http://clients.westminster-digital.co.uk/minesite/microsite/events/50/video/index.aspx?companyId=50_1
=">http://www.proactiveinvestors.co.uk/pdf/brr.pdf
http://www.mineweb.com/mineweb/view/mineweb/en/page35?oid=39359&sn=Detail
www.braemoreresources.com
http://www.investegate.co.uk/Article.aspx?id=200711010702217873G



Powered by IST's


http://www.fsponline-recommends.co.uk/page.aspx?u=rhpsl1007&tc=ERHPCB02&PresentationsID=21147065172&
http://www.proactiveinvestors.co.uk/audio/img src="http://charts.moneyam.com/Chart.aspx?Provider=EODIntra&Code=BRR&Size=460&Skin=BlackBlue&Type=2&Scale=0&Span=YEAR1&MA=&EMA=25;50;200;&OVER=&IND=&XCycle=&XFormat=&Layout=2Line;Default;Price;HisDate&SV=0">

http://www.resourceinvestor.com/pebble.asp?relid=38513
http://www.proactiveinvestors.co.uk/articles/art.php?BRR2
cyril

http://www.cityam.com/index.php?news=15364
cyril

Braemore Resources plc listed on JSE. David Russell CEO, Braemore Resources plc

16 July 2008 23:07

MONEYWEB: It's not often that one sees a new listing on the JSE, but it happened today - a company called Braemore Resources, whose chief executive David Russell is with us in the studio. It's an inward listing, David.

DAVID RUSSELL: That's right.

MONEYWEB: You've been listed on AIM in London since 2005, so not really new for you today. But you didn't issue any shares into the South African market. The last issue that you did do was in London, where you raised R100m at around R1/share. It's a bit disappointing to see your share price below R1 today.

DAVID RUSSELL: It is disappointing, but I think, given the market conditions overnight and the heavy falls experienced, particularly by Amplats and Implats, it was to be expected.

MONEYWEB: But you're in a different game.

DAVID RUSSELL: Totally.

MONEYWEB: Lots of people, certainly the small, the independent platinum producers, of which there are more than two dozen now in this country, are very excited about the fact that Braemore might be a player in having a platinum smelter, because at this point in time there are three platinum smelters which are tied up by the big guys.

DAVID RUSSELL: That's correct. What we identified some years ago was a capacity constraint, particularly if you were going to produce from the UG2 chrome scene as a PGM source. And the UG2 chrome is the core problem, as one of the majors will testify, because if you've put too much chrome into a conventional smelter, they tend to have serious smelter explosions.

MONEYWEB: The other, from the independent platinum producers' point of view, is that they've got another player in the market who might help them to give a bit of price competition as well.

DAVID RUSSELL: Well, we don't want to put ourselves into the toll-refining space. We actually want to use our Mintek exclusive licence as a lever where we can get into the resource companies. Thus we will benefit in pooling and sharing agreements right the way up the value chain.

MONEYWEB: So would you buy or take a stake, say, in one of the small independent producers on condition you do the smelting for them?

DAVID RUSSELL: There is a range of negotiations currently under way - pooling and sharing, joint ventures, equity swaps, various methods by which the technology can be brought to bear on resources that currently do not have access to offtake agreements.

MONEYWEB: You've got a pilot plant at the moment. But to build a smelter, in, say, the Western Limb of the Bushveld, near Rustenburg, what would that set you back?

DAVID RUSSELL: I really don't want to go down there at the moment. The feasibility study is in the hands of our engineers as we speak.

MONEYWEB: But it's billions?

DAVID RUSSELL: No, it's not billions. I'll give you an example. At the moment we are upscaling the Mintek facility, and it's an upscaling that's taking it from an effective 20 000 ounces per annum of PGM to 60-70 000 ounces of PGM. That upgrade of an existing facility is only costing us R30m.

MONEYWEB: Mmm, that's interesting. So it's not in the billions of rands?

DAVID RUSSELL: It's certainly not in the billions.

MONEYWEB: A bit like the Pebble Bed Modular Reactor in nuclear, where you can build small plants that can help smaller operators?

DAVID RUSSELL: That's it. What we are looking at in the Rustenburg option that you mentioned is a 10MW smelter, and that would produce about 500 000 ounces of PGMs. So, I mean, these are significant production facilities, but they are not that capital-intensive.

MONEYWEB: And it's all to do with the new technology from Mintek?

DAVID RUSSELL: The technology has got some serious advantages, the first of which is that it was originally developed to reduce sulphur dioxide emissions in smelting. And that means that the air-quality problems currently out in the Rustenburg area - we will not be party to that. We are currently having smelting campaigns in Randburg, and most people don't even know that there is a smelter in Randburg and we are producing PGMs and selling them from there.

MONEYWEB: David, when are you likely to be in a position where you are starting to generate enough revenues that you'll be paying dividends?

DAVID RUSSELL: That is a while away. We hope to hot commission the first 10MW smelter in 2010 and that, as I say, will be the 500 000-ounce sort of scale. Probably dividends will be two years after that, once we recoup the capex.

MONEYWEB: A bit more of a development play here, the kind of deals that you are able to strike now with independents?

DAVID RUSSELL: It's a very important thing, the kind of deals, because one of the main things is the intention for this to be the first independent black-empowered PGM smelter in South Africa. And that is the key thing, in conjunction with our licence agreement with Mintek. We have listed that thing today, and the intention in the future is to take this to full 50% black economic empowerment. It will be a fully independent smelter.

MONEYWEB: David Russell, the chief executive of Braemore Resources. And if you are not au fait with the platinum scene, one of the big problems for the new producers is that they really have to go to either Anglo Platinum or Impala or to Lonmin - those three big players. And clearly you aren't able to get too much of a price advantage when you are a little guy, going to one of the big chaps and saying: "Please smelt for us." Braemore might change their lives.

http://www.moneyweb.co.za/mw/view/mw/en/page55?oid=214775&sn=Detail


cyril

Not the result we were looking for?

PAN PALLADIUM SHAREHOLDERS VOTE AGAINST GRASS VALLEY JOINT VENTURE WITH BRAEMORE

Braemore has been advised by Pan Palladium Limited (PPD) that its shareholders have today
voted against the issue of shares and options
to Braemore in accordance with the Heads of Agreement entered into by the companies on 12
December 2007, over the Grass Valley platinum
group metal (PGM)/base metal deposit in the Platreef area in South Africa.

Braemore had agreed to spend in total AUD6m to earn a 50% interest in PPD's project over
30 months by completing feasibility studies and
in turn, subject to meeting certain criteria, the potential to own up to 43% of PPD's issued
capital through the subscription for shares and
the exercise of options, subject to the approval of PPD shareholders.

Mr. Clayton Dodd, Executive Director of Braemore, said: "Whilst we are disappointed by the
PPD shareholder decision, we remain confident
- particularly in light of heightened interest in the ConRoast technology following our recent
JSE listing - in securing similar
arrangements with other emerging UG2 and Platreef PGM and base metals producers. Whilst the
agreement is now at an end, we will continue to
maintain an active dialogue with PPD over the projects future development."

PPD is listed on The Australian Stock Exchange, code PPD.

For further information:

Braemore Resources plc
Clayton Dodd
Executive Director +6 141 891 9864

Investec Bank (UK) Limited: (Nomad and joint broker)
cyril

FYI this is the 'general response' that the company are providing.

From: David Russell [mailto:davidr@atomaer.com.au]
Sent: Wednesday, 20 August 2008 10:45 AM
To: 'David Russell'
Subject: Response to Shareholders concerned re Braemore Share Price

In response to the number of calls and emails received:

Many shareholders have contacted us regarding concerns with Braemore. I understand and share your frustration regarding the Braemore share price. It is of little comfort to understand we are not in any different situation than other emerging PGM companies in facing an onslaught on our share price in the current market. An article below comments further on this.

I have appended the very latest research report from Investec, conducted by Rebecca O Dwyer, a very well respected analyst, who has revalued Braemore at 18p by downgrading her calculated NPV by 25%. She still refers to BRR as offering investors deep value. The report is independent as revealed in one small error she made, regarding the metallurgical testwork in Finland conducted by Outotec and Atomaer which is in fact completed. The report has been received by the project manager. It has been under review and the results will be presented to Braemore once the review is complete. It will then go to BHPB for consideration.

Important confidential work of this sensitivity will not be wholly disclosed to the shareholders. There is no point in providing competitors with answers for free that we have paid to develop. Once BHPB are satisfied any summary announcement will be subject to confidentiality agreements regarding disclosure.

I can tell you that the metallurgical testwork has been extremely encouraging with very high nickel recovery rates in relatively short periods of time using atmospheric leach. Another aspect of the testwork has been to reduce sulphuric acid consumption as the sulphur prices have risen to record levels just as the nickel prices have fallen. This work is important to the Leinster project and will require testing as part of the feasibility study.

Some investors are concerned regarding on going selling by institutions and this is something we cannot do anything about. We have tried bidding for the stock without success. The problem is one of funds facing massive redemption calls from disillusioned investors, and having to come up with the cash as necessary, requiring selling of stocks in the fund. SPGP, a French based fund has been a major seller, down from 80m shares to around 20m shares or less than 3% of the company. We have approached SPGP and bid for the stock without success. Other major funds may also be facing redemptions and we have no control over which stock they sell. This behaviour has been brought about by the fear and panic of investors in those funds.

The market is fully informed as to Braemore and its activities. There is no hidden pool of news we can reveal that will miraculously boost the share price. We are in a bear market for resource stocks and there is absolutely nothing the board or management of Braemore can do about it. Look at BHP, one of the worlds largest resource companies recent fantastic results and very strong performance saw the shares retreat almost 5% in 2 days! And that was after sliding over 25% in the past few months!

Braemore reflects the underlying fundamentals of the resources market, specifically for PGMs and nickel. Both those commodities are industrial metals and the western world is going into recession hence the demand for the industrial metals will slow. This is evident already in the car manufacturing sector, where PGMs in particular are a major commodity as part of autocatalysts. Less cars means less demand for PGMs! PGM price goes down, sentiment towards PGM producers and emerging producers changes to negative and share prices decline. There is nothing Braemore can do to stand against those economic trends. Similarly demand for steel has eased in the west as a result of the recession less steel means less nickel and hence nickel prices have also tumbled. Again there is nothing Braemore can say or do that will make a shred of difference to how the market perceives nicke projects at present.

Some investors are concerned about future funding of projects. That is in hand with the company first conducting financial engineering of the projects to develop financial models on which debt and equity ratios can be carefully examined. The smelter projects in South Africa will be funded through a mixture of debt and equity, and a usual ratio is 70 : 30. Of the equity component there is also the requirement to include a Black Economic Empowerment partner who can earn a 26% stake in the project through investing at commercial terms. Hence one of the reasons to list on the JSE was to access the capital in the South African market. So the funding of future PGM projects will be through a blend of Debt and Equity, including a minimum 26% earned at commercial terms by a BEE group. Naturally we would not wish to raise funds through placements at current share prices given the dilution factor. Consequently we are fortunate that we raised over 6.5m Pounds recently in a difficult market and those funds are being carefully husbanded. Those funds give us the time to get through the current maelstrom in the markets.

The funding of the 10MW smelter will be conducted as above. Revenue from the expanded 3.2 MW smelter may contribute to the funding depending on the grade of smelter feed being processed. The expanded facility can process up to 2000t per month of concentrate feed and depending on grade can produce up to 60 70 000ozs of PGM. However that feed is being toll processed and margins obviously are not as great as if the feed came from your own mines. Remember that the 3.2MW remains a demonstration plant for ConRoast and is not primarily for revenue generation.

I am asked why the directors do not buy shares a very nae question. In terms of the AIM rules there are closed periods when directors are not permitted to purchase shares. These closed periods relate to times when market sensitive information is in the hands of directors, such as preparation of annual or half yearly results. Given we have conducted a placing, prepared a detailed pre-listing statement and listed on the JSE of late the shares have been in almost continuous closed periods. However, Atomaer purchased 1 million pounds of the recent placement and two of BRR directors are on Atomaer board! That really is putting your money where your mouth is. It is not realistic to say that directors do not support this company financially.

cyril

Came across this snippet yesterday which backs up David R's view:

Diversified miner Xstrata (XTA) said it is temporarily suspending operations at its Falcondo ferronickel mining operation in the Dominican Republic as a result of current market conditions. "This is due to a combination of extremely high oil prices, which represent the majority of the site's costs, and lower nickel prices," it said. The shutdown is anticipated to last four months during which time furnace repairs and other maintenance will be conducted. "The suspension will also enable the acceleration of feasibility studies into the energy conversion project, to switch the operation's power source from oil to coal, and the development of the Loma Miranda project, which will provide a new higher-grade mining area for Falcondo and extend the mine life," added the group. Ian Pearce, CEO of Xstrata Nickel, commented: "The resumption of activities will be assessed based on market conditions, which are expected to improve towards the end of 2008."

Well i doubled my holdings yesterday getting in under 4.5p,hopefully this has bottomed out and we can now move forward.Their has been much achieved in the last 12 months and yet the SP was at its lowest, once the market settles down along with news flow, i feel the company will be rerated to a more realistic value
on its progress and potential?
aimho
cyril

Trying to break the 6p barrier, thats 1/3rd up from yesterdays low.
cyril

Hard to believe they were trading at 24p not long ago and now down to 5p...

Oh ..

hard to believe they are still trading at 5p ..... oh, they're not!

They could fall to..1p.

down 15% on the day.

This seemed such an exciting company at the time of their AGM! I can scarcely believe how far the sp has plummeted; just can't see what's going to resuscitate it now either. All that talk of a possible deal with BHP Billiton seems a distant dream. Very glad I've stayed out of this for the past few months - though that's not to say I haven't fallen prey to some other disasters!

I remember buying at 24p late last year and now sub 5p and its a shame because after sacking Hamish the company lost its way.. it really has become a penny share.

Lets see if it finds support at 3p.

agree with Toya as i was there too (didn't know that did you!).... got told a load of porkies that the company would be profitable within about 2 years ..... all i can say is that i am glad i bit the bullet when i did at around 12 from memory

Irrelevent what the company does or says as I have already said to Cyril.

I haven't looked at this before but love the honesty of post 628. All small company sp's are on the way down to 1-2p or even lower irrespective of prospects. Dreadfully frustrating to all involved but that I'm afraid is the market we are in. The thing about sp's though is that they can recover very quickly as the banks stand testiment over the past few weeks. This is purely about survival and nothing else. How many will go bust because of their sp and lack of funds, who knows? For the companies that survive and I suspect that will be most, then in 2 years time all this will be forgotten as the market manically pushes prices way beyond the value of a company. This is likely to be 1/share+ then as to being bust.

Tis is all about confidence in the company and holding your nerve.

RHPS still continues to rate these a buy up to 10p - if only!

Are BRR about to join the 90% fallers club ..

Braemore Resources Plc ('Braemore') is pleased to announce the successful installation of the new 3.2MW smelter at the Mintek facility in Johannesburg, South Africa. The new facility is capable of processing around 2,000 tonnes per month and producing PGMs in an iron-nickel alloy at an annualised rate of up to 70,000 ounces per year depending on feed grade.

The smelting facility will steadily increase production over the coming weeks to reach these targeted processing rates. Braemore accelerated the upgrading of the smelter from an initial shut-down period of eight weeks down to four weeks in order to meet the current levels of demand for smelting high-chrome concentrates.

Leon Coetzer, Chief Executive Officer of Braemore, said, 'We have completed this upgrade ahead of time and on budget, and are pleased to be delivering on our stated objectives. We have worked closely with Mintek to commercialise their technology and we look forward to providing an economically and technologically viable smelting solution to the PGM sector.'

Braemore's 10MW smelter development programme is on track, with the Definitive Feasibility Study completed as planned and currently under internal and peer review. The study has covered a range of feedstock options and the appropriate capital expenditure for the project will be finalised once the optimal smelter feed source is determined, anticipated to be in the 4Q 2008.
cyril

Maybe this is the bottom..