Member Info for penstock

The concert party, especially MBU, would certainly NOT accept less than 30p (see August 18th 2022 RNS).

MBU sold down to Avani putting themselves below majority holding with expectations of their remaining holdings rising off the back of that. Unfortunately the timing was all wrong as metcoal prices started to dip and the 2nd HWM(s) had problems.

Bens own all their own equipment albeit most of it still has 28 months lease purchase payment left to pay. All the site plant and rail is fully working and apparently the washplant is more efficient due to additional dryers, conveyors, tip sorting grid etc. Staff are in the employ of Bens and not in a union so can be pushed to work where required without some JMAC foreman telling them to ease off the revs. More staff have been recruited to enable weekend staff rotations, swap over night/day shifts and operate the additional new earth moving fleet. The benches are being cleared. I assume pitcoal is being strip mined in that process as it was earlier in the year when that was trucked out unwashed to CSX trains while the #71 HWM is still round the corner in the wall operating on double shifts (60-70KT ROM/month). China demand is already increasing although Argus is not matching PLATTS increases yet. Ben use PLATTS so that's OK. I don't get the disparity between the 2 indexes but no doubt Argus will catch up. Indian demand for steel and thus metcoal is high. Apparently a steel mill put a lot of time and money into setting up the furnaces to burn specific mixtures of coal. This whole thing about Bens Brand coal is that the offtaker has set up their mill to burn Bens coal and are very satisfied with the composition of the coal that they want full ships cargo of this 'brand' rather than having to set it all up to burn a different Company's coal. That and the surety of Avani brokering further offtake deals as & when required equates to pretty much guaranteed offtakes for LOM.

Negatives: large loans; waiting to see if benches do get cleared in time for the 81 to start mining again by mid-August or risk Mega taking it offsite; currently only $197/T PLATTS; still no CFO, just an FCO to control the purse strings; waiting for eoy report to be printed to see official cost & production figures; fuel costs; inflation; still not had resources/reserves update promised a few months ago.

Clearly the benches being cleared; the 81 walking the wall with the 71 again; a rise in PLATTS HiVolB prices, announcement of a CFO; increased LOM from resource report; new permits; more trains; final payment for rail holdings rather than paying lease rent; no CLNs; a broker as an investor; will all see the value of the Company increase along with profits. If profits increase then loans can be redeemed early without penalty. If that 2nd Avani loan can be paid off first and ahead of time then those elusive dividends can be considered again.

WHI DCF had BEN sp value at 86p if both HWMs are mining and coal at $225/T. Settle for a TO at

And PLATTS up $4 to $197/T

18p is what Avani paid for 29.9%

The £1m after hours trade is most likely a transfer between family/partners. Maybe someone croaked and their shares transfered by probate? Or an off book trade between Iqbal family members? Concert party not likely to agree a TO below the 30p conversion price that MBU paid.

Ah rubbish. Can't be 346KT. The 81 production figures on MSHA website Q1 were for the Kentucky mine not Bens. The only additional coal added to the 250KT of ROM from the #71 this year is the pitcoal (23KT?), the short term production by the 81 (another 23KT?) and the 13KT/month HvA (78KT) that tops it up to 374KT ROM = about 209KT clean HvB+ Jan-July. No idea if MSHA production figures are in short or metric tons/tonnes.

OK no more numbers from me (yeh I know, right, lol). If you want to confuse yourself like I did just check out the MSHA website and work out production totals for yourself.

That 346KT includes the strip mined pitcoal too.

OK, apologies for misinterpretation of the MSHA report. I had wrongly taken the 250KT ROM figures from the 71 to be from Q1 but in fact they are for the H1. Clealy that halves the figures I gave yesterday although numbers people amongst you would have sussed that already. It looks like the #71 was just producing 250,443T made up of 138,361 Q1 and 112,082 Q2 so far. That puts monthly output as 46KT in Q1 and 37KT ROM per month for Q2. Multiply by 56% washplant efficiency (the number WHI use) and it drops it to 140KT clean coal from the #71 this year :( And yet there have been more than 2 trains per month average. Combined with the #81 production we are getting 346KT ROM production so far this calendar year or 193KT clean, enough for an average of 3 trains per month.

Snapshots are on the unofficial Bens Creek facebook group. Komatsu 1250 excavator assembled today and set to start clearing overburden by end of the week. HWM production figures are from the public access MSHA website for the #71 HWM and the #81 although the latter was in use at an end of life mine in Kentucky till it was pulled to come to Bens so not relevant really. The 81HWM300 is a bigger rig than the 71 in use at the moment and has a cutter head than can be raised to mine taller seams although not great for big voids in the middle of a mountain ;/

This year the #71 is logged as producing an average of 83.5KT ROM per month which washed at 56% efficiency rendered down to 47KT/month. As the #81 in double shift is expected to pull out more coal per day than it's smaller cousing the #71, then with the addition of HiVolA from underground CM, Bens should be able to produce near 1mT/year as of September.

Just need the new additional yellow iron to clear the benches this month, get the #81 back walking the wall with the #71 and hope that post-summer demand for steel increases to push prices up whilst Bens costs are reduced by using the same amount of staff to move coal and dirt from 2 HWMs instead of one.

Couple of trucks arrived 2 weeks ago. More equipment (Komatsu 1250 excavator and another truck) were seen headed on low-loader to the Creek this week apparently :)

Haven't had RNS about a new CFO yet. Isn't there like a time limit for an AIM Listed Company to operate without one? I know we have Arondeep Binnig, Financial Controller (MBU's Accountant), covering since Murat's departure but surely with all these loans flying around someone should be appointed as an official CFO!

Has an updated Resorces and Reserves Report been issued yet?

Has the last remaining 48% payment been made on the BC Rail Holding yet?

All the crew back yesterday from their annual jollies and has the excavator and trucks all arrived onsite for them to clear the benches now?

Will/has the Inidian offtake deal be/been fulfilled this month? Will they be placing a 12 month offtake deal?

Is AGM in London in September?

Can the stockyard hold >77Kt? Has blasting and clearing of that begun to expand it?

Has Luther forgotten his youtube login details?

Will Peter Shea ever update the BensCreek twitter page? New Komatsu equipment photos?

Is it September yet? No? OK pop back later.

If coal price averages $205/T this financial year and both HWMs mine full production by August then Bens could have enough cashflow to pay off the loans by the end of the trading year near Easter 2024. Depends of course on what the carry over losses are from 2022-23 which we won't know until that eoy report is printed.

Probably way off being correct so do not make any investment decisions based on my spreadsheet. It is only here as a guide to what I think is correct based on what WHI thought and additional royalties and a sprinkle of hopedust https://www.crews-inn.co.uk/BensDCF.xlsx

Edit, 7.57+6.5=14.07 not 13.57, my bad.

$7.57m unsecured loan notes issued to replace the 14th December 2021 $6m 28p CLN ACAM held with BEN. (I guess they didn't take the option to pay off 50% 6 months ago and the rest as a 125% cash payment early redemption after all). So not actually using the AVANI $13m to pay off that loan.

What of the Feb 2022 $6m 40pCLN? $250K paid Feb 2023, then were due to pay monthly and have it all paid off by end of summer. Has Avani loan been used to pay that loan off?

BEN now have $20.57m loans, of which $13.57m due for repayment by December 2024 and the remaining $6.5m by June 2025 (assuming BEN have paid off that February 2021 loan). In addition ACAM have 21m warrants at 28p with 5 year lifetime which once exercised will add $7.57m to the cashflow and take total shares in issue to 420m. Not much different to the CLN then really except that it has up to 5 years and adds $2/T to the monthly costings. Gonna have to update the spreadsheet again, lol.

Need coal price to go up and both HWMs mining at the end of this month so loans can get paid off sooner than December 2024 if we want dividends.

I thought 50% of the 28p CLN was paid by 31st December 2022 with option to convert at 125% in cash before the 31st December 2023 rather than CLN at 28p.

The 40p CLN had $0.25m paid off 28th Feb 2023 and Bens intend to pay that off in full by end of summer 2023 with monthly repayments...using Avani loan money now.

The #20HWM was sold for $3.6m along with the old Cat trucks at the start of the year. If costs are $200/T with one HWM then this is the first month of loss this financial year I think. Predicting a low coal price till maybe September. Wanting to pay off ACAM loans, buy new Komatsu fleet equipment and ensure a working cashflow throughout the rest of the year required either both HWMs mining and/or high coal prices. Problems since January with getting a 2nd HWM to contribute and falling coal prices have clearly hampered operations and cashflow.

$13m is a large amount to borrow but if it does all the above, especially paying off remainder of ACAM's $12m loans then Bens are indeed fortunate to have Avani step up and lend the dosh at terms that serve both parties well. I doubt many shareholders would have stumped up the cash if it had been offered as a placing like when Ben did the £6m placing with MBU back in August. And I doubt any holders would have wanted the number of shares to pop over 400m so it is good a placing was not done and that we basically paid off a loan to take out another for 1.5-2 years. Or shorter of course if profits permit early redemption and we all want that if we are sitting around waiting for dividends.

That #81 sat idle at the moment (it aint broken despite what RNS and others say) is just waiting on the miners to get back off their annual summer jollies and clear the benches with an excavtor that has a 10tonne bucket or grabber on the end of it! They will have the benches cleared in no time and the #81 can then walk the wall with it's older cousin the #71 before August all being well. The #81 was mining up to (and possibly beyond) 21st June before it ran out of bench. It has only been out of action 2 weeks this month! The cutter drum replacement is a standard thing with HWMs. The #71 had it's head replaced on 20th May. All the hullaballoo about the cave in and a broken HWM is just smoke. The #81 is fine. HSHA moved them along the bench away from causing any more instability in the troubled spot but the bench wasn't big enough for the 2 of them so had to sit it out while #71 continues to mine double shifts.

6 coal trains in Williamson yard yesterday. Presumably at least 3 of those went to Bens to load up 33Kt from the #71. Maybe the other 3 will come too as I seem to recall it being said that there is a ship to fill exclusively with Bens' coal this month for the Indian buyer.

Gonna need a bigger stockyard soon. Everything hangs on the price of coal as operationally Bens are sound. Bigger, more ground moving equipment, more crew, and soon more coal. And got a cashflow to see through till the end of the

Or is the outstanding ACAM loan convertible at 40p? I get mixed up which got paid and which is outstanding. 28pCLN or 40pCLN? Either way, if some of Avani's $13m can pay off ACAM now and avoid dilution then it is a good thing.

Thanks guys, makes total sense now.

Paying back the loans within 1.5-2 years shows confidence in BEN from this commodity broker, Avani.

If the $13m is used to pay off ACAM, pay for new earth moving equipment and supports cashflow till the end of the year then it does not result in dilution of shares as it is not a CLN. Paying off ACAM is better than ACAM converting at 28p in December when we should be above that price assuming coal prices rise above $225.

Bens have basically taken out a new credit card to pay off the current bills whilst leaving themselves some cash to play with for the rest of the financial year by which time they can pay it off of wait another 6 months to pay half and a further 6 months to pay the rest (plus 15.1% interest) less the amount already paid in royalties. Nice. Have a great weekend.

Certainly not ruling out a TO offer but it wouldn't be until the buyer sees BEN in full production and profitable over a consecutive amount of months IMO. Maybe after 31st March 2024? Avani clearly avoided a CLN as just an 0.2% additional shares would push them in to a TO position. They would seem the most likely should an offer be made though.

This $2/T royalty thing has me a bit puzzled though. Is that in addition to repayments or is that the actual repayment amounts? If Ben produce 70Kt/month at full production and pay just $4/t for the $13m loan it would take nearly 4 years to pay it off and that is before the 15.1% interest. The loans are only for a max of 2 years. So have I misunderstood it? Is the $4/t cumulative royalty in addition to the repayment amount over the course of the loan period?

Differences between now and this time last year is that:

We still have roughly the same loan amount (borrowed $13m to pay off ACAM's and still have some left over) but another 2 years to pay it off and it can't be swapped for shares at a low price;

We own all the equipment & rail spur;

We have a larger workforce than when we contracted JMAC and we can get them to work when and where we need them without going through some JMAC foreman;

We have 2x HWMs about to be put to full production;

We have permits to blast more benches and mine the taller seams;

A more efficient washplant and loading system;

More trains;

MBU sold down to 23.78%;

A new commodity broker (Avani) bought in for 29.8%;

We have a buyer in India from their largest steel company;

my boy got a BEN hat, T-shirt & sweater :)

Negatives (sorry) are:

lower coal price

lower share price

no dividends this financial year

more shares in issue 399.27m

deleted one of my BEN Tgm groups ;)

I don't comprehend this low sp. When JS bought a similar amount from retail/PIs there was little volume left to buy and sp flew up.

Both HWMs will be mining this month even though the miners are on their jollies this week. Full production with reduced costs, more equipment and staff in August.

Coke batteries will be financed by, ironically, a contango. The offtake partner will front the funds for the ovens in return for a hedged amount of free coking coal and a discounted rate thereafter, but Carl will shrewdly made the agreement such that it is only for a fixed amount each month so that he can sell to other offtake partners to generate revenue too. That is the coke.

Then there is the thermal that the Chinese also won't buy directly so Carl will no doubt sell that to them through a middleman at a discount.

Then there is A2Z whom will turn up with 300 truck drivers to watch the President collect his brown paper envelope as they start to load up with washed coal for less than the originally agreed $120/T price.

At the end of the day it is Zimbabwe. Cheap labour but a lot of envelopes and high electricity prices unless the Chinese power plants want to cut a deal..

CGO will make first revenue in August. Thatmonth is important for both metcoal producers, BEN & CGO. GL whichever you are in

AWESOME POST!

Nailed it!

Ignore June/July, enjoy the summer, pop back August. Let the flippers do their thang between then and now.

Next RNS: Bens Creek have purchased a Komatsu excavator with a 10ton loading bucket or grabber & some trucks, hired more staff and expect the bench to be cleared within a few weeks for the 81 crew to stop twiddling their thumbs and get back to mining. Maybe worded a bit different.

It all hinges on the price of coal in August. It may well drop a bit in July, mining with just the 71 and CM, but as long as we are in full production in August then the costs will be lower per tonne and the Company will be back in profit. Like you say, with a larger workforce, more earth moving equipment ('yellow iron') and back on Bens Spur track to produce 1mT/yr (OK not this particular year, but certainly next year).

Did we ever get the report from the core drilling program with the objective of improving Bens' metallurgical coal reserve base and expand the recoverable & mineable tons?

Has Ben acquired a further 24% of the membership interests of BC Rail Holding for a cash payment of $156,000. The consideration being satisfied from the Company's existing cash resources. Thst additional acquisition would take Bens Creek's ownership to 76% of the membership interests in BC Rail Holding. Under the agreement Bens Creek Group would have the right to acquire 100% of BC Rail Holding from MBU for a total consideration of $650,000. Following this transaction Bens Creek would retain the right to acquire the remaining 24% from MBU for a total further consideration of $156,000.

Have we got a new CFO yet?

August gonna be so full of new bites. Maybe even eoy results too. Enjoy the summer. Ciau for now.

Cheers HH, I leave you guys to manage the store and look WTF happens, lol. Well, you may as well trash the place as my 200K BEN shares are worth diddly squat now. Was hoping to go on a nice vacation but the Easter dividends never came. Greenscreen photoshop holiday snaps it is this year for facebook likes ;) I'll pop back in August and see where we are at. Lock the door on your way out if any of you are selling up at just over IPO price. The Company is in profit so maybe an insti will buy up PI/retail shares (are you out there JS?) and push the sp back up or maybe they are waiting for dividends and printed financials before investing. Sure don't want concert party selling more.