Rainbow Rare Earths Phalaborwa project shaping up to be one of the lowest cost producers globally. Watch the video here.
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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
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.
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.
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
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.
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
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
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.
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
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 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.
"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
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.
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
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
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