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I was hoping for a bit more than 1200m of drilling but I guess its proof of concept first, then start a bidding war between Rio & Sandfire.
Re KCB:
"KCB ongoing work programme to 2024
The Company has initiated a focussed data review on the Karakubis licences, which it considers to be a high priority
target. This work, let by consultant David Catterall is ongoing and includes integration of previous AEM and CSAMT
data sets, aimed at generating areas for further follow-up.
In-depth geological mapping and a detailed soil sampling program are also being carried out.
Follow up is expected to consist of Induced Polarisation (IP) geophysical surveys, and then a program of drilling to test
the highest ranked targets. Presently an indicative 1,200m of diamond core drilling has been allocated for this, at an
estimated cost of $360,000.
A budget of $485,000 has been assumed. If results of the geophysics result in a large number of high-quality targets
then this may be expanded, utilising the discretionary budget available on a results basis.
These figures are indicative and are subject to change based on exploration results and actual contractor costs"
Yes, looks like we might be on the runway for lift off here now, despite the attempted de-ramping on here. Now that he has the money, I expect BT to go into full ramp mode with the comms as well. Already started on twitter. Exciting 6 months coming up for sure imo and GLA.
It's good to see price picking up here.
Personally, I want to see Ben (and maybe Dave Catterall) explain why the next drilling campaign at Karakubis could improve on the results from the last attempt. I want to know what the geological hypothersis is.
We need to move away from saying something us a million siemens and that has to mean massive sulphides because anyone with half a brain could see what was coming.
We need management to wise up and tell a story investors can get on board with because they will need to.
In corporate terms, whilst we can be sore about the Purebond terms it does set a stall out. They either do well and so do investors who averaged down or they don't and they end up throwing their good money after bad, which is obviously up to them.
As a LTH, I'm not too concerned about the current low SP. Most of AIM has been hammered.
However, where I do have some concern, is the track record so far. History often teaches us important lessons regarding the present and future.
I urge all new investors to carry out your own research, don't rely on anonymous posts on a forum. These are often written with an agenda.
Bt and PJ have been making statements like this for a few years now and look at the SP?
You have to be a very naive person to believe anything these two jokers say
KAV are about to start drilling in the next few days according to their tweet today. Let's hope they get some early success and we can close that gap to the 1p financing that has gone through, as well as ride the rising POG. Should hopefully see some more regular newsflow and volume coming in now. GLA
"The rig finally arrives at our Hillside #gold exploration project in Zimbabwe. The drill pads are ready & we have 24-hour security in place. The drillers will now set themselves up to commence drilling in the coming days."
Resolution passed. BT has tweeted:
"We can now move forward confidently, with such strong institutional backing. We have big plans for the coming year in Zim & Bots."
"KAV is now ready to move forward with the strongest financial backing on the London Market & an overwhelming mandate from independent shareholders. Thank you everyone."
And this from PJ:
"Shareholder approvals for incoming funding of £4.6m to #KAV from single shareholder at 1p a 54% premium to the current share price. Market needs to adjust a fair amount higher imo. The turning point perhaps for the company?"
They have the money, in fact "the strongest backing on the London market" and its time for KAV to deliver now. GLA
OT - good post. Who cares about the past, unless you're a disgruntled underwater holder. Lots of them around at the moment given the fall in the sector. But I couldn't care less about the past. I'm trading the market TODAY, looking for what are good propositions TODAY. Kav at 0.7p, with exploration at Zim, Karukubis and Ditau to come, is easily a good proposition as of TODAY.
First positive RNS should land her tomorrow. All imo and GLA
Without speculating about the financials JP you're missing the bigger picture. As much as the suits in the city would want us to believe to justify their existence it is not fundamentals that dictate share prices but sentiment. KAV was a man in a shed when valued at 6.5p, the sector was benefitting from the commodity supercycle narrative and investors were falling over themselves to throw cash at junior explorers. Current sentiment is pretty much the opposite. This won't always be the case and once the catalyst arrives the whole sector will rerate and it won't be relevant to think of valuation in the current context. Not to mention if we make a meaningful discovery.
"I'm estimating only $2m of the $5.5m will go on exploration."
How many other juniors have anywhere near £5 million? Bottom line is that they have more than enough cash to complete upcoming drilling in Zim and Karukubis. Right now, we don't need to look much beyond this programmes, as the initial results will likely determine KAV's (and BT's) future. Can't see anyone being interested in the KCB if Karukubis doesn't come through first time round, as it is the higher priority and probability target according to DC.
I'm more than happy to take my ticket at these prices and see what happens over the coming weeks and months. Each to their own. GLA
The interim financial were to 30th June and in reality KAV had creditors to pay. Happy to be corrected, BT gave a couple of interviews in early Sept and in one he says cash is currently $400,000 which leads me to think KAV is operating on fumes so the £4.6m (US$5.5m) Purebond raise is the new baseline.
The interesting (disappointing) point is only a fraction of the $5.5m is being spent on exploration because as Bozi points out Turney doesn't do prudence. I'm estimating only $2m of the $5.5m will go on exploration. The ENRG deal is strategically good and secures a great land package in between Sandfire & Rio, but its costing $1.8m in cash before any drilling obligations. Turney's said there's a pipeline of a "dozen" deals, any savvy CEO would structure these to preserve cash until KAV firms up resources creating genuine shareholder value, but Turney has Purebond's open cheque book....until the day they eventually kick him out. At present KAV is run by an old man (albeit some sucesses) & a 12 year old in the body of a 40 year old.
It's now 0.73p to buy even small amounts! What happens if the forthcoming RNS bring with them buying interest and volume. This could go up very quickly indeed. NOW is the time to get in for the ride. But each to their own and dyor.
The interim financials made clear that they have more than enough cash for the next 12 months at least. They've just raised £6 million and the Kasangra's have indicated further financing on success. So it's not a concern at all. The expenditure in Zim is broken down into easily manageable chunks.
Anyway, I'm in for what promises to be an exciting 6-9 months of exploration for gold and copper. Which other AIM junior is offering anything like this kind of expenditure and exposure?
If you don't see it or like it, then go somewhere else. It's your money. I don't need to ramp it, the proposition is there for anyone and everyone to see. I expect BT to ramp up the excitement though, as he undoubtedly will, as soon as he has the £6 million secured. Running out of time to de-ramp or sit on the fence. The share price is not waiting and the train is about to leave the platform, and we haven't even had the first of the RNS yet. What happens when they land and the volume starts coming in, as it undoubtedly will because there is high interest in gold stocks at this very moment in time.
All imo and dyor
Lovely stuff JP2000.
Legalwolf has gone long long long and has been blindsided by the need to ramp.
I'd like the price up as much as anyone but let's not pretend Turney is going to be prudent with the funds. More will be required by the end of March 2024.
Cash position post raise USD 5520000
Nara option payments 110000
Nara min spend 500000
Hillside option 500000
Hillside drilling 500000
ENRG 1600000
Karakubis 1000000
Overheads 1000000
Rig purchase costs? 500000
Total spend commitments next 7-8 months 5,710,000
JP - some utter hogwash from you there. They have their own Rig, so drilling isn’t going to cost them much. There is no way they will burn through £5 million in 7-8 months. The dire market applies across the board and is not exclusive to KAV. Having said that, gold explorers are getting a bounce from a rising POG. As for geophysics, we are talking Zim here and not the KSZ.
You have been de-ramping this for a while now. Are you bitter from past losses or looking for cheaper entry? I doubt you will get the latter now. I’ve been trying.
Next 7-8 months here will be the most exciting fie sure as they are going for their lowest hanging fruit. Which other gold juniors have raised anywhere near £6 million of late? All imo and dyor
I agree the ex-placing price is theoretically higher & its difficult to buy stock & both point to a higher share price. Looking at the Leopard prospect (not being drilled straight away) they should be looking for >500kozAu, Hillside (should start in next 10 days) looks more speculative.
My caution is the dire state of the markets, KAV's ability to FU the geophysics & poor drill results, lots of cash going out of the door funding licences not drilling, and an absolutely massive capital (equity funded) requirement when KAV moves to mine development. KAV will burn through the cash in 7-8 months, the share price will be smashed down and Purebond will increase their stake to 80-90% of the company with private investors left with nothing. You'd have to be a trader/speculator to touch KAV, its certainly not an investment for private investors. The only reason a lot of LTHs are still around is looking to claw back losses rather than a ringing endorsement because PI's are going to get diluted 200-300% in a very short period of time (6-24 months) unless KAV gets spectacular results and manages to sell Karakubis for cash.
BT flying back from Zim to close the financing at the GM on Wednesday? 0.7p to buy even £500 now.
I say get in before the RNS start to land here, as no way this stays so low following £4.6 million of extra financing. That is a CRAZY amount of funding for a junior in the current market, and is to be added to the money they already had. Almost unrivalled financial position for a low mcap gold and copper junior explorer. All imo and dyor
You can't ignore the mismatch between the financing price and the current price. Neither can you ignore that they will move forward with circa £5-6 million, with their own Rig, and will be non stop drilling in Zim and then at Karakubis in Q1 - the latter being their current flagship. I'd also expect KAV to accelerate Ditau, to capitalise on the rising POG even further.
All this for 0.65p looks a good punt to me. It's already impossible to buy large amounts below 0.65p. It might needs some positive results to actually get back to 1p, but once the financing is confirmed, and buying volume comes in, I expect that climb to begin. All imo and dyor.
I only see the share price rising if there's been shenanigans suppressing the share price to make the whitewash takeover look good or secondly if KAV actually makes a discovery and the track record has been diabolical. IMO the share price won't rise much until KAV delivers.
KAV are targeting Hillside which had very modest production underground so its not clear what if anything this will yield.
Leopard also part of the same option deal has a non compliant resource of c500,000 oz.
GM this week to complete the financing. POG is set to continue its rise on most analysts' forecasts, just as KAV is about to begin its gold drilling as well, with its Rig finally in Zim according to BT's tweets. Should get a kickstart RNS soon as well. Let's hope this is the start of a recovery for KAV. GLA
Yes the revenue figure $570m but the valuation is based on free cashflow generated i.e. profit assume $500/oz not 1900, then apply a discounted cashflow calculation, assuming a 15% WACC (note local interest rates in Zim dollars are 150% but have ignored) because country risk is high and LIBOR is now 5%, then apply the licence holder's percentage (typically an explorer with a JORC compliant reserve/resource will get 10% of the DCF) based on their added value so 4% and that's how you get to the valuation. An added complication is BT has stated KAV can't produce a resource & flip as per the intentions in Bots, it will be something to do with property rights and the ability to enforce contracts in the Zim courts. When BT compares Zim to Australia the elephant in the room is a functioning legal system and the transferability of assets and neither applies to Zim.
The underlying point is KAV needs to find +500koz of near surface resources which are easily extractable with low capital requirements.
Jp2000 I think your sums could be a little out, 300,000 oz of gold at say 1900 dollars is 570,000000 million.
I was just looking the Hillside/Leopard deal terms:
$500,000 option fee
$400,000 debt at an unknown interest rate.
84m shares, lets say they're 1p post funding so c$1m
$1m in performance shares resource>200koz Au
Call it $3m, that means KAV need to find at least 300,000oz of near surface gold to justify that price so lets hope they get drilling very soon.