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Right now Observer 842 and EyeGuy, the share price of KDNC is 19 pence, mkt cap £28m or thereabouts
From 19p to £10 is a long way, 50X.
An observer said to stay grounded after reading the to and fro on this forum.
IF BOTH OF YOU ARE SO SURE YOU ARE RIGHT OVER £10 ETC, YOU WILL TAKE IT TO KIRAN MOZARIA, CEO OF KDNC, CHAIRMAN OF KDNC SUCKLING,
ACCOUNTANTS OF KDNC TO RUN IT PAST THEM AS THEY ARE QUALIFIED WITH EXPERIENCE & LICENCED.
BROKERS LIKE WH IRELAND WHO DO FORECAST AS A JOB.
----------------RUN IT PAST THEM--------------------
I LET YOU HAVE YOUR SAY, I HAVE HAD MINE. END THE CONVO AND PEACE OUT.
IT IS OW 12:10AM AND I HAVE NOT YET GOT MY TEA YET AND I HAVE TO TURN IN NOW.
I SEE AN ANSWER SO IT MEANS THAT THERE IS MORE REPLIES TO CARRY ON THE CONVO.
---------TAKE IT TO THE BOARD OF KDNC------------------------
Fri, 5 Mar 2021.
@news. You are seriously misunderstanding me. I am saying that you ARE a credible person. The use of the word challenge in this context means "to question". Please keep it civil. And stay calm. We are in this boat together :-)))
you will be PROVEN RIGHT OR WRONG AND ONLY TIME WILL TELL.
Re: your cals that KDNC will have a share price of £5-£10 when KDNC Amapal is in full production at 49% share.
This is now 5 Mar 2021 and the Court case in Brazil has taken AGES AND AGES.
ALL THE RNS HAVE BEEN NOW SUPERCEDED GIVEN THE COURT CASE HAS NOT ALLOWED ORIGINAL TIMELINE TO BE FULFILED.
NOTHING HAS BEEN RNS YET ABOUT AMAPA FINAL AGREEMENT SIGNED BY THE CREDITOR BANKS , THEREFORE THERE CAN BE NO RIGHT OR WRONG CURRENTLY AS THE TIMELINE MAY NEED TO CHANGE FURTHER?
So, what is the need to challenge me or creditability on the line over timelines that have changed so much that few can even keep up?
Why Observer842?
OBSERVER842
SEE- IT IS NOW COSE TO MID-NIGHT @11:40pm and you take this topic on and on.
You do not NEED TO CHALLENGE as its a strong word-there is NOTHING TO CHALLENGE ME.
Out of courtesy, there is NO NEED TO CHALLENGE anyone for your creditabilty or mine.
THERE IS NOTHING CRITICAL ABOUT THIS, you provide a link to a 2019 RNS? It is now 2021!!
The shipping was initially for 12 months, now 18 months.
I have no time to listen and trawl through all the videos that I heard. My notes are mixed up with KDNC and another co, hence why I have to try to locate it again.
Why are you PICKING ON EVERY LITTLE DETAIL?
Why? THE RNS WILL COME OUT-AMAPA FINAL AGREEMENT SIGNED BY CREDITOR BANK [IF THIS HAPPENS IN A STRAIGHT FORWARD WAY] and then THE NEW DETAILS OR FINAL DETAILS ABOUT TIMELINE FOR SHIPPING WILL HAVE TO BE RELEASED AGAIN PLUS ALL THE OTHER DETAILS.
So, there is no need to pick through old RNS*s of 2019 when there have been so many changes.
Why Observer842 - you are NOT LIKE THIS WITH OTHER PEOPLE on the main forum so why here?
Why are you PICKING ON EVERY SINGLE THING AND SAYING ITS HAS TO BE CHALLENGED?
AND THEN ABOUT CREDITABILITY? THERE IS NO CREDITABILITY ISSUE.
IF WE WANT WE TAKE IT TO THE MAIN KDNC FORUM - I WILL HAVE TO DO AN AUDIT TRAIL TO GET ACTUAL INTERVIEWS TO PROVE.
BUT FOR WHAT? TIMELINE HAVE CHANGED SO MANY TIMES? EVERYONE SAID SO AND NO ONE CAN KEEP UP GIVEN AMAPA IS NOT MY SPECIALISM?
WHY OBSERVER842 ARE YOU TURNING THIS FORUM INTO SOME FORUMS WHERE THE CONVO ENDS WITH 1 OR 2 OPTIONS.
I DONT WANT TO GET TO THAT POINT SO I WANT TO STOP AND P E A C E OUT.
You are talking OF CHALLENGING ME for what has been so many changes? As you know SHIPPING WAS SUPPOSED TO BE AGES AGO.
Why should CREDITABILITY COME INTO THIS? Even on the main KDNC board, no one can KEEP UP WITH ALL THE DATES.
WHY IS CREDITABILITY BEING CALLED INTO QUESTION OVER JUST A SIMPLE TIMELINE WHEN NOTHING HAS EVEN BEEN SIGNED OFF YET AND THEREFORE NOTHING CAN TAKE PLACE IE SHIPPING START RIGHT NOW and therefore it is X months or Y months?
NOTHING CRITICAL IN ANY OF THIS?
IF ON THE MAIN FORUM OF KDNC SOMEONE HAS RECALLED WRONGLY, PEOPLE ARE KIND TO JUST LET OTHERS KNOW BUT NO ONE SAYS THAT THE PERSON*S CREDITABILITY HAS TO BE CALLED INTO QUESTION OR NEED TO BE CHALLENGED JUST FOR A MISTAKEN DATE WHICH IS NEVER CRITICAL?
I have obviously got on your wrong books once I said that £10 was too much at this stage to extrapolate into such a long time to come when SHIPPING AND THE AGREEMENT HAS NOT BEEN EVEN SIGNED YET - HENCE NO MONIES HAS EVEN STARTED TO COME IN AS INCOME FOR KDNC except $10m profit allowed for Dev, the JV.
On other sites eg EMH OR BCN which are investee co*s of KDNC you do NOT TAKE ANYONE TO TASK BY SAYING YOU NEED TO CHALLENGE THEM OR THEIR CREDITABILITY IS IN QUESTION FOR JUST A SIMPLE DATE WHICH IS NOT CRITICAL?
I END THIS CONVO.
IF YOU BELIEVE YOUR FIGURES OF £10 FOR KDNC, you wil
OBSERVER842 & EYEGUY
I am looking at something else and I just clicked to see if there is more progress via links.
I then chanced that both of you are still at this conversation which ended days ago.
I did not reply but both of you started the convo again on the SAME SUBJECT MATTER AGAIN.
Why have you become like this, OBSERVER842? You were not like this before on the main forum. If this was conducted on the main forum and did NOT STOP, I am sure you know what could happen next?
Hence, why it should stop - everyone has had a say. Even an outsider said "STAY GROUNDED" but no, you insists you are right to say £10 when today, KDNC cant get over 19p?
Once you posted to me some time ago and you said "HEY NEWS." I was uncomfortable with that but I never said anything. It showed a lack of respect to call someone "HEY." Its just like calling out to the waiter HEY and they dont like ie either. No one like to be addressed like that.
I knew then to be careful.
I was right, that impression has led to nit-picking. You have a right and I have a right.
You can say what you think and calculated and leave it at that. So, staying grounded is something I want. NOTHING WRONG WITH THAT?
On the main forum on KDNC, YOU DO NOT GO ON WITH EVERY ONE SO WHY HERE WITH ME WHEN I AM ALONE BY MYSELF AND NO ONE TO HELP ME OUT?
WHY OBSERVER842 AND EYEGUY.
Eyeguy is from Twitter normally but at 11:40pm at night both of you are PEELED ON THIS SITE OR ELSE YOU CANT ANSWER.
We are wasting our time as we need to get on with other things?
So, LETS ASK WHY? WHY NO TO AND FRO ON THE MAIN KDNC FORUM?
WHY HERE, ONLY WITH ME ALONE AND TWO OF YOU?
FACT-IF YOU INSIST TAKE IT TO THE KDNC FORUM AND LET*S DISCUSS IT THERE- I CAN FORESEE PEOPLE WILL GET SO FED-UP, ADMIN WILL HAVE TO INTERVENE.
I SAID PEACE OUT AND ENDED WITH MY RIGHT OF REPLY AND OUT COMES MORE CONVO.
NOTHING IS IN STONE YET-IT NEEDS TO COME OUT VIA A KDNC RNS IE THE FINAL DATES -RIGHT NOW NOTHING IS FIXED 100% AS THERE IS NO FINALISATION AGREEMENT YET, SO ALL THIS IS MERELY NIT-PICKING.
@news. I am going on estimated timelines that have been officially RNS'd. You are a credible person in my view. If a credible person says something which I don't think is correct, I challenge it, both for their benefit and mine - as it could be me that is incorrect. The RNS is as below:
"Heads of Terms to Acquire Interest in former Anglo American Iron Ore Mine, Amapá, NE Brazil" (21 May 2019)
http://irservices.netbuilder.com/ir/cadence/newsArticle.php?ST=REM&id=2790390
===[
Cadence's investment will provide the initial working capital and will be utilised to complete a detailed recommissioning study and pay some of the historic creditors. The recommissioning study will provide definitive operating and capital expenditure numbers and a timeline for recommissioning. The remainder of the required capital expenditure and working capital is expected to be raised predominantly from project debt. Full recommissioning is estimated to take 12-18 months with mining production targeted to start in 2021.
]===
By my estimate we are coming up to 15 months behind schedule, so mining production is now likely to be targeted in 2023, but could be end of 2022 if the deal is signed in the next few months and shipments start shortly afterwards.
I said I hear it from the interviews. No one reads this forum.
There is no need to insist that it is from the presentation. What I hear may be not correct but that is what I heard. I have my notes and have to try to look and see if I can find it.
I think it is nit-picking. Try going thru the recent interviews again.
I think it is getting tedious now as both of you are insisting on something that does NOT need constant correcting. Everything is being corrected.
Try checking the recent interviews. It is of such critical importance at this point when the FINAL AGREEMENT IS NOT EVEN SIGNED OFF YET FOR AMAPA?
IT WILL HAVE TO COME OUT IN AN KDNC RNS RELATING TO HOW MANY MONTHS SHIPPING, SCOPING STUDY AND RE-COMMISSIONING?
I think all this is IRRELEVANT AT THE MOMENT-people on the main KDNC FORUM SAID SO.
Not sure why OBSERVER842 YOU ARE GOING ON AND ON AND ON?
Why?
both take your figures TO :
KIRAN MOZARIA, CEO
CHAIRMAN, SUCKLING to make sure that the board knows.
then to the ACCOUNTANTS, NOMAD AND AIM ADVISOR.
then to the BROKER/S WH IRELAND AND HANNAN & PARTNERS, INVESTMENT BANKERS WHO HAVE A SPECIALIST METALS SECTION and run those figures with both firms who HOLD FCA LICENCE TO PRODUCE FOREWARD FORECASTS OF SHARE PRICE.
LET ME PROVE TO YOU THAT NO BROKER HAS EVER PRODUCED AN OFFICIAL BROKER NOTE TO SAY THE SHARE PRICE WILL INCREASE 50 X TIMES FROM TODAY*S KDNC*s price of 19p, Mkt cap £28million to £1.4 BILLION @ £10!!!! NONE - NO ONE WILL EVER BE ABLE TO SHOW ME SUCH A NOTE - these are from the people who are ACTUALLY QUALIFIED AND LICENCED BY THE FCA TO BE ABLE TO DO SO.
I rest my case. I will NOT ANSWER anymore as its wasting everyone*s time and it is getting nowhere.
IF YOU ARE CONFIDENT, GO TO THE RIGHT PEOPLE.
I have approached the NOMAD before as someone said that £8m was an overvaluation for a co and who said he was a fund manager. I contacted the advisor both in the UK and Australia and I was told to get in touch with the FCA. Obviously, the advisor for AIM believed when it comes to a valuation and such like, this chap did not have a FCA LICENCE AND THEREFORE he has no right to tell people it is a over-valuation? In Australia, if one is a professional one has to get special clearance from Hotcopper and they then give a designation BEFORE THE PERSON CAN POST. In the USA, they get badges like Twitter and they state who they are and what exper or qual. This is like some cowboy space where everyone just produces BIG TELEPHONE NO*S AND RAMS IT DOWN MY THROAT WHEN I JUST MENTIONED 2X EBITDA say...
Apparently, it is to close my word of caution down and therefore why IT IS REPEAT ON THE KDNC BOARD TONIGHT ABOUT £10 FOR KDNC PRICE FORCAST BY OBSERVER 842.
This is all NOT DONE. WHY THE INSISTENCE?
TAKE IT TO KDNC AND GET PAST THE BOARD IE CEO AND CHAIRMAN.
By the way, I decided not to contact the FCA but became aware that TOPICS OF VALUATION, SHARE PRICE FORECASTS SHOULD BE TREATED WITH CAUTION when no one knows who posters are in real life and therefore what makes them in a position to do these FORECASTS THAT ARE ONLY GIVEN TO FCA LICENCE HOLDERS WHO ARE QUALIFIED AND EXPERIENCED IN REAL LIFE WORKING AS ANALYSTS ETC?
Not sure but all seems a bit unusual to say the least? NEVER SEEN ANYTHING LIKE IT.
News, 4 Mar 2021.
Obviously, one poster said to "REMAIN GROUNDED" after the convo going to and fro. I think an outside observer can see TO REMAIN GROUNDED ie from 19p today to £10 shortly when production begins at £1.4 billion mkt cap when it cant even get over 19 p currently when the AGREEMENT FOR AMAPA IS NOT EVEN SIGNED YET AND NOTHING IS 100% CERTAIN and there may have to be more steps ie legal procedures to take.
TAKE IT TO THE CO, ADVISORS, ACCOUNTANTS AND BROKERS-THAT IS THE RIGHT WAY IF BOTH OF YOU ARE INSISTENT EVERYONE MUST NOT REMAIN GROUNDED?
@news: Take a look at page 10:
https://www.cadenceminerals.com/wp-content/uploads/2021/01/Corporate-Presentation-KDNC-JAN-2021-PUBLIC-1.pdf
Recommissioning starts within 6 months of the agreement with the banks, and aims to be finished within 2 years, with new ore potentially from 19 months from agreement with the banks. This coincides with what is in the JRP where new ore is mined and shipped in year 3 (24 months from start of shipping ore at the private port), with a further ramp up in year 4, and full production by year 5.
So EyeGuy is correct to question: "All this is irrelevant UNTIL shipping starts, scoping study done and re-commisioning done which will take another 3.5 years at least. Then, comes ramp up to full production”,
as the ramp up to full production potentially starts from 19-24 months from sign off with the banks.
No one is looking for a quarrel. Keep it civil please.
Ob.
Not enough space.
Contd
from that legal site, it said they wanted the Court to allow them to appeal to the Supreme Court and the next last avenue like in Britain is to the Secretary of State but in Brazil it is to the Minister in charge.
ISNT THIS JUMPING BEFORE IT IS EVEN OFFICIAL THAT IT IS TIED UP LEGALLY?
I think Kiran Mozaria is taking the right step to do things in a more assured step and in accordance to the rule of law. Once they start shipping they will know more as they are on the ground and the JV owns Amapa provided they get the FINAL AGREEMENT SIGNED OFF.
NO, I SINCERELY DO NOT KNOW WHY OBSERVER842 AND EYEGUY YOU ARE GOING ON AND ON.
ITS A SIMPLE MATTER- I MERELY POSTED WITHOUT ANY REFERENCE TO THE £10 AND WAS DISCUSSING IT WITH EYE-GUY. If EyeGuy is the one who posted non-stop the Communist, a minority party is going to take away EMH*s Cinovec and would not be moved despite different people showing him that their politicians have discussed the matter and they are aware that compensation and international litigation would cost MILLIONS as did ONE CAST THEY LOST IN THE PAST.
So, if EyeGuy is the same guy as I do not exactly recall the exact name, then it will not stop.
And therefore BEST TO END THE CONVO as there is NO POINT.
WHY ARE THE TWO OF US INSISTING. I merely posted a simple doubt EBITDA for an example and OUT COMES THIS WHOLE PAGES AND PAGES OF DISCUSSSION.
I never said OBSERVER842 PLEASE CORRECT MY POSTS at all here. YOU WOULD NOT ANSWER WHEN I ASKED A QUESTION AT BCN AND EVEN OVER HERE, SO I TOOK IT YOU WERE JUST IGNORING ME OR WHATEVER? THEN, ALL OF A SUDDEN YOU COME ON SAYING I SAID to correct.
You NOT ONLY CORRECT, YOU ARE PICKING ON EVERY SINGLE LITTLE WORD OR LETTER SORT OF THING. WHAT IS THE REASON FOR ALL THIS???
SEEMS TO ME FROM THE POSTS, THE TWO OF US ARE GOING ON TWITTER IE EYE-GUY WITH THE FIGURES AND OBSERVER842 ON A SITE NO ONE READS OR VISITS AND THEN ITS NOT ENOUGH BUT TO GO ON TO KDNC MAIN FORUM TO REPEAT IT AGAIN WHEN RECENTLY YOU HAD ALREADY TAKEN THE TOPIC TO THE FORUM.
SOMEHOW, YOU ARE SORT OF SHUTTING DOWN ALL CONVERSATION ABOUT THIS AND JUST REPEAT AND SAYING NO ONE KNOWS ONLY YOURSELF?
My word, IN MY WHOLE TIME ON THE LONDON SOUTH EAST, I HAVE NEVER SEEN ANYTHING LIKE THAT.
Even Gilby Report said £5 in the old REM time and even then no one KNOWS WHO THIS GILBY IS. It certainly isnt a PROPER REPORT as it was posted on ADVFN = an poster of whom no one knows who it is. That was one of the complaints when folks lost their savings.
APPARENTLY, THE TWO OF YOU DO NOT SEEM VERY BOTHERED ABOUT THE REM PEOPLE WHO LOST MONEY OTHERWISE YOU WOULD HAVE TO BE MORE RESPONSIBLE THIS TIME ROUND. ONCE IS GOOD ENOUGH - I believe the MATTER WENT TO THE FCA as I read that people complained.
People have been complaining and PEOPLE HAVE HAD A KNOCK ON THE DOOR SORT OF THING, SO ONE DOES NOT WANT ANOTHER REPEAT.
IF BOTH OF YOU ARE SO CONFIDENT YOU ARE RIGHT, YOU CAN T
From the data given,it is 18 months for shipping.
Then, another 18-24 mths to do the scoping study and recommissioning.
This is from the recent interviews and Alan Green?
Isnt 18 mths, 1 year & 6 months given that there is 12 mths in 1 year?
Isnt 24 months = 2 years given 12 mths is 1 year and therefore 24 mths = 2 years?
So, isnt 1 year 6 mths + 2 years= 3 and a half years?
What is so difficult about that?
I get TWO COMING AT ME WHEN I ENDED THE CONVO.
You gave your answer and I gave mine.
---------
EyeGuy and I ended with peace out and now again, its another to and fro. Why? TWO BLOKES COMING AT ME AT THE SAME TIME AND NO ONE HERE TO ADD TO THE CONVO TO PROVIDE A FAIR DISCUSSION? Surely, it nees 2 vs 2? Not 2 vs 1?
---------
I just had a LOOK at the KDNC FORUM AND YOU HAVE TAKEN YOUR £5-£10 THERE AGAIN after you had already posted about it.
Then, you say, observer842 that over the road, which is this KDNC.PL FORUM THAT
YOU POSTED ETC.
WHY? WHY OBS? WHY THIS INSISTENCE? NO ONE READS THIS FORUM SO WHY GO OVER TO THE MAIN KDNC FORUM TO SAY YOU POSTED ON THE OTHER SIDE?
WHY ARE YOU SO INSISTENT YOU ARE RIGHT? YOU ARE SAYING KDNC WITH A MKT CAP OF SOME £28M @19P IS GOING TO £10 WHICH IS £1.4 BILLION MKT CAP!!!
DID WH IRELAND DO THIS CALS AND PUT OUT A BROKER NOTE THAT KDNC IS GOING TO £10?
WILL HANNAN & PARTNERS, LONDON TIER 1 INVESTMENT BANK ALSO PUT OUT A BROKER NOTE TO SAY £10 FOR KDNC WHEN IN FULL PRODUCTION WITH 49% SHARE IN AMAPA?
Where is ALL THIS MONEY COMING FROM? RIGHT NOW, KDNC IS TRYING TO KEEP THE LIGHTS ON LIKE IN THE PAST FEW YEARS. WHERE IS ALL THIS MONEY COMING FROM TO BUY 49% AS IF MONEY IS OF NO OBJECT.
How does the CASH FLOW ALLOW ALL THIS, PAY FOR AIM LISTING, EXPENSES, OFFICE, OVERHEAD, SALARIES PLUS PAY INCREASING SHARE TO 49% OF AMAPA?
ANSWER WILL BE TO SELL MORE OF EMH ? Surely KDNC SHOULD TRY TO HAND ON AS MUCH AS POSSIBLE TO EMH FOR AS LONG AS POSSIBLE AS KIRAN MOZARIA SAID THAT IT IS GOING TO INCREASE AS IT NEARS PRODUCTION OR AKIN TO THAT GENEERAL THEORY?
How OBS?
In an ordinary co, yes, its EBITDA but when it comes to Amapa, it needs to be POST TAX so that what comes into KDNC is net tax from Amapa.
HAVE YOU TWO RUN ANY FIGURES WITH KIRAN MOZARIA OR THE ACCOUNTANTS WHO PREPARE THE ACCOUNTS TO SEE IF THEY AGREE YOUR FIGURES?
You are just taking this on and on without any END to prove it HAS TO BE RIGHT.
You are NOT LISTENING TO ANY GROUNDED ADVICE TO SEEK TO RUN THESE FIGURES WITH EITHER KIRAN MOZARIA OR THE ACCOUNTANTS AT KDNC WHO PREPARE THE AUDITED ACCOUNTS - MY WORD, IF THE BROKERS, WH IRELAND AND HANNAN COULD SEE YOUR FIGURES, I AM SURE THEY ARE GOING TO BE IN SHOCK??
TRY THAT, BOTH OBS AND EYE-GUY, NO NEED TO TRY TO GET IT PAST ME AS I AM NOT INCREASING MY INVESTMENT IN KDNC NOR TAKING OUT SAVINGS TO GET INTO A GME MANIA OF £10 OR EVEN £5 AT THIS STAGE WHEN THE AMAPA AGREEMENT HAS NOT EVEN GOT SIGNED OFF BY THE BANK CREDITORS YET?
As you
My apologies @EyeGuy
Ob - yep I know that but news said
“ All this is irrelevant UNTIL shipping starts, scoping study done and re-commisioning done which will take another 3.5 years at least. Then, comes ramp up to full production”
There's a couple of years ramp up to full production @EyeGuy
News- the presentation time line for commissioning is 19-24 months from January 2021. You have doubled the timelines to what has been reported. Why?
@news. Are you going out of your way to make it hard to have a discussion? LoL. Please write fewer things and provide links to what you are talking about. All I can say is that different companies are valued differently based on all sorts of factors. The EV's to EBITDA can be quite wide ranging for apparently no reason! :-)
Based on today's iron ore prices of $177.00/t Fe 62% and $200/t Fe 65% the estimated EBITDA of the project given what we know and my understanding at full production would be approximately:
$136m + (($177/t - $61/t) * $0.9Mt) + (($200/t - $80/t) * 4.4Mt) = $136m + $104.4m + $528m = $768m
If we owned 49% of Amapa that would be $384m = £275m per year
On an EV to EBITDA multiple of 2.7 this would equate to £5 a share ( £275 * 2.7 / 148,349,098), 5.4 would be £10 a share.
and 11 would be a little over £20 a share. Is 2.7 reasonable? Of course it is. 5.4? Probably. 11? Well, see below:
"Cleveland-Cliffs Stock Jumps 3x In 6 Months; What’s Changed?" (JAN 8, 2021)
https://www.nasdaq.com/articles/cleveland-cliffs-stock-jumps-3x-in-6-months-whats-changed-2021-01-08
===[
Though earnings dropped, CLF’s P/E multiple increased from 6x in 2017 to 8x in 2019 mainly due to higher revenues, the company’s expansion plans, and rising iron ore prices. The multiple dropped in early 2020 to 4x following the outbreak of coronavirus. It has since then increased sharply and currently stands at 15x, as iron ore and steel prices have rebounded post the stimulus announcements. We believe that the company’s P/E multiple will decline to a more realistic level of about 9x in the near term.
]===
We sign this deal off in this economic environment and AIM might not know what hit it. LoL.
Ob.
Best we end this convo here-you have had your say and I have had mine.
Very democractic and peace out.
All this is irrelevant UNTIL shipping starts, scoping study done and re-commisioning done which will take another 3.5 years at least. Then, comes ramp up to full production etc. ONLY THEN, WILL A GLIMMER OF THE ACTUAL ACCOUNTING COME OUT IN ACTUAL BRING HOME THE BACON IE IN REAL INCOME & REAL MONEY INTO THE COFFERS OF KDNC BEFORE ONE CAN SAY SP IS X OR Y.?
Thur, 4 Mar 2021
are at liberty to do what they want with their REM shares but if they should decide to go for your forecast or forarming as you call it, it is up to them.
THAT IS THEIR DECISION - AT LEAST THE CO HAS TRIED TO GET BACK THEIR REM CAPITAL in terms of the path the co has taken to try to steer through the commodity bear market and had to sell BCN shares to survive this period.
As I said, the figures are too ----to the end of the bell-weather range of normal distribution?
So, correction of EBITDA is irrelevant UNTIL IT CAN BE PROVEN OTHERWISE IN THE FUTURE RE: KDNC*S ACTUAL PUBLISHED A/C*S so that we know or NOT that cost is fixed or not?
So, to me I did SAY ====AN EXAMPLE TO SHOW. I never said I HAVE WORKED OUT ACCOUNTING TO THE LAST BIT which I will not be privy to as to what finer tuning there is in terms of costs especially given inflation is going up etc.
I have had my say and you, yours.
Let HISTORY NOW PROVE OR NOT OTHERWISE. Certainly for myself, these days, I slap my cheeks virtually if I ever saw £10,000 potential from £200 investment. That is to put some sense in rather than have the GME effect take over?
Thank you.
News, Thur, 4 Mar 2021
As they say, TIME PROVES ALL THINGS.
DYOR. PLEASE DO DUE DILIGENCE.
I read that Zamin after buying Amapa found the iron ore price dropped to $40, virtually impossible to make any money given that the chap said that Amapa has a "HIGH INTERNAL COST OF $70." How, I am not sure as I have not been given to understand Brazilian iron ore has a cost of $70 USD? This is from the link that I read on the main board in Spanish but translated into English relating to the Amapa railway. Maybe, when Zamin took over, then he found out? I do not know why that chap said so?? That is something that is out of our depth as we cannot do due diligence on given we will not be allowed to look further.
Part 2-no space
if not a bit earlier. ONE CAN SEE NET SALES WENT FROM $1.603 billion in 2020 to $1.813 BILLION IN 2021, so not a extreme jump. Why, I am not sure as I have not investigated further. Then, one sees that EBITDA went from $734 BILLION IN 2020 TO $814 BILLION IN 2021, AGAIN ONLY A £80 BILLION JUMP - 10% + JUMP. One would think that with HIGH ORE PRICES, THE EBITDA WOULD JUMP MORE THAN 10%+ GIVEN THAT AS YOU TRY TO TEACH ME THAT COST REMAINS THE SAME? So, somewhere, EBITDA has NOT JUMPED 3X OR 2X OR X TIMES THE RISE IN IRON ORE PRICES. Why? Logic and reason would provide the answer.
NET INCOME WENT FROM $540 MILLION [2020] TO $820 MILLION [2021].
NET MARGIN WENT FROM 34.2% [2020] to 45.2% [2021] so margins improve a fair bit.
--------
DEV-JV {KDNC & SINO]
So, for KDNC with say 49% per your modelling would NEED to BRING HOME FROM DEV JV EACH YEAR SOMETHING IN THE ORDER OF $820 MILLION TO JUSTIFY A MKT CAP OF SOME £2.03 BILLION. Say, we deduct 30% from MKT CAP OF £2.03 BILLION to some £1.4 BILLION, THAT STILL MEANS KDNC with 49% would----------------------- NEED TO BRING HOME IN NET INCOME some US$795.4 MILLION INTO ITS COFFERS IN CASH TRANSLATED INTO £*S."-----------------
Can DEV [JV AMAPLA] produce US$795.4 MILLION NET INCOME [after tax etc as tax HAS to be paid to Brazil before any distribution]. Dev cannot allow KDNC to draw out 100% to take home in net income as it will need to keep a healthy CASH BALANCE FOR WORKING CAPITAL ETC.
IF KDNC CAN BRING HOME US$795.4 MILLION FOR JUST A 49% SHARE, IT MEANS THAT DEV HAS A NET INCOME OF SAY $795.4 MILLION X 2 [SAY 50/50 FOR EASY CALS ONLY] =======US $ 1. 5 9 BILLION IF 100% GROSS FOR THE WHOLE OF DEV.
THAT WOULD MEAN THAT DEV IS EVEN BIGGER THAN THIS LISTED IRON ORE CO ? THIS CO OWNS 100% OF A IRON ORE MINE AND PRODUCES WHAT I HAVE SEEN MORE THAN DEV AND EVEN THEN IT CANNOT PRODUCE US $ 1 . 5 9 BILLION IN NET INCOME!!!
IN FULL PRODUCTION, THAT IS STILL 18 mths shipping stockpile + 18-24 mths to do scoping study and re-commission the mine = AT LEAST 3.5 YEARS AHEAD.
ALL THESE CALS ARE IN FACT NOT OF THE STANDARD OF ACTUAL ACCOUNTING AS IT ASSUMES X AND Y WHICH IS NOT HOW OPERATING IRON ORE CO*s OPERATE. 1] 49%-since there is NO DETAIL, IT COULD COST AN ARM AND LEG. DL said 19% extra in the JV is just too expensive to do. Litchfield -KDNC to take from 49%to 100% is also LOADED TOWARDS THE HIGHER %*S.
So, A LOT OF ASSUMPTIONS THAT IN THE REAL WORLD WHERE ACTUAL BIZ OPERATES, THIS WOULD HAVE NOT PASSED MUSTER ? If I had told my boss something like that, I know what*s coming? I can see the holes that will be picked as there is NO BENCH-MARKING or any ANALOGY GIVEN & MODELLING FROM LISTED CO*S WITH THAT TYPE OF INCOME AT THE MOMO WHICH IS MORE REALISTIC AND THE FORWARD GUIDANCE THEY WILL PUT DOWN IN THEIR STATEMENTS WHETHER THE PRICE OF IRON ORE WILL HOLD so that folks know what they can or cannot expect from the co.
I am afraid that folks are a
@observer842
AMAPA IRON ORE PROJECT -KDNC
Folks think that the share price could go to 40p if iron ore prices are low and £1 if high. But you think that the share price could go to £ 5 to £ 1 0 IN FULL PRODUCTION and KDNC has a 49% share. All this is done to forearm so that you can prepare to see what you are going to do or else top slice.
---SHARE PRICE OF KDNC CURRENTLY 19.84p with a MKT CAP OF £28. 68 MILLION--
So, to get to £1, that is roughly 5 x if one rounds the sp to 20p [£1 divide by 20p=5x] with a potential MKT CAP OF SOME £143.4 MILLION.
So, at 40p, MKT CAP would be 2x= £57.36 million. Once REM was 2.25p = £95m. Many bought at 0.9p per the biggest holder ,so round it up to 1.125p would mean that the mkt cap would be £47.5million. So, it is potentially possible that at 40p say, old REM holders could get out their capital as they expressed on the main forum ie LOSS RECOVERED? That is UP TO THEM, WHAT THEY DO IN THE END BUT TO ME, BOTH DL AND THE BOARD WOULD HAVE GOT MANY OUT OF THEIR POTENTIAL LOSSES AND HOPEFULLY A BIT LEFT OVER as profit. This is the hypothesis. DL does hope everyone would recover and he appointed Suckling with his contacts in the metals industry.
£5-£10 KDNC SHARE PRICE PER YOUR POST HEADER date Wed, 3 Mar 2021.
Very rarely do shares these days multiply from 19p [round it to 20p for easy cals] to £5 or £10
as it would be a 50 MULTI-BAGGER at £10 or 25 bagger at £5 with a MKT CAP of £ 1. 4 3 4 BILLION @£10.
Effectively, it means that Joe Public if they were to buy today 1,000 KDNC shares costing say £200 @20p + commission, they could make £10,000 from just £200!! This is even more "Xtrem" than what DL said at the party ie X2 which is reasonable given how we have seen BCN & EMH re-rated before production or DFS respectively with a bit more to go.
This is the type of thing that makes folks lose their "grounded" sense - the new phenomena of the case study of GME. I read the story of some of them and they just got caught up by this ungrounded sense that they were all going to be rich. Yes, 20 people became millionairs but 2 MILLION PEOPLE LOST 1/2 of their savings at a time they could not afford it given these are not the well-headed high net worth. Hence, the need for a Senate hearing etc. I think its easy if one is not been around the losses and one has not seen that the forum heads have to contact admin to help some in the case of SXX or Debs etc. It brings a sense of reality but rather sad for the people who did not look more deeply.
CAN KDNC SP REALISTICALLY GO TO £10?
From my Wed 3 Mar 2021 post, I gave the financial data of a pure iron ore co listed in London which has a mkt cap of some £2.03 BILLION in which they own 100% of the mine.
if one looks at the NET SALES AND EBITDA FIGURES of 2020 vs 2021, the 2021 figures are marginally up or up but not exponentially by multiples. This is IN LIGHT OF HIGHER IRON ORE PRICE MIND UP for some time now since end of 20
This is what I posted on the other board. It was a post intended to promote discussion and research, which it did. It encouraged @tradecraft to engage and share his spreadsheets and painstakingly decoded copies of the tables at the back of the JRP. I pointed out a few oversights and overall I stand by the possibility that at full Amapa production, and with a good wind (!), KDNC's share price could be £5 to £10 if iron ore prices are similar to today's. In reality they may be higher, they may be lower. We don't know. Did I mention that foreresearched is forearmed. ;-)
observer842 22 Jan 2021 17:30
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It feels like most holders think 40p to £1 is possible when we take 20% of Amapa - 40p if iron ore prices are low, £1 if they are high. I think it's worth considering what next. I'm beginning to think that if iron ore prices are similar to today's we might see a share price in the £5-£10 range at full production and assuming we own @49% of Amapa.
Discuss.
The more holders that are able to convince me with decent reasoning this is possible the more likely I am to hold on to all of my shares rather than starting to top slice on @20% news as I, as I'm sure many are currently planning to.
Calculators and comparators at the ready!
Foreresearched is forearmed. ;-)
Ob.
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