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I heard a story
One man owns a piece of land in a bad place that many decades ago used to have ‘rough neck’ small scale mining in search of gold.
All the easy to reach, easy to find pieces of gold have gone.
He has a mate who runs a company where they can get plenty of money from mugs who don’t know any better.
They decide to work together to get the mugs from his company to pay to explore the land just in case there is any gold left over that wasn’t found decades ago.
His mate tells the mugs that not to worry, years ago there were some high grades of gold using very selective data when the reality is some what different, that here is other data about the bad place where the land is that he has chosen to ignore.
He tells the mugs not to worry as if it’s no good he won’t buy the land but we will hand over all the data he has accumulated at their cost to his mate and pay him a small sum every 6 months for doing it!.
And even if they find anything worthwhile, just try actually doing anything with it ( it’s in a bad place) you will need to pay just as much in bribes to set up a proper mine and operate it, before you even think about something as trivial as making a profit.
He tells the mugs they will spend a lot of money in the investigation , but it’s okay we have money to spend.
The mugs comfort themselves that it’s not all the money and there is still other projects that have been disasters so far, they just might turn a profit.
The mugs don’t allow themselves to get disheartened the company has failed for years to ever find anything meaningful let alone actually make any money all while the man’s mate gave himself a big pay rise.
But not to worry the mugs assure themselves it will be early stage cash generative when the reality is it will likely never be cash generative, it’s in a bad place after all, none of the major industry players bother with this bad place for good reason.
Then the mugs reassure themselves it’s the fellow investors fault for not being positive about losing money.
But those of a more critical mind have worked in and understand drilling and mining, they know you don’t pre agree to sell good gold plots for $4m.
But none of the mugs want to consider the pre arranged price, the reality of this ever becoming a mine, the obvious conclusion they are going to pay to explore and develop someone else’s plots, who owns the plots and what is the history of ownership, who has neighbouring plots and their links to the mates.
These questions are too difficult at this time.
The mugs instead keep up their belief if they speak positively of the company and defend the message board from more savvy investors they might save heir investment.
So the man and his mate pull it off again, they are successful, they rinse the mugs and keep feeding the mugs scraps who are excited about nothing.
The end and it really is the end.
I wonder how close it is to POW's Tati project. At one point I believe that it was suggested that the tailings from it might be processed in Zimbabwe.
https://twitter.com/Alby__Tross/status/1673358871320985603
It's an option to buy outright. So won't be a KAT mark 2.
If the grades were good, and the railings were from early 1900s to 1960s mining then they could economic as the older processes couldn't have been as efficient as those use today. However early days and Id imagine they collect samples from various piles and perform economic assessment fairly early on.
KSZ and KCB are the key assets though ATM so I'm glad this Zim option isn't too capital intensive.
Atb
Hopefully, BT will ensure we own the rights to any tailings stacks before spending millions proofing them up. Unlike, Louis Coetzee of Katoro Gold!
Definitely some large scale dumping going on. Perhaps this is just the unwinding of the investments of the group of pumpers somebody mentioned. Up… and back down. Hard to imagine they’ve made much money if so!
Still buys out do sells if recorded correctly.
Agreed, KSZ. Although KCB too! Zim is just now another avenue as an option to now be assessed. For now.
Atb
I think so too .. drilling atm ..
D220 - but that assumes that the rise was because of the Zim news that's just landed and that the price of 1pwas a fair value in the first place. I don't think either of those are necessarily true.
I've not been too enthusiastic about a Zim deal but said I'd hold judgement until the details are released.
Structurally I'm comfortable with the deal. It seems pragmatic. Exploration without firm commitment and the cash that is commited isn't too vast to be in competition to the existing asset base.
It's certainly worth exploring to assess the economics, and I support the strategic intent by Ben to try and identify a earlier stage cash generative project.
Now I'd like to see the work progress but obviously not at the expense of progress on the Bots assets. Financially they should have the runway based on the structure.
Fingers crossed on the B conductor drilling. They've obviously got to at least 370 metres now so over half way there.
Atb
The RNS is fairly light on detail as to what Kavango’s hopes are for the new project and the grounds for that. That is sensible. There is now an exploration program to come and it is prudent not to guess what the results of that will be.
I agree the RNS is not sufficient to explain the recent rise in the SP. Presumably that rise has been down in large part to the KSZ drilling and/or the securing of large scale finance
It was always going to be only an option at this stage. That much we knew, although a number ignored it when they were worrying how we'd pay for a new asset at this point
Not enough there to justify the 50% rise from 1p IMO.
So, only an option at this stage and can be taken up or dropped at any point over the next two years so minimal commitment at this stage.
This morning for KAV and WCAT....Expect we should break past 2.00 this week ....primed for a bounce up
Red flag! Scam! Sell! Aaarggh!!
It still did a massive rise though Stan. 10 bagsbfrom 0.1 to 1p.
There was time and liquidity to get out as well.
How about answer the questions you're being asked.
Another fine case of Zimbabwe and the Chinese this morning over at Premier aka PREM
Turney wanting to buy a license in Zimbabwe is a massive red flag
What price will you happily sell for Stan and what fundamentals is that based on?
I never said you were influencing the price on an Internet forum by the way. I said that I suspect you're shorting given your perma-bear outlook.
Also, let's be honest about this. None of us know what will come of Zimbabwe. What we do know is that Premier African Minerals, who are anything but what their name suggests, have an asset in Zimbabwe and 10 bagged their share price over the last 12 months or so. Their market cap hit c. £250m at its peak.
KAV could have 1bn shares in issue and a share price of 25p for the same valuation. Just 1700-1800% from here.
Course you are, sunshine. You hold those shares
Metalhead25
Please relax, it’s Sunday evening.
Zimbabwe which was NOT in the business plan is a red flag for many reasons.
Keep on cheerleading, you might make the shareprice move up 🤣
And yes for the final time I am a shareholder.
If you want to buy my shares for the price I paid I will happily sell and move on.
Good night
So we’ve shifted from being a shareholder to raising red flags in order to warn others. Give it up Stan, you’re embarrassing yourself.
You best get back to working on this theory you’re devising that the Zim project (a project you currently know nothing about) is not just bad but “sinister”. Is that intended to guard against the project, when announced, looking exciting and attractive? You can go “don’t take any notice of the good things you can see; worry about the SINISTER THINGS YOU CAN’T SEE”.
Red flags! Sinister! Scam! (I’m a shareholder, honest)
Correct,
And it’s my opinion shared on a public message board is that there are a number of red flags in relation to Kavango.
Thank you for reposting my message, I hope it helps others out.