Hi there fellow Black Rockers, Apologies for the super-long post, and apologies if I didn't get your questions raised.
I was fortunate to attend this morning's AGM, and meet some of the company exec's. The experience was informative. Given that I am not a natural miner, or high-stakes investor, my comments should be taken as my thoughts/interpretations and shouldn't be used as the basis of your investment decisions. I am a Technician/Engineer with an interest in "green stuff". Ironically, my shareholding in this company goes back to when they were known as Green Rock - if anyone can remember? A plucky WA company that couldn't quite crack to vagaries of hot Granite.
So, where to start? Consider this to be a Stream of Conciousness/Brain Dump
Voting on resolutions.
All pretty normal, though I am impressed that they (**rial/JDV/that bloke in Sydney
/ and someone else) have taken a pay cut - down to 25% with remuneration through shares. That is pretty good in my books - I have confidence that these guys have a firm belief in the company and have put their money where their mouth's are! I voted at the meeting, though my 0.00001% holding probably didn't sway the numbers much
Interestingly, most resolutions only received 25-27% response, though overwhelmingly in the affirm.
Briefing/Discussion by JDV (below are my free-flow thoughts, was trying to write and listen. Who am I kidding? I struggle with walking and chewing gum!
* Free carry Interest - discussions are continuing, they note the completed Tanz. elections with well-respected individuals within the Tanz. Govt. in place. "Sympathetic" to BKT "interests" was mentioned - does this count as a ? (Pat's opinion)
* He said "Heavy Duty/ DFS continuing, they're looking to bring in partners. I take to mean they are working hard to progress
* POSCO, Trial samples delivered, BKT looking to collaborate - not compete - with partners. - After the meeting I said G'Day to JDV and he expanded upon the way that the graphite was tested. JDV indicated that the testing stream is rather convoluted with many steps and bodies involved - making to/from messaging related to results or questions time consuming. JDV suggested that there are opportunities to "streamline" this process, to improve feedback/customer experience to drive the company better/more efficiently.
* China 7th Rail Group. I must admit I have missed any discussion re this mob, so I was caught unawares. BKT seem keen to get involved with them, they are a HUGE development company, with enhanced access to Chinese markets with them involved. He mention Deferred Equity in this conversation - maybe pointing to funding partner? - though also mentioned that discussions with the TIB (Tanz. Investment Bank) are going well.
* POSCO again (and this is a "Pat Thinks" comment) BKT indicate that POSCO is looking to come on board, and that the board would welcome them as a partner.
* Apparently BKT is the first Western company to introduce graphite into Asian markets - nice little Aussie battler we have here!
* FCI (again) The board remain confident, are are "hopeful" that this will help with any funding decisions - let's hope
* COVID-19. Apparently our Board were amongst the first in the Western world to know about this bug. Apparently the lab testing "our" graphite is in Wuhan, and experienced difficulties very early in the piece - a bit of trivia for the next quiz night.
OK, the last bit, Question Time. I am a naturally questioning person, who sometimes asks too many questions. As I get older, I don't like to be known as "That Guy", so I had to restrain myself...and the answers made my ears "prick" a little...
I asked something like "When are we going to start "shifting dirt/delivering to customers/make some money"?
* JDV answered, with caveats "assuming all the variables come together as hoped" that they would be looking to start in the next dry season. When I looked interested he offered "May 2021" as a suggested mission start date.
* JDV further expanded that they intend on developing the output of the mine - with its 25 year Life - in staged "modules" with up to 4 or 5 (I think) planned to allow the company to produce in manageable parcels that makes best use of the investment. Getting the size of the "module" right has been a difficult task. Too small and it won't scale easily, too big and we risk over capitalising with the dangers of going down that road. It's all about getting it right for BKT
** Pat commentary. We were all adults in the room, and whilst JDV said May 2021, the implications is there that this date can easily slip and we should not nail ourselves to any particular date. I'm not about to sue if this date slips, and most people here would accept that Africa is an interesting place to do business. I was happy with this information and look forward to being impressed.
* Another shareholder asked if we need to suspend operations during the wet season.
* JDV answered that due to the interest topography of the Mahenge deposit, it sits at the top of a hill with no real dirt on top of it. the ore body isn't compromised by water ingress/dirt/mud contamination. The Mahenge graphite is accessible all your round, though some roads and infrastructure development can be delayed during the wet season. This appears to be a year-round operation, a little unusual in Africa!
* From memory, JDV talked a little about the work that BKT have put into helping the local community. I can't recall when this came up, it has just popped up.
That's all from the formal part of the meeting. I took the opportunity to have a brief chat with JDV after.
* JDV expanded on the community work that BKT engages in. He indicated that BKT can't possibly give everyone a job, but that they are getting involved with community engagement to some extent. Sort of like giving them a leg-up to help themselves, maybe providing them with opportunities to begin their own development.
** Pat's commentary - this is a very different business model compared to the old way of doing business in the Third World. Old rich Western companies drop in like Robber Barons and exploit the shit out of a place and then leave with all the loot. The Tanzanian Government is awake to this strategy and are doing their best to look after their citizens, ensuring that a portion of the wealth generated remains in-country. I respect this approach, and I got the strong opinion that JDV (and probably the rest of the board) are also strongly in support of this approach. JDV's tone softened a little when he re-stated that we can't help everyone, but we're doing our fair share.
* I have been involved with a few African ventures, one particular wild failure and now a couple of very promising prospects, and noting that getting stuff done in Africa presents its own challenges - especially in time - I dropped my experience with PEK into the conversation and the difficulties that they have experienced. JDV noted that they "talk to PEK pretty regularly". I was dying to press him further on that, but maybe I will drop him an email some time. It would have been impolite to follow that line at BKT's AGM.
My opinion? BKT is getting ready to roll, and they're being managed by an excellent collection of dedicated individuals.
I would dearly love to grab more shares, and the price looks to be climbing. The time is right!
