Member Info for tim000

I think that’s a little too high. My understanding is that there are royalty payments to the government of around 5% of revenues; 28% corporation tax payments in South Africa; and a 15% minority interest in the profits due to the BEE partner Vunani. But there’s no doubt that cash generation in both H1 and 2022 as a whole is going to be phenomenal. And not reflected in the share price.

PS: A Board member commented that there are no broker reports on the company, because no client could buy any shares in the company to profit from the research, given a notoriously illiquid market for the shares. So it's up to PIs to do their own research on the outlook for profits. My own research indicates that many unloved coal miners are currently trading on a 2022 earnings forecast of a p/e of about 1; BISI looks around that too imho.

I attended today's AGM and met nearly all the Board members. I've posted some reports on the AGM at the other well-known discussion site! It's a great time to be a BISI shareholder, the interims might conceivably shock the market on the upside, as alluded to in the recent TU. It's reasonable to guess that the annual results could be equally good.

We haven’t lost anything, except the unanticipated chance to buy more shares cheaply. I don’t see the point in second guessing the CEO, we don’t know as much as he does. But imo any future value to those projects remains uncertain at the moment. PC wouldn’t have had any regulatory requirement to mention them earlier, or he’d have done so.

Why are you so suspicious of people who hold different opinions to yours? I normally post on another website, but wanted to counter the view here that it was good business practice to continually dilute existing shareholders’ equity for no reason. I mentioned my holding just to show that I have confidence in the management and assets, whereas you clearly don’t. Finally, if I were the CEO, I’d be reluctant to tell the world about new projects until (a) I had land rights to them, and (b) I was confident they had value and so wasn’t misleading shareholders. I’m guessing PC would have similar opinions. But who knows.

I know progress has been slow, PC acknowledges that, but SRES is a tiny company looking to negotiate and sign a JV with a much larger entity. In those circumstances, SRES is entirely at the mercy of its partner, wrt timing, but not wrt the terms of the deal. Imo our CS project with all necessary permits for production is a scarce and valuable resource, at just the right time. The current share price doesn’t reflect this.

I own just over 1% of SRES, so I have confidence in PC to develop CS profitably. I have expressed these views to him, for the moment he needs to focus on CS. Assuming that’s a success, if he can then develop Hazen and sepiolite equally successfully then the share price is going to multi-bag over the medium term. But for now, CS is the priority.

The Hazen and sepiolite projects are, at this stage, speculative and long term. If SRES had money to burn, spending seed capital on them would be sensible. But they don’t! Issuing shares at a depressed price to finance projects which won’t generate a return for maybe five years makes no sense at all. It is clearly much more sensible to focus scarce resources on CS which offers an immediate return. Once CS is paying dividends to SRES, is the time to develop Hazen etc. Otherwise we face years of further dilution.