The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
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Where is he now then ? He was the guy talking this up a few years back, so if he has gone awol then that isn't a good look. I am not going after him; rather I am way more interested in whether or not the 'world class Kalahari Copper Belt' is really world class (ie has Khoemacau and Sandfire and lots lots lots more ore bodies that Kavango and other aspirants can and will explofr ofr and then develop. Folks like Dave C are important here - he has done some work. Where do we stand with those results and any more recent work? Thats what I am interested in......
Dave is a contractor/consultant not a director. Why did they focus on Karakubis? Dave had regional models suggesting Karakubis was more prospective plus the neighbouring licences have found mineralisation.
Swako is up to his usual mischievousness mud slinging, nothing constructive when you are clearly out of depth.
Hmm not sure i follow all that Swakopmunder but you did prompt me to wonder/ ask - is Dave C still involved here? I didnt see his name in Directors or Management. C is for Cattrall - yes /no ?
Is it just Kavango that has not got going re the 'world class Kalahari Copper Belt' or have all the other aspirational (or perhaps lifestyle) players suffered the same slow death as Kavango.
I want to understand where Kavango is currently with the copper in Botswana projects before these are a bag of old bones, and then i can pass on Zimb BS.
Jings and crivens... OK, I'm game. Let's try and whip up some interest in a, ahem, turkey.
Almost as much interest in talking to oneself (or anyone talking things up) as FCM trying to hype a project they don't have any real interest in...
To buy or not to buy, that is the question?
Why bother if it's going to be even cheaper to get in on down the line?
When it becomes even clearer that KSZ ("best er PGE, er sulphide Ni, never before seen geofizz readings, drilling looks grear" turns to "damn, they were right, it was actually graphite". Dusters.)
KCB ("Dave C's sure to find it", errr, unless he's not. Drilling dusters),
Ditto for Dittau (where did the elusive Prof "Best prospect ever"" and the old "DeBeers are so thick they never checked up on any anomalies, we're going to make a killing here!" go) . Dusters and or crickets.
And the next move on the never ending "Magic" roundabout is Zimbabwe, where no man and his dog have never, ever looked before using our amazing tech and brains. It's a cynch.
Lucky they got something selling the pup that was Molopo to the equally clueless POW...
Not sure. Is it worth a punt? Anyone?
Ok, so Purebond are 26.6% shareholders meaning they paid for their 140m shares. And have option for 400+m shares, so for them to exercise at 1p will mean a pile of good news ahead. And Purebond principals have India sounding names - no idea where they are based though.
Hopefully this one has a decent runaway ahead with lift off not too far along the way.
Hello. I am interested in and researching investment projects in Botswana. Used to follow Kavango back when it moved from 3p to 6p (I didnt buy or sell then) and have just this week started looking at Kavango again. I have googled Purebond Ltd but dont see any informative info about them - is anyone here able to comment on who they are etc please ?
I assume the cash was received for the first 140m shares at 1p - yes ?
Is it correct the focus now moves to gold in Zimbabwe; if so, then i wont be so interested in their progress. Khoemacau and Sandfire copper projects are major projects for Botswana and I was hoping to read Kavango had finally made good progress on developing their Resource Statement on licences. I will do my research and read back to get a sense of why progress on copper has been apparently poor - but if anyone cares to comment or share an informative links, then I would be most grateful. Thank you.
Decent sized trades continue to go through here. Now being quoted 0.69p for £2.5k. If this 'buying under the hood' continues, only a matter of time before this starts trading in the 0.7s. A move towards 1p very much on the cards here on this financing.
Accounts overdue
Next accounts made up to 31 December 2022
due by 30 June 2023
What an embarrassing disaster the CEO here. Total Botswana bust after so much hype. But it could be a good punt to above 1p. As PB will have free reign to buy up to 90% in the market, one strategy could be to buy now in the hope they buy everything available beneath the financing price they paid of 1p. It would provide support, and would mean others wanting to buy would likely end up having to compete for supply since Pb will be buying and holding, I suspect. Not investment advice, just an interesting opportunity for a short term trade possibility. Risky but could be a nice reward if it worked.
Fukuro,
I totally agree with your assessment, except for 1 thing. BT in his presentation speaks of Zimbabwe as this untapped opportunity. I started to wonder how true that is. Our perception as a (presumably) predominantly British audience is probably that Zimbabwe is some lawless land with artisinal miners scraping away with bare hands and lots of mercury. White farmers being driven off the land by a mob. That if only some UK firm would bravely venture there, untold riches await.
I would just encourage people to read about Zimbabwe perhaps in their newspapers. It doesn't seem quite so frontier or under explored to me. There seems to be plenty of Western (and Eastern for that matter) firms there already.
e.g.
https://www.herald.co.zw/category/articles/business/
I retain a small holding here and I genuinely hope that this Zim strategy works. And next year's KCB exploration finally yields results too. But multiple failures culminating in the KSZ made me decide to offload my relatively large holding (at great loss).
I do feel that Ben Turney wasn't clear about the risk of failure in the KSZ. I'm not clear about the failures at Ditau and the KCB either. The excuse of "the x hundred page report said it could be graphite" actually made me feel quite angry. Ultimately, it's down to my lack of knowledge of geology, but that's exactly why I decided to largely get out of KAV. I have a great respect for Ben, and his presentation capability. I do dislike the negativity continuously thrown at him. But at the same time his presentation capability caused me to lose sight of the risk. As you say Fukuro "It's hard to stay objective, but important." I hate to say it but I would say that applies to listening to Ben Turney too.
GLA
KAV have investors who will want a return on their £6 million investment. There isn't going to be ANY room for BT to fail them, otherwise he will be out himself. Little wonder then that they have purchased their own Rig, and I expect they will go hell for leather over the next 12 months to deliver a return for PB, for their own shareholdings and ultimately, to keep themselves in post.
So you can add 'highly motivated and energised management' to the list of reasons to invest. All imo
Someone posted on ADVFN forum: "They admitted rejecting these tenements 3 years ago, doing a 180 on that after the failure in Botswana is sheer desperation." Is this true? Is this something BT said in the interview? If so, I didn't pick up on it.
Drilling due in 3 months time then
then some more in the new year
And actually, seeing as I am not done accumulating, feel free to continue trolling KAV and spouting anti BT rhetoric. I have funds arriving in a couple of weeks and will be looking to double my holding here, and so if I can continue to buy shares at these (bargain) basement levels ,and before BT starts to put the financing RNS out, I will actually be very happy and most grateful.
FK79 - exactly. I'm not here to lament about past performance and failures. This sector is full of failures. I'm assessing the position as of today, and whether I think KAV represents value as of today.
In fact, how many juniors right now, in this tough market, will have £6 million to attack their projects with, or anything close to? If these de-ramping trolls, or genuine but sceptical posters, can point me to better value propositions, in terms of a junior trading near its ATL, but with big financing incoming, I am more than happy to consider them.
So there's your challenge Cox and Co, point me in the right direction then?
You have to look at every situation as if you don't hold a position.
It helps with perspective. If I wasn't already invested here. Would I invest now?
Otherwise the decisions are fast and emotional, it needs a more removed analytical perspective.
Honestly, If I wasn't invested already. I would take a short term position now, but medium term or long term I'm not sure. The reasons I'd invest now if I were new to KAV is (not exhaustively);
- The mcap is lower than the 6 million being raised with PB.
- PB are paying 1p, about 50% higher than market.
- They have an active exploration campaign at karakubis
- I'd anticipate a news rich period from Zim options, Karakubis, financing etc
- Share price is trading at a significant discount to historic prices and seem to have stabilised after bad news.
- They should be well financed for the next 12 months or so
The reasons I wouldn't be sure about the medium to long term if I were new:
- Sentiment is very low
- Zimbabwe is highly prospective, but is outside of my personal comfort jurisdictionally atm
- The effective loss of the KSZ and Ditau as options ATM in the safer juristictions
- High levels of dilution to date (although this would be mitigated with the in flight PB raise and potentially Zim assets)
So, I'll hold to 1p. Then assess the progress with more info at hand and determine.
It's all high risk in this type of stock. It's hard to stay objective, but important.
Atb
Thank you for proving my point. I rest my case.
Whilst some grievances aired on BB are perfectly legitimate, genuine and sincere, we all know that ramping and de-ramping goes on as well. And that these posters will often latch onto the positive or negative points being made by the genuine posters, to further their own agenda. It happens all the time!
Agree Layla.
A decent and realistic presentation . Lets hope Ben keeps a tight rein on his enthusiasm this time around. It led to a lot of expectation from shareholders and ultimately disappointment. Not sure why P.I.s' voicing their concerns over Ben's performance is seen as some form of de-ramping tactic. There's often extreme views on holdings that reflect individuals monetary and emotional investment, and both sides create a narrative to defend their stance. This is the work of the ego :-)
Good luck to all genuine long term holders.
Yes, keeping talking anti BT nonsense whilst others are buying under the hood here. Most of today's trades have been buys reported as sells imo. I know because I have been running dummy buy and sells. Also, it's not easy to buy large volumes of KAV stock at these cheap prices, without raising the price. At one stage today, for example, I got a quote of 0.77p to buy £10k. So it all has to be done under the hood, breaking the buys into smaller chunks. And imo that's what we are seeing and will continue to see in the coming days, as those that can see what's coming start to accumulate these bargain basement level shares in bite size chunks.
Of course, you need to have some de-ramping to go alongside this, and anti BT rhetoric seems to be the chosen de-ramp. But not got much time left though to deploy such tactics, as bid will tick up soon enough, as these 0.6p shares continue to get accumulated. All imo and dyor
A big thanks to Ben Turney, CEO at Kavango Resources for choosing to make an announcement about bulk mining in Zimbabwe on London South East. Kavango will continue to develop at Karakubis in the Kalahari Copper belt and at Ditau, however the main focus will now be the three new projects in Southern Zimbabwe: the Nara Project with it’s bulk mine option, Hillside and Leopard. These will be funded by the Purebond £6M financing. Next steps there are a whitewash vote to take the Purebond holding to 52.5%. Please watch the recording in full here: https://youtu.be/1YwaKThh8bE
FK79 - yes, and the financing will be key.
Sometimes - often? - the best time to catch these stocks is when they have just endured bad news and a sell off. The key things I look for in that scenario is their ability to bounce back, and the likelihood of that. This turns on things like whether they have the cash to bounce back, and other projects to move onto. In KAV's case, the answer here is YES re the projects and (almost) YES re the cash. You then have the added bonus of share price not only trading near ATL, but also trading at a significant discount to the 1p investment coming in.
The main thing that can go wrong here, risk if you like, is PB pulling the £4.6 million. But I can't see that happening given the reassurance they have given to BT that the deal will go ahead, AND the fact that they have already invested heavily into KAV, so they aren't going to harm their own investment. Furthermore, as BT confirmed yesterday, they are worth £300 million, so whilst this represents a significant investment for them, it's not taking up a lot of their resource.
Therefore, subject to the financing, i'd say this is a SCREAMING BUY opportunity and as I said, I have and will continue to accumulate at these bargain basement levels whilst the opportunity is there. I expect this opportunity to disappear once KAV start to issue the financing RNS, which BT has stated will be next month i.e. a matter of weeks now. All imo and dyor
Largely agree with your analysis legal.
Will decide what I do in the coming few months. No point rash selling now. I'll sit and see.
Atb
Yes barkerman.
We were last and was a bit of a wait but apparently they will be editing and releasing 5 videos today. A sepyone for each of the 4 participants of the respective companies and a fifth of the entire conference with all four. Should be available later today..
Not sure what platforms.
Atb