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| Share Name | Share Symbol | Market | Stock Type |
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| Braemore Res | BRR | London | Ordinary Share |
| Price Change | Price Change % | Share Price | Last Trade
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| 0.00 | 0.00% | 2.10 | 01:00:00 |
| Open Price | Low Price | High Price | Close Price | Previous Close |
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| 2.10 | 2.10 |
| Top Posts |
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Posted at 14/10/2009 12:19 by wstirrup The trend is your friend..or not...Too many so-called investors stick with a company when the charts are telling them otherwise... (and I have been as quilty in the past) It's sad that people have too short time horizons these days, and move their money around to whatever happens to be the best return at the moment. With so many large organisations doing that, it has a detrimental affect on those of us who can't devote sufficient time to monitoring our investments, and we end up with the situation where we buy into a good story, and then events overtake us and we end up losing money. I am learning to be a swing-trader - i.e. someone who monitors general swings in the market and follows suit. BUT it's been an expensive learning curve. BEST of luck to all BRR holders come the resolution.. (a play on words there..) W. |
Posted at 08/7/2009 23:39 by assegai Averaging down is a completely illogical activity always. You should invest your money in the companies which you expect best returns from. If this includes BRR then invest further. If not, don't. Any loss you are suffering can be made up by any company that is going to go up, there is no special virtue in recovering a loss on the company which has given you that loss. Look at the whole wide range of investment opportunities and decide on the best!Think about it, do a couple of basic sums, and you will soon realise that it is one of the most widespread fallacies amongst non-professional investors. I cannot understand why so many apparently otherwise intelligent investors talk so much about doing this. THINK! AVERAGING DOWN IS FOLLY! |
Posted at 04/7/2009 20:28 by the poet Let me get this straight, just say you have 200,000 shares in BRR.L,JLP.L are offering 1 new share in JLP for every 15.818 BRR.L shares. 200,000/15.818=12643 12643.82*0.44(Share Price of JLP)=£5563.28 Now if you sold BRR.L now at 0.032 and bought in JLP 200,000*0.032=£6400- £6385.05-£14.95=£637 £6370.1/0.45=14155.7 14155.77-12643.82=15 In addition, Jubilee has undertaken to fund the operating costs of Braemore whilst the Scheme is being implemented (up to a cumulative maximum of R7 million on a drawdown basis) 7000000 = £541548.3641 1 ZAR = 0.0774 GBP 1 GBP = 12.9259 ZAR and to settle some of Braemore's current liabilities (up to a cumulative maximum of R25 million on a drawdown basis). 25000000 = £1934670.0614 £1934670.0614+£54154 Jubilee recognises that Braemore also has an outstanding commitment of approximately R18 million payable to Mintek by 30 September 2009, which amount will be paid by Jubilee on behalf of Braemore, subject to the fundraising referred to in paragraph 7 below. 18000000 = £1,393,059.4682 £1,393,059+£2,476,21 Braemore Resources Trading Statement 24 March 2009 Specific events that contributed to the increased expenditure and losses include: This contract has been concluded and replaced by new contracts from both Anglo Platinum Limited ("Anglo Platinum") and Northam Platinum Limited ("Northam"). The new contracts in place are cash positive, with significantly reduced price exposure. Current contracts with Anglo Platinum and Northam are cash positive. Braemore has also advanced the restructuring of the Company to realise a significant reduction in overhead costs which will flow through into the next reporting period. The cash position of the Company as at the end of the period was GBP 2.54 million. At the end of February the Company's cash balances were approximately GBP1.6 million with PGM alloy in-stock valued at GBP4.1 million. Braemore Resources Interim Results 31 March 2009 Leon Coetzer, Chief Executive Officer and Managing Director of Braemore Resources commented: "In a difficult global market with share prices and metal prices retracting sharply, the Company is pleased to be able to report strong progress on several fronts. Then the first sign of trouble in the following Operational Update Operational Update (Braemore Resources) 19 May 2009 Braemore Resources Plc ("Braemore" or "the Company") Operational Update Braemore Resources (AIM: BRR; JSE: BRE), together with its technology partner Mintek, has achieved the stated research and development programme objective of developing a proven, industry-leading technology for the smelting of high chrome Platinum Group Metals ('PGM') concentrates. Braemore is now at the point in its business strategy, which will allow the company to transform from a technology development company into a commercially viable entity on the back of its technology. The conclusion of the research into the PGM refining process, to complement the ConRoast smelting process, will enhance the commercial strength of the smelting process and is the final stage required to complete the research and development phase of the company. The company has also undertaken to restructure the demonstration smelting facility in response to current metal prices and a strengthening South African Rand ("Rand".). The company has experienced working cost increases in US Dollar ("Dollar") terms of some 12.5% within an eight week period whilst Dollar metal prices have remained static. This has put significant pressure on the company's working capital as it accelerated the conclusion of its research and development programme. The restructuring of the demonstration facility is targeted towards significant reductions in operating costs and reviewing the process units to better align with the proposed refining process. The process restructuring will be undertaken as swiftly as possible to minimise interruption to production at the demonstration unit. The refining process, once implemented, will increase the margins of the process to ensure strong commercial viability even at times of a strong Rand and low metal prices. The company has entered into discussions with various parties to support the financing of the commercialisation strategy both for the development capital to build a next stage ConRoast facility with refining capability as well as addressing the Company's short term working capital needs. In addition the company is well advanced in forming joint ventures with existing and near-term producers of PGMs to secure feed material for a fully commercial smelting and refining facility. Leon Coetzer, Chief Executive Officer, stated that Braemore is fulfilling its potential. "We have steadily met our targets and we are poised for expansion. Funding the commercialisation of ConRoast and refining process is key, and we believe that the success of the development work done to date with the demonstration smelter showcases our ability to address the financing, smelting and refining challenges within the platinum industry." They then did the following presentation one week after the above operational update May Bacfund Presentation Slide 2 About us PGM and nickel sulphide production-focused company with access to proprietary technologies Located in two key mining regions Processing capability augmented by key processing agreements Early revenue through demonstration plant, debt free, gearing capability Chairman, Dr Mathews Phosa; CEO, Leon Coetzer where to paraphrase Best Asset Class AG - Mr Bernard Loriol - CEO said in his June report, that as far as he could tell no company in the portfolio was in dire straights. Well, Braemore were and lied about it, to one of their main shareholders. So, was Bernard Loriol lying to his investors as well. The company provides its investors with returns above those of traditional investments. OUR PHILOSOPHY - A visionary concept - A range of exclusive products - A transparent management BAC works with well-established financial institutions to ensure high quality products for professional investors: pension funds, insurance companies, family offices, independent asset managers and banks. He couldn't even tell that Braemore were in dire need where they had to accept this deal or be forced into liquidation as reported earlier in an email from the company. To summarise my point Braemore have lied, from the start. They have been deceitful and still are being deceitful. They are disingenuous in giving presentations in which they quote that they are debt free, which we all know now is a lie, so much so that JLP have to pay their liabilities to the tune of £3,869277.42. |
Posted at 04/7/2009 08:43 by swinging_dick Slept on it now.I think the research has run its course and I'm not sure Braemore had much intention of going it alone anyway (that was just the market face). Instead, consolidation in the industry and Braemore's "part to play" in this has been subtly fed to investors for months. There's more consolidation on the horizon too according to Leon C, so it looks like JLP will be snapped up at some point. The need for consolidation in the industry has been an issue for so long, and the industry is so incestuous (e.g. the movement of directors between companies) that I wouldn't be surprised if these TOs were working to a grand plan of what the industry sees has the best way forwards. Possibly even with the SA government pulling the strings (I've worried about this since the SA election). Ruukki, I think, were sniffing around the tent, but weren't part of the game plan and thus weren't invited in ("We don't want those damn Europeans leading our industry" although they don't mind taking money from British investors). Ruukki may even have made an offer, possibly better than the JLP only to have it rejected. Ahh, ... conspiracy theories. Watching the interview, it seems clear that Leon sees JLP (with BRR) as a powerful combination which will ultimately represent good value to shareholders. It also seems that BRR can get going with the tailings fairly quickly which will generate cash to bankroll the business going forwards. However, I don't see any great value in the share price until the 10mw furnace and refinement plant is funded. But after that.... Disappointed, YES. I wanted to be out at a profit by now. Instead, I'm 25% down on my investment and holding medium to long term. My average with JLP is 67p, so I'm hopeful of a profitable exit at some point. Finally, once we're up and running profitably, a dividend would be nice. |
Posted at 03/7/2009 22:17 by naiad On an earlier post someone mentioned the company referring to an RNS in May as highlighting the funding position. There were 2 RNS on 19th May. The first dealt with an operational update and was generally positive and contained the following statement from Coetzer:"We have steadily met our targets and we are poised for expansion. Funding the commercialisation of ConRoast and refining process is key, and we believe that the success of the development work done to date with the demonstration smelter showcases our ability to address the financing, smelting and refining challenges within the platinum industry." The same RNS had another statement: "The Company has entered into discussions with various parties to support the financing of the commercialisation strategy both for the development capital to build a next stage ConRoast facility with refining capability as well as addressing the Company's short term working capital needs." Neither of these statements in any way reflects a company fast approaching a position where the directors have to place it in liquidation or have a firesale. So that little truth was well and deliberately hidden from investors. The second RNS that day announced in buoyant terms a joint venture with Jubilee - surprise, surprise. Making a statement in an RNS on 1st July about partnerships and joint ventures, when 2 days before the final terms of a takeover had been agreed, is nothing short of misleading and might well amount to a fraudulent statement. The announcement was about enhanced intellectual property and had the inevitable effect of exciting investors thus driving the price up. The release 2 days later of news of a heavily discounted offer, creating a significant loss for anyone buying off the back of the 1st July release,is at best a disservice to the market and shareholders and at worst downright incompetence. I hope no one involved in the company's management has benefited in any way as it would raise a significant question of fraud. Shareholders interests have not been properly protected by directors - that is their primary obligation. They have failed and Coetzer and his fellow directors should brush up on what integrity and transparency mean. Having said all that the key question now is whether a continued hold makes more sense than a sale. |
Posted at 16/6/2009 21:29 by matrixtrader These guys may be in the frame. Interesting that they have just purchased a smelter which could possibly be converted to Conroast.It also mentions thats as well as branching into platinum, they would like to up their interest in nickel.....cant think of anyone who does plat and nickel though!!!Ruuki May Sell Shares To South African Investors Ruukki Group Oyj, the Finnish investment group, plans to buy platinum assets and may sell shares to investors in South Africa next year to fund acquisitions. "We are actively pursuing discussions with several players," Alwyn Smit, Espoo-based Ruukki's chief executive officer, said in an interview yesterday. "We may well consider a capital raising next year when we list." Ruukki is spinning off its wood businesses to focus on natural resources. Many of its assets will be in South Africa, where the company plans a secondary listing in the first half next year, Smit said. Ruukki is already buying South African ferrochrome producer Mogale Alloys Ltd. and part of that plant could be converted to process platinum ore, Smit said. South Africa is the largest producer of platinum, used in jewelry and autocatalysts. "We're looking for investments that will be cash generative in the relatively near term, and in the current market circumstances," Smit said. "It's a good time for us to be looking around," he said, adding that several smaller mining companies are currently "struggling." While Ruukki, about 30 percent-owned by Kermas Ltd., has funds and no debt, an acquisition may trigger a capital increase, Smit said. The company may also consider other acquisitions in ferrochrome and nickel, both used in stainless steel. Ruukki will boost chrome-ore production capacity at its Turkish operation by about 75 percent to 70,000 metric tons a year after last week approving a project to extract the metal from waste rock, Smit said. The plant would take nine or 10 months to build and production costs would be less than half current levels, he said. |
Posted at 28/5/2009 12:22 by ronaldhud Came across this today - do the experts on this site think it has any bearing or throws any light on Braemore?May 27, 2009 Platmin Is Now On The Verge Of Production As A Result Of A Recent Fundraising By GMP. By Charles Wyatt Last week a firm of stockbrokers in London raised £39 million for an AIM and TSX listed company called PLATMIN . Jeremy Wrathall of GMP Securities Europe reckons this is a record for an AIM listed company, especially as the funding was not syndicated among a number of brokers. GMP describes itself as a specialist in the natural resource sector. The London end, GMP Securities Europe, is a subsidiary of GMP Securities which is a Canadian investment bank. Jeremy began his career in the mining industry as a mining engineer in the Western Areas gold mine in 1985 and then worked for several brokers including Haywood Securities. It was there that he met Simon Catt, an Australian who had also worked his way round the houses, and they set up GMP Securities Europe together in 2006. This fundraising is not interesting just because it confirms that money is available in London, but because so much was raised on AIM in these difficult times. All of it, says Jeremy, came from funds focused on mining stocks. Platmin itself raised none of the money, but the presence of Brian Gilbertson, whose Pallinghurst vehicle now effectively controls the company, must have helped. The actual sum is dwarfed by what can be raised for fully-listed companies which is why all the multi-nationals are listed here. AIM takes a bit of a beating because companies complain that it is not sufficiently liquid, but so often the complainants make no effort whatsoever to promote themselves. In fact John Meyer of Fairfax had some encouraging comments to make about this junior market in his Morning View on Metals and Mining published yesterday. He suggested that confidence is returning to AIM and an upturn in small cap miners has started, which should continue as investors look to pick up cheap stock. Mining equities should recover ahead of a 'global' economic recovery and this recovery, led by China, India and Brazil, may already be underway. It has to be admitted that hedge fund deleveraging generated a huge lack of confidence on AIM as stocks fell more on technical selling and deleveraging than for fundamental reasons. International investors are now looking to AIM for low-cost exposure to developing mining projects, making AIM a wider market and not just for UK investors. Thus far we have given a mention to GMP, Fairfax and AIM, but nothing to Platmin which is supposedly the focus of this story. There has clearly been a major turnround at this company, an explorer and emerging platinum group metal producer whose four key projects on the Bushveld Complex - Pilanesberg, Mphahlele, Grootboom and Loskop - host proven mineral resources and reserves. Late last year the company was in a sad state as its major shareholder Mineral Securities was fast disappearing down the pan and its finance director, a sensitive soul, did not appear to have a clue where money could be found to fund the development of Pilanesburg. He was so sensitive, in fact, that he complained to Minesite through a lawyer when a suggestion was made that he should take a long rest. Presumably he is taking that long rest now, as he is no longer at Platmin according to Jeremy Wrathall. His place has been taken by Wayne Koonin, a vastly experienced mining accountant. Wayne came in with the Brian Gilbertson team after Pallinghurst and its BEE partner Bakgatla had taken a 62.4 per cent interest by injecting US$175 million into Platmin at the end of last year. The idea was to bring Platmin's Pilanesburg project into production without reliance on debt. Pallinghurst men fill most of the posts now, but the surprising thing is that Keith Liddell is still non-executive chairman. The 'invisible man' has taken a chopper to his CV on the website and nothing appears since he was with Aquarius Platinum some years ago. Nothing about Mineral Securities, CopperCo, etc., etc., but presumably it suits Brian to keep him in the role for a while. The plan now is to bring Pilanesburg into production as soon as possible, and Platmin is well on the way to achieving this. In the meantime the Mphahlele and Grootboom projects are being placed on care and maintenance until conditions improve in the PGM market. Pre-production capital equipment expenditure for Pilanesburg is expected to total US$212 million, which is in line with the definitive feasibility study. In addition to the scope of work as set out in this study, the company intends to purchase a 10MW diesel standby generator in order to allow for any future power shortages or disruptions to supply from the state power utility Eskom, though these would not affect mining as it is open-cast. The generator will, however, ensure constant operation of the UG2 concentrator plant which is important as this will provide 45 per cent of revenue. The UG2 circuit is already commissioned, according to Jeremy Wrathall, and the Merensky Reef circuit is following, before the dense media separation plant is installed. A review of operating costs has reduced the estimated life-of-mine average operating cash costs after base metal credits, from the original estimate of US$511/ozs 3PGE+gold to approximately US$400/ozs 3 PGE + gold which is encouraging with PGE prices so much lower than last year. An offtake agreement is in place with Northam for smelting and refining of the concentrate and Platmin expects the operation to be cash positive well before the end of this year. Ian Watson, chief executive, sees no further hindrance to getting into full production of 250,000 ounces of PGMs and gold annually now that this funding has been secured. He points out that cash costs will be in the lowest quartile for the industry which is quite an achievement for a company that has been brought back from what was effectively suspended animation under the previous management. |
Posted at 15/1/2009 21:48 by johndee Buy Braemar at 2.125pSays exclusive small cap specialist website UKMicrocap.com This tip was original sent to subscribers of UKMicrocap.com on 15 Dec 2008. Since then, the share price has risen 21%. UKMicrocap restricts its membership list to just 200 investors. To bag one of a few spare memberships click here. Company Description: Braemar is a small but rapidly growing property and financial services group. It has a small residual business managing apartments and a corporate finance business which creates specialist property vehicles and raises money for them. The company then earns a management fee for managing those investment vehicles. The company now manages nine vehicles and will launch more. Its success is that it has focussed on niche markets (farmland and student properties) where there is visibility of demand even in the current climate but where yields are also very attractive. It has therefore built up a good following among IFAs seeking to invest client money in "safe" UK property plays. The group's top line has now expanded such that it is covering its high fixed costs and so it should start making meaningful profits from next year.. Sponsored by Blue Index How do I take advantage of this market volatility? Blue Index is the multi award winning CFD broker providing professional phone trading and industry leading online trading software, service and support. Click here to download our Free guide to CFD Trading, your Free Research Trial and Trading Simulator The Funds Under management are now £35 million. Normally businesses such as Braemar are valued at 5% of FUM so the current market cap of £2.87 million is not totally the wrong price. We'd value Braemar at 5% of FUM (£1.75 million) + cash (c£500,000) + £500,000 for the residential property management arm = £2.75 million. The key is new funds. We reckon that within a year FUM will be £60 million. That (plus cash and a small amount for Property management) would justify a valuation of c£4 million or 2.45p per share. Within two years FUM should increase again as new funds are launched and as property valuations start to increase (we expect the market to bottom during 2009 as current yields are really very attractive) and £90 million of FUM would justify a valuation of 3.4p. Incidentally, this business should be cash generative and that might suggest that our valuations are a bit light in terms of cash estimates and that provides upside for our targets. Company Description: Founded in 2001 and floated on AIM in December 2005, Braemar Group runs two businesses. The smaller one manages around 2,500 apartments across the UK. This is a dull business but it generates useful cashflows. In the current climate it is hard to see this delivering much growth. The excitement lies elsewhere. Braemar uses its great contacts in the IFA world to raise money for property investment funds - some listed , others unquoted. It called the downturn in residential property well and thus its funds have increasingly been plays on farmland or other defensive but high yielding assets such as student property. Braemar should break into profitability in the next financial year but this is not so much an earnings play as a bet on FUM which should increase sharply.. Click for Full Charting facilities from ShareCrazy.com Financials and Current Trading: On November 11th 2008 the company published its results for the six months to 30th September. Revenue came in at £1.267 million, up from £231,000, and the loss before tax fell from £287,000 to £58,000. The reduction in the loss was achieved through a combination of the increase in turnover, a positive contribution from both operating divisions and a pre-emptive reduction in certain costs earlier in 2008. The cash balances and cash equivalents at the period end were £230,000, (2007: £1,013,000) added to which the Group purchased £252,000 in gilts just before the period end, a time when the stability of some banks was being called into question. The total equity of the Group stood at £2,668,000 at 30 September 2008, down from £3,348,000 12 months previously. *The value of investments can go down as well as up. Past performance is no guarantee of future success. Investing in equities can lose you part or all of your capital. The tips given here are of necessity, general. They cannot relate to the individual circumstances of investors. Anyone considering following the recommendations contained here should seek independent advice. Smaller company shares usually suffer a wider bid offer spread the blue chips and can be illiquid and hard to sell and must therefore be deemed higher risk investments. Assessment: Braemar is well run and has net cash. It has now reached critical mass meaning that as FUM increases, the increase in management fees will fall straight to the bottom line. If no more funds are launched and FUM is unchanged the shares are probably fairly priced. Recent heavy share buying by directors indicates to us that this is not the case and hence we expect FUM to ramp up rapidly to £60 million within 15 months and £90 million within 27 months. On that basis our target price is 3.4p. The spread is pretty unhelpful so buy only patiently but if you can invest for less than 2.25p do so. Buy Key Data EPIC: BRG Market: AIM Spread: 2p 2.25p (11%) UKMicrocap.com is unashamedly elitist in its approach. We are elitist in that we are restricting access to this site to just 200 investors. When we have 200 serious investors using this site we simply cease to take new membership applications. That means that when we recommend a stock our members can buy shares in that stock at, or near to, the recommended price without being trampled in the herd. To bag one of a few spare memberships click here. |
Posted at 18/10/2008 23:50 by someuwin From The Sunday Times October 19, 2008Warren Buffett: Now's the time to be greedy when others are fearfulWarren Buffett: Opinion The financial world is a mess, both in the United States and abroad. Its problems, moreover, have been leaking into the general economy, and the leaks are now turning into a gusher. In the near term, unemployment will rise, business activity will falter and headlines will continue to be scary. So I've been buying American stocks. This is my personal account I'm talking about, in which I previously owned nothing but US government bonds. (This description leaves aside my Berkshire Hathaway holdings, which are all committed to philanthropy.) If prices keep looking attractive, my nonBerkshire net worth will soon be 100% in US equities. Why? A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful. And most certainly, fear is now widespread, gripping even seasoned investors. To be sure, investors are right to be wary of highly leveraged entities or businesses in weak competitive positions. But fears regarding the long-term prosperity of the nation's many sound companies make no sense. These businesses will indeed suffer earnings hiccups, as they always have. But most big companies will be setting new profit records 5, 10 and 20 years from now. Let me be clear on one point: I can't predict the short-term movements of the stock market. I haven't the faintest idea as to whether stocks will be higher or lower a month - or a year - from now. What is likely, however, is that the market will move higher, perhaps substantially so, well before either sentiment or the economy turns up. So if you wait for the robins, spring will be over. A little history here: During the Depression, the Dow hit its low on July 8, 1932. Economic conditions, though, kept deteriorating until Franklin Roosevelt took office in March 1933. By that time, the market had already advanced 30%. Or think back to the second world war, when things were going badly for America in Europe and the Pacific. The market hit bottom in April 1942, well before Allied fortunes turned. Again, in the early 1980s, the time to buy stocks was when inflation raged and the economy was in the tank. In short, bad news is an investor's best friend. It lets you buy a slice of America's future at a marked-down price. Over the long term, the stock-market news will be good. In the 20th century the US endured a host of problems. They included two world wars and other traumatic and expensive military conflicts; the Depression; a dozen or so recessions and financial panics; oil shocks; a flu epidemic; and the resignation of a disgraced president. Yet the Dow rose from 66 to 11,497. You might think it would have been impossible for an investor to lose money during a century marked by such an extraordinary gain. But some investors did. The hapless ones bought stocks only when they felt comfort in doing so and then proceeded to sell when the headlines made them queasy. Today people who hold cash equivalents feel comfortable. They shouldn't. They have opted for a terrible long-term asset, one that pays virtually nothing and is certain to depreciate in value. Indeed, the policies that government will follow in its efforts to alleviate the current crisis will probably prove inflationary and therefore accelerate declines in the real value of cash accounts. Equities will almost certainly outperform cash over the next decade, probably by a substantial degree. Those investors who cling now to cash are betting they can efficiently time their move away from it later. In waiting for the comfort of good news, they are ignoring [ice-hockey player] Wayne Gretzky's advice: "I skate to where the puck is going to be, not to where it has been." I don't like to opine on the stock market, and again I emphasise that I have no idea what the market will do in the short term. Nevertheless, I will follow the lead of a restaurant that opened in an empty bank building and then advertised: "Put your mouth where your money was." Today my money and my mouth both say equities. |
Posted at 20/8/2008 07:22 by square1 FYI this is the 'general response' that the company are providing.From: David Russell [mailto:davidr@atoma Sent: Wednesday, 20 August 2008 10:45 AM To: 'David Russell' Subject: Response to Shareholders concerned re Braemore Share Price In response to the number of calls and emails received: Many shareholders have contacted us regarding concerns with Braemore. I understand and share your frustration regarding the Braemore share price. It is of little comfort to understand we are not in any different situation than other emerging PGM companies in facing an onslaught on our share price in the current market. An article below comments further on this. I have appended the very latest research report from Investec, conducted by Rebecca O' Dwyer, a very well respected analyst, who has revalued Braemore at 18p by downgrading her calculated NPV by 25%. She still refers to BRR as "offering investors deep value". The report is independent as revealed in one small error she made, regarding the metallurgical testwork in Finland conducted by Outotec and Atomaer which is in fact completed. The report has been received by the project manager. It has been under review and the results will be presented to Braemore once the review is complete. It will then go to BHPB for consideration. Important confidential work of this sensitivity will not be wholly disclosed to the shareholders. There is no point in providing competitors with answers for free that we have paid to develop. Once BHPB are satisfied any summary announcement will be subject to confidentiality agreements regarding disclosure. I can tell you that the metallurgical testwork has been extremely encouraging with very high nickel recovery rates in relatively short periods of time using atmospheric leach. Another aspect of the testwork has been to reduce sulphuric acid consumption as the sulphur prices have risen to record levels just as the nickel prices have fallen. This work is important to the Leinster project and will require testing as part of the feasibility study. Some investors are concerned regarding on going selling by institutions and this is something we cannot do anything about. We have tried bidding for the stock without success. The problem is one of funds facing massive redemption calls from disillusioned investors, and having to come up with the cash as necessary, requiring selling of stocks in the fund. SPGP, a French based fund has been a major seller, down from 80m shares to around 20m shares or less than 3% of the company. We have approached SPGP and bid for the stock without success. Other major funds may also be facing redemptions and we have no control over which stock they sell. This behaviour has been brought about by the fear and panic of investors in those funds. The market is fully informed as to Braemore and its activities. There is no hidden pool of news we can reveal that will miraculously boost the share price. We are in a bear market for resource stocks and there is absolutely nothing the board or management of Braemore can do about it. Look at BHP, one of the world's largest resource companies recent fantastic results and very strong performance saw the shares retreat almost 5% in 2 days! And that was after sliding over 25% in the past few months! Braemore reflects the underlying fundamentals of the resources market, specifically for PGMs and nickel. Both those commodities are industrial metals and the western world is going into recession hence the demand for the industrial metals will slow. This is evident already in the car manufacturing sector, where PGMs in particular are a major commodity as part of autocatalysts. Less cars means less demand for PGMs! PGM price goes down, sentiment towards PGM producers and emerging producers changes to negative and share prices decline. There is nothing Braemore can do to stand against those economic trends. Similarly demand for steel has eased in the west as a result of the recession less steel means less nickel and hence nickel prices have also tumbled. Again there is nothing Braemore can say or do that will make a shred of difference to how the market perceives nicke projects at present. Some investors are concerned about future funding of projects. That is in hand with the company first conducting financial engineering of the projects to develop financial models on which debt and equity ratios can be carefully examined. The smelter projects in South Africa will be funded through a mixture of debt and equity, and a usual ratio is 70 : 30. Of the equity component there is also the requirement to include a Black Economic Empowerment partner who can earn a 26% stake in the project through investing at commercial terms. Hence one of the reasons to list on the JSE was to access the capital in the South African market. So the funding of future PGM projects will be through a blend of Debt and Equity, including a minimum 26% earned at commercial terms by a BEE group. Naturally we would not wish to raise funds through placements at current share prices given the dilution factor. Consequently we are fortunate that we raised over 6.5m Pounds recently in a difficult market and those funds are being carefully husbanded. Those funds give us the time to get through the current maelstrom in the markets. The funding of the 10MW smelter will be conducted as above. Revenue from the expanded 3.2 MW smelter may contribute to the funding depending on the grade of smelter feed being processed. The expanded facility can process up to 2000t per month of concentrate feed and depending on grade can produce up to 60 70 000ozs of PGM. However that feed is being toll processed and margins obviously are not as great as if the feed came from your own mines. Remember that the 3.2MW remains a demonstration plant for ConRoast and is not primarily for revenue generation. I am asked why the directors do not buy shares a very naïve question. In terms of the AIM rules there are "closed periods" when directors are not permitted to purchase shares. These closed periods relate to times when market sensitive information is in the hands of directors, such as preparation of annual or half yearly results. Given we have conducted a placing, prepared a detailed pre-listing statement and listed on the JSE of late the shares have been in almost continuous closed periods. However, Atomaer purchased 1 million pounds of the recent placement and two of BRR directors are on Atomaer board! That really is putting your money where your mouth is. It is not realistic to say that directors do not support this company financially. The following article from Mineweb I think clearly emphasises the fact that the whole PGM sector is under a wave of negative pressure at present: Platinum names maelstrom Rhodium down 50% in a month, as key platinum group metals continue to slam south. Author: Barry Sergeant Posted: Monday , 18 Aug 2008 JOHANNESBURG - Monday played welcome to commodity pits across the world stumbling into a second consecutive 30 days of chaos, as hedge funds and speculators continued to run for cover, not least from rhodium, which has halved from USD 10,000 an ounce, in just the past 30 days. The metal, an important byproduct of South Africa 's platinum group metal (PGM) mines, trades in opaque markets, unlike its two bigger siblings, platinum and palladium. Global platinum production now exceeds 7m ounces a year, while more than 9m ounces of palladium is marketed annually. However, total global annual production of platinum is less than the gold output of Barrick, the world's biggest gold miner, and palladium supplies are impacted by Russia 's Norilsk , which produces PGMs as byproducts to nickel. Norilsk mines more palladium than the rest of the world put together, and has long been seen as a holder of above-ground palladium supplies. Given that South Africa produces around 75% of the world's PGMs, by value, erstwhile booming commodity markets fuelled a speculative frenzy in PGM prices from January this year, when South Africa 's power crisis manifested, apparently from nowhere. But the bets have been off commodities since mid-May, accelerating especially from 30 days ago. Palladium has fallen by more than 50% from its highs, while platinum is down by 40%, from highs seen early in March this year. The two senior PGM producers, Anglo Platinum and Impala Platinum, most recently traded 40% and 39% from respective highs, echoing the extent in the fall of the platinum price in dollar terms. PGM miners in southern Africa also produce important byproduct in the form of gold, down by 23% from its dollar highs, and also nickel, down 47% from its highs. Lonmin, the third senior producer, moved closer to its highs on the London Stock Exchange, after a recent hostile bid from Swiss-based diversified miner Xstrata. The dollar stock price for Norilsk has fallen 41% from its high. CURRENT METAL PRICES USD/oz From high* From low* Gold 797.10 -22.8% 21.9% Platinum 1387.50 -39.7% 12.5% Palladium 282.50 -52.5% 0.5% Silver 13.20 -38.2% 14.9% BASE METAL PRICES USD/t Copper 7360 -17.7% 16.5% Aluminium 2780 -17.8% 17.1% Nickel 18700 -46.8% 7.7% Zinc 1675 -48.1% 4.4% Lead 1670 -57.1% 9.1% Tin 18700 -26.7% 37.5% * 12-month Selected platinum stocks Stock From From Value price high* low* USD bn Anglo Platinum ZAR 890.00 -39.9% 9.2% 27.44 Impala ZAR 225.18 -38.8% 24.9% 18.42 Lonmin GBP 34.40 -9.1% 59.6% 10.03 Averages/total -29.2% 31.2% 55.90 Weighted averages -35.6% 21.1% Diversified Anglo American GBP 28.40 -22.9% 31.1% 71.12 Mvela Resources ZAR 41.25 -40.2% 14.6% 1.13 Norilsk USD 19.91 -40.6% 13.6% 37.95 ARM ZAR 230.00 -25.1% 122.8% 6.30 Averages/total -32.2% 45.5% 116.51 Weighted averages -30.0% 27.4% Tier II platinum Stillwater USD 6.75 -70.3% 9.9% 0.63 Aquarius GBP 4.62 -50.1% 24.4% 2.23 Northam ZAR 45.89 -42.5% 20.8% 1.42 NA Palladium CAD 4.01 -57.6% 23.4% 0.35 Zimplats AUD 13.00 -18.8% 62.5% 1.22 Eastplats CAD 1.43 -65.8% 9.2% 0.97 Anooraq CAD 1.68 -68.8% 1.8% 0.33 Averages/total -53.4% 21.7% 7.16 Weighted averages -53.2% 23.5% Developers and explorers Platmin CAD 3.76 -61.6% 7.1% 0.44 Wesizwe ZAR 5.20 -57.7% 14.3% 0.39 Noront Resources CAD 2.74 -63.1% 661.1% 0.38 Aquiline CAD 5.08 -57.3% 6.7% 0.34 Pt Australia AUD 2.36 -25.1% 57.3% 0.45 Polymet Mining CAD 3.27 -27.2% 59.5% 0.48 Sylvania GBP 0.62 -58.4% 0.8% 0.21 Starfield CAD 0.71 -59.9% 10.9% 0.24 Ridge GBP 0.84 -41.5% 3.1% 0.14 PGM CAD 2.30 -48.4% 30.7% 0.15 Solitario CAD 3.75 -38.0% 0.3% 0.12 Jubilee GBP 0.44 -54.4% 39.4% 0.09 Nkwe AUD 0.80 -37.0% 17.6% 0.13 Braemore GBP 0.06 -74.0% 12.5% 0.08 Marathon CAD 2.40 -59.9% 19.4% 0.07 Caledonia CAD 0.14 -36.4% 40.0% 0.07 Freegold Venture CAD 0.50 -81.5% 2.0% 0.03 Magma Metals AUD 0.43 -43.0% 95.5% 0.04 Franconia CAD 0.80 -70.9% 1.3% 0.05 Cons. Puma CAD 0.75 -61.7% 0.0% 0.04 Avalon Ventures CAD 1.65 -23.6% 83.3% 0.11 Rusina AUD 0.15 -69.4% 15.4% 0.03 Largo Resources CAD 0.53 -66.5% 51.4% 0.08 Macdonald Mines CAD 0.18 -86.4% 200.0% 0.03 Hard Creek CAD 0.36 -76.2% 2.9% 0.02 Birch Mountain CAD 0.23 -89.2% 48.4% 0.02 MetalCORP CAD 0.50 -73.3% 13.6% 0.02 Wallbridge CAD 0.21 -59.6% 10.5% 0.02 Benton CAD 0.35 -78.3% 6.1% 0.03 Mustang Minerals CAD 0.29 -70.6% 14.0% 0.02 Northern Shield CAD 0.56 -54.1% 103.6% 0.03 Platina AUD 0.44 -75.7% 10.0% 0.02 Darnley Bay CAD 0.20 -71.0% 0.0% 0.01 Pacific NW Cap. CAD 0.21 -65.6% 10.5% 0.01 Niplats AUD 0.35 -78.1% 84.2% 0.02 Starcore CAD 0.16 -80.2% 6.7% 0.01 Huston Lake CAD 0.52 -32.5% 48.6% 0.02 Goldplat GBP 0.10 -48.1% 28.1% 0.02 Beartooth CAD 0.06 -69.2% 9.1% 0.01 Pan Palladium AUD 0.10 -64.8% 26.7% 0.01 Premium Exp. CAD 0.35 -53.3% 48.9% 0.01 Eurasia Mining GBP 0.03 -31.3% 15.8% 0.01 Silvermet CAD 0.09 -76.3% 20.0% 0.01 Minerva GBP 0.03 -64.5% 0.0% 0.01 Hinterland Metal CAD 0.09 -71.7% 21.4% 0.00 Developer averages/total -61.1% 44.5% 4.55 Weighted averages -56.2% 33.0% Overall averages/total -59.4% 42.3% 67.60 Overall weighted averages -39.9% 22.1% * 12-month Source: market data; table compiled by Barry Sergeant I refer you to our webpage where there are some pictures of the recent smelter upgrade underway at Mintek. Regards David Russell Braemore Resources Plc Level 6, 256 Adelaide Terrace Perth, Western Australia 6000 Tel +61 (0) 8 9218 8833 Fax +61 (0) 8 9218 8844 Mobile +61 (0) 416 377 157 email davidr@braemoreresou |
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