Member Info for Moneymaker2015

The risk & reward here are both high at this moment in time. However, it goes hand-in-hand with where the company currently lies. It is trying to prove the concept of a major discovery, very high risk as there is always the possibility that the concept will fail. On the other hand, if the results come good and even more so if it announced at the same time it has discussed taking things forward with a major party, the huge potential reward will have been missed.

The key bit for myself in the last announcement was “Visual inspection of cores confirms presence of sulphides”.

The drill results last year of a non-mineralised gabbro showed “elevated copper and nickel values against what might be expected”.

We already know the KSZ contains metal sulphides from the previous drill and in an area not expected to have mineralisation. On the balance of probability, should metal sulphides be discovered in an area expected to contain mineralisation, they are likely to contain copper and nickel. Therefore, visibly seeing the presence of sulphides is a very good sign indeed. Obviously we won’t know for sure until the results are in, but things are definitely heading the right direction.

It’s to create a market. When there’s no buyers in a market, the MM’s need to drop the price to make the stock more enticing, otherwise the MM’s would consistently lose out every time there’s a few sells on a low volume stock.

The company is looking for magmatic sulphide orebodies because they often host metal sulphide deposits. Once you’ve found a metal sulphide deposit, which is what KAV are looking for right now, you would then start a much more extensive drill campaign.

Due to the vastness of the KSZ and fairly shallow depths we’re currently looking at, the concept may be proven with low grade mineralisation due to the pure volumes that may be present.

It’s very encouraging indeed that a second hole is being drilled in the same location. I put a tweet about it after the recent raise, discussing why they had a contingency plan, which Ben commented “Exactly. This is one of the best summaries of our strategy that we've seen all day. You've got it spot on”.

https://mobile.twitter.com/MMaker2015/status/1412094765391351812

The fact that they’re doing a second drill and to a greater depth is very encouraging indeed. Had they only done the one hole I would have been a lot more concerned.

Until we’re given the core results we won’t know for sure, but this is very promising indeed. Firstly, ‘Visual inspection of cores confirms presence of sulphides’, that’s proof of concept initially. It will just depend on the grades as to whether it is commercially viable. Next, it’s the size of the resource. 800m is still not very deep at all, if you consider some of the deeper mines around the world are between 3-4km.

It’s nice to know things are going to plan as the reason for the raise recently was primarily so if they found something, they could expand the drill programme to get an indication how big it was.

Considering BritNRG is looking increase production to 1000bbl/day prior to it listing next week year and that MNRG is looking to take its interest in BritNRG to 65%, it is still massively undervalued!

At it’s break even cost of circa $10/bbl. BritNRG would be bringing in $21m, of which $14m could be attributable to MNRG.

That’s just the oil side of things, never mind Gold Ridge or EQTEC Italia.

I think it’s fair to say that whilst MNRG’s mcap is sitting at £5m, it’s a fairly low risk investment for a “growth stock”.

Not sure about the HL viewing as it’s not a platform I use. TW had been saying recently that the companies new website will be out in the next couple of weeks (around now), may have something to do with that? As far as what’s happening though, in short summary:

- BMV has just recently bought-out its JV partner, for 100% ownership of 2nr gold mines.
- Mining licences and financing already secured.
- Production to commence in the near future, once the adits have been de-watered and cleaned out.
- Production to be scaled-up to 100k gold per annum, giving an EBITDA of circa £100m at current gold prices.

Align’s research note gives a fairly detailed breakdown for more information: http://www.alignresearch.co.uk/cpt-company/bluebird-merchant-ventures/

Great summary of the KSZ and it’s potential.

Even on a conservative basis; you have to think that positive drill results across just half of its projects will give KAV an mcap of $100+, which is still multiples of the current price.

Having a number of “company making” projects and a substantial sum of cash in the bank, significant reduces the risks here.

I’m hoping it gets announced that they suspect to have found “something”, so are drilling a second hole in the same area, to confirm. Having 2nr positive results in the same area massively increases the credibility of any findings.

Given the potential news flow over the next 12 months and that a new website is being created, BMV need to run a big PR campaign if they’re looking to get new shareholders interested. A few videos on the road to production wouldn’t go amiss. Even if it’s just a couple of photos or a 20 second video every couple of weeks, share holders wants to see progress, no matter how small it may be.

Looks like 2024 could be a good year for gold. Hopefully BMV will be ramping up production and undertaking a JORC at the same time too.

I remember watching that last year, had to laugh when they brought up the break even price of production, then neither of them could remember what it was.

I’ve always liked the BoD when it comes to interviews because they genuinely look excited about the opportunities in South Korea.

It’s failing to meet timescales, without any explanation that is slightly frustrating. They had said for a long time that production was going to start in Q4 2019. Yes, the permits came later than expected, but funding wasn’t finalised until mid-way through last year, so they wouldn’t have achieved 2019 even if the permits arrived early. Same with finalising the deal, there was no need to leave it until the final day in Jan to make an offer. It’s why I don’t like that in the last RNS they said “It is difficult to set out a precise timetable at this point as the Covid-19 pandemic has presented various challenges”. It relieves all accountability for things progressing at a slow pace.

“4,257km2 of PLs in the KCB”, KAV and POW are not messing around when it comes to controlling land in the area.

One of those was mine too. I topped-off my ISA allowance with the £994 trade, although it’s showing as as sell typically. Same as yesterday. The 09:40:09 trades are my bed & ISA. It’s been duplicated and looks like 4 sells, but it’s actually just 1 sell and 1 buy.

Hopefully the PoG will keep rising too. Every $100 rise is another $10m profit to BMV when production gets to 100k oz.

Did anyone notice how good the deal actually was for BMV?

The Independent Expert made their assessment off the projected cash flow forecasts and used a gold price of $1,440/oz, which was then discounted by 15%.

The NPV was then discounted by 50%, of which this figure was reduced a further 10% as part of the JV agreement.

Based off a gold price of $1,800 and assuming the project can be de-risked further by commencing production (so the NPV wouldn’t have to be discounted by a further 20%), SAU’s 50% is/was worth closer to £20m. Getting it for £7m and in an all share deal makes it appear as though it was definitely worth the wait all things considered.

I’ve wondered this actually myself. That video looks more like something from a blog, rather than one you would show to a client. Although, it does say the funding partners had a visit to site, which I’m guessing was the other people already at the top of the ladder in this video.

Even if they can’t commit to timescales right now, a more defined plan of action would be good, with some approx dates of each task.

The only humbling thing now is that there’s nothing we’re aware of that would prevent production completely, it’s a more a matter of when production will commence, as opposed to if production will commence.

The initial timescales in the announcement Dec 2019 said:

“From February, the projects will then progress to production with initial mining commencing in 6 months and gold production some 3 months later. Both mines will continue to expand their mining area and build up inventory whilst the process plant design is completed and constructed. Estimated average cash cost per ounce (C1 level) is USD 576 per ounce.”

Effectively, we should have produced gold less than 12 months after that announcement. BMV are ahead of that timescale now, as financing has been sought and contractors in place. The caveat is Covid-19, as we and potentially even the BoD don’t know how much that will slow things down.

If BMV haven’t produced within 12 months it would be a bit of a disappointment.

The prospectus is neither here nor there as it’s primary objective is to provide SAU with the agreed share portion. It’s separate of the mining, so shouldn’t cause delay to production.

Today’s rise still only gives BMV an mcap of £15m. That’s an absolute bargain considering how close it is to production and the projected production rates.

I agree though, a couple of interviews like the BoD were doing a couple of years ago should get the share price moving, especially now a lot of the hurdles are out of the way. Regular photos and videos inside the mines, on the road to production would be a good way to start the PR too.

It’s not the best news, but it keeps the company in a healthy position cash-wise.

The share price appears to be dropping due to the lack of positive news flow recently. It’s surprising that our mcap is so low though. I haven’t looked into it, but with an mcap of £5m, I wouldn’t be surprised if this is actually lower than our current NAV, which would mean the fact that the company is revenue generating hasn’t been considered by the market.