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Ajs,

Didn’t you sell at a loss a couple of weeks ago? Why are you still here commenting?

I don’t know if I’d class Southern Golds sale of circa 1.4% then reason why this is now not investible. They do still hold 20.29% of the company. Plus, if you consider that just a few weeks ago they have announced a half year loss of $2,673,592, up to 31 Dec 22 and they have probably already burnt through a decent chunk of the $3.9m cash they had left, it was inevitable they were going to either be selling some of the BMV holding or conducting yet another raise.

Had it been one of the BoD from BMV it would be a different issue entirely (unless it was just for taxation reasons).

It could be argued that the BoD were a little naive to think that they would get all the permits, without having to go that little extra mile when it came to the local area and the environment, as every single mining company I’ve invested with has had to jump through hoops to get their mining licences. Although, on the flip side, they received the extraction permit, the more difficult one to obtain, very quickly indeed.

The company’s in no different position that it was a few weeks back.

Apologies, by ‘one hole’ I was responding your comment on the B1 in general, as in one location because the mobilisation costs are substantial. It would be more cost effective to drill B3 and B4 whilst a rig is on site, rather than just drilling B1 quickly whilst we are waiting for Ditau.

We’re at a critical stage now when it comes to funds and further dilution. If we just drilled the B1 and nothing was discovered, it would have a very detrimental impact on the mcap, which in turn could mean a further raise is done at a lower price. It’s an unnecessary risk for shareholders, when we can hold-off and wait for the assay results at Ditau, which may come back favourable, which significantly reduces the risk in that area. If Diatu has a significantly higher chance of success, it makes sense to wait and drill that first because a positive result would positively impact the mcap. You’ve got to remember, each time we’ve ran a drill programme in the KSZ, we haven’t hit anything. It is a big risk.

To be fair to BT, Ditau is now KAV’s most likely chance of making a discovery. It makes sense to hold back and drill that first, dependant upon the assay results from this new core we have obtained. For a junior, focus needs to be on the most likely chance of success, to ensure share holders funds are being put to best use. Any minerals in the KSZ/KCB aren’t going anywhere, so can be drilled at any point in the future.

In terms of drilling the B1. Rig mobilisation is very expensive, more so considering that a camp has to be set-up in each new location. It may not be viable to go there and just drill one hole on.

I’ve been wondering this myself as for Colin to state in an interview the TMUP will be with them the following week was a bold statement to make, unless he was very sure on the matter. Technically holding back announcements shouldn’t happen because the news should be put to the market as and when it becomes apparent. However, BMV only has to notify the market once it has been notified itself by each of the subsidiaries.

Hopefully we’ll get some good news in the coming weeks.

The thing is it’s not just BT, it’s simply just exploration in general. When the mcap was circa £20m, that was very high for an explorer that currently had nothing, but it was high because of the potential of the KSZ. It wasn’t high just because of BT. Unfortunately, KAV didn’t hit anything in the KSZ so the mcap was always going to plummet.

As much as people may not want to hear it, the mcap and SP is still quite high here considering we haven’t actually found anything yet. It’s the same with all explorers, the mcap starts high on the ‘potential’, but then starts to drift as time goes by without a big discovery. If KAV’s analysis of the KSZ is correct, we were unlucky not to hit a target. The main thing is can we get back there and test the new theories before another raise is needed.

Taking into consideration Bashers point that it is just an LOI, some degree of worth has to put against the context of the announcement; “BurnStar will supply and install a commercial plant at its own cost”. For it to voluntarily agree to this, there is likely to be some substantial benefit to BurnStar from it. Even if an agreement isn’t reached on the current basis, it may be that IRON can look to profit from benefit that would have gone to BurnStar.

I personally see the RNS as very positive and shows things are definitely moving in the right direction.

Encouraging news and didn’t require expenditure on drilling. It will interesting to see what the assay results show as Ditau could quickly become KAV’s best chance of making a discovery.

Now Q1 is over, the keys aspects to production are not far away either:

· First sales on track for Q2 2023 in line with original plans;
· Smelter anticipated to ramp up to full production capacity by mid 2023 with strong demand for Ironveld's suite of speciality metal products; and
· Additional revenues expected from DMS Magnetite joint venture, also due around mid 2023.

It’s nice to finally have this in writing. Things are moving at a decent pace here.

Very good news. This was actually the key part for me:

“The directors are confident that the initial consideration payable in respect of the Disposal of £2 million will be sufficient to cover the costs of a reverse takeover under AIM Rule 14 and provide initial working capital for the then enlarged group”

It’s good to hear they the £2m is sufficient. Will be interesting to see what the company does next.

It’s the gold price I’m keeping my eye on in particular. For example, it’s just risen to $1,923/oz. Which is $173/oz higher than that used in the scoping study. Based on the medium term target of circa 60Koz Au per annum, that slight increase in gold price means an additional free cash flow per annum of $10.38m. That is all profit!

Plus, if you look at gold price forecasts, by the time BMV is looking to achieve the circa 60Koz Au per annum, many forecasts have the gold price above $2,200/oz, which equates to an additional $27m above the scoping study. Now, if that ‘additional’ was to all be used as a dividend, it would equate to near 3.5p. That 3.5p doesn’t take into account any dividend they would be looking to pay from the ‘$50m free cash’ either.

Obviously, we can’t guarantee they would use any surplus cash as a dividend, but it demonstrates how small increases in gold prices impact on the projects financials.

If the permit lands next week it wouldn’t surprise me if we see a number of new investors come on board after in April to fill their ISA allowances.

Definitely B) Agreed delay

I’d be more surprised if it was anything different

Whilst I’ll be holding for the long term regardless, it will be interesting to see what happens here in the short term. Having £2m in cash may give us a slight re-rate, but being realistic, £2m isn’t going to get us very far so it will still fall back on a decision through the courts.

Fantastic news this. Just saw us at the top of the risers board. Was a very welcome surprise!

Hopefully we’ll get an indication soon as to what the financials will be like for the project going forward. I want increase my holding here, but would prefer to know it’s not going to be like VAST, which was plagued with issues and running at a loss.

Ajs,

I took these screenshots just for you ;) and yes, you may only refer to me as Warren from now on!

https://mobile.twitter.com/MMaker2015/status/1630894231479808000

Ajs,

You’re saying it as though it’s not possible for someone to buy-in near the lows and sell near the peak. Plus, I didn’t actually say I bought at the very bottom, at one point it had dropped a further 50% from the price I bought in at. I also didn’t say I sold it all at the very top, otherwise I would have made near £300k. Truthfully though, I couldn’t really care if you believe me or not. However, if you really need justification, you are more than welcome to go back through my comments from circa 3-years ago, where you’ll see the price I was posting at and then a comment circa 40p where I said I’d sold-up (although I actually still retain about 15% of my holding there).

I’m sure the someone like you will be questioning me here in a few years time too. Even though I’ve been accumulating BMV shares for near 5 years now, with an average of circa 2p.

Ref EUA, the price has dropped because it holds assets in Russia. TW was never discussing that a few years ago because the Russia hadn’t invaded Ukraine at that point. Similarly, there’s been very little dilution there, so not sure about the ‘confetti’ shares you’re referring to.

Going back to my previous point though, I was simply saying I’d be wary with his comments. As he has his own agenda, it may not be a true reflection of what is actually going on. Another example being the article he wrote on Beaufort, saying the FCA would not be shutting them down. Then about 3 months later they went insolvent after a fraud investigation by the FCA.

Yeh I’d be wary with TW’s comments. I remember him bad mouthing EUA and telling people ‘avoid at all costs’. Fortunately, I didn’t listen and saw it rise from 0.5p up to its height of 42p. I banked over £150k on that one and still have a decent holding left, all from a £3500 investment. Would’ve missed that if I’d listened to TW.

Ref the 5 or 10 bagger, as pwlx says, look at the financials yourself and it will give you an idea of whether the mcap will increase:

- NPV of $181m.
- $50m per annum average free cash flow generation.
- $630 per oz AISC. Gold is currently $1,808!
- Current mcap £16m.