Ann: Quarterly Activities Report - March 2023, page-20

This is true... in the short-term markets are a voting machine entirely driven by supply of sellers and buyers. Regal started the rot with a shed load of shares to sell and even after going unde 5% was a shed load more. Add in FIL (another sub holder) and no doubt many other sellers nervous about Madagascar risk as the government went about self-emolliating their credibility and investability, and/or just fed-up with intolerable delays, and no surprise it's been a seller driven downtrend last 12 months.

Markets are forward looking and rightly suspicious of 'trust me' results vacuum, so without credibility to the Kwale extension carrot larger funds are nervous of transitioning to being stuck in an explorer developer imo. Rightly or wrongly, most funds usually have internal investment criteria that exclude high risk, long-duration to production cashflow explorer developers and BSE has been transitioning from a producer with production extension via Toliara into a developer as Toliara has dragged and dragged. In that context, not surprising to see funds like FIL lighten up in case BSE are stuck for years longer in the Lassonde development phase.

Long-term markets are a weighing machine and 'value' will tip the scales back into balance. I'm predominantly a value investor attracted to developer value like a moth to the flame. It get's uncomfortably hot usually and I get burnt far too often, but it's in my DNA... I just can't help it. In hindsight with Toliara being delayed well past Tim's guidance I stayed too long before the rot set in and 'developer value' started to emerge. That's the market right, who knew, if a Toliara deal was signed and pre-FID work underway last year the rot wouldn't have set in because BSE would have been on track to transition from Kenyan to Madagascar producer and most would have been happy to hold (less sellers, more buyers, you get the idea).

Where is the bottom of 'developer value' after deducting the Kwlae run-off value (post taxes, WHtaxes, corp largess,slippage, funding risk etc)??

GLTAH