Member Info for nomadicinvestor

Couldn’t resist just topped up 2.8k. Can be fairly certain placing won’t be below 20p and project level financing (more debt or jv), as well as Deutshe Lithium in 2018, makes this price very attractive.

Considering making a move to beef up my position. Unbelievably I had 60k in this at the start of the year, now I have less than 8k. Luckily I’ve been in other stocks that have performed well and I’m even for this year (can’t complain given the markets). It irritates me how low this has dropped but makes me feel it’s time to buy more. A few k can now bolster my holdings by 25% and bring my average down from 75p to around 55/60p. We are rock bottom here and either you believe in us getting financing (so should buy) or don’t think we will get financing (so should sell).

Addicknt - yes your memory got it the correct way around, international was the issue. A bit less frustrating I guess than if UK was messed up. My one query now would be that you would expect given the project is a few months further on (and the sp crashed) that some of those willing to put in money at 60+ are not now buying up loose shares. I guess the risk profile of the potential investors is probably quite low and they won’t want to touch this until funding sorted. Chicken and egg.

This has all been down to Nextview. It’s been downhill from the time they pulled out. I also believe the bad news associated with that led to UK investors getting cold feet at equity financing stage. It’s set the ball rolling and now the sp has crashed and one of our leading investors (a reason I always believed in BCN) has sold half their stake, that we know about so far. Nextview were going to give 30m for under 20% - now that’s the total mcap. Is there any way back? Well yes, but it will take some very good work and a lot of luck now. Project financing seems the only way now.

How does this work when you already have 150m in debt agreed? Would it not undermine the lender giving the first tranche to then give more based on same project? Or would the new debt just take into account current debt payments and loan accordingly? Tricky one. Wonder if RK finance would give more if we went back to them or if it’s better having loans from two companies (spreads their risk and ours remains the same). Anyway, still firmly believe in long term of this and the current sp is somewhat irrelevant (however frustrating). Amazing to think we need 600% rise to get back to 12 months ago. I think BCN have done a great job developing this project but when it comes to PR/ communication and generally the promotion side (a necessity on AIM), they have really been poor. We should not have had these issues with funding.

Insightful RNS ..... was expecting at least a hint towards when they think financing might be or how it is going. Maybe they’ve learned now to under promise and over deliver is a better communication model.

Bacanoras worst decision has been to allow REM and Lenigas to be associated with BCN. A complete joke of a company that is so patently only serving the bank accounts of its board. I feel this is the reason our uk equity raising failed, too many associations with a company widely known to be a joke.

The RNS says very little, other than to slightly embarrass REM and Kieran (KDNC some call them now). It’s quite unbelievable if it is true Secker didn’t green light the previous equity raise because it was at 60p. I know there was also a struggle with UK investors and lithium at the time. I’m still holding despite being around 60% down. Done some minor topping up last two days. I’m still hopeful that funding will be achieved in early 2019. Ideally it’s a jv partner and not a massive equity raise. Given the boards tried to avoid too much equity raises then jv seems sensible (they don’t have huge amount of shares and will want to maximise their own). Who that would be? I don’t know, can’t see a major coming in at only jv level so imagine it would be a miner wanting exposure to lithium. There’s growing pressure for miners to at least look like they care about an eventual renewable led world.

All about funding now. I’ve been buying more last two weeks since it went below 50, absolute steal.

Least of our worries is if we can fund a fourth well. Even one well is transformational. Really can’t see eco hanging on to Guyana for much past summer. As soon as oil is confirmed and logged then Total will buy us out. Makes complete sense. Also now believe (as I have said before) that Total got a great entry price from us in the knowledge they know how much value they add. A fast tracked development, a hugely experienced team and cash to burn. Eco get the benefit of all that plus our remaining 15% is within our means. What’s the point of having 40% if we can’t fund it or have to do massive placings and dilute us shareholders. Look forward to 2019 and I’m sure ECO won’t stay under the radar for too long.

We are at the bottom of the price cycle for miners. As soon as funding is sorted we will be back on the up. It’s really just market mechanics rather than anything to do with the project. All be it the recent sp action will not help us. I do believe though that it has forced the company down the jv route which is non-dilutive and far better for us shareholders. Sacrificing 20% of profits down the line is no big deal (for current shareholders).

Fair point. Most aim chairman would of accepted poor equity raise. I suspect our institutional shareholders (unusually large amount for aim) will of had their say on the raising. The great thing with BCN is having these guys with a large voice on our side. We are completely aligned with institutions here and they won’t let us get ‘done over’. All be it BCN is probably 5-10% of our total folio, where as it’s probably only 0.01% of theirs.

I really love ECO. Great little stock (getting bigger). The team have such a clear strategy and they always deliver. Guyana could easily be 2.9 billion barrels or 435million net to ECO. That’s absolutely massive and there is just no way Total won’t buy out our remaining 15%. We are funded for four drills so in no hurry to sell, solid position. A conservative 5$ in ground value of 435m barrels would be £1.6b. That’s 20x current mcap. Obviously, we are still on aim/ a junior explorer etc etc. But I always believe a realistic target price is half ‘calculated value’ - in this case £750m. Anyway, will look forward to hearing Total/ Tullows new drill program and hopefully ECO continues to make good progress.

I feel sorry for those that sold in the low 30’s or 40’s. On aim you really need to hold strong and not get bothered by things like that. I agree, as long as the ii’s remained on board then I felt assured. I do still think the best outcome is accepting a low ball offer for all of Sonora. Let a major build the mine and produce. Peter Secker has always said his specialty is exploration and development. Alternatively bringing in a jv partner for say 25% of the project would also be a good option. We remain undiluted as shareholders and perhaps get some production experience at board level from the partner. BCN remains well undervalued in the 50’s, even with the unknowns about financing. A fully financed mine should bring us into the £250-500m mcap range. Given we almost hit the £250m without financing, I’m being conservative here. Even with 50% equity dilution, we would be trading several multiples of today’s price. However, hopefully this is avoided as Zinnwald isn’t included in our mcap now, so all equity also diminishes future profits there. That’s why project level (jv) must be the preferred route.

Strider - well picked up, I did notice the contradiction in my investment strategy that hasn’t been followed here (no surprise it’s my worst performing stock for years). I just like the lithium space and the long term necessities of it. I do feel if our board was more aligned with shareholders we would of seen progress at far greater speeds. Things have been slow here and it’s no coincidence.

Interesting presentation on the website, very informative of the new prospects and development plan. It seems like this is now a completely different beast to what we had six months ago. This asset is far larger and far more complex. A delay now but within a year or two the company will be far bigger than previously imagined.

I note that in the interview they speak of getting FDP approval within a few months (stated as early 2019 also). They also say that securing approval requires proof of funding, in other words funding comes first (or at least proof funding will be secured). The presentation states FDP submission on track for december 2018. Therefore, in 6 or 7 weeks, the company must feel confident funding will be secured or almost secured. Not as long a delay as some will of imagined.

I previously invested here because of near term production and it is a disapointment that this is no longer the case. However, the company now has the potential for something that supports very organic and high continued growth for 5 or 6 years (rather than one or two).

Aim in general is a risk but investors have the ability to pick their stock. A few basic principles like have the directors done it before, is it a proven field in the case of oil, are directors heavily invested, is there a clear plan etc etc. Also never invest in something because you’ve seen it in the risers board. That’s a common mistake. A carefully selected aim folio gives rewards far greater than anywhere else as long as you don’t worry about weekly/monthly price swings. BCN a great example, value will out in due course.

Good to see BCN moving but it was way oversold and remains way oversold. A fantastic entry price. To be honest, anything below 80p (a long term average for this stock) is very good value. BCN are within a few months of financing and once that is out the way, we will see continued value creation into production. I still believe that Sonora will be sold outright. Anyone going to jump in ‘at project level’, aka joint venture partner, would have to have pretty substantial resources. If they did and if they want to be involved with lithium then I would guess an early buy out and owning 100% is of far greater interest. I may be wrong and it might suit a new entry into the lithium market with reduced exposure.

Always said that Namibia is of little value. It’s a sideshow and was always very ‘wildcat’. Guyana the focus and a good rns ultimately. More money in the bank and unlikely to waste money on drilling a duster in Namibia. Let’s farm out and let someone else pay for the shot in the dark.

Couldn’t agree more superroty. KDNC is a machine to pay their directors salary for years to come. I once bought in a few years ago and quickly realised this and swapped all my holdings into BCN. Was a great decision till a couple months ago ..... All seriousness. Invest in a company, don’t invest in a company to invest in another company. Unsure how anyone can still buy into KDNC.