Berkeley Mineral Resourceswww.bmrplc.com TICKER: BMR EXCHANGE: AIM
Berkeley Mineral Resources is a mineral processing company. It is currently engaged in a single project, the extraction of lead, zinc and other minerals from above-ground tailings and slag Dumps at the Kabwe mine in Zambia. The company was effectively a cash shell when the present chairman Masoud Alikhani became involved in 2007-2008, resulting in a change of direction and name. In addition to its activities at Kabwe, BMR has signed an M O U with Ngwena Mining Resources under which it could acquire 76% of the copper tailings from the former Roan Antelope mine at Luanshya, 145 km north of Kabwe. The Kabwe Zinc and Lead Mine was in operation from 1906 until 1994 and produced around 2.6m tons of zinc and lead in the 90 odd years of production. The tailings dumps which still exist at the site are rich in residual base metals.
Acquiring a substantial stockpile resource
Included are wash plant tailings capable of providing cash flow this year
Fair value, unrisked, seen at 8.1p / share versus current 2.3p level
Foreign buyers gorging on UK stocks
Document can be downloaded here: UK plc ‘going for a song’
Being a shareholder in a company that receives a juicy takeover offer is a marvellous feeling. Something that many fortunate investors have experienced over the past 3 years. Thanks to a spate of M&A bids by deep pocketed overseas buyers – partly triggered by the June 2016 Brexit result, which sent the £ tumbling and adversely affected the FTSE.
Consequently today, given this trend is unlikely to end anytime soon, we’ve highlighted 30 possible acquisition ideas in the attached research paper. Spilt equally between large and smallcap stocks – covering a broad selection of industries.
What’s more we believe most of these businesses are underpinned by strong fundamentals and substantial upside in the event of predatory interest.
According to Factset Mergerstat/BVR, the average bid premium paid for such deals between 2004-14 was 30% – with the figure trending upwards since the global financial crisis.
Happy investing. Published 27th August 2019