Member Info for Moneymaker2015

I’ve just re-rewatched the interview Rolf and Pierpaolo had recently:

https://www.proactiveinvestors.co.uk/companies/news/939023/metalnrg-assembles--secret-weapon--team-for-sunswept-enterprise-as-transaction-completes-939023.html

It really puts into perspective how low the current mcap is. Just on the oil & gas project alone, it’s currently producing 35k barrels per year and is on track for this in Q1. After a few interventions they’re planning throughout this year, it will push production to over 150k barrels per year.

Putting that in monetary terms:

- The current break even price is $40/barrel.
- Brent is currently sitting at $69.22/barrel.
- The current 35k production rate will return $1,022,700 higher than the break even point if oil prices remain the same. However, analysts are anticipating they will keep rising as the world returns to normality.
- At the increased rate of 150k barrels, the return will be $4,383,000 above the break even point (if oil were to remain at the current price levels). That is more than our current mcap! The break even point is actually anticipated to be lower than the current $40/barrel, but for simplicity I’ve just been going off the $40.

It’s unbelievable just how low our current mcap is. I did quite well off a few last year; EUA, GGP, RBW and a few others. This year though, I’m anticipating quite a big change with MNRG as production news is released from BritNRG and then exploration news at Gold Ridge.

I only bought in originally just because CS from EUA was on the board and I’m definitely glad I did.

Yes, I doubt we’ll see much movement, other than the occasional sell (from people going elsewhere), until news finally drops.

Should we not be able to purchase SAU’s 50%, it would be interesting to see what happens to the share price considering we so close to production. Plus, if they decide not to sell to us, presumably they’d have another buyer lined-up, so we’d likely be releasing production news soon after. Hopefully it won’t happen and we just release news of the 100% purchase and production starting though. Either way, it’s been a long wait for some of us here, so any news of production commencing will be welcome.

Mine’s the same. Spread seems to be widening a bit recently. Makes it less appealing for buying or selling...

I’d love to be a fly on the wall to see what’s going on in the background. There’s a lot of things happening that we’re in the dark about. 1) Do we have a contractor lined-up already 2) Are we able to commence production immediately 3) Does the latest tranche of funding get us everything we need 4) What’s the likely full amount of funding going to be - Its odd that we’ve always indicated circa £5m but then got funding between £5m-£20m 5) When in H1 are we likely to hear news.

There’s so many questions, which is why I’m hoping for one RNS that wraps everything up in one go.

I was watching SAU’s presentation at pre-PDAC this morning and you can see why they’re willing to let Kohchang and Gubong go. Some of their other assets are monstrous in terms of high grades. Unfortunately, little was mentioned on our JV other than their 50% has been offered to BMV and the price it has been offered.

The presentation did get me thinking though. I wonder if the digital token & 20% discount to the market price that we are using with Auric Network could be used with us buying SAU’s 50%. Whilst not ideal as it would be better for us to sell gold at full price and pay off any outstanding balances, surely it would be attractive to SAU as they would in theory get 20% more than the current valuation.

As happy as I am with us owning 50%, it would be a little disappointing if we did lose out on the other 50% considering it’s low cost compared to future value.

Hopefully it will give us an idea of the route to getting Tavsan up and running. Whilst I don’t think any work will be starting there this year, I’d like to think next year production will be commencing there.

As Sanboy says, yes it is the spread. You should be fine here as the spread is fairly tight and the share price fluctuates enough to quite easily cover losses from the spread. It’s something you should keep an eye on though if you’re investing elsewhere. Some companies have +20% spreads, effectively meaning it has to make up quite a bit of ground just for you to break even with your buy-in price.

Travel restrictions in 2020 ultimately slowed progress down at Gold Ridge. SRK are a decent size outfit, so will hopefully be able nudge things on a little quicker through 2021.

No I’m still very much holding and have been for a number of years now.

I was actually just replying to a post from Jax, agreeing with what he had said. This is the first time I’ve posted on this board for probably 3 months, if not longer so I wouldn’t go as far to say I’m wasting my life here. As you don’t like what I’ve said I can only assume you’re a new investor to KIBO and joined the party in the last month or so after the rise relating to MAST?

We all thought the exact same thing a few years ago Re: KAT.

RNS 26 Nov 2018:

‘On admission of the Consideration Shares for trading on AIM, Kibo will hold 82,987,179 Ordinary Shares in Katoro, representing 55.53% of the enlarged share capital of Katoro.’

Unfortunately, there is nothing to say MAST won’t be any different. You have to remember it was only 12 months ago we were waiting upon the works at MAST to commence onsite at Bordersley without them being listed separately. It was announced works were delayed due to Covid and then not long after it was announced that MAST is to be listed separate and that KIBO will only retain 55%.

As I say, the issue is that MAST will require further substantial capital to proceed with its plans. KIBO don’t have the excess capital to invest in order to retain the 55%. Unfortunately, there are too many similarities with what has happened with KAT over the last few years.

Unfortunately the dip back towards the 20’s was inevitable. It came off the back of MAST news, but those who bought in the 20’s (or lower) were going to take profits and those who bought in the 40’s were always going to sell-up quickly once the momentum stopped so as to prevent or reduce any losses.

I haven’t been keeping an eye on KIBO much lately as the only thing of relevance is news on Benga, or dare I say MCPP and MCIPP of news were to ever come out on their fronts.

MAST is just following suit with KAT. We lost 50% straight off and then when KAT needed money it just diluted our holding, which it is still doing. MAST upon listing won’t have enough funding or generate enough revenue to carry out their expansion plans so will inevitably have to do a further raise in the future too.

Whilst I do think both KAT and MAST are good to have retained, rather than selling-off completely. They have no value to KIBO until the are generating enough revenue to pay out dividends or until they are bought-out.

KIBO is ultimately riding on how soon Benga gets off the ground, which considering the lack of progress over the years, is unlikely to be any time soon unfortunately. KIBO remains a long term hold for the time being.

Things are definitely going in the right direction. Once financing is sorted, this should hopefully start moving.

I try to avoid getting my hopes up too much, but there’s the possibility here that the next next RNS could be the biggest the company will ever make if it confirms a deal has been finalised on good terms, a contractor selected and a near-term date for production commencing.

Even at 50% of the JV, by the end of years two we should have made gross profits near our current mcap. Obviously 100% would be better but the key for BMV is just getting into production and generating cash.

It’s surprising there hasn’t been that much movement in the share price to be fair. This is very big news as it is now extremely likely that the project will recieve the rubber stamp. No Government wants to be seen as blocking community & environmental projects, or preventing the possibility of work going to local areas.

It will be interesting to see what future news flow entails around Togo.

Aidan did at least retweet it, which is better than nothing. It sounds like Auric are happy about the partnership with us too.

I think more companies will provide funding on a similar basis in the future. At a 20% discount to the spot price, if there’s an upward trend they can ‘take the gold’ then make a higher margin if the spot price increases. On a downward trend they can just avoid using any tokens so they don’t lose out, then any other times they’ve still got a 20% discount to the spot price.

Hopefully some work is going on at the mines currently in the background, so we can jump straight into production once SAU have made a decision as to how they’re proceeding.

It’s a bit of a double edge sword this interview. The positive is that he expects to update the market in the next few weeks, the negative is that they’re in discussions with third parties over a structured settlement, so the final outcome is a little up in the air at the moment. Either way, getting a final decision, no matter what the outcome is the important thing here.

It sounds like things are definitely heading in the right direction. Once two pieces of news are released; sale finalised and production commencing, it will definitely be time to get out the bubbly!

Potential CGT changes won’t be helping, but as Jester says a lot of it will be people moving trying to find the next big mover, there’s been so many over the last 12-18 months. Plus, on the CGT side of things, depending on what you think might be achieved in a sale, it would likely still be better to hold and pay the higher rate of tax. For example, from the current level, if you believed a sale would attract over 35p per share, you would still be better holding and paying more tax (assuming CGT goes inline with Income tax rates as expected and that you would be paying 45%).

Anyway, the current share price is irrelevant though if you’re holding on until a sale announcement.

I’d like to think a deal will be struck. Long term it will be more beneficial for us if we can get the other 50%. SAU don’t want a deal to collapse but will also want very good terms if they’re not getting a large chunk of cash. In hindsight, they probably would have been better just amending the JV split to say 60/40 BMV/SAU or similar and then for us to fund the start of production.

It’s just a case of waiting here and seeing how it pans out. We’ll either get 100% of the mines and likely start production later this year or SAU won’t agree terms with us, sell their 50% and production will more likely commence towards the back end of next year. Either way, in 5-6 years this is likely to be very profitable compared to these low levels. Obviously DYOR.

Nice to see the BoD supporting the company still at these higher levels.

I just read that ProActive article you posted yesterday. I’d happily wait another 9 years for this to 10 bag from this. Not putting more in to AAU at my entry price around 1p will always be one of my biggest regrets investing. Even back then I saw it as one of the lowest risks/rewards on the market.

Good job it was on an upward trend the 2 years before Covid struck then, so worst case scenario it’s going to settle around $1000/oz higher than BMV’s operating costs will be.