Beowulf Mining Share Discussion Threads

[zangdook] 26/9/2014 20:08

The AFF takeover was an inside job. It had been planned for a long time, probably since before the formation of AFF as an independent company. There was no need for Metcalf or anyone else to attract bidders. The company was more interested in chasing away (other) bidders than attracting them.

[anley] 26/9/2014 10:14

Information on BEVAN METCALF one of Bem's new directors and a former director of Afferro.

1 In mid 2013 Afferro was acquired by IMIC for around £130m with bridging loans etc...a geared take-over

2 None of the Afferro directors joined the board of IMIC but Bevan Metcalf received a payment of some £457,000 when he left the board for helping with the take-over deal..........nice work if you can get it but was he worth it?

3 IMIC owns 4 iron ore licenses in Cameroon. One mine has 2.5bn tonnes of ore but is 300KM away from the port of Kribi.........so he must have some idea as to how BEM has to get its future production out

So my initial reaction is that he may be of use to check all the licenses and costings which the old board of BEM did. He also, I would have thought be able to assemble the documents need for due diligence prior to attracting a bidder for BEM.

So the next question is what price do Lanstead want for their holding and what is BEM worth.

Lanstead have 2 deals - the first at about 8p and the second at about 4p but the current price is 3p....a very large loss hence the need to extract themselves from a company which has been poorly managed and still may be from the Swedish office run by 2 Swedes.........another area for the 2 new directors to check.

SO at 3p and with the new shares now issued a M/Cap of £10m

6p = £20m
9p = £31m
12p = 41m

So what is the true value of BEM as an acquisition target.......9p which is half the Cantor figure of 18p listed in their last forecast.........

HAVE THEY CHANGED THE PRICE and how do they and the new directors value the business today.................?

[sallad3] 24/9/2014 12:46

Funny how Clive didn't say a single word or even drop a clue at the meeting about stepping down.

One point that did come out is that all cash flow from earlier swaps is now deferred until after the last payment on the new ones.

A reminder for all those who may not understand the Lanstead deal.
Shares Magazine July 2013 starting at "Run for the hills".

www.sharesmagazine.co.uk/articles/what-to-do-with-your-junior-mining-shares#.VCKupfldXEc

[zangdook] 23/9/2014 19:26

I don't think Metcalf was actually on the board at AFF, so it's not really his fault. Not as much as it was for the out and out crooks, anyway.

[superslob] 23/9/2014 18:32

TBF to Metcalf, I barely remember him from AFF - it was others there who were instrumental in the IMIC deal which most holders considered a 'shafting'.

As touched-on in my previous post, AFF shares were T/O by funds raised by IMIC via series of bonds issued by Merrill Lynch which were guaranteed by AFF funds. No £ was attributed in T/O to stranded IO assets of AFF.

As if that wasn't bad enough, directors rec cash for their options, but we were expected to be happy with loan notes that may transpire to be worthless in 2 years time (from T/O date)for part of our T/O price.

The fact that Metcalf considers his role in the above an achievement, rather than something to be hidden, says it all for me.

Incidentally, several directors of AFF and IMIC have a connection to Afren where I also held - but sold, for once, near the top - a company itself recently involved in dodgy director dealings and a subsequent investigation.

[anley] 23/9/2014 17:32

Why was that as we need to build a profile on the new directors so that we get full value from them..........we do not want a repeat on what has happened over the past 3 years.

I will start with BEVAN METCALF and report as soon as I have something interesting to say.

[superslob] 23/9/2014 16:52

You're not wrong there, reggie! One thing's for sure, another Co will not be buying us with our £ as we've virtually got none.(Believe it or not, that is what happened at AFF with IMIC). We'd have been better without Metcalf's appointment IMHO.

[anley] 23/9/2014 13:53

Superslop........not really is the answer to your first question BUT perhaps we should highlight just what went on for the benefit of the new directors.

In the case of BEM the control of the company has now passed to Lanstead and Cantor the brokers along with the two new directors.

Let us give them some time to get to grips and in the meantime I will look back at old releases and balance sheets to see what should be dragged up......

There must be other shareholders looking at this BB so come on and let us know what you think on the past - present and future.

[superslob] 23/9/2014 12:52

Anley & Mikes333, good posts and, with those in mind, can anything be done retrospectively re previous outgoings?

Incidentally, climate for looking at above is certainly here as the following, re an oil-ex, demonstrates :-


hxxp://www.thesundaytimes.co.uk/sto/public/share/uuid/14bcbbaa-3f62-11e4-918b-26c30f0ae732

Unfortunately, you need to register for full article, although it can be seen in smaller print at :-

[anley] 23/9/2014 11:36

Thank you so much for your helpful post.

I have a feeling that the meeting yesterday will prompt the directors to update us on current drilling activity, which should be reasonable given that we have never had bad news on that front.

The new directors will now want to crawl all over the company and I will be pressing the brokers for an update in mid to late October which should give them enough time to get their feet under the table.

They may wish to ask CSP about his previous dealings with AGRI as well as how expenses can be controlled.

As I mentioned in a recent post - drilling will soon slow as winter approaches.

For those who have not averaged down then this may be the last chance to put your OPTION MONEY on the table.

[mikes333] 23/9/2014 11:00

Fully agree that salary reductions are in order. Also additional consultant fees to entities associated with directors should be scrutinised and transparent. Sorry I could not attend but I am 8,000 miles away. GLALTH

[anley] 23/9/2014 10:25

I feel that I have won a small victory for the shareholders of BEM with the following statement after the meeting yesterday.

"The Company also announces the intention of Mr Clive Sinclair-Poulton to move from Executive Chairman of the Company to a Non-Executive board appointment following the identification of a suitable candidate to be appointed as CEO of the Company".

What happens next must be a rational investigation of internal salaries and other cost saving measures as the capital raising was £1.7m in the end and not the £2+m.

The internal financial projections will have to be altered to reflect this so there will be less drilling capital hence an URGENT need for the two new directors to get to grip with the prospects for the company.

I shall continue to press this board for answers and urge shareholders to post any comments they have on this BB.

[sallad3] 21/9/2014 21:46

Anyone else going to be there tomorrow?

[anley] 19/9/2014 16:36

and some reasonable buying at the 2.8p level this afternoon...........

[anley] 19/9/2014 15:26

Well that is the kind of person he is and by doing what he has done may have given him more time to hang on to his job along with Bowman and others who did NOT bother to subscribe.

In my days the market would not have taken kindly to this sort of action and marked down the shares..........here we have a share that really can't go down as the assets in the ground are worth the market cap.

The 34.5% take up from the private shareholders is a vote of No confidence in this board but hands even more control to Cantor the brokers and Lanstead the 26% shareholder so concert parties are now being created which makes for interesting concepts for anyone who is looking at the company.

More news to come from the next meeting on 22 September - we shall have to wait.

[superslob] 19/9/2014 13:33

Hell's frozen over.........although still not that impressive in view of what he takes from BEM....

''The Company advises that, subject to the passing of all proposed resolutions at the General Meeting on 22 September 2014, Clive Sinclair-Poulton has subscribed for 666,667 Open Offer Shares, with a resulting holding of 0.58% in the Company after the General Meeting.''

Is there any reason that CSP couldn't have mentioned his intention to do this when outlining the offer - it would certainly have been better received if he had?

[pugg1ey] 19/9/2014 13:19

so they got a third of the money they were looking for? (less expenses)

[anley] 19/9/2014 10:48

Well I am surprised that there is no announcement on the results of the open offer..........perhaps CSP is in bed and is unable to co-ordinate his poor board......we shall have to wait and see.

In the meantime I have been talking to a leading Swedish bank about the recent general election results and how that would impact on the mining industry and there is no question in my mind that jobs are a big focus. Perhaps the Mining License will come through in November now the dust is settling. If it does then I can see a 1p on the share price.

Meanwhile drilling is slowing so we can expect slower news flow on this front but what happens if by magic they find some more iron ore with reasonable grades....does that add another 1p on the share price and at the same time make the company worth more?

But we still have a board that is disjointed and over paid so what are the controlling shareholders going to do about this. This is an easy question:

Put the Chairman and Production director on a low pay structure but with a bonus if they achieve certain goals.......you don't need me or any other shareholder to work this out.

On a bullish note and having a CGT bill to pay in January 2015 I have doubled my shareholding this morning @ 2.80p - as I have said this is an option money share and I still believe someone will take it out at a decent premium.

That is how I still view things for the moment...........

[superslob] 18/9/2014 13:23

A sale of 333,333, equal to number of shares each of the 2 recent non-execs had, went through at 12.08 today. We can't be sure it is the very same holding, but would you bet against it?

[anley] 15/9/2014 11:13

TWO DATES...............

Expected time and date of announcement of results of the Open Offer


7.00a.m. on 19 September 2014

General Meeting


11 a.m. on 22 September 2014

[anley] 15/9/2014 10:03

We will have to sit and wait for the fog to clear on this especially any policy directed towards inward investment in mining and what the Greens have to say and want from the environment issues in Sweden.

In the meantime the price is well underwater and it will be interesting to hear - directed by the brokers and Lanstead - as to what the position is of BEM under the new government and any effects it may have on its future operations.

Let us see what happens over the coming weeks with our Option Money share.

[superslob] 14/9/2014 21:38

Knowing him, probably not. Seems the anti-immigration Sweden Democrats with circa 10.5% are to be the 'kingmakers', and I can't see them lining up with the lefties.



Even if centre-right are not next Govt, hopefully the promises of SDs re jobs, welfare and schools will override the environmental concerns of greens.

NB Above view speaking purely as a BEM shareholder.

[anley] 13/9/2014 10:35

Another niggle has popped up and that concerns the forthcoming Swedish general elections..........what happens if a social democratic coalition that includes both the Greens and the Left party get in?

A stop on the development of the Swedish mining industry..........did CSP and his brokers consider this before the latest issue? I wonder...........

[abergele] 12/9/2014 22:02

What does Warren Buffet say....when...........