Member Info for Moneymaker2015

Whilst there is potential in the gold mines, the extract you’ve taken from that RNS identifies the risk involved and shows why the mcap is so low.

In the Philippines, that section of the RNS shows that BMV has completely lost touch with where this project is up to. Essentially, the don’t know whether the partner is ploughing along toward production or if the project has just been mothballed.

In South Korea, Kochang may not be allowed to get to production due to the permitting issues and Gubong wasn’t even progressed that far due to lack of local support in reopening the mine.

Whilst I would like more than anyone for these gold mines to be brought into production as BMV could make a lot of money, investing here in the current position is a huge risk. If I wasn’t already tied-in, it isn’t one I would be dipping my toe into, unless I really fancied a gamble.

Whilst EUA does have a contribution to make, the $50m subcontract to TGK covers this. Effectively, of the $50m subcontract, $26m is EUA’s contribution to the build and the remaining circa $24m is the cover the cost of pre-strip and other preparatory activities. Long and short of it is that EUA is fully funded to commencement of production.

He did say the name of the buyer, I’d never heard of them before and they’re not related to any party on the EUA board, so it’s no particularly relevant.

Just checked that out. The company has no money, other than what it recently made through a monumentally delusive raise. It has no near term source of revenue to keep the company afloat either. With that many shares in issue and an mcap that low, ENET is one I wouldn’t touch with a barge pole!

Assuming all goes well with Dokwe over the next 12-18 months it will only be a matter of time here until the mcap increases, more so if some positive news comes out about progressing with Salinbas.

I also hold CMCL which has 10x the mcap of AAU. AAU is involved in similar sized assets, the primary difference just being that CMCL provides a quarterly dividend. Once AAU is a position to start issuing a regular dividend I don’t see any reason why the mcap here can’t reach a level similar to CMCL.

Just had a look at my account, my book cost for BMV was nearly £25k, it’s showing the value now at £1,490.40, down -£23,373.89 🤮

The dilution death spiral begins.

Seen this so many times before and usually always ends with shareholders losing nearly everything they invested. A dark day for BMV.

I was wondering what may happen here when I read about the royalty earlier. I know it was only on prices above $2500, but an additional 5% is a decent chunk of change considering the price is just under $4400. Now it’s been scrapped that’s a lot of extra profit for CMCL.

Dokwe is a large-scale gold exploration/development project, so would be regulated under Zimbabwe’s mining laws and licensing regime, not small-scale artisanal mining category as per SI 215.

The issue would be if any particular operations were interpreted as artisanal or small-scale, then those could be affected. 75% of Dokwe itself however, wouldn’t be getting offloaded.

I think you’re being a little too harsh Mr Sener, or Dr Sener should I say. I was originally invested here back in 2015 and was fortunate to see Kiziltepe come into production and the share price rise from less than 1p to when I, unfortunately, prematurely sold at just over 3p a few years later.

Now, to be fair to Sener, Tavsan has now come online, Salinbas is sitting in the background, which it was always my view that the Zenit would use profits from Kiziltepe and Tavsan to move Salinbas onwards, my guess would be commencing drilling again next year now Tavsan is up and running. The term sheet just signed will likely speed Dokwe up considerably. Then, as Deano says, the Balkans and Cyprus are the icing on the cake, although both a fair way off production.

The market will start reacting when AAU either starts to become profitable or demonstrate a clear path to substantial profits. I invested back in here recently as I can see the opportunities later down the line, but am under no illusion that there’s going to be a few years of waiting until it reaches the potential I think it could achieve. I do think Sener is the one for the job to get us there though.

It’s because of the CDI ratio. On the ASX Ariana has a ratio of 1:10, so effectively for each CDI that is purchased on the ASX would be equivalent to 10 shares.

The deal is quite a bit of dilution, overall, with options it’s 550m additional shares. However, bringing Dokwe to production in a short period of time would be the company maker for AAU, so arguably worth the dilution.

I wouldn’t get too hopeful just yet. BMV is yet to have anything tangible that will make it money in the future.

The RNS confirmed that it will make a decision early in the new year about whether it will walk away from the mines it owns in South Korea. It also identified it has no clue where the Philippines project is up to, so is looking to meet with the JV partner and put some form of programme in place. It also confirmed that the planned use of the bitcoin mining machines can’t be used with the proposed counterparty, so needs to try and find another use for them.

The other items mentioned in the RNS, for example the ‘gold-streaming and treasury development’ are just concepts at this stage, which nothing may or may not happen with.

Personally, if I wasn’t already invested here, it isn’t one that I would invest in, other than a pure punt due to the high risk.

You got that right, it’s the PoS that I’m keeping an eye on in particular. There’s a few million oz of it at Tavsan and any margin on the Ag just gets added to the bottom line. Plus, with a few of the samples at Dokwe showing over 10g/t, rises in the PoS could make that very profitable indeed.

To be fair, the RNS does confirm two things:

1. They have no clue what’s going on with Batangas currently.

2. They’re not sure where the South Korean projects are up to, so are trying to get someone else on board to do it for them.

It’s worrying that the BOD don’t have any clear path to follow. The only bright side is that with the mcap being so low and them dabbling in so many different thing, it only needs one to come to fruition for this to increase significantly.

Yeh, selling the only mine you have a realistically good chance of bringing into production is a bit of a gamble. Plus, Alpha is going to receive 60% of the project anyway, so realistically they’ll only be looking at the value of the remaining 40%.

The positive is that BMV could use the proceeds for their contribution to the Kochang mine production, if the TMUP is received.

Positive update, was generally as expected but at least there’s no major concerns. Good to see the actual figures on the debt reduction too.

To be fair, I was even thinking 5 years ago that Colin and Charlie were pushing the age boundaries for running the company. It’s surprised me that CP had lasted this long!

The MTUP issue isn’t surprising, it just reduces confidence that the legal team reiterated mid Jan that it would be finalised by the end of the month. If they hadn’t said anything last month I don’t think anyone would have particularly noticed.

On the bright side, Batangas is still progressing. That alone is worth more than the current mcap.

There was a video published about 4 years ago from the Kohchang mine and they were literally walking around picking-up chunks of rock from the ground that contained gold. I believe it closed at fairly short notice but that was many years ago.

What I particularly like about BMV personally is the economics for the mines are very healthy and that was when gold was under $2000/oz. Plus, its JV partners are funding the process in each case. This Mountain Use Permit seems to have caused a few headaches, which is surprising considering they’ve already been granted a mining license.

Either of those could be correct, my personal opinion though is that a decision probably hasn’t been finalised yet. Just because our legal advisers expected it, doesn’t mean that it will be forthcoming. Although, as you say, if they are over in SK, news good or bad may not land until they all the details.

Positive news on the MTUP could have a big impact too given that gold is hovering just below $2,900/oz. Even negative news doesn’t necessarily mean it’s a no go, we have already had the mining license. There may be some other way around things without needing the MTUP.

That’s not entirely correct.

After the MT mining licence was issued, CS had said in an interview the following April/May that they had been engaged by a number of different parties with some proposing to purchase all and other proposing partial purchase of the assets. I believe it was Lesego Platinum that had done due diligence and the offered a partial purchase as part of a joint venture proposal. Later that year they brought CITIC and VTB on board to have discussions with the current interested parties and any new parties that may have been interested.

I’m not sure where that 40p value comes from and wouldn’t want to speculate on a potential share price should a sale be concluded. However, it’s worth considering that the value of metals and ultimately the value of EUA’s assets has increased since the original MT licence was issued. EUA had negotiated the Sinosteel EPC for near $200m back then, yet its mcap remains at less than $100m today.