Member Info for Tornadotony

Yes we could have volatility over what has happened this weekend. Longer term, everyone needs to decide if 2.5% is adequate for a proper defence of our country. This means more rare earths, more titanium, more graphite, more black carbon and lots of silver and copper.

This could go down first, but I would give shorters a fight 60p area if it does.

Https://www.proactiveinvestors.co.uk/mining?utm_source=newsletter&utm_medium=sendy&utm_campaign=uk_weekly

Https://www.imarcgroup.com/titanium-dioxide-pricing-report

Going up accept Europe which is down 1%. Titanium metal is forming a low in price but has been flat all month.

Overall this should be high 30's and the only reason for pull back is the company are spending money on drilling. They are doing so as prospective funders have probably told them they want resource and reserve figures not just inferred estimates. They also may want cheaper entry prices. As soon as they start buying this will go back up barring macro pullacks.

SP

Are you the one buying this morning? Someone is pumping on this without much news for months. If anything the company is running out of cash. Unless the Directors are putting in their own money, am I right that we are likely to get a placing soon. Tony

What was just 6% of my portfolio is now over 10%. Like a 2025 gold miner or rare earth producing stock. You have to buy extra shares and trade that part on and off to build free carry on the total hold as a side running hustle.

The grading today would have quite a few on 3/10 or lower. Maybe one or two managing to score zero. Let us see if we get a few in the 8/10 range tomorrow.

The whole point of a USA listing is I thought to attract a big investors like State Street or NY Mellon Bank and a future gateway to funding. It is the centre with the largest pool of liquidity on the planet.

VIX Term structure options move from backwardation to contango this week and various oscillators move from negative to positive. Market signals reverse from crash and pull back flags. Risk has moved into the longer future.

Mavern

Of course they are up today as Trump speaks tonight. I am referring to what happens afterwards for the end of this week. Tony

Legalwolf,

There is possibly some trouble building in the equity markets in general especially USA side of the pond. Institutional selling as retail main stream being left alone as the buyers. Things may get messy near end of the week. I am not sure how it will impact BRES. Vital to have some cash in the portfolio imop and may explain why the share has not pushed up higher today. Tony

Several warning signs of institution led selling in the background in USA market indices. A lot of caution of what may follow Trump's speech to his nation. Things may hold up for today, but Thursday could see a drop. UK and European markets can get hit in the back wash. Good to have cash in the portfolio. May prove very handy next week.

Usually Vox sets off a hot money activity warning. We shall soon see if that will be the case. If this goes to 11-12p area we will know the trader wide boys are in town and you can bet they will sell off if it gets there and grab their scalping 10%.

Thank you Guitarsolo, I was wondering if we had intelligent life here and your confirmation that it is so.

The key sentence in the RNS is that the data published helps progress funding discussions. Should end on a positive by end of day with that comment. It does not say future funding discussions, but infers what is happening in the present.

I can understand shorters going after stock where the company holds a lot of net debt, with significant interest and lowish earnings. This company has somewhere around £180M in the bank and is rapidly approaching cash positive on earnings and has a shot at growth. A high proportion of the value is actually cash in the bank on the current share price. It is a high percentage of enterprise value. The only agents who short in these circumstances are acting on behalf of competitive companies and competitive investor interests. They are worse than parasites. They may provide cheaper entry points and that is about it. I can think of worse things to write about this shorting lot, but leave it as the ugly side of commercial business. I look forward to seeing them having to bite the bullet.

Japone,

Excluding anyone interested in buying the company, the key time lines are as follows;

End of April all drill samples arrive at Intertek Analytical Lab in Perth Australia. (RNS confirming gives no impact on SP, but tell us things are on schedule)

Third quarter (according to last RNS press on white tab above) we get an updated mineral resource estimate (MRE) between July and September and probably near end of summer.

What impacts the price is whether the MRE has results that are not estimate, but indicated resources and that we might just get a figure for probable reserves. This would impact the price to a degree and it could go higher than 40p. What really changes things is completion of the feasibility study (DFS) and we have a Opex value (cost to produce), volumes in annual production, a target revenue figure, the cost to build a mine and any associated infrastructure such as energy, water, roads if any and whatever needed to help on-site workers and finally target annual returns after debt repayments. This data could well project much higher SP values at this stage as they also approach off-takers for product and construction financing.

I would suggest that you do not put all your money in one project investment and that you may consider diversifying in other stocks through research as to de-risk your portfolio. None of us can be sure of macro-events that could impact titanium oxide market demand or supply and if your all in on EEE all your funds are impacted in either direction. A case of all the finance being in one basket.

Tony

Fortuna the placing if a vote is in favour at the AGM, would not be at a discount price. In fact it would probably be at the current price at 9p or 10p. If it was 9p more shares would be available to existing share holders as the offer comes to us first against what we hold. Why would we buy it? Any new purchaser has to buy the stock on the company being phase 1 fully funded. Secondly the value of reserves is based on producer valuations and not in the ground valuation. The price goes 3 fold higher on the value of reserves in production as they can be exploited. However, phase 1 only partly exploits the resource in this case so it may only go up 1.5 times. It therefore makes sense to buy into the placing and hence no discount.

What may happen is that a funder buys 50,000,000 shares and the equity volume increases and another buys 50,000,000 and the rest could be open to other shareholders. The enterprise value of the company increases to £20M raised in the bank and shareholders can buy 40% more shares if they do not want to be diluted. The resource and reserve become more valuable with an operational mine as they successfully complete that stage of the project. Any future take over after phase 1 would be at a higher price. The company also has no debt.

Apologies 200,000,000 in previous.

The AGM includes a vote to allow Directors to place 200,000 shares. They may therefore raise phase 1 by such means if AGM voting secures the motion. They would then collect half of what is offered in today's RNS.

Tony

(Bres is 6% of my entire portfolio as I was accused of trading the other day)

Also nickel catalysts used in some crackers are likely to go up sharply in price next year as production of nickel next year is falling under Indonesian export restrictions.