Member Info for Pauliewonder

Yes Mike has been in US since Monday. Confirmed by SS on Tel that he’s there at the moment. March likely to be transformational. Hold onto your hats….and your shares

Agree. There is nothing to suggest that we are anywhere close to fair value. Double the SP and then double it again and we’re talking. In reality, we are in the end game and instead of finance, we may well be taken out shortly at a significant premium. I’m hopeful that that is the case although if we do go into production, it will be an even greater return. Short term acquisition could see circa 50p region.

No this was a comment that MR made in an interview and there was no indication on when or if there would be further comment from NASA. I expect that if it was to go ahead, substantial testing is needed and therefore, whilst I would be delighted to hear back re: NASA testing, I think the big items that will really spin the dial will be more imminent irk offtake, funding, takeout etc

Hey LegalW,

I work in M&A - different sector, but potentially a “similar” type of client base. It’s not exactly the same, but I can offer my perspective.

Any P1 funder is almost certainly going to be a large player. I’d be surprised if BRES went with a small private funder - if they did, that would raise a red flag for me and suggest that they can’t get funding from a tier one institution. That lools very unlikely, I’d even put it at 90% that it will be tier one (probably DFC - hence Mikes visit to Washington). Typically, a funder will structure their legal documentation to secure a meaningful stake in the company - or project if Mike gets his way (whether that’s an immediate percentage ownership, up to 100%, or at least an option to acquire the company outright to fund P2).

In reality, anyone funding P1 is effectively backing P2 as well.

That said, this is all theoretical from my perspective. I see two likely outcomes: either we secure full funding for both P1 and P2 (which I’d put at around 40%), or we see a buyout (which I’d put at about 60%). I’d be comfortable with either outcome. Given the size of my position, I’d probably feel slightly more comfortable with a buyout. However, from a longer-term standpoint, developing and producing ourselves could potentially deliver greater upside - though it clearly comes with more risk ie execution risk etc. either way, a strong buy and why I have conviction about BRES.

This is a highly material development and, in my view, a clear structural tailwind for BRES. The effective removal of Chinese graphite from the competitive set materially reshapes the cost curve and works unequivocally in BRES’s favour.

With graphite comprising c.90% of active anode material, this is not a generic battery-input story but a graphite-specific one. The implications are therefore direct to graphite.

While graphite lacks a transparent spot market, I expect this shift to structurally reprice graphite higher as supply tightens and Western, non-Chinese material attracts a growing strategic premium.

The graphite boom is starting, with BRES positioned as a clear beneficiary as the market moves to reprice security of supply.

From Sasha. He didn’t confirm specifically next week although did say he’s heading back. My interpretation is next week although I think that’s reasonable.

I think 18p fundamentally undervalues the company. If there is a full takeover it’s because the company buying BRES will almost certainly fund it. So 18p doesn’t make sense because as we have seen the DFS is already somewhat committed and BRES have lots of other options for funding as they are speaking with founders at the moment. Funding for P1 is a foregone conclusion, that will happen. What isn’t clear is whether they will get a commitment for funding for P1 and P2 at the same time.

By the way, MR is back in US (Washington) next week so that speaks volumes. I hold well in excess of 1m shares and know a number of others who also do. None will take 18p now if offered, and certainly I won’t.

All Iyan results and first JORC also likely in next two weeks, which will also be a catalyst. So it’s feasible that we could be at double figures by the end of this month. That makes 18p a very poor offer. Double it and add 10p (around 50p) and we can start to talk

Agree with everything that you have said LW except for the timeline for the first JORC. Apparently this will be by the end of this month….all being well. So anyone topping up, needs to do so now. And fwiw I see this as double figures by the end of this month

Intrigued to know the two shares that you are referring to?

“The Company retains a continued presence in Zimbabwe. The Company is re-engaging its future investment strategy in Zimbabwe and has commenced discussions with further mining concessions in-country alongside its wider portfolio.”

There has been suggestion that VAST diamonds would only be worth circa $60 per carat i.e. circa $7.75 million. I can’t see this as this would mean that almost all diamonds were industrial grade. This is not the case as the recent interview (28 April) AP states:

“mix between industrial and gem and a lot of gem that were thought to be industrial”

“when I made the comment that they are a lot better than anticipated, the average diamond comes out at a field like that at 1 – 3 carats (or 5 for big ones)….in this particular lot, the average lot is between 5 and 9 with a good majority of what they call specials, i.e. 11 up to 40”

“normally in these fields you’ll get between 10-15% gem, but even at first glance, and this is why we are so adamant that they are better than anticipated, of the 25,000….we went through them one by one and just on a visual inspection (even without cleaning them), we had over 27% gem, which is double the norm”.

For context:

• Industrial-grade diamonds (used in cutting, drilling, etc.) can sell for as low as $20–$100 per carat, depending on quality.

• Gem-quality rough diamonds, even lower-grade ones, typically sell for $200–$500 per carat, and higher grades command much more.

Therefore, assuming only 27% are gem quality (using conservative price of $300 per carat) and 73% are industrial grade (using $60 per carat), we would arrive at a very conservative valuation of the following:

27% gem grade: $10,481,400

73% industrial grade: $5,667,720

Total: $16,149,120

The above is very conservative as it assumes the following:

- Only 129,400 carats – AP said that this is actually above 130,000

- Industrial grade is mid price ($60 per carat)

- Gem quality is low grade ($300 per carat – could be as high as $500 per carat)

- Only 27% are gem quality

- The above doesn’t account for his comment “a good majority of what they call specials, i.e. 11 up to 40”

So I think $20m is the floor here but it could be worth far more. Good luck all longs, not long now.

That’s a great spot because MR has said it is 5k throughout and 10k has never previously been mentioned.

@PaulFG - great, simple summary of where we are at. Could hit double figures relatively soon based on those factors

I think having both China and US connections positions BRES perfectly as both sides will be wanting the other not to be involved. US can reduce EV targets going forward but China has a huge EV production and therefore BRES would still be shielded from this. I think the bigger the global battle between US and China gets, the better for BRES

But the problem is Zing, you don’t add any value with your posts. I’m not trying to be mean, I’m just being factual. You say the SP might go to 2p but don’t base this on any metric or reasonable factor ie, discounted cashflow, NPV / share price, risk premium factored against another company in a different geographical location. So sorry but I can’t take you seriously. It might go as low as 2p is your subjective view, which most on here (as is the case with me) probably won’t agree with.

Maybe put some figures together and then express your 2p valuation and we can talk. But the likelihood is, when you put any reasonable numbers into a valuation model, you will come out at substantially higher than 2p.

A couple of large buys for me at 3.18 and 3.60 have taken my average right down. Originally it was 9p about 5 years ago, down to 4.55p now and hoping to reduce that further.

Fabulous RNS today. To think we are about two months from DFS completion and have most of our phase 1 production completed, including partial financing and we are near all time lows. That’s why I have been grabbing as many as I can at these levels

Typo - 5%

Well in the context of margin, graphite per tonne costs about $425. Then there are travel and processing costs etc. whilst the volumes are small (scope to increase), the margin is colossal. So looking at a 70%+ margin, $2m per annum would be $1.4m profit. That is pretty exciting to me given that it represents just 0.5% of the initial annual production. Mix that with the Jilin (large flake) agreement and this is looking super profitable.

I’ve been wrong before, but this feels like a tipping point. $8,000 per tonne…wow