Member Info for Moneymaker2015

It’s nice to see some media but considering the RNS last July said the Koh Chang MTUP process was ongoing and at Gubong “the Board decided that the best course of action re the advancement of Gubong, was to pause the submission and identify a local partner to jointly develop the larger of its two projects”, without having a deal finalised with a partner, it looks like there’s been no advancement in any of the projects in all that time.

On the bright side, gold is hovering around $2300/oz. Might be even higher by the time this lot get into production.

It’s 360k dollars / £280k.

As I said it’s nice to finally see the company heading in the right direction, but having watched the share price drop from over 6p, I’m just wary of BT and his over-excitement for new prospects. Especially as we’re still a long way away from just breaking even each year, even if it did buy Nara.

It’s about time KAV started generating some revenue. Unfortunately, having been here for far too long now I’m still very sceptical of BT.

Whilst $30k/month revenue sounds nice, it’s only £260k/yr, of which I’d be surprised if after taxes even £30k of it is profit. That’s not going to have much impact on the current £2m burn rate each year.

Whilst there isn’t much value in Batangas for BMV, more so when it comes to a decision on funding production and we only have 40% left. It was valued at $6.8m in 2016, when they owned only 25%. Holding 40% and Au being near $800/oz higher, you’d think the mcap would increase somewhat from the current £4.1m just from positive news on Batangas alone.

It’s crazy to think that just a few years ago this was over 4p and now it is at 0.10p. The worst bit is LC has made absolutely no progress on any front in that period so there’s little prospect of the share price going up either.

Unfortunately, the previous government in the Philippines wasn’t very helpful at and tried to put a stop to all future mining developments in the country, which is why BMV shut up shop there about 5 years ago and wrote the Batangas mine off completely. Fortunately, the new government is the opposite and is encouraging mining.

The exploration was practically complete at Batangas by BMV’s previous partner, but for an open pit mine. The licence extension has been granted but for an underground mine only, so the new JV partner is conducting final exploration to enable a DMPF and ECC to be submitted.

They have 2nr mines in South Korea. There Kochang, which is awaiting the permit. They also have Gubong, a much larger mine (2nd biggest in South Korea when it was running decades ago). They’ve held off submitting the permit for Gubong due to the issues they’ve had recently with the permit at Kochang. As it’s much larger and will have a bigger social & environmental impact, the plan is to bring a local partner onboard now before submitting the permit. The idea being that it won’t just look like a foreign company coming in and destroying local areas for a quick buck. They’ve done this in the Philippines and it seems to be running smoothly so far.

In essence, they have 3nr mines collectively.

It was always going to be. They’d already announced that they were looking for some form of settlement.

That is genuinely your typical life cycle. A company makes a discovery, the share price sky rockets. It starts planning for mining, then the share price drops. The key is to not get caught out by buying after the discovery has been made and getting sucked into the hype on the way up.

From experience, you have to take that life cycle with a pinch of salt. Firstly, many companies fail to make a commercially viable discovery. Second, many explorers don’t ever get into production. A lot sell assets on the cheap just continue exploring other opportunities.

What I’ve always like about BMV is it doesn’t fit into the typical mould. It’s not an explorer, it’s trying to simply bring an old mine back into production, so is starting in that ‘Development’ stage.

Over my years of investing I’ve learnt a couple of things. If you’re getting in near the bottom, there’s a good chance the company will fail, that’s the risk of getting in so low. On the flip side, all it takes is one stock to multi bag to have a significant impact on your life.

I don’t think it was a comparison of GGP as a company but in terms of how the share price can rise so quick. Having fortunately got in GGP at sub 2p, then selling-up rather prematurely at just over 20p, it’s a very good example of a company quickly becoming overvalued. It shot up to near 40p in a very short space of time, then gradually went back down to 6p (despite its assets actually improving).

Once BMV receives its permits and production commences, I’d be surprised if there isn’t a very significant rise given its current mcap is only around £4m.

Toffees,

The Sinosteel is dead and gone from way back?

Yet the company announced recently:

“… can either proceed with the EPCF contract signed with Sinosteel, or with a different contractor”

Are you saying you’re more in the know about the company than the Directors themselves?

To be fair, AMC did get an offer of 3x the amount but shareholders voted it down because the payment terms were spread over a couple of years. They still got $35m upfront and were in a much worse position that EUA, with less valuable assets.

“A consortium is being put together in HK to put in a 'bid' when the time is right. That will likley be around the 0.5 p mark”

What is that information based on exactly? That would be an offer of less than £15m.

You do realise when EUA was at 0.5p a few years back, it signed an EPC contract with a loan facility of $150m on a 10-year payback. Plus, MT has a capacity to produce 1,000Koz per annum. Why would such a low offer be contemplated when the company has the funding available to go it alone if necessary.

With gold hitting $2,050/oz today, it made me think of the potential increase in value here.

Based on the average production in the Scoping Study of 42Koz pa, the increase from $1750/oz, would provide BMV with an additional profit before tax of $12.6m per annum. Not bad for company with an mcap of only £4m.

Now, we just need those MTUP’s to finally get this into production!

Unfortunately, people were saying that same thing 5 years ago and it’s currently heading back toward the same price it was back then. It really needs Salinbas up and running for there to be a big move here.

You can’t help but think there’s going to be a few disgruntled Southern Gold shareholders from the way the company has dealt with the Korean gold assets. Gifting their 50% to BMV for less than it was valued at and then the sell-off of BMV’s shares for considerably less than what they were issued.

Just seen us near the top of the fallers board and read the RNS. Unbelievable that the KSZ has come up with nothing once again. KAV hasn’t found anyone across all of its projects, never mind anything that could be considered commercially viable and attractive to another party. I’m starting to think the BoD couldn’t hit water if they jumped off a boat!

Having bought in around 2p I’m now kicking myself for not selling-up around 6p with a nice profit, rather than holding at 0.6p, when the company has nothing, Doh! You win some, you lose some I suppose.

Yeh he’s definitely gone down in my estimations. When he first arrived it sounded like he was going to ensure KAV’s focus was going to be on the KSZ and KCB. Although, all KAV seem to be doing is looking for other ‘opportunities’ that are going to take years to explore and cost millions until anything of note is found. All at the expense of shareholders. He’s been hanging around the BoD at POW for too long.

Me personally, I would much rather keep running costs to a minimum and focus on both the KSZ and KCB.

Welcome back Jersey! I wasn’t sure if you’d moved on from BMV.

It’ll be nice to see something from Aidan again. I don’t think he’s done an interview for over 2 years.

Nice to see some positive news coming out of this one. I think BMV have definitely done the right thing by bringing in a JV partner. Let the experienced partner do the work and ensure things go through swiftly and are signed-off, then give them 60% in return. Once it’s up and running it will generate a small profit for the company.