Blencowe Resources Share Discussion Threads

[the count of monte_cristo] 26/10/2022 07:58

apfindley - you were singing the praises just a few days ago, you turn coat.

[divmad] 26/10/2022 07:52

True, but the share price is still below the price RAB paid to get on board. The market is really waiting on how bres is going to fund going into production in 2025. Project level funding, Mike said. I have no idea on the timing of this, as it may be the case that a strategic project funder will wait and see the outcome of the bulk sample testing before committing. But didn't Mike say, before year end?

[jugheadjim1] 26/10/2022 07:49

If you believe that they are looking to get in on the cheap, well it isn't exactly a massive discount for them is it.

[soulsauce] 26/10/2022 07:44

I can't believe we have burnt through much of the GBP2m raised last Nov and thus find it hard to believe this money is necessary to collect the 100t for China.
Yes the company get's more cash but this is more about the 3 big holders wanting more on the cheap.

[apfindley] 26/10/2022 07:35

Nothing but heavy dilutions under MR.But it's ok, we still get the endless twitter posts from Bres restating the same project stats for the past 2 years.The price shouldve been several times higher and the shares in issue much less, if he hadn't gone on date-night with the parasite funders who crash the price to get a bigger slice cheaper.Corrupt as fuvk.

[soulsauce] 26/10/2022 07:11

Normal service resumes 😏

[pauliewonder] 26/10/2022 07:09

Supercity,

Re: your first point, I get how a fund raise works, but my point is that MR said they didnt need to raise funds. So why then raise funds? If Jangada wanted in, they could have bought in the open market. Alternatively, if they did need to raise funds or thought that there may be a chance within the next 12 mnonths, he should not have clearly stated (on 11 October) that he didnt want to because the share price is low and he does not want to dilute shareholders.

Re: your second point, I agree 4p is a good price versus the price last week which i conced in my point above "On the other hand, these are probably sticky shares and the share price is well above the price that they would have had to pay (presumably before the leak, which probably happeneded on Monday, as the starting price share price was 3.4p for that day".

[divmad] 26/10/2022 07:05

Is anyone keeping a count on the total number of warrants outstanding?

[jugheadjim1] 26/10/2022 06:58

To be honest i expected a small raise to facilitate the completion of the bulk sampling.It is a fluid situation at the moment and Mike is looking at various options to fund the project with different partners.I know it feels a little disappointing to have this raise but the money will be put to good use. I will buy more if it drops.

[supercity] 26/10/2022 06:40

That's not how a fund raise works.The whole point of a fund raise is to put money in to the business so if they bought in the open market no money goes in to the business.As for the price - this was 3p a week or two ago so 4p is a very good price.

[soulsauce] 26/10/2022 06:39

Must admit, like you paulie, I am a little disappointed in that.
How much more dilution is he going to allow at these low levels.
But good to have another big supporter.

[pauliewonder] 26/10/2022 06:31

Not sure what to make with todays announcement. On the one hand, MR recently said there would be very little likelyhood of a placing at the corporate level - that was literally 2 weeks ago on 11 October. Then today we see a placing!! I dont like that. Furthermore, it seems that IIs get the chance to buy at cheaper than the rest of the market. For example, what would the price have been had they bought shares in the market? 25p, 30p? Admittedly, they probably wouldnt have chosen to buy the shares at that price, but normal PIs wouldnt get this discount. Clearly, the news leaked somewhat as we had an 18% rise one day followed by a 10% drop the next, the bid price now reflecting the same share price as the placing ie 4p. Furthermore, Jangada are hardly a titan, their market cap is £9m so its not like they are a massive company.

On the other hand, these are probably sticky shares and the share price is well above the price that they would have had to pay (presumably before the leak, which probably happeneded on Monday, as the starting price share price was 3.4p for that day). The company also have plenty of capital now and are in a good position going forward.

For reference, the following is the Jangada RNS they issued this morning, which outlines probably what many of us here see re: BRES, ie that it is materially undervalued.

Jangada Mines plc ('Jangada' or 'the Company')

Strategic Investment

Jangada Mines plc is pleased to advise it has increased its shareholding in London-listed Blencowe Resources PLC (LON:BRES) ("Blencowe") by 15,250,000 ordinary shares through an investment of GBP610,000 (the "Subscription") into Blencowe. The Subscription was made as part of a broader GBP750,000 placing by Blencowe at a price of 4p per ordinary share with an attaching half warrant per ordinary share with an exercise price of 8p and a 3-year life (the "Transaction").

Following the closing of the Transaction, the Company will have a holding of 18,750,000 ordinary shares in Blencowe, representing approximately 9.5% of Blencowe's enlarged outstanding issued share capital.

About Blencowe Resources

Blencowe's principal asset is the 100% owned Orom-Cross graphite project in Uganda (the "Project"). The Project has established a JORC resource of 24.5Mt @ 6.0% TCG based on drilling undertaken on less than 5% of the Project area, part of which already benefits from a 21-year mining licence. On 19 July 2022, the company released a Pre-Feasibility Study ("PFS") on the Project, which provided a Net Present Value of US$482m, based on the existing 14-year mine life. The PFS also outlined capex to first production of US$62m, average EBITDA of US$100m per annum and a return of US$1.1bn in free cash over the 14-year life. Blencowe recently confirmed it has received an approach from a potential strategic partner in China and will look to deliver bulk samples for further testing ahead of potentially entering into an agreement that could provide the funding solution for Orom-Cross. Work on a Definitive Feasibility Study is currently underway.

For the year ended 30 September 2021, Blencowe reported nil revenue and a loss before tax of GBP694,726. As at 31 March 2022, Blencowe reported gross assets of GBP7,032,220.

For more information on Blencowe, please visit its website, which contains the corporate presentation and recent RNS outlining the development strategy of the Project: hxxps://blencoweresourcesplc.com/

Brian McMaster, Executive Chairman of Jangada, commented: "I am pleased to have increased Jangada's ownership in Blencowe Resources to 9.5% through this GBP610,000 investment. The purchase price of 4p per ordinary share values Blencowe at GBP7.1m, or approximately US$8m, prior to its capital raise. This valuation is some 60 times lower than the Net Present Value valuation of US$482M ascribed to Blencowe's Orom-Cross graphite project by the independent third party PFS released earlier this year. I believe the purchase has the potential to be a highly accretive investment for Jangada and its shareholders.

"The demand for graphite is expected to see a dramatic uptick over the coming years with significant supply deficits forecast from 2025 onwards, as the roll out of electric vehicles accelerates and a number of the planned 300 battery megafactories come online. To date, graphite is yet to witness the price movements of other battery metals such as lithium and nickel, despite being the largest component within the anode of lithium-ion batteries. Accordingly, we see further upside potential to the already very attractive margins at Orom-Cross.

"Given the not unsubstantial cash resources currently held by Jangada following the disposal of the Pedra Branca asset to ValOre, we believe now is the ideal time to increase Jangada's exposure to Blencowe, and graphite, as part of our broader focus on battery metals, which includes our vanadium assets in Brazil."

[apfindley] 25/10/2022 15:28

It gives us a chance to topup Paulie.The recent rise suggests this can move very quickly when the right news arrives.

[pauliewonder] 25/10/2022 15:20

Yea very frustrating. Wish we could hold a gain.

[apfindley] 25/10/2022 12:04

Profits being taken after the recent rise.To be fair I think they couldve held on for a higher price, but hey traders do what traders do. Plenty of game changing news to come and plenty of bags of upside still.

[euclid5] 24/10/2022 19:59

Thanks for the post PaulieW

Very good interview last week, impressive

[pauliewonder] 24/10/2022 19:50

https://twitter.com/BlencoweRes/status/1584444928083755009?cxt=HHwWgoDQiY6Riv0rAAAA#BRES "Very positive in terms of where we're going, the company is massively undervalued in terms of the project, & as we go through the DFS, hopefully, we're going to start seeing the market cap driving up towards the value of the project

[soulsauce] 24/10/2022 17:31

Yes looking good paulie.

[pauliewonder] 24/10/2022 16:37

Interesting price movement today. Up 20% on very average / low volume. Will be interesting to see if we get some news this week or if there are any delayed trades. BB very quiet, particularly as we are 8th highest riser.

[pauliewonder] 24/10/2022 13:50

4.4p on the bid, looks like we're moving up again. Nice to see us moving in the right direction. Getting closer to that 59p target price that FE has set

[pauliewonder] 24/10/2022 10:17

As soon as we get a firm project funding commitment from another party we will blast away from the 3-4p mark, never to be seen again. That should come before the end of the year according to MR latest presentation. Not long now, and we could see a rise in preparation.

[soulsauce] 24/10/2022 09:30

Yes indeed paulie. Should be 15-20m mkt cap at least at this stage.

[pauliewonder] 24/10/2022 09:29

Well overdue too. This should be trading at five times this level. Over nearly 15x if you take the view of FE.

[soulsauce] 24/10/2022 09:12

Good to see this trading back at 4p again.

Let's hope it continues.

[apfindley] 17/10/2022 07:52

Making yourself look pathetic now.Permanently FILTERED.