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



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http://www.proactiveinvestors.co.uk/articles/art.php?BRR2
cyril

Just in from Google alerts - topical interview with our Leon, audio link available. It includes a suggestible reference from the interviewer to Wits Gold who apparently have some parallels and are valued at 100 Rand. Happy Friday and thank you Dow ...


"Summit TV speaks to Leon Coetzer from Braemore Resources about the unexpected drop in their share price as well as their unique pilot platinum refinery plant


David Williams: Welcome to Face to Face. Were talking to chief executive of Braemore Resources Leon Coetzer. The companys share price dropped abruptly and quite a long way - a bit of mystery there - also more broadly about the platinum sector and platinum juniors. Leon, before we talk about the share price drop lets look at Braemore Resources. Give us the context - whats the scale of the operation, and what you do?

Leon Coetzer: Braemore is a very interesting company that brings a very unique story to the platinum sector. Quite often people class Braemore as a purely technical company - although Braemore has and is very successful at developing and establishing technologies this is only the first phase of its business. Braemore really focuses on two metal sectors - platinum thats South Africa dominant, and of course its nickel business in Australia. The platinum side - which is more applicable to South Africa - has gone through very interesting and exciting times where the first phase of the business was establishing a technology that offers a very unique solution to address some core needs in the platinum industry. Its now gone through the phase of acquiring that technology and developing it into a robust solution, and then very excitingly expanding it into a very large demonstration plant in September. The company is now aggressively going into phase two of its business bringing this technology to the market - commercialising it into the platinum industry, and allowing more and more platinum companies access to this very exciting technology.

David Williams: What is the scale of the company - how many people are working for you at the moment?

Leon Coetzer: The company originally employed a very focussed technology team - its original employees were world-renowned for their technology knowledge as a highly skilled team. The company is currently going through dramatic change from focussing purely on establishing the technology into the commercialisation of that technology - its that team that is currently expanding, the business development side of the team. The demonstration plant to put it into perspective - because often people think of a demonstration plant as something a laboratory - this demonstration plant is smelting 2,000 tons per month of concentrate and producing up to 75,000 ounces of PGMs a year so it is a very sizeable plant.

David Williams: It sounds exciting. Something happened to your share price with a drop of 40%. You had to put out a statement saying you dont know why - and that in fact nothing has changed. You dont understand why this has happened?

Leon Coetzer: Yes, it was very unfortunate. It was basically driven by an obligation to abide by the regulations of the JSE which simply stated that within 10 days of releasing our annual results we have to make an earnings statement to the market. Thats a statement that is guided by very strict principles - its not a statement that can be used to explain the earnings statement. Of course in a company like ourselves who are establishing a technology - and now commercialising it and therefore aggressively expanding our asset footprint as well as the physical size of our operations, where our focus right now is investing into the company - our earnings in the company are really only going to grow significantly after full commercialisation of our facility.

David Williams: Surely people knew that? This couldnt have been a surprise given the kind of company that you are?

Leon Coetzer: We probably overestimated that understanding. Quite often you get individual personal investors who might not have understood clearly that the company is in phase one of its business - which is aggressively growing its platinum business right now, as well as its nickel projects - therefore we will be investing very heavily into the company.

David Williams: Isnt it comparable to a company like Wits Gold where the share price when I last looked was over R100 but they dont earn anything yet because they dont exist in a mining sense. Everyone seems to understand that. Are you implying that they dont understand that with you?

Leon Coetzer: Yes, I think the problem is because the Braemore story is unique. Weve really been making a considerable effort to ensure that the market is educated in that sense. Yes, its a very exciting story - our investors are very supportive of the fact that Braemore is bringing such an exciting technology to the market. We are on the main board of the JSE under the production companies - because although we are developing a technology we are in fact producing platinum ounces.

David Williams: Is it possible that the big drop - I dont know how tightly held you are, and how diverse your shareholders are - but maybe there is a big shareholder who has taken a view and maybe thats the cause?

Leon Coetzer: Not at all. The big drop is definitely not from our major shareholders. In fact after the statement that went out on Thursday morning into the market weve seen a recovery in our share price exceeding 45% of the value - so I think the market has taken note of the context of the statement on Wednesday that wasnt a profit warning at all. It is simply a statement giving the market information of our earnings per share at this stage

David Williams: You are in an interesting position because youre a life-long mining person - you are a chemical engineer - but youve been chief executive full time for two weeks

Leon Coetzer: Yes, my whole career has been built around identifying new technologies and bringing them to fruition in as quick and cost effective way as possible. That allowed me to build a very successful career in a very major mining company.

David Williams: That was Anglo Platinum?

Leon Coetzer: Correct. I moved across to Braemore in a temporary capacity from 1 July. There was an agreement between my previous employer and myself that over a three-month period I would slowly extract myself out of that business to ensure that the transition is smooth and currently from 1 September 100% of my effort is focussed on Braemore and its projects.

David Williams: A baptism of fire. "

cyril.

I wasn't being critical just making the point that AIM cy's are all static or losing value at present so IMO there isn't any point in throwing anymore money at them. The MM's would love us to do it cause they can then keep our money for a considerable period of time. Even the 'darling' CFM has crashed to 16p before today (and yes I am in it!)

Teddy bear - 'if you don't realise you should not be investing in aim stocks' I'm sorry, I don't understand your point.

Teddy great post, DD no problems, yes AIM is a target at times like this, through no fault of their own. All share carry risk, NKR,BB.,HBOS MARCONI all blue chip and
look whats happen to them?
My investmrnts are long term so not to worried by the present turmoil, nice to see a recovery by BRR today, i did get into ELP sub 4p and they're going well.
regards
cyril

Back to 3p..?

BRR due to report tomorrow probebly a rehash of the news issued to the JSE, with
hopefully some positives updates as indicated in that report?
cyril

Preliminary Results for the year ended 30 June 2008

Braemore Resources plc ('Braemore' or 'the Company'; JSE: BRE; AIM: BRR), the international group focused on mid-stream processing of platinum and nickel, announces its audited results for the year ended 30 June 2008.

Highlights:

the successful commissioning of the demonstration ConRoast smelting facility in Johannesburg, resulting in Braemore producing its first PGM ounces, generating first-time revenues for the Company for the year of 9.0 million

successful metallurgical testwork completed on atmospheric leaching of nickel sulphide tailings and acid regeneration and recycling;

firmly establishing the groundwork for the first independent, black-empowered PGM smelting facility in South Africa;

Post-year end events:

the appointment of Leon Coetzer as Managing Director and Chief Executive Officer with effect from 1 July 2008.

As of 2 July 2008, the Company raised 6.5 million gross through the issue of 100,008,000 ordinary shares at 6.5p

On 16 July 2008, Braemore commenced trading in the Platinum and Precious Metals sector of the JSE Ltd in South Africa.

Commenting on these results, Leon Coetzer, Braemore's Chief Executive, said:

'Braemore has made significant progress over the past year in both its platinum and nickel operations, despite challenging market conditions. The proceeds of our recent capital raising will contribute to the development of our first commercial PGM smelter and the Leinster bankable feasibility study. We remain convinced that the enhanced recovery processes we can offer potential partners will enable us, ultimately, to create a fully vertically integrated operation, right across the mine-to-metals spectrum.'

cyril

And,
CHAIRMAN'S STATEMENT

The past year has seen Braemore Resources make significant progress in both the nickel and platinum arenas, and I am pleased to report on the forward momentum achieved amid challenging market conditions.

Our activities and results for the year reflect the continued implementation of our business strategy; to offer an attractive opportunity to enter into the platinum group metal (PGM) and nickel businesses, initially through the mid-stream processing of these metals and, in time, through mine-to-market production opportunities. This strategy is unique in the industry and is the non-traditional way of building a vertically integrated mining company. We are confident of both the quality of our technologies and the expertise of our people, and the value that this offering presents.

Progress on the nickel and platinum fronts

The development of our Australian nickel strategy continues at a steady pace. The initial metallurgical testwork done on the Leinster nickel sulphide tailings using sophisticated leaching technologies has indicated reduced acid consumption during the leaching process and produced nickel yields and dissolution rates greater than 90% in eight hours. Additional testwork combining technologies has improved on these leaching results. In addition, testwork on recovery of sulphur for acid regeneration has implications in terms of reduced acid consumption. These are considerable advantages when applied to the capital and operating costs of the Leinster project and reinforce our belief that by having access to such technologies, we have the ability to transform the environmental impact and financial returns associated with the treatment of these tailings. Our agreement with BHP Billiton gives us access to some 164 million tonnes of sulphide nickel tailings, assessed to contain some 486,000 tonnes of nickel, at their Leinster, Mt Keith and Kambalda projects.

The platinum arm of our company has had a successful year, and we are delighted with the progress made at our ConRoast smelting facility in Johannesburg. This facility has been developed with Mintek, South Africa's national mineral research organisation and a world leader in mineral processing and extractive metallurgy. The smelting facility has been operating since October 2007 and has to date smelted 8,279 tonnes of low grade PGM, high-chromium content smelter feed and produced approximately 15,000 ounces of PGMs (3 PGMs + Au) in granulated alloy form. Most of this material has been successfully sold via sales contracts to international refiners and South African PGM producers, all of whom have expressed satisfaction with the PGM and base metal product. The facility has been upgraded shortly after the financial year end and operation resumed in September 2008, with expected annual production levels of up to 70,000 PGM ounces, depending on feed grade.

The ConRoast process provides considerable advantages from both an environmental and operational perspective and we are excited about being able to offer smelting capacity to the emerging UG2 platinum producers that are currently hampered by constraints and penalties imposed by traditional smelting facilities. This is a function of the high-chrome content of the UG2 ore being mined and its incompatibility with traditional smelters. There are substantial new platinum producers coming on line in South Africa over the next few years, both as a result of changes in minerals legislation and steady global demand. We are well-positioned to provide an independent, black-empowered smelting option to the market. Discussions with a major BEE partner are well advanced.

Our belief has always been, and remains, that by offering improved processing alternatives to the market we have the ability to enter into joint ventures or pool and share agreements with junior and major mining companies. We aim to use these agreements to leverage Braemore across the mine-to-metals platform to create a fully vertically integrated mining company.

Braemore and the commodity markets

The resources sector faces a period of uncertainty as fear and confusion reign across the trading floors of the world's stock exchanges. The market turbulence over the past year has been predominantly driven by the sub-prime crisis, rising oil prices and global recession concerns which continue to affect sentiment for industrial metals such as PGMs and nickel, amongst other commodities.

As stated, the PGM and nickel markets have both been negatively affected by the movements in the markets over the past year. However, the metal charts, when viewed in light of market supply and demand fundamentals, are not as foreboding as one can be led to believe. Nickel, despite falling from levels around US$37,000 per tonne in June 2007 to around the US$17,500 per tonne, remains in demand as about 65% of all nickel produced is used as the main alloying metal in manufacturing stainless steel. China and India continue to require stainless steel to fund their infrastructure drives. There still exists a huge gap in nickel demand per capita per year between the developed economies and those of India and China. Nickel peaked at just under US$55,000 per tonne in May 2007 driven predominantly by producer dominance. These prices were unsustainable in the long term, and the nickel price has fallen sharply. This collapse has resulted primarily from falling demand as stockpiles rise and recession fears bite. During the year some Chinese steel producers substituted nickel metal with nickel containing pig iron to reduce dependency on the higher priced metal.

The PGMs sector has recently been subject to extreme price volatility, and platinum and rhodium in particular, have been under close scrutiny in the market. The platinum price jumped to record levels at US$2,400 per ounce in late February 2008 as supply concerns were raised due to the power crisis in South Africa, home to 90% of the world's platinum resources. However, economic recession fears have also driven PGM prices dramatically lower. Platinum has fallen to US$1,097 per ounce and rhodium has followed suit, after touching over US$10,000 per ounce in June 2008 before falling to US$4,100 per ounce. Fear of a USA-led auto-catalyst sector demand decline due to the global credit crunch, has resulted in PGM price levels significantly lower than 12 months ago. Additional uses for PGMs in the electronics industry, particularly in mobile phone technology, along with the burgeoning automobile industry in Asia we believe will sustain global demand.

Our share price has not been immune to the global market weakening, but we remain confident of Braemore's intrinsic value. We have been fortunate in this climate to have been able to complete a fundraising in London on 2 July 2008, issuing 100,008,000 new ordinary shares and raising GBP6.5 million. The capital will be used to fund capital expenditure on our first PGM smelter in South Africa and the Leinster bankable feasibility study.

This was followed by a listing on the Johannesburg Stock Exchange on 16 July 2008. Our JSE listing will supplement our AIM listing and provide us with access to the South African capital markets and its PGM-savvy, informed investor base whilst establishing an increasing presence in one of our main countries of operation.

The way forward

I would like to take this opportunity to thank our board of directors and staff for their continued efforts, and to offer a warm welcome to our new chief executive officer, Leon Coetzer, who brings to Braemore over 21 years' experience in the platinum sector at a crucial juncture in our development on that front. We thank the acting CEOs, David Russell and Clayton Dodd, who stepped in on the resignation of the previous incumbent earlier this year. The year ahead promises to be demanding, particularly from a commodity market perspective, and we look forward to rising to the challenge.

David Humann
29 September 2008

3. LOSS PER SHARE

The loss for the year attributed to shareholders is 1,409,000 (2007: loss 921,000). This is divided by the weighted average number of Ordinary shares in issue calculated to be 680.8 million (2007: 592.2 million) to give a basic loss per share of 0.21p (2007: loss per share of 0.16p).

cyril

sub 3p incredible.

http://www.miningmx.com/mybk08/772564.htm
cyril

I see this as very positive.

Dr Mathews Phosa appointed as Non-executive Chairman

Braemore Resources plc is pleased to announce the appointment to the Board of Directors ('the Board') of Dr

Mathews Phosa as Non-executive Chairman, with effect from the 2nd of October 2008. The outgoing Chairman, David Humann, will remain on the Board as a non-executive director.

The appointment comes as Braemore reaches a key milestone in establishing its 'mine-to-metals' strategy with the commissioning of its new 3.2 MW demonstration smelting facility. The commissioning of the new facility proves the scalability of the technology, as well as its ease of operation, while maintaining the exceptional efficiencies achieved to date. Braemore is now poised to accelerate the establishment of a fully- commercialised, independent smelting facility for the PGM industry and Dr Phosa's appointment is an important step towards realising the company's intention to establish independent, black-owned PGM processing facilities in South Africa..

Dr Phosa will bring a wealth of boardroom experience and will play a leading role in facilitating the black economic empowerment (BEE) partnership which Braemore is currently negotiating in terms of its South African PGM footprint. Braemore's association with Mintek, a leading South African government-funded research and development institution, and its exclusive access to the ConRoast process in part arise from the effects of the Minerals and Petroleum Resources Development Act (MPRDA) which has created access for junior companies to an industry previously dominated by a select few major mining houses.

'The transformation of the South African mining sector and the business development opportunities created by legislative changes have led to exciting prospects for established players and previously disadvantaged South Africans. I am delighted to be joining Braemore; in addition to the challenges of developing the nickel project in Australia, the chance to create a platinum operation in South Africa to benefit a broad base of stakeholders is an inspiring vision,' said Dr Phosa. 'This vehicle will allow us to create access for multiple junior companies to a process that benefits all South Africans and which commercialises South-African developed technology. Braemore's business strategy will support transformation through skills development in a sector currently experiencing skills shortages and will assist with job creation; this is true economic empowerment.'

An attorney by profession, Dr Phosa was one of the first four members of the African National Congress (ANC) to enter South Africa in 1990 from exile to start the process of negotiations with the then National Party Government. He subsequently served as Premier of Mpumalanga from 1994 to 1999 where he pioneered planning interaction between the private sector and government. He serves on the National Executive Committee of the ANC, is Treasurer General of the ANC and currently holds chairman, vice-chairman and board member duties for over 10 prominent companies, including Vuka Forrest Holdings Pty Ltd. University of South Africa, Value Logistics and Command Holdings. Dr Phosa plays a vital role in realising these companies' business strategies, particularly with regard to integrating previously-disadvantaged persons into the economic framework of South African businesses.

Leon Coetzer, Chief Executive Officer of Braemore, commented: 'Dr Phosa brings substantial knowledge and experience at a time when finding the right partner to take the Company forward is key. We believe his contribution to Braemore will be considerable.'

'On behalf of the Board, I should like to take this opportunity to thank David Humann for his considerable efforts in the past and his ongoing commitment to Braemore's success.'

- Ends -
cyril

Braemore takes another leap to smelting platinum
Braemore Resources says it has successfully put the Mintek ConRoast smelting technology to test. CEO Leon Coetzer talks about establishing its first 10MW smelter on the Bushveld.

Author: Tessa Kruger
Posted: Thursday , 02 Oct 2008

JOHANNESBURG -

Braemore Resources (AIM:BRR;JSE:BRE) took the next step to establishing the first UG2 platinum smelter using ConRoast technology on the South African Bushveld today, when it unveiled a 3.2MW "demonstration smelter" that will treat the platinum offtake of producing juniors at Mintek, a state-owned minerals research organisation, in the city.

Chief executive officer of Braemore Resources Leon Coetzer told Mineweb today the company planned to build its first 10MW UG2 smelter on the western limb of the Bushved from the first quarter of next year. It expected the smelter to treat 8,000t of ore per month; delivering 150,000PGM ounces a year.

Coetzer said the company had completed the testing of the Mintek ConRoast technology, which the company had an exclusive license to as the 3.2MW demonstration smelter located at Mintek in Randburg, Johannesburg would already treat 2 200t of ore a month. He said the recent upgrade of the smelter from about 1.5MW to 3.2MW demonstrated the scaleability of Braemore's undertaking, while the next leap to treating 8,000t of ore per month was not too large.

The demonstration project was fully industrialised and has already put the financial model to test, while it also smelted high-chrome concentrate on contract basis, similar to how the planned 10MW commercial smelter would operate.

Coetzer said the company's next step to becoming a midstream processor and then "mine to metals" company on the South African landscape that hosts 80% of the world's known platinum reserves was to put together a black economic empowerment (BEE) consortium that would participate a minimum of 50% on project level.

The company today announced the appointment of Dr. Matthews Phosa, a member of the ANC's National Executive Committee, as non-executive chairman of its board. It said in a statement Phosa would "play a leading role in facilitating the black economic partnership Braemore is currently negotiating in terms of its South African footprint".

The CEO told Mineweb its BEE consortium partner would also go some way to determine which juniors' or UG2 producer's concentrate would be treated in its UG2 smelter. Braemore has made a commitment to the market that it will announce its first offtake agreement or intent thereof, before the end of the year.

He said he was aware of the fact that a number of platinum juniors had plans to build UG2 smelters in the Bushveld igneous complex, but Braemore's view was that it was the only company with rights to the ConRoast technology that could treat UG2 ore with high chrome content. UG2 ore is increasingly being mined on the Bushveld complex.

The company would have the ability to treat concentrate ranging from high-chrome to low chrome content as its ovens were highly modular, said Coetzer. He said the company envisaged establishing 30MW smelting capacity in the industry over the next four years.

Braemore said its feasibility study covered a range of feedstock options and capital expenditure for the project would be finalised once the optimal feed source is determined in the last quarter of 2008.

MINEWEB is an interactive publication, with rolling deadlines through each day, commencing
cyril

So life goes on?

Relationship agreement update regarding major shareholder

Braemore Resources plc (JSE: BRE; AIM: BRR) announces that it has entered into an agreement to further regulate the relationship between the Company and its major shareholder, Atomaer Holdings Pty Ltd ('Atomaer'). The agreement removes the potential for competition between the two companies and allows Braemore the full benefit of a major shareholder who actively supports the Braemore business strategy.

Key highlights of the agreement include:

Braemore and Atomaer sign agreement to address potential areas of competition and agree in principal to resolve overhang of Performance Shares

Specified terms by which Braemore can acquire new nickel and PGM sulphide projects from Atomaer
Specified terms linking Atomaer's shareholding in Braemore to its representation on the Braemore board
Atomaer is the registered holder of 315 million ordinary shares, representing approximately 40% of the ordinary shares in issue, and 305 million performance shares of £0.001 each having the rights and restrictions set out in the articles of association of the Company (the 'Performance Shares'). Atomaer's contribution in the technological area of Braemore's development work has been significant, and a strong relationship has ensued. In the current economic climate, the support of a major shareholder has been crucial in Braemore's ability to continue with its stated business model.

According to Braemore's Chief Executive Officer, Leon Coetzer, 'The agreement clarifies the capital structure of the Company and the terms of conversion of the Performance Shares, providing greater certainty to all shareholders. It also provides Braemore with the benefit of a first right of refusal over the acquisition of any interests and/or rights to nickel and/or platinum sulphide projects acquired by an Atomaer Group Company on commercial terms. '

'Key to the agreement is that the performance shares are now linked to the Leinster Nickel Sulphide Tailings Project and that Braemore and Atomaer have agreed to negotiate in good faith the buyback of the Performance Shares; a reinforcement of the on-going positive relationship between the two companies.'

The key terms of the agreement are as follows:

The company will adopt the new articles of association, subject to regulatory and shareholder agreement.
The 305 million Performance Shares currently issued to Atomaer will only convert into ordinary shares upon Braemore entering into an agreement with BHP Billiton Nickel West Pty Limited for the exploitation of the Leinster Nickel Sulphide Tailings Project.
Braemore and Atomaer have agreed to negotiate in good faith the buyback of the Performance Shares on commercial terms to remove any perceived overhang on Braemore's ordinary shares (subject to regulatory and shareholder approval, if required) after completion of the order of magnitude economic evaluation and engineering scoping studies as agreed to with BHP Billiton, expected to be completed by early November 2008.
Braemore will have a first right of refusal to acquire interests and rights in each new Nickel and/or Platinum Sulphide Project acquired by any Atomaer Group Company on commercial terms for as long as Atomaer is the registered holder of 30% or more of the issued ordinary shares of Braemore. This replaces the Nickel Rights under the Share Sale Agreement dated 9 May 2005 and entered into between Atomaer, Braemore and Braemore Nickel Pty Limited, which have been cancelled. In addition, Braemore is to reimburse Atomaer for all costs incurred by Atomaer, up to a maximum of A$300,000, in performing its obligations to Braemore in the identification, investigation, evaluation, acquisition and offering of rights to Pan Palladium Limited's Grass Valley Project.
For as long as Atomaer is registered holder of 30% or more of the issued ordinary shares in the Company it will be entitled to appoint two directors to the board of directors of Braemore. In order to ensure good corporate governance, it has been agreed, amongst others, that a committee of directors of the Company who are not directors of Atomaer be formed to take decisions relating to matters involving an Atomaer Group Company.
Project management functions previously performed by Atomaer will be transferred to a Braemore Group Company.
Atomaer has agreed to a restriction on competition with any Braemore Group Company with respect to the smelting or refining of nickel and platinum group metals. Further details of this restriction are set out in the Relationship Agreement.
ENDS
cyril

Cyril is this good news or bad,as the market this morning sent it down but has recover at the moment.?

ULB i see this as positive in so much as we have a thumbs up from our major
investor.
cyril

This is not good news.

mitsy, could you give your reasons for thinking so please?
cyril

Its to do with the 305m performance shares which will convert to ordinary shares upon BRR entering into agreement with BHP would this lead to more share dilution for BRR shareholders..I cant see how this would be good for shareholders.

Mitzy Below is the explaination from the Proactive writer.
cyril

The Atomaer Performance shares are one of the least confusing things about Braemore, IMO!

They were issued as part of the WCN purchase agreement in 2005, and are effectively the second half of a "half now, half on delivery" arrangement.

They convert to Ordinary Shares "on delivery" - i.e. when Leinster gets the green light. No fee is payable by Atomaer because they are effectively the second half of the purchase price of the Leinster project.

What could be simpler?

Ok cyril I get it now.

20% down for no reason this is a scary share.