BMR Mining Share Discussion Threads

[fireball xl5] 26/1/2017 13:25

We get a mention, though the report appears to involve a modicum of dyslexia lol's
"BRM Group(LON:BMR), which has just issued a positive update on its Zambian projects".

[...]
The zinc price is on the rise, but which companies are set to benefit the most?
11:57 26 Jan 2017


Zinc is back in fashion and zinc companies are on the march. But which ones are worth a look?
The zinc price is on the rise, but which companies are set to benefit the most?
Zinc miners are now coming out of the shadows

Balkan Zinc looks set to be the first zinc miner to list in London - if not quite in living memory, then at least in a long, long while.

For a long time, zinc was the metal perennially out of favour. Even during the height of the mining boom it lagged, and promoters around town found the zinc slog harder than almost any other.

One major zinc producer, Nyrstar, pretty much left the mining business altogether. And in February 2016 Horsehead Holding Corp (OTCMKTS:ZINCQ), a billion dollar zinc recycling company, filed for Chapter 11 protection in the US.

But things are changing fast.

The imminent listing of Balkan Zinc, which looks set to come to the market in mid-February, is one sign of that. But there are other signs too.

Ferrum Crescent (LON:FCR) has lately got into zinc, Hannan Metals (CVE:HAN) has acquired the Kilbricken project in Ireland, ZincOx (LON:ZOX) is still alive, just, and signing new deals in Korea, while Avrupa (CVE:AVU) is actively looking for deals on the Iberian pyrite belt to complement its existing position.

Meanwhile, Turkish conglomerates are nosing about looking for opportunities, and other companies too are looking to take positions in the metal.

Why is this?

Simple - after long years when supply was easily equal to demand, zinc is now slipping into deficit.

Zinc stocks, as measured by LME inventories, fell in early January, and stood at 419,800 tonnes. These are levels not seen since the end of the last mining boom, and the lack of inventory has been accompanied by a corresponding rise in the price which, at the current US$1.23 per pound, is higher than it’s been since 2008.

The first sign of this recovery was an increasing interest in zinc EFTs, for example the ETFS Commodity Securities Limited ETF (LON:ZINC), which is now trading at a five year high, but which first really moved at the end of 2015.

Then, during 2016, momentum began to gather, although the parlous state of the wider mining equities markets was still acting as something of a drag. It wasn’t until late in the year that investors really began to wake up to the potential uplift available in zinc.

And by that time, many canny companies had already taken significant positions. Thus Hannan and Balkan are already in place with exploration and development projects. The same is true of Zinc of Ireland (ASX:ZMI), which has several projects in Ireland, Rathdowney Resources (CVE:RTH), which has just announced a C$5mln placing, BRM Group(LON:BMR), which has just issued a positive update on its Zambian projects, and Ironbark zinc (ASX:IBG), which is moving forward with its projects in Greenland.

On the North American side, the zinc companies have become increasingly active too. Thus Nevada Zinc (CVE:NZN) is attracting interest in its Lone Mountain project, including from out of Europe, Arizona Mining (TSE:AZ) is moving ahead with the Taylor deposit and Callinex Mines (CVE:CNX) has hit a three year high of C$0.65 on the strength of exploration success at Pine Bay in Manitoba.

This latter project is situated adjacent to the famous Flin Flon project of Hudbay Minerals (TSE:HBM), which is now boosting production to meet the new market strength. Hudbay shares have more than tripled in value over the past year.

At the top end of the zinc market, Glencore (LON:GLEN) continues to be dominant, while First Quantum (TSE:FM) and Boliden (TSE:BLS) also provide major contributions to global supply.

Nevertheless, that supply is diminishing as major Irish and African mines run down, and new mines look to be slow in coming on stream.

To be sure, Vast Resources PLC (LON:VAST) has recently started production at Manaila in Romania, and other of the juniors may also add a small contributions in due course, in particular mom and pop operations out of China.

But the central dynamic remains the same.

And broker RFC Ambrian spells it out succinctly: “The last three years have seen significant production capacity reductions through mine closures, including Vedanta’s Lisheen mine and MMG’s Century mine (which itself accounted for approximately 4% of global production.”

Some of this production fall has been a tactical or strategic response to weaker pricing. But by no means all. RFC Ambrian also cites “the natural end of older mines” as a significant cause.

And the really big companies are not at the moment interested in redressing the looming deficit. “Zinc is not a strategic focus for the major mining companies, suggesting that the availability of capital for large-scale new projects will be limited,” says Ambrian.

Which brings us back to the smaller players.

As investors search around for ideas on how to play zinc, and as the mining sector as a whole comes back into favour on the back of the Trump stimulus, the zinc juniors are likely to be in increasing demand.

Old projects will start to appear on the radar again.

One such might be the Black Angel zinc mine in Greenland, now owned by private company ARC Exploration. Once-upon-a-time this was held by Angus & Ross, Aim’s proxy zinc play. But the project ran into difficulties and was taken into private hands.

Work has not stopped though. Eight weeks of field activities in the summer of 2016 involved ground geophysics and induced polarisation work conducted by the well-known boutique Irish consultancy Aurum Exploration Services. Then, in late June, 11 new holes were drilled, a number of which intersected mineralisation.

Meanwhile, Anglesey Mining (LON:AYM) still has its large Parys polymetallic project in Wales, and this may get reactivated in the face of further zinc price strength.

Across the water in Ireland, Connemara Mining (LON:CON) is still slip-streaming in the exploration wake of its major partner Teck (NYSE:TECK), while Lundin (TSE:LUN) has now departed and left the field open for Hannan.

Other juniors that are worth a look are: Inca Minerals (ASX:ICG), which has the Riqueza and Cerro Rayas zinc-silver-lead projects in Peru, Zincore Metals Inc (TSE:ZNC), which also has projects in Peru, Trevali Mining, which (TSE:TV) has operations in New Brunswick and a mine in Peru, and ScoZinc Mining Ltd (CVE:SZM) which owns zinc exploration in Nova Scotia.

Also on the radar: Red Crescent Resources (TSE:RCB), which has projects in Turkey, InZinc (CVE:IZN), which has the Indy zinc project in British Columbia and the West Desert project in Utah, Energia Minerals Limited (ASX:EMX), which has the Gorno underground zinc project in the north of Italy, and Consolidated Zinc (ASX:CZL), with its assets in Mexico.

[fireball xl5] 26/1/2017 13:16

Lets get involved with the legacy at Broken Hill Kabwe and start the clean up. The twin site in Aus has difficulties:

[stav5001] 25/1/2017 22:23

A Pleasure

So sad to see we have been whittled
Down to just 10 attendees!

How many fell on the way!

[fireball xl5] 25/1/2017 06:40

Correct me if I have got anything wrong, oh and please add the previous hours minutes as I missed it lol's.

Having had to skirt Woking and Surbiton via Reading, didn't even get to see Queen Vic as whisked off to Paddington. Lead a merry dance on the U ground and finally pitched up for the last 10 minutes. Caught my breath and shook Alex by the hand and said I'd made a great deal of effort for little reward, following that with, "I hope BMR would not be doing the same.". That went straight over his head. Had a few words with Jeremy and stressed the importance of Star. Why hadn't it been sewn up. They've paid all the bits up front, land taxes etc. and we're waiting to draw down the facility from ACI. At this point Alex made it clear that that facility was for the plant which was key. Asked if ACI approved of Star, Alex said they had full support. They said Star would be wrapped up soon, the mining licence was all there and the ministry sign off, just needed to complete with the $870,000. They both appeared confident, in fact it was more like they were just passing comment and they would finalise when ready. Might be waiting for the 9th and warrant. Perhaps they will be using that for Star to remain fully financed for the plant. Alex was asked about any further dilution, no water in his whisky from now on.
I'm sure the others will add a few choice morsels to the proceedings. It was great to put a few faces to avatars, We enjoyed a spot of lunch whilst reminiscing about the old days and showing off our BMR war wounds. Still, less about the empty wallets, overdrawn accounts and pension deficits. It was great to meet fellow veterans and I'd like to wish all a good period of convalescence prior to the next shindig. Here's hoping that the next meet will have less sobriety, more a knees up, followed by incoherent paralytic whooping and back slapping mayhem. We might yet wear the smile we have all invested in, is that BMR tooth whitening kit is going to be the best on the market.

Again, thanks to fellow BMR holders for lunch and a chinwag, what a great bunch you are!!

[fireball xl5] 24/1/2017 23:23

You too QS, even though you didn't see fit to wear the horns lol's. Trying to digest the 10 mins I was present, least I heard a few snippets before you filled me in. Didn't expect that Vietnamese purchase, lucky Alex wasn't present, might have wound up with a Ho Chi Mine.

Jest aside it is very promising. Just wish they would sew Star up. Thinking about it the delay might be until the warrants are out the way, for various reasons.

Just a little interesting C&P for V lol's

[qsmeily456] 24/1/2017 21:48

Excellent to see you guys today.....felt so right and comfortable LOLsss

[kwizza] 24/1/2017 16:50

BMR Group - Analyst interview, WH Ireland

Monday 23rd Jan 2017

[wiggle1] 24/1/2017 14:54

Whatever was said, the share price has gone down !

[kryptonsnake] 24/1/2017 14:19

Maybe it started late? Or no one turned up lol

[blueblood] 24/1/2017 14:03

Was only joking but beginning to think that nobody made it to AGM earlier!

[fireball xl5] 24/1/2017 10:58

Well hope to see you chaps on the way out for a natter. On the Reading/Paddington leg.

[fireball xl5] 24/1/2017 10:26

I'm going cross country now, Reading then onto Paddington. Keep him talking.

[stav5001] 24/1/2017 10:00

FB
Think positive!

I am on the train so far so good!

[fireball xl5] 24/1/2017 09:51

Line blocked between Woking and Surbiton. Stationery waiting for place in Basingstoke station. All trains backed up. Typical. British transport police dealing with incident. Hold the AGM!

[fireball xl5] 24/1/2017 08:40

Stav, looking fwd to it. We are in a better place and a tad below the price out of suspension. Like to get back to the pre and start to build. Sure there will be a few questions, why wasn't it done yesterday. We are where we are, progress has been slow at times but that is often the nature of the beast. I'd rather see the third coming lol????

[bookwormrobert] 24/1/2017 08:09

Hi Banking_Losses! I'm a new investor so I'll answer you. I have a metallurgical background, so I can analyse the various material the company puts out; but it's not easy to get a complete picture even for me. For "civilians" it must be really quite hard.
Overall, this is my take on BMR:
a. The company should be seen as a dump / tailings processing operation. Forget about the deep mine; it's a distraction.
b. The true value of the company is mainly in the vanadium (it's not a by-product at all!). The zinc is also worth a good amount of money. The lead less.
c. The shares should be rated far higher. Once the plant is complete and working I think they should be around 50p (back of the envelope non-serious calculation).
d. The company would indeed benefit from spending money on a better website and some PR and in general going out there and selling their vision of the future. But in the end the facts will speak for themselves.
e. I know this company has a long and painful history under the previous management. But I'd urge investors to forget about it; it's the past.

[banking_losses] 24/1/2017 07:56

Anyone going to the AGM today willing to ask AB why he thinks the share price is so dreadful in comparison to what is being presented to the market?

I already know the answer, I think but, would be interested nonetheless. He needs to start coming into line with our brokers values and getting a lot more aggresssive with his sales pitch if this is such a great opportunity he should be 'pumping' the share price and not watering down bullish statements, just an opinion and as an investor this is what I take from most of AB statements is that he isn't that interested in where the share price goes. It'd be interesting to get a view from someone not invested who is interested to get a clear idea of what it is putting off new investors including small private investors. You think we should be buzzing given the 'telephone numbers' being talked about $ wise

I know a lot of you invested will say 'I'd rather a steady climb in SP' but this is actually taking the smelly yellow wet stuff now, share price performance has been a massive fail on AB part.

[stav5001] 24/1/2017 07:35

FB
OK!
See you soon.

Looking forward to an update, and meeting all true BMRions!

[bookwormrobert] 24/1/2017 07:17

Hi! To those who are going to the AGM - any updates on this board would be much appreciated. Thanks in advance.

[fireball xl5] 24/1/2017 04:33

Stav, very tight on times. Might make it, it's going to be touch and go I get there about 10 mins before. I'll try.

[stav5001] 23/1/2017 22:43

FB

Mad day today, year end accounts.

Trains allowing, I hope to be at the AGM at 10.30 am, I do hope to see you then with QS for a chat prior to proceedings!

CAN YOU MAKE IT?

[stav5001] 23/1/2017 14:51

Thank you Mark!

[stav5001] 23/1/2017 14:50

FB

Is the Pope a Catholic?