I have made it crystal clear that bmr should give nothing more to jubilee. We need to find alternative investors for bmr to protect the company. I dont want any part of jubilee . AB has always wanted to make the company bigger hence the quick failed mtr bid so i would envisage he will look at other possibilities that are related to what we are doing. Bigger company better finance deals.
Whatever you think about Hawke on LSE i can tell you for a fact that he saved the company on getting the license back and ALL your investments. I am no fan of JH as he played his part with AB in dragging the company to license revoke. Simply i disagreed with the strategy however the result was it was reinstated. He fell on his own sword. Alarmingly though ALL private shareholders should be coming together and speak with one voice again as the relationship between AB and CB makes me nervous whether what happens in the future is for BMR shareholders benefit or for Colin Bird and his companies.
Stuee, BMR's Kabwe seems indeed a great asset. However whilst the mining license was revoked these assets were no more than heaps of sand and for a while that is what Kabwe's assets were. It is without doubt that the JLP involvement was crucial to have it re-instated. BMR alone had nothing to offer to the ZG in pleading for re-instatement.
No large mining companies have shown any level of interest in Kabwe at all. BMR's own pursuit of finance was a dismal failure. Perhaps the finance company (via off-take agreement) pulled out because it believed that BMR would not deliver. Interestingly though, the off-take agreement (this time for payment) can be revived as they are still interested to take the output.
Stuee I think you are overplaying BMR's hand, as much as I appreciate your enthusiasm for the company. As Kalan wrote time, will tell.
You could be right there Stuee - I think BMR holders know more about this than JLP holders. In the long run BMR had the minerals on the ground, we have the licences now for both areas and JLP bring mineral extraction techniques that are second to none and £2.3 million quid to get it up and running - we were all short term losers through corporate mismanagement but should hopefully all be winners as the plans are put into action.
All we want to see is profit - that's what both companies need right now.
Ive said for along time its a good deal for both companies. Both companies should thank one another for this opportunity at this time. BMR cited corruption as a reason for the revoke. This cannot be ruled out. If you believe the corruption case then companies with large funds have got to the ZG with promises of huge investments. Typically the ZG will be taken in and what ever back handers are given will get influence. BMR and parties fought hard to get it back. The new mining minister was stroke of luck. Im afraid JPL would just be at the back of a very long queue in other words they would have no chance in getting the license hence they took a 29% stake in BMR.
I think JLP missed a trick - if they had been aware of the licence revocation they could have approached the Government with an application for the licence themselves with their plans and war chest of money and then snapped up the remnants of BMR for a million or two.
Anyway it's all water under the bridge now - let's hope that they work well together and make us all some money whether you in one camp or the other or both.
(Correction - we ARE all in both camps - BMR shareholders own 5% of JLP and JLP shareholders own 29% of BMR - win win, win win).
You will never buy Bmr. I can't keep saying the same thing to you all the time. I know you would live to own a great asset ready to go to production as Jlp share price has been a disgrace for years. You are desperate weeble. You see bmr as away out of jlp miserable existance. IT WILL NOT AND CANNOT HAPPEN. THE ZG WILL NOT ALLOW IT AND THE LICENSE WILL BE REVOKED.FORGET IT WEEBLE
Your reasons why JLP wouldn't bid for BMR are wrong. The offer wouldn't have to be massive because BMR shareholders would get the same, if not more upside, by owning JLP with 100% of Kabwe versus owning BMR with it's current 42.6% of Kabwe. JLP own 40% via the JV and 17.4% by owning 29.01% of BMR equity. There is potentially more upside for EXISTING BMR shareholders with JLP because they won't suffer as much dilution with JLP because JLP will be funding Kabwe with their 50m USD loan facility. EXISTING BMR shareholders could get heavily diluted if they stay with BMR because BMR may have to fund their share of the Kabwe costs with equity, not debt, and the funding may have to be done through new investors to raise the money required quickly.
Also, the Zambian government revoked the Kabwe license because they were dissatisfied with the progress BMR had made in the last 8 years. Why on earth would the Zambian government favour BMR over JLP? JLP can point to what they have done at Dilokong and Hernic and they have the advantage of their USD 50m facility being ready to draw down. My view is the Zambian government would have a strong preference for JLP over BMR and I was surprised that folding BMR into JLP wasn't a condition for the license being returned.
Anyway, time will tell whose view is correct here. It will come down to which management team and which funding structure for Kabwe the existing biggest shareholders of BMR prefer. They will assess which option minimises dilution and take into account any new money required from them. I would have a strong preference for JLP if I was them.
Two reasons . Any offer unless massive would be refused. If it was accepted it would require agreement from the ZG. You would not get it and if you did it would delay the Kabwe project for months and the license would be revoked forever.
Do you know there are other interested parties that are desperate for the license. They have courted the ZG already. The ZG would not entertain Jubilee when there are huge companies already in the waiting.
I assume the question you are referring to is "why would the ZG allow JLP to purchase BMR"? My first response is -why not. It is not that BMR holds the Zambian Crown Jewels.
In fact it is a very insignificant company that with the right management and finance can be turned into something respectable. When all projections are seen through JLP will be the controlling shareholder of BMR and by extension Enviro Mining and other subs. I can see no impediment to increase the shareholding further or even own 100% of BMR.
It is reasonable to blame LC for poor due diligence, however an honest counterpart would have disclosed the possible cancellation of the license. Reading your words below it seems that BMR had full knowledge of the impending cancellation (hence the deal with JLP) ????? this is not a good start for two companies that want to collaborate. Rather than looking at JLP for faults I think BMR has plenty to explain.
What are your thoughts about the mandatory offer to minorities once JLP has crossed the threshold?
I have no problem with JLP. I do have issues with your buddies spouting out total nonsense on BMR. Due to the license and ACI issues BMR were forced to consider a JV with Jubilee. All licenses were revoked that were not processing. BMR was not singled out. The license was reinstated due to BMR representation not Jubilee ( FACT).
What concerns me is Leon cannot carry out basic DD. Would you agree or d you think Leon was fully aware of the license issues and he deceived his own shareholders.
On what grounds would the ZG allow a sale of BMR to Jubilee g through. The ZG would not sanction any sale of BMR at this point. Jubilee shareholders will buy shares in BMR ( FACT)
stuee123, what is your problem with JLP? You hack us for trading way below our peak - but unlike BMR, at least we are trading! Why did your beloved BMR board do the deal with us if you had other options? The point is that you were in dire straights. Why would the Zambians cancel your license if they had confidence in BMR 's activities? It is clear that there was NO working relationship between BMR and the Zambian authorities as is proven by the cancellation. Be happy with JLP and do not be surprised if BMR gets taken out. Does JLP' with the potential shareholding (once all the financing is done) not have to make an obligatory offer to minorities?
It is IMPOSSIBLE for Jubilee to buy out BMR as the neccessary changes within ZEMA ZG and legal time involved would drag on and the license would be revoked. The Plant has to be built and even then it would be difficult as the license would be up for renewal. I hope that puts a stop to Jubilee ever buying out BMR. PMSL
BMR have big plans. They have not ruled out the ACI money. See RNS.
BMR signed a deal in 2016 from ACI to build the plant. BMR have built part of the plant through placings etc however the ACI deal has let down BMR and the whole of 2017 a complete shambles. Plan B as the ZG are now in the process of revoking licenses BMR need to act hence the Jubilee JV. If BMR received the 5m from ACI Jubilee would not get a look in on Kabwe. Thank your lucky stars but don't get greedy BMR still hold the cards no deal has been signed yet.
I hope ive answered your questions but i know you post on Jubilee buying BMR.
If the funding might be back on, why delay relisting for a £1m placing? If BMR have the know-how to process the zinc, lead, and vanadium at Kabwe, why have they sat on the small scale license since 2010 without processing it and why do they now need to do a JV with JLP?
Weeble BMR announced corruption was a factor. To get the license back took different tactics . It wasn't Jubilee. BMR were let down by ACI for funding but maybe back on track which would mean we wouldnt need Jubilee finance. In terms of process BMR through testing have the processing knowledge. Sorry weeble but true
I don't think BMR would have got the license back had it not been for JLP's track record and financing but I'm relaxed about BMR getting the credit. The most important thing is they got it back. Making money out of surface processing is hard and even harder for smaller companies. They need expertise, a track record, a tailings pipeline, financing to build the processing plant, and multiple earnings streams in case one project misfires. JLP are much closer to getting out of that rut than BMR. If BMR shareholders go it alone with the current management team it will be placing after placing and more and more dilution and when they start making money from Kabwe next year, a big chunk will go towards paying overheads. JLP have been through that process of establishing initial earnings streams at Dilokong and Hernic and building a pipeline at Platcro and Kabwe, it's dilutive and destroys shareholder value. If BMR shareholders get a decent offer from JLP and the opportunity to skip that, they should take it.
JLP had the expertise and financing and BMR had the tailings, it was a perfect fit. Now we've got that fit, it's in all shareholders' interests to avoid duplicating costs. Genuinely, which CEO do you think would take BMR shareholders further, Alex Borrelli or Leon Coetzer?
My point was that Jubilee played a tiny part in the return of the license. BMR used all there contacts power to demand the return. My point is Jubilee did not get the license back. This is way above Jubilee mate. Trust me on that one. Bmr used the JV as a leverage tool yes but Jubilee coetzer do not get the credit .
If BMR had such great contacts with the Zambian government, the Kabwe small scale license wouldn't have been withdrawn in the first place. BMR got its license back because of JLP's track record at Dilokong and Hernic and undrawn USD $50m loan facility.
Hi TheWeeble. You have confirmed my point. What Jubilee really want is the asset (Kabwe). This is where the power lies. Jubilee could not wait for BMR to lose the license hence they cracked a deal with BMR even though the risk was high but it shows the desperation of Jubilee that they paid for 29% potentially for nothing. They knew about the license revoke but could not chance it going anywhere else. This tells me how fantastic Kabwe is and how desperate Jubilee are in processing a first class asset easy cashflow for both companies. If Jubilee ever got there hands on BMR i would cry corruption myself but i believe BMR are now ready to look ahead expand. First one to 15p Jubilee or BMR.
I'm a JLP shareholder so I would say this but if I was a BMR shareholder, I'd rather be taken over by JLP if they were willing to offer a fair equity swap than get diluted by more placings.
You'd get access to an undrawn USD 50m loan facility for funding plant construction and a CEO with the chemical engineering know-how of Leon Coetzer, a guy who was Head of Process Control & Instrumentation at Anglo Platinum for 16 years.
I've work with Alex Borrelli, he's a nice guy, but he's a corporate financier, I don't see what he's bringing to the table at BMR apart from acting as a caretaker CEO. When Kabwe is up and running, JLP will move onto other surface projects, but where will BMR go under the current management team?
As a JLP shareholder, you'd have a range of surface projects, some already producing earnings and covering day to day costs like Hernic and DCM Chrome and some in the pipeline like PlatCro and DCM Platinum. Plus 63% of Tjate on the back burner for long term upside.
A £1m placing is nothing like what's needed to cover BMR's 60% share of Kabwe plant construction costs and working capital requirements to get everything up and running. What happens if BMR can't raise the remaining funds required to meet its obligations? BMR shareholders should think beyond Kabwe and consider the diversification, pipeline, plant financing, and know-how benefits that being a JLP shareholder would bring.
£1m will keep the lights on for now but with Kabwe the only realistic prospect for making money in the medium term, its earnings may end up paying salaries and covering overheads.
The problem for Jubilee shareholders is that they wanted BMR to go out of business. They thought they could pick up the license and buy our assets. Jubilee would never get the license. They have no contacts relationships with the Zambian Govt. Jubilee had no representation to the Zambian Govt ref the license appeal. They have no footprint in Zambia. They hate the fact we own the asset in fact everything at Kabwe. Jubilee will do all our work for us for a repayable fee but this is all about producing a product. Once we have done that doors will open, new opportunities. If the corruption theory is to be believed then i would guess they will show there hand soon enough when we are producing. TBTT etc are gutted they sold out because they will have to buy in higher and look a complete mug for selling trying to make himself a big shot selling out. Its a real pity the boards have a new set of dks to contend with but i remember TBTT rubbing our noses in it on suspension. They are dks to be ignored or to be proved wrong.
It would be a disgrace if existing shareholders don't get offered shares... that said, of course we won't (the mention of the select, small group of insiders was already mentioned in the previous Results RNS).
As ordinary holders, we've only ever been shafted here. And that's what we will continue to be, until eventually - against all the odds - we actually end up with a half decent share price... just imagine if we had been treated fairly through this whole journey, were offered to partake in capital raising rather than the select few etc. Sure, we'd have less cash, but we would have a far more balanced average share price.
I've personally had a nightmare decade on AIM and once I am out of my last few shares I would seriously consider never coming back. As an ordinary investor we only ever get sh..a.t on.
Im not having a go at Jubilee. Im having at coetzer who should not have divulged information that concerns bmr shareholders and did not have the authority of BMR Directors. Jubilee have not saved BMR trust me but will eneter into a JV with BMR where by they own 29% and i would remind coetzer he should show more respect to Bmr. This is a JV that can work but it hasnt got off to the best start imo. There has to be coordinated rns's from the nomads where that situation does not happen again so coetzer please use your brain.
stuee123, I do not understand your antipathy towards Jubilee. If your own directors fail you, why blame Jubilee to inform all shareholders (including BMR) of the positive news.
Without JLP your company is dead in the water. Indeed the JLP share price is not performing well partly thanks to the BMR saga.
I can tell you for a fact that Jubilee played a minimal part in getting the license reinstated. BMR were very active with there own sources to fight and win a tough battle. Leon Coetzer should shut up leaking information to appease there own shareholders. Shareholders from both companies have not been informed correctly. Leon is talking as though he owns BMR that he owns the Kabwe project. They have 30% shares the largest shareholder but not the majority. They will be entitled to 40% profit. BMR OWN THE ASSETS AND OWN THE LICENSE not jubilee. This should be reminded to jubilee. There should be cooperation between the two companies and future rns's should be agreed with BMR if it concerns BMR shareholders. Jubilee did not get the license back. They have no sources or contacts in Zambia. They are unknowns. Credit to JH on this issue. Jubilee are acting as though they have BMR in there pockets. I would ask shareholders never ever to allow jubilee to buy out BMR or any other deal. Look at there share price its awful.
Jubilee is pleased to announce that the mining license for the Kabwe project ("Project") in Zambia, has been reinstated with immediate effect by the Minister of Mines and Mineral Development. This reinstatement of the mining licences paves the way for Jubilee in partnership with BMR Group PLC to commence with the joint execution of the project.
Work to be started by end 2018
Hopefully we get relisted soon and see sp recover
I think he kept quiet and did the deal with JLP. Then went back to the Mining Ministry and told them, BMR are about to bring a revenue from this license in 2018. Hoping that would be enough to keep the license. That revenue has now been pushed back as planning can't go ahead and long lead items cannot be ordered, due to the uncertainty.
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