues prior to May and June that have now declined? What type of transactions aren't other banks willing to deal with anymore? If other banks won't deal with those transactions, why where BOX? Is it just payment processing or are other business areas affected? If it was such a problem, why not tell us in the update given on the 31st May?

AGM 31st July with final results due prior to that, so may get some answers within the month

Yes me too, can’t get the desktop site to load, but mobile appears to be working.

Final results for year end 31st Jan expected this month. Difficult to know what to expect in them, may not be great. What will be of more interest is any update on revenue since the year end and how the various businesses are doing now, plan for the football pitches which look a bit about of place with the focus on fintech, and any update on when to expect a new CEO.

Yes I'm unsure as well on whether it means anything. But would make sense if we've had some discussions with Exxon, then there may have already been contact with Lambert which then lead to the RMP/Great Bear deal. However, even if discussions have taken place, doesn't mean anything will come of it of course. Will just have to wait and see.

An update on the business rescue:

http://www.hernic.co.za/wp-content/uploads/2017/09/Status-Report-to-Affected-Persons-29-June-2018.pdf

Not much to say other than the sale is still going ahead, and an application to be made to South African competition authorities mid July.

Has anyone considered who we're likely to partner with for the farm outs?

Just wondering if there's a possible link with Exxon to emerge, with there being a connection involving RMP, and Exxon well established on the North Slope.

4th June RMP appointed a new CEO, Gracjan P Lambert, with a brief to introduce new projects and assets to the company. 3 weeks later we have a JV with them which came out of the blue. Info provided by RMP on their new CEO on 4th June:

"Mr. Lambert brings with him a wealth of technical and commercial experience in the global oil and gas industry, built over more than 20 years working in Europe, Asia (including the Middle East), Australia, North and South America, and Africa. He has spent the last 10 years at ExxonMobil in diverse roles including managing global field operations and leading complex international commercial negotiations. Over the course of his career he has leveraged his proven commercial track record and technical expertise to inform profitable decision making and leadership. Mr. Lambert holds a PhD in Exploration Geophysics from Curtin University in Western Australia and will be relocating back to Perth to fulfil his role as CEO."

Yes, platinum price near 5 year lows.

Palladium, chrome, lead, zinc and vanadium on the other hand are in a much better position, the first two we’re also producing, the latter 3 we may be producing soon. Not to mention copper and cobalt which we’re told is being targeted.

Yes I agree, we should have had an RNS to say that. However, the issue remains that JLP appear to be pushing ahead with construction which will be incurring costs, so how is that being funded and what security arrangements are in place if it’s not through the previously announced arrangement?

Bring, this is all a bit unknown at the moment. The bmr situation doesn’t appear very good, to be polite about it. All of us Jlp shareholders lose out if they go bust, because as you say we’ll be losing our investment which shareholders money was used to buy, along with being diluted. In terms of the deal, I don’t think the £2m was ever going to bmr directly, it was going to the JV company. We don’t know how much Jlp have handed over so far, if anything, as there’s been no official announcement about it. But what we do know is that JLP say they are actively working on construction, which is going to be costing money. The impression given is that it’s the JV company to foot the bills using JLP loans, so it’s reasonable to assume we’ve handed at least some of the money over to the JV company, it would then follow that the security clause has been activated.

Supposing BMR do go bust, then where does that leave us with Kabwe and our expenditure so far? Its their subsidiary, Enviro Processing Ltd, who hold the licence, and this is what was in the RNS on 23rd Oct 2017:

"As security for the Jubilee Debt Finance, the BMR Group would grant security over the whole of its shareholding in the Kabwe project through its subsidiary Enviro Processing Limited"

Perhaps could be some merit in the idea that we’ve stopped early so there’s still enough time left for a partner to come on board and get on with a horizontal drill before the end of the summer. Although I think the most likely outcome now would be for resumption next year

Oh dear, doesn't look good for bmr. Nomad has resigned and aim listing to be cancelled on 7th August if a replacement isn't found. At to that, Jlp have extended the project date to 31st Aug, will any nomads take them on in time?

A disappointing update, but is anything really that different today?

1. The unconventional oil is still in the ground.
2. There still needs to be further drilling to prove up the resource, which would have been the case no matter what happened with Ice2.
3. The plan is still for a farm out deal to fund the rest of the exploration that's needed. The difference today is that we now have confirmation that process has started.
4. The conventional oil is still there, waiting on 3d analysis and possible farm out there as well.
5. We still have Yukon Gold and the new western blocks, which are two very good prospects on their own.

Yes it appears it is going ahead, in part. It sounds like they're not happy with the processed processes from the BMR designs and have a better idea:

"Our process development teams have been able to determine a more suitable process solution than the originally contemplated acid and brine solution for the extraction of the various metals at Kabwe"

But they're pushing ahead with building the zinc circuit, I guess to ensure we stay within the licence conditions of starting construction and being able to have something in production by the end of the year. Maybe this is part of what they've been discussing with the Gov, to make sure that it is satisfactory to have just one part starting within the time limits?

It does seem like when there’s something to say they do give an update. And it looks like there may be something to say, possibly a new strategy for getting the ff out, so hopefully an update in the next day or two.

Interesting analysis in that research note. So what they’re basically saying in is that the current sp has priced in a failure at Icewine2 and gives the unconventional zero value, and the current SP is supported by just 3 of the conventional leads at $1 a barrel. However they don’t give any analysis for why they believe ice2 will fail, other than it’s not met predrill expectations. Not exactly in-depth research there. They’ve also not factored in Yukon gold, and since we’re getting 3d for that, it does appear a fairly big omission to not have included as a serious prospect. So all in all, provides some comfort that there’s enough to support the SP solely from a couple of our conventional leads, but it doesn’t really seem like a very through analysis for the potential.

Definitely time to start delivering on the promises. They’ve had a few years now to build and develop the current strategy, and it seems all that will help now is solid figures to show profits will be made. DCM initially looked very good, they capitalised on the situation as it developed and have got what appears to be a much better long term deal. But production and earnings have fallen a lot since the promising start, and we’re still waiting for pgms. Long term, it could be a good earner, but so far it’s just caused dissatisfaction. Hernic has taken longer to ramp up than anyone expected, but it has seen an increase in production and earnings every quarter, and this quarter could show it’s nearly there now with the highest figures yet. Platcro looks pretty straight forward, and has turned into a better deal than it initially seemed with the increasing amount of tailings. All we have to do is get the tailings to the plant and northam do the rest. What can go wrong with that? Kabwe has the potential to be a game changer, and hopefully the lack of detail on what’s happening will soon be cleared up. But there remains doubt with the nasty surprises from BMR, so we need to see some evidence of progress and that it will be complete on time. The other big doubt that remains in my view is the next project. Whatever it is, can it be done without a placing to raise funds? If it can, that would be significant, and would show that we can expand through earnings.