Member Info for Moneymaker2015

Picked up another 120k shares today at an average of 3.24p. Now the deal has been sorted and the risk has reduced, thought I’d take advantage of these low prices to finally get my holding over the 1m mark.

The issue is the timescales and lack of in some cases. Saying works to the entrance is going to take two months and then cleaning up has to commence was always going to have a negative effect on the share price because it’s basically saying production is going to be a while off yet. As you say, it’s traders trying to make profit elsewhere in the meantime.

18 months should hopefully be good, but I’ve got a minimum of 5 years in my head here. It’s that production rate of 100k oz that I’m looking at. Yes, it’s a years away, but I would be astonished if that share price hasn’t hit 50p by that point.

Not bad, as expected more than anything else. Paying it in separate tranches though is a little deflating, which can be seen from the lack of movement in the share price.

The KCB is turning into a very good asset indeed. Obviously eyes are firmly on the KSZ at this moment in time, but it’s news like this that really reaffirms the potential of KAV. Should the worst happen and the KSZ not become an economic discovery, each of the other projects has the potential to lift KAV well above its current mcap. It’s definitely not a one trick pony.

It’s a shame they couldn’t clarify the timescales. However, the “ commence with production at 10,000 oz of gold per annum building up to 100,000 oz” is a subtle reminder to the market just how big these projects are compared to our current mcap.

I’d probably even say £150m is on the conservative side to be fair. Once production gets to 100k oz, BMV will have an EBITA between $100-120m, assuming gold prices stay as they are. Generally, I’d anticipate that to give us an mcap of over $300m.

The crux of the whole thing is that we don’t know the extent of the underlying resource, so no one knows how long 100k oz/annum production can be sustained.

You say “declining ore quality” but towards the back end of last year it was announced that a high grade vein had been discovered at Arzu South. Fairly recently the company announced the high grade intercepts at Arzu North. Then only two weeks ago the new high grade intercepts at Kepez North were announced. Granted, previously it has been discussed that grades are anticipated to decrease, requiring additional throughput. However, a lot of drilling has been carried out since then.

The doubling of the throughput will lower the tonnage costs due to economies of scale from the increased volume. Plus, the gold prices are significantly higher now than they were 2+ years ago. Notwithstanding the reduced ownership of the mines, it’s the combination of these factors that would likely see revenues at similar levels to what they have been in recent years.

Tavsan is likely to commence drilling next month and Salinbas the month after, so chances are we’ll be updated on both of these towards the back end of the year / early next year.

The “in a few years AAU could be pushing an mcap of £200m” comment is simply based upon the current mcap and revenues, against the anticipated production levels once Tavsan and Salinbas come into play. On top of this there’s the works in Cyprus, WTR and yesterday’s Asgard Metals announcement.

It may not be “a share for the older gentleman” is very subjective based upon the individual and what their intentions are. If you’re looking for a fairly low risk stock, that still has growth potential, AAU comes within that remit. However, if it’s a high return but high risk stock you’d prefer, then others on the market.

To be fair to the company was prevented from doing a lot of the preparatory works until the deal was complete. Until they can even think about updating the market on production timescales, it needs to arrange receipt of required financing from Auric Network, get a Contractor on board to undertake the works, establish how it is going to gain access to the mines… the list goes on.

Until it knows itself exactly what is going to be happening, the BoD can’t really say much more than it did in the deal announcement “we do have plans to start construction preparatory tasks within the next couple of months”.

My personal view is that by xmas time, the company will be in a much better position than it is now.

Considering the production capacity is going to double at Kiziltepe in the not too distant future. Revenue wise that would put AAU in a similar position to what it was prior to the new JV, but now it has all these additional exploration opportunities.

You can’t help but think, in a few years AAU could be pushing an mcap of £200m with everything that’s going on with the company as of late.

Nice to see it’s all up and running. Hopefully the stockpiled material will keep everyone busy until the mining season starts later in the month.

With the granulating plant being commissioned in Q4, 2022 should be a very good year for KRS at Diamond Creek.

The deal took a while but has worked out favourably for us. We doubled our stake in the assets for only 50% additional dilution. Long term it was worth the wait.

At least now the deal is complete there’s nothing stopping us from having regular updates and the BoD having regular updates again.

Yes, things are a little “woolly” at the moment, especially regarding funds.

We know a first tranche of funding was provided last Sept and a third tranche of funding had been received by Feb. This was to enable construction works to commence at the mine, but we don’t know how much each tranche was for, why each was received when it was, or if it can be used to cover BMV’s costs in the meantime.

Ref the timelines; JMK emailed me to say this will be reviewed once the SAU deal is finalised. He did say it may take a “fair amount of time”, as the extent of the de-watering needs to be established, the mines required surveying to assess any damage and necessary remedial works, then the mining authority carry out its inspections prior to issuing any mining licences.

The main thing is the deal has now been finalised, the rest is purely a matter of time.

What people have to keep in mind is that MNRG is now revenue generating since early in the year and has already increased production, though BritNRG. MetalNRG Eco Ltd will also be generating revenue, albeit a small amount, next year.

Many companies fail to get into the position that MNRG has achieved this year. It is purely just a matter of time for the share price to start increasing, especially with oil prices over $70/bbl and BritNRG’s operating costs at sub $20/bbl.

The shares being into the market today was inevitable. The value was £100k. Unless the company knew there was likely to be a near-term sharp increase in the share price, it would want the funds now. Cash is king afterall.

Ricky,

- The project is fully funded, with debt funding, to be repaid with a 20% discount to gold (RNS 28 Sept 2020).
- No dates have been confirmed ref production. It’s been knocked back a couple of times already due to different hurdles, the last being SAU putting its 50% up for sale. Considering previously production commencement plans, prior to each “hurdle”, the timescales were fairly short.
- Average cash cost - $576/oz (RNS 17 Dec 2019).
- Production guidelines: Yr 1 10k oz Au; Yr 2 20k oz Au; Yr 3 30k oz Au (RNS 17 Dec 2019).

Obviously do your own further research beyond the above. The main reasons why I am here personally though is the potential long-term upside potential. The 5 Yr production target onwards is 100k oz Au / annum. From known data, KIGAM estimated the remaining resource at Gubong to be 600k oz Au. However, Charles’s Barclay has said at current much of the area remains unexplored, so could be upwards of 5m oz Au in the ground. BMV plan to undertake a JORC resource determination to prove this up.

Hi Mike,

KAV are hoping to find Nickel, Copper and/or Platinum Group Elements. The typical Karoo age gabbro and the “Norilsk style” formation, indicates that it would follow suite with what is in Norilsk.

The results from the KSZ last year did show Copper and Nickel being present, so on the balance of probability some will be found during this drill too. It’s more a matter of the quantity, as to whether it will be commercially viable.

Siemans is just a measure of conductivity. A1 and C1 being “linked” or “in the same corridor” does not necessarily mean there is, or still is, a unhindered connection between the two locations. Hence, the resistivity of one may differ from the other.

Basically, conductivity in or around the gabbros, means the more likely it is that a metal sulphide deposit lies there. These are typically have a copper-zinc make-up. The higher the conductivity / lower the resistance, the more likely it is that a metal sulphide deposit will be found.

Obviously until the holes a drilled, no one can say what’s down there. However, finding the high Siemens readings over such a large area and in the locations that the AEM indicated may contain ore bodies, does look promising.

It’s good to see the price has held-up, well actually increased, after the placing. Usually you see a drop towards the placing price, but that hasn’t happened here. Shows a strong sentiment.

I have to say, I personally think the BoD have got its strategy nailed on here. Had it followed the original intended programme of drilling a few holes later in the year, firstly we would have had to wait longer, but secondly it would have ever only got a few core samples from different locations. The exercise of the warrants, that was the catalyst for the current drill programme has spurred things in a completely different direction.

I think the raise was a great decision too. Gaining a few samples now, will increase the chances of a discovery in each location but will also increase the validity of the TDEM surveys (provided mineralised deposits are found).

The BoD are definitely looking at the bigger picture here. Instead of having just a couple of results and possibly getting interest from one or two parties, it’s looking to underpin the TDEM results with hopefully a number of finds. This would likely bring in a lot more interest, as further TDEM results could then be carried out at much lower cost around the remainder of the KSZ. Provided the results are good, it’s a stroke of genius what has been done here.

Batangas consists of:

· Reserve of 128,000oz of Au

· 320,000 oz of JORC Inferred Resources

Unfortunately, until the local government allows Batangas to be developed, it’s a fairly worthless asset. No one will purchase it until it can be mined, hence why it was written-off in the accounts.

It’s a nice little asset to have in the background, incase things change in the future.

It’s having a number of potentially huge projects that first got me looking at KAV. The risk here keeps going lower and lower.

Yes, if the KSZ came back with poor results the share price may take a dip, but if any of the others come good, the mcap will likely go considerably higher than it’s current position. The chance of every project back with nothing is very slim indeed considering the amount of work that has gone in to identifying the best targets beforehand.

The future definitely looks bright for KAV.

It’s the lack of sentiment. Before Xmas the share price had risen to a little under 6p on anticipation of a deal. 8 months later, the deal is sorted but there’s little interest.

As Jersey says, a little PR should get this moving. The market doesn’t appear to realise just yet the risk/reward potential here. Considering both mining licences are in, funding is sorted, ownership is now 100% and production is planned to be ramped-up to 100k/annum, unless something drastic happens here, the risk is very low compared to the eventual reward.

Both sides clearly see the upside here. I’ll always remember Charles Barclay’s comment in an interview a few years back, that much of Gubong remained unexplored and there could even be upwards of 5m oz/Au still in the ground.

It’s good that SAU has become a significant holder of BMV as now its goals are more aligned, in that all parties now want the value of BMV to increase. Plus, with SAU’s exploration expertise, it will enable BMV to undertake further exploration on both projects for minimal cost should it wish to do so.