How did this go? |
Link to the live space tomorrow
Completion of Bulk test Programme
Detail Around the SPG Partnership
Funding Plans
Other Developments (Mike mentioned on a previous space) |
Great value share now and true value will out eventually.
Hopefully much higher next summer after the DFS is published and takes into account the proposed SPG plant.
So far every RNS is another tick in the box and won't be selling any unless some unexpected bad news hits BRES. |
The closing price of 4.61 was actually a UT (uncrossing trade) so the market closing price is false, as often happens. The share price actually closed positive today with the bid rising from 4.6 to 4.772 probably boosted by this very positive Sponge Shares article:
hxxps://spongeshare.com/2024/09/09/blencowe-progress-spg-plans-in-uganda-setting-blencowe-apart-from-other-graphite-miners/ |
Not hard to understand gisjob unless you have had your eyes closed to it the last 2yrs+. It's following what it has done after every other piece of good news. |
Amazing share price drop at the end of today. Very hard to understand after the last RNS. Much further and will be a great top up opportunity. |
 That's my take on it also.
Broadly speaking, Blencowe sell the concentrate to the JV at market rate of c$500 per tn. The end product fetches c$2000 so the margin on this uplift is split 50:50. However they achieve this by some sort of transfer pricing arrangement whereby it is firstly sold to Triessence who in turn market and sell it on to OEMs.
I am sure there is further complexity and that Triessence will bill the JV for marketing & sales services but I think this is the underlying principle of the MOU.
It is staggering that nothing can move the share price here. The over emphasis placed on this SI $2.5m is crazy. May as well have said Triessence will contribute 50% of the SPG plant capex and a contribution to any DFS funding gap. It's pocket money once agreed in principle to invest say $75-100m into the bigger picture.
I guess the junior market is shot. Unless you have a fully funded & derisked project there is simply no risk appetite. This news would have been huge several years back especially as I fully expect the DFC to fund the other 50%. The RNS has the DFC written all over it following their recent visit to see them - the non-china focus is particularly evident and no doubt a condition. |
But you don't have to invest in the sector if sceptical. |
Blencowe retain a 100% ownership of the resource asset, and a 50% ownership of the spg plant. So wondering does that mean blencowe will be selling the raw product to the jv, and then also taking half the revenues from the spg plant.Also note it does not exclude blencowe from providing other graphite outside of the jv either as raw material or as lower purified product, or from setting up other jv's or other plants. The resource is massive and could serve much more than just this jv. |
I think you need to re-read my post.
Scepticism in this sector stops you going broke as does thinking ANY ceo has your back.
And back down to level quelle surprise 🤷a94;️ |
I don't really understand the mentality of being frustrated by the lack of share price movement and sceptical about the future whilst maintaining a healthy position. The share price has not plummeted to the point it's not worth selling. I wouldn't put my money into an investment I was sceptical about when there are so many alternatives out there.
Each to their own I guess. |
Or just maintain a healthy position and remain sceptical of the markets and it's operators in this sector. |
Well considering BRES have not got a history of issuing unnecessary shares like KEFI for example I'm happy to judge MR on his record and expect him to achieve a good deal for shareholders.
If ultimately shareholders do not believe this, it's probably best to sell and move on and invest somewhere else. Sometimes the 'Fear Of Missing Out' makes shareholders stay too long, despite falling out of love with a share. |
Nah I have enough to be sat here doing sweet fa for the last 2yrs+.
Does the price 'have to follow'. You would have thought the price would have set up with what we have already achieved but it hasn't for whatever reason.
Possibly there won't be a problem funding the mine, the question is how much and at what detriment to LT shareholders 🤷a94;️ |
So be patient and load up over time.
It's frustrating but if MR delivers the price will have to follow, especially once the DFS is published and funding sorted. If the DFS is as positive as expected there won't be a problem funding the mine development and SPG. |
I think it's being held while all the players get in at 5p. As there is one 'apparently' waiting on the sidelines then maybe we will have to wait until they get on board but as the DFS is now pencilled in for Q2 25 (which will no doubt extend out further to the end of 25) then we may have a while to wait.
We have had two pieces of big news this week but the same old action.
Just my opinion but I am all ears if anyone has got a better one. |
Soul, who's holding it down and why? |
And there we have it. More excellent news but we are left tethered to 5p, completely rangebound.
You know my thoughts on the situation. |
We'll I think BRES have been going about things in a very professional way so far and have no reason to doubt MR's ability to deliver. An Mcap of around £11 million for BRES is starting to look ridiculous now.
I would guess the DFC would be the obvious funding partner. |
hxxps://youtu.be/HuKMtpWLwsI?feature=shared |
Did I say it didn't?
Of course it does but there are many ways of going about things. |
All mine development needs capex. DFC possibly ! |
Hmmm we will see.
Great news but highlights that Bres will need greater Capex to start unless they can get someone else to stump up the other 50%. |
The price cannot be kept pegged at 5p after this news. Time to fly. |
Brilliant RNS this morning ! Onward & Upward |
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