Bluebird Merchant Ventures Share Discussion Threads

[the deacon] 18/3/2019 07:14

Looks as though good progress is being made. Very disappointing placing price, but at least the board continue to open their wallets..

[shieldbug] 15/3/2019 17:50

At Kochang I think they are hoping to haul out some previously cut ore to begin with. The biggest initial cost may be the processing plant. I would guess though that there will be unforseen costs along the way. Are people confident of the directors? I have some reservations about Aidan Bishop and Mitchell Tarr who seems to be connected to the controlling Fiske share holding. Patterson and Barclay seem ok.

[tim000] 15/3/2019 08:43

We're absolutely agreed that the cost of running these old mines will be a tiny fraction of developing a greenfield site, and that as a result BMV looks to be amongst the best (if not the best) prospective miners on the LSE. That's a different issue altogether. It doesn't alter the fact that drilling doesn't seem a priority. (I thought from the latest proactive video that the drilling was going to be at lower levels, and hence wasn't going to be connected with immediate production?) Anyway, I've made my point and I won't make it again!

[cool runnings] 15/3/2019 08:32

Remember this is reopening a mine and therefore lots of development is already done. I think we will be (pleasantly) surprised when it comes to capex etc but lets see. The drilling is not exploration drilling but rather is all about near term as to what will be mined. They have said first production is the broken rock and what was left behind. Any mining junior will experience dilution but as we are looking at production which is when we transition and generate cash it becomes a different animal. They have discussed debt funding I think . Korea who will probably take a different approach than debt providers in London

[tsmith2] 15/3/2019 08:26

capex will be relatively VERY INEXPENSIVE.the cost to get these mines back into production is a minuscule fraction for what it would cost to get a new mine into production let alone new mines of this size

[tim000] 15/3/2019 08:16

cr, I said relatively expensive. I'm not a mining engineer, but I imagine the total capex required to reach the production stage will be in the $ millions. If we agree that the company will be valued at multiples of its current mkt cap over the next few years, the last thing shareholders want is further equity dilution now at a low share price when there are already large numbers of warrants, loan conversions, etc in the pipeline. I know you've discussed this before, and you've said that debt finance should be readily available. But at the current mkt cap, that will either be at a high interest rate, and/or come with equity warrants. The 70% grant presumably will be available later as well. Proving up reserves pre-production wouldn't seem a priority, unless bank lenders require it as a condition of debt finance.

[cool runnings] 15/3/2019 08:06

The drilling is not exploration drilling but in looking at previous RNSs it is about identifying the continuation of 3 veins for future mining. Plus the South Korean government asked them to apply for a grant covering 70% of the cost. With regards to processing facility why do you think it will be expensive? In the RNSs it mentions that the metallurgical work suggests it will be an inexpensive process for recovering the gold.

[bo doodak] 15/3/2019 01:29

Largest mine is Muguk, can't be certain they would even want it now, if it became available. Our guys are not youngsters and likely will want a timely exit.

It's possible they may prefer not to do drilling at this point but it might have been counter productive to request to delay the uptake of the KORES offer.

As KORES are funding 70%, assuming they are determining the exact parameters and scope of the drilling, and not Bluebird. In everyone's interest to know the potential depth wise. The grades shouldn't disappoint.

[tsmith2] 14/3/2019 21:06

Cool runnings may have some insight

[tim000] 14/3/2019 18:27

That makes sense, it's more efficient to concentrate capex (on ore processing, tunnelling, road building, etc)on as few sites as possible, and it's clear that the two mines will be producing for decades. I'm slightly puzzled why they should want to do any underground drilling at this stage (unless it's a condition of the permit to develop); even with the grant, the cost of capital is high at the moment and all available resources should be focussed on starting up production. In relative terms, ie relative to the company's current market cap, the cost of the processing facilities will be quite high.

[tsmith2] 14/3/2019 18:21

that's down to having more than enough to crack on with with the two they have. However, there is one other that I know management would be keen to pick up, what used to be the biggest mine in SK. I forget the name; it's been discussed on here before.

[bo doodak] 14/3/2019 17:51

Interesting implications re feeling now that they may not pursue any more mines.

[tsmith2] 14/3/2019 13:11

let me have a listen. any good?

[the deacon] 13/3/2019 14:59

Yeah sorry. Here you go:Listen to "Bidstack CEO & CTO Plus Mining Analyst John Meyer" https://www.voxmarkets.co.uk?mediaAssetId=5c88f8efd8541e00126aa1cd @VoxMarkets

[tsmith2] 13/3/2019 14:26

Have you link?

[highly geared] 13/3/2019 14:01

Digger; there’ll be traders all the way to 20p by September 2021......

[the deacon] 13/3/2019 13:53

BMV covered by share price Angel on the VOX podcast today, FYI

[digger2779] 13/3/2019 12:26

This drop doesn't make sense judging by all the info out there and POG rising too.

[tsmith2] 13/3/2019 11:17

POG at $1350/oz at first pour?

[tsmith2] 13/3/2019 11:00

hxxps://www.uploadlibrary.com/SPAngel_JohnMeyer/Bluebird_Merchant_Ventures_Initiation_2018.pdf

something to revisit

[bo doodak] 13/3/2019 00:13

Kochang approval around 2nd May... assuming no clarifications required

[tsmith2] 12/3/2019 22:52

South Korean Gold?

[andy] 12/3/2019 21:12

tsmith,

Korea Gold.