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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Did anyone listen to the broadcast yesterday??
£6 million and their own Rig. I think they will go 'hell for leather' as PB will want to see a return on their massive investment as well, and especially after paying what is now a premium at 1p.
JP200 - that's what the forthcoming exploration is there to determine. No junior gets it given to them on a plate (or rarely does that happen). We will start to find out in the coming months. Also, even taking Zim out the equation, 0.6p for KCB and £6 million financing is a pretty compelling enough proposition on its own, as far as I am concerned. I'll continue to accumulate at these levels.
"f you actually analyse them more closely," problem is there's only fragments to analyse because conveniently for Turney he can't (won't) be transparent...its a license for incompetency. Are these good commercial prospects because not immediately clear.
I don't have a problem with the change of strategy per se. A change of strategy IS needed, when you consider the various issues that have emerged in the last 2 years, which BT will have seen up front, and given 4 successive failures in the field, with millions spent in the process. I think any CEO would want to re-orientate towards more conventional and easier projects. Therefore, it makes perfect sense why KAV have decided to press pause on KSZ and Ditau for now, and focus on KCB and Zimbabwe, where they already know the copper and gold is there.
The reason the new gold projects are not screaming more loudly at us is simply because of the jurisdiction. If you actually analyse them more closely, you can see the clear potential in them. Arguably, or undoubtedly even, the gold in Zim is much lower hanging than the copper in the KCB. So the batting order makes sense as well.
Re the jurisdiction, I am somewhat reassured to hear that BT is relocating to the country (what stronger show of conviction in the projects can you possibly get than this?), that Hilary is from the country, and PWB has extensive experience of the country. This local knowledge and presence will, I am sure, enable KAV to operate effectively within the jurisdiction, where other companies might struggle. Caledonian Mining have already shown what can be achieved in Zim.
Furthermore, KAV have already acquired the Rig. They aren't messing about or hanging around.
As I said, 0.6p for Zim gold and KCB copper exploration in the next 12 months, and with circa £6 million financing to attack these projects with, definitely screams upside to me. But each to their own. All imo and dyor
No worries. Have a good day.
Atb
Thanks F79. I hadn't looked at it that way.
Once that financing goes through at 1p, I expect the share price to rise towards that level. In fact, I would expect that to happen beforehand i.e on anticipation/expectation of it.
So that’s a rise from 0.6ish to 1pish. Whilst others might argue the %, I’ve already worked out that this represents a Big enough potential rise for me, and one that I’m happy to bet on.
And this is even before any success they might or might not have early on in Zimbabwe, which would result in further upside beyond 1p. All imo and dyor
Bozi,
Strategy argument aside, as I understand why you have your view and which you're clearly more than entitled to have as an independent shareholder and investor.
I'm not following your maths on the discount argument though. You seem to have your calls based off the price gap between current offer around .65p and the 1p strike price, rather than working on %.
If the offer is 0.65p and the strike is 1p then the current market is at just over 53% discount. As in you'd pay 53% higher than the current market price if you paid 1p a share. Higher in the preceding days, before the small % rise in price today.
If as you say he was talking about the 1.8p (he wasn't as it was regarding the PB financing), you say then that would be a 65% discount but that would actually be 276% above the current market price. Obviously discounting 100% of the price paid (0.65p) it would mean buying a share would be 1.15p more, or 176% on top of the current market price.
I'm yet to decide what I do here, but I do agree with Legal in that I believe the PB tranche 2 is on and I see little point selling below their strike price. Irrespective of if I then decide to hold longer term or not.
If I do decide to sell it will simply be because of the strategic change in direction in terms of the jurisdictions, projects etc.
Atb
Legalwolf - forgive me but how is this trading at 65% discount to what investors are paying? It's trading at 35-40% discount to a penny.
Does Turney think we're all stupid?.
Unless he's talking about the 1.8p raise, in which case yeah it's about 65% off. I he might want to examine why that is, and no I don't mean watching the trades or the order book.
I for one have had enough of potential this and potential that, because potential often goes down the swanee. I want to see a plan for re-processing the tailings, what sort of income this will generate and how that feeds into the wider plan.
If they want to build a business they have to move away from the technical and the hypothetical. We need an actionable plan.
Bottom line, as BT himself highlighted in his presentation just now, is that KAV is trading at a 65% discount to the price that the investors are paying. Also, he announced that KAV has purchased its own Rig. BT will be moving to the country, and Hilary is from Zimbabwe. Sounds to me that with the backing of PB, they are really going to go for it in Zimbabwe over the next year. There is also the potential for early revenue from significant tailing dumps And they will also remain focussed on KCB, with RC drilling in the next 3 months, and diamond drilling at Karakubis in Q1 of 2024.
Therefore, it looks to me that all of the newsflow here during this period is likely to be positive, because they are putting the higher risk KSZ and Ditau on hold.
I'd say 0.6p is a no brainer. No way this continues to trade at a 65% discount to £4.6 million going in at 1p from HNW investors. At some point, the market will see and close that gap. In fact, not only was I already thinking this myself, but BT himself has just highlighted the very same point.
Bounce back very much on here when the market wakes up to it. Which it will, because the next newsflow will be about the financing. But by then, the gap will likely have started to close. All imo and dyor
Let me save you am hour of your life you'll never get back: "I am happy to overpay with your money for any cr.appy project so long as it keeps my overinflated salary and expenses coming for another year." See, I've just summarised what you will hear, and saved you 59min of your life - use them wisely!
Spot on JP2000. Said it better than I could.
Cannot see the strategic logic of either option.
Area 1 is tiny. For sake of argument KAV firm up the unofficial resource c230,000 oz Au, what next & exit strategy? You're going to end up with a shoestring operator who'll want to pay a net smelter fee 10 years in the future so the NPV for KAV shareholders will be very low.
Area 2, the claims and overall area are not stated so difficult to assess scale and target resource oz. The biggest concern however are the depths, stated to 1000m. I thought KAV was moving from Botswana because the cover and depths made exploration difficult and rather expensive and Zim had low lying fruits. If KAV wants top dollar it needs to firm up a JORC resource/reserve but that's likely to be extremely expensive if drilling 1000m holes.
KAV need to be making their own claims targeting greenfield sites with potential to host +2m oz Au/Pt, creating JORC resources with further drills to delineate future upside. We have a CEO obsessed with poor corporate deal making rather than a geologist led exploration company.
I'm not sure about that. KAV have looked long, far and wide for new acquisitions and with the aim of lower hanging fruit. I don't think they would use newly acquired funds to go for Zimbabwe over KCB if they didn't feel like they are onto something. Also, BT's moving to Zimbabwe as well I believe, which again doesn't suggest that this is on a whim.
But let's see what he has to say. I think it is very attractive at these prices and I have helped myself to some. I noticed someone took £20k yesterday, and the bid is ticking up.
Therefore, I think a bounce back is very much on, particularly if the Tranche 2 financing is still on, which I believe it is, but BT can confirm. All imo and dyor.
Wouldn't bother Legalwolf. Will likely be a load of fluff.
Those projects are piddly with very limited potential and are coming in quite expensive IMO.
Turney is in full on confetti mode with KAV stock now.
Looks like KAV is refocussing its efforts around potentially lower hanging gold in Zimbabwe? Currently trading at a big discount to the financing price of 1p. With £4.6 million of financing to come at 1p, and after enduring a sell off and hitting an ATL, I think this will bounce back reasonably well.
Looking forward to hearing what BT has to say in a couple of hours about their plans. All imo and GLA
It is good to see that the LSE, FCA and the authorities in general have started to make changes that will especially assist the smaller shareholders community.
Cutting the requirement in half to 5% for calling an EGM is an excellent start.
In my view we will from this autumn onwards see a large increase in Shareholder Action Groups calling EGM's and removing directors who are quite bluntly deemed not to be fit for purpose.
Interesting to note that the Shareholders Action Group over at LSE:BIDS appear to have got what they were looking for according to the RNS this morning!
Apologies as it was about the Stock Box interview!
There are quite a few Shareholder Action Groups in the small caps space at the moment partly due to the dire bear market conditions but also stock [or people] specific reasons.
The relatively new lower 5% [used to be 10%] requirement makes it all a lot easier for shareholders to call a general meeting and get rid of any directors who are deemed to not be for for purpose.
One to watch I guess but I for one would not fall off my chair if this happened here in the coming weeks....
I agree, DevilBaby, the only think I want to hear from Turkey is that he has resigned with immediate effect. That info will come via RNS so I don't need to waste my time listening to him big himself up when he is one of the least qualified aim CEOs, and that is some accomplishment.
Perhaps KAV holders should club together to reach the required 5% of shareholders required to.force an EGM with the only item on the agenda to terminate the employment of the Turkey. It would be Christmas come early, so to speak.
I can’t be bother register for this webinar. Waste of time. KAV can never be good investment with Ben Turney as CEO. Should have been sack long time ago.
As the Government are planning a re-shuffle in September so perhaps should the company with at least a couple of the BODs headed off "to spend more time with their families".
As shareholders we are of course all entitled to our own opinions with mine being that I would very much like to see Peter in a much more [executive] prominent position within the company.
As always would be most interested in others views on board changes?