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Can’t see a placing myself. Wouldn’t look good at all saying to the warrant holders - convert your warrants please so we can have your cash but don’t sell them for X months because we are going to give you some more @ 2p
tucson...no, of course I'm not, how would I know? jasehem had asked "Anyone remember when the objections need to be lodged by for the sands license - sure it was some time towards the end of Jan." My reply was in answer to that. I've previously posted up links showing the HMS Mining Licence is approved but subject to a standard procedure expiring on 25th Jan. I think it's reasonable to expect an announcement shortly after that, given that the routine appeals procedure has been part of every earlier stage of the licence process.
Yes, I've noted that we're on different pages re the need for current funding and I do think you are/will be shown to be completely wrong. One of us will be, for sure. For me, the matter of adequate funding through to cashflow positive has been dealt with in recent RNSs. Basically, a mixture of drawdown loans and conversion commitments from warrant holders (a whole lot more outstanding warrants funding available if needed) plus the first flow of record diamond production in the current cycle and first tantalum shipment, all as we move through Q1.
There may also be first flow from the new diamond processing JV, notably processing the diamonds of all the miners in the area, not just KZG's and of which there was a substantial stockpile because of the inadequacies and blockages of the previous operator, Alexkor. The positive effects of this JV in processing the area's diamonds should not be underestimated. It brought forth real change and is mainly behind why the diamond processing in the current cycle is so vastly different from anything that went before.
So, referring to the low level processing of earlier in the year is no way to judge what is happening now - for that, refer to the 1000 carat aspirations for the current cycle. This, in my opinion, will be more like the new norm - so, I'd say it's a time to take a forward view through the front windscreen rather than the rearview mirror where nothing much was happening. I don’t expect you’ll agree until you see the colour of it. Understandable.
As for HMS, yes, we are led to expect substantial production and income together with enhanced diamond production AND a significant increase in quality within 6 months of licence approval.
Overall – and obviously only my personal view – you will not see the placing you see as being needed. I'm relaxed that they have taken adequate steps to secure sufficient funding from shareholders, other lenders and warrant holders to see them through to the imminent cashflow expected from diamonds, tantalum, perhaps the JV and thereafter HMS in near-term bucketloads.
I’d say give the new dynamic broom CEO a chance and prepare to be surprised, not least by statements you will be able to hang your hat on! ATB
Tucson, the plan has been to get to cash flow positive without a raise. There are two variables with that - how long to be cash flow positive, and whether there are options apart from a raise to bridge the gap. As to the first, we know from RNSs from Sept onwards that we are making more money from diamonds than before, and we should also now be selling tantalum. So we may now be cash flow positive, in which case no problem. As to the second, I think GC and NH have indicated a willingness to bridge the gap with loans and warrant exercises
Company has commitments from shareholders to exercise a further £150,000 of Warrants.
Put this statement on here as company have no said any more about this in there recent updates, I'm assuming this deal is off with possible 2 interested, my point is this is very misleading,
Next week, Jan 25th, for HMS jasehem...licence approved as we know, sensible belt and braces wait until formal announcement I would say. Major announcement on this whenever it comes and formal completion of approval should also see further progress, if not finalisation, with the people wanting to build the HMS processing plant at their own cost.
I think it was said that the record current diamonds cycle also ends Jan rather than Dec, first sales of tant to the new Chinese off-taker expected to be shipped around end of Dec. I think they also anticipated Feb for the full results statement rather than March which should give good insight on current trading. Quite a near-term newsflow can be anticipated.
I also see interims to 31 Dec coming in Mar and, along with the statement of current trading at that time, should also begin to show the increasing earnings trend of the the final quarter of 2021.
ATB
They should be getting / have got cash in from the "record breaking" sale of Diamonds in December. They also shipped Tant. to offtake partner so cash from that too. Anyone remember when the objections need to be lodged by for the sands license - sure it was some time towards the end of Jan.
Would be good if the co could start sharing / communicating this info - not just to provide clarify for existing investors but potential new ones sitting on the sidelines
Tucson - I think they just weren't going to let a short-term minor cash flow problem cause long-term dilution. Taking that loan to prevent dilution was probably a very smart move in the longer-term. It came, however, with a price tag, which was a longer delay to complete the pipeline. I personally think they made the correct decision, but as with so many other things, only time will tell.
I agree that it was almost certainly kazera that pulled out, but I still wouldn't mind seeing some sort of confirmation and explanation.
Align Research make reference to it In one of their updates.
It’s also been discussed on here before. Why would u give away a chunk of your business when u can fund it through your own profits?
Just read the last main RNS. It’s clear to me that they focused on 2 things.
Option 1 was to bring that investment into the company on the basis that option 2 didn’t occur
Option 2 sept 30 RNS Kazera Global has agreed with Tectonic Gold to take control of Whale Head Minerals (Pty) Ltd (WHM), which owns two Heavy Mineral Sands (HMS) opportunities in the Port Nolloth/Alexander Bay area of South Africa.
The profits alone from this will be mouthwatering. Obviously before we get our update on the performance from last year by March I would 100% expect that approval on that mining permit for Walviskop. Then we have the adjacent beach which apparently bears all the hallmarks of having similar characteristics to Walviskop – but is reckoned to be 34 times larger. So again the profits from this alone would fund the water pipeline, further investments etc.
All am doing is sitting tight and buying on dips. Accumulating more and waiting for few years to see how this plays out. Going by everything that’s been said I think I will be happy with my long term investment and for those following I think you will be too.
Good Luck All
FB
The whole thing is very strange, but there must be a logical reason why this deal didn't complete. Whether or not we'll ever know what that reason was is another story.
Any day now then!
Kazera Global plc, the AIM quoted investment company, is pleased to report that the Board have now been informed that the banking due diligence on the investment package totaling €9,130,000 announced in previous RNS's has now been successfully completed.
The Company is now awaiting final confirmation of the transfer of funds, at which point it will make a further announcement.