Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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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.
No BT said on the telegram group on Tuesday that the rig was still in SA
I may have missed it but have we had confirmation that drilling has actually begun.
I think BT indicated that KAV would commence drilling around nowish with its own Rig in Zim? If so, it should signal the start of decent newsflow here for the next 6 months at least in the following order - financing completed - Zim gold results landing - and then copper exploration in Q1 at Karakubis?
Https://www.miningweekly.com/article/coal-miner-exxaro-hunts-for-copper-assets-in-congo-zambia-and-botswana-2023-10-05
They probably are after a more established copper project - like Khoemacau. That said, Copper is front and centre now for the global players to secure supply side. All good news for the junior explorers like Kavango imo.
I too enjoyed that interview LW..
T...ing up a Discovery on the KCB....
ATB
Great interview - very impressed by DC. Exciting 6 months coming up here for sure.
Hi guys, here is our interview with Ben Turney, CEO of Kavango Resources, and David Catterall, Exploration Director.
Let us know your thoughts: https://youtu.be/U0FTGbyyFxQ?si=m-IAnutcmmc4TGV_
Drilling to start on 9 October in Zim with our own Rig and according to BT: "either one of these projects could have 500k ounces in them, and there are dozens of them."
Zim is to start in a few weeks. KCB to start in Q1. This is very cheap!
This is all coming along rather nicely at moment. I am in.
RNS: Kavango continues to finalise the circular and prospectus for the forthcoming Stage 2 financing with Purebond (announced >>> 09 May 2023 for £4.6million at 1p per share). The Company expects to publish the Circular in the coming days and call the general meeting to seek approval from independent shareholders of a waiver in accordance with Rule 9 of the Takeover Code (Whitewash) in relation to this transaction.
Thanks Elric, touches on the Zim opportunity/progress at the end too.
HTTps://www.youtube.com/watch?v=wHvqusJoRi4
Ben explains how they got the new PL's at a good price due to the Coup in Niger and the need for ENRG to sell.
They have their own Rig in Zim and will be going non-stop to find that gold. We could get a positive RNS from Zim any time. Then we have DC overseeing the next drill programme at Karakubis in Q1. You can easily see the share price going north from here given the newsflow coming up here in the next 6 months.
I'm sure BT will start banging the drum as well with the media. All imo and dyor
This is bottom drawer stock in my little portfolio. I'm way under water, so only have a few £K left here. Who knows, one day we might 50 x bag after all.
GLA
Unbelievable that I’m in both WTE & KAV…. To be honest I’d given up on both!
Let’s hope it continues…. I’ll check in again in a few weeks