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The company got caught by a market in serious over production but had to keep producing to repay debt. The dynamic is materially different.
SGRF are a new major shareholder. Several of the large shareholders remain supportive.
The key in the minerals sands market is that numerous large mines are coming to the end of life and KMR is strategically placed to supply high quality material to all customers (sulphate and chloride processes). The market is entering a supply deficit when current prices do not justify the capital required to start new mines.
KMR is a winner as long as time passes.
But I guess the same management is in place, and the same shareholders. No?
In this cases I would feel comfortable if the controlling shareholders has changed. If not, I would bet the same would happen again.
Https://www.frontiersin.org/articles/10.3389/fenrg.2019.00028/full
Sodium in Batteries: Shift May Herald Another Shakeup - https://www.bloomberg.com/news/articles/2023-11-26/sodium-in-ev-and-storage-batteries-may-herald-another-shakeup?embedded-checkout=true
Battery Maker Develops Futuristic Cobalt-Free Cell for Electric Cars - https://www.bloomberg.com/news/articles/2023-11-21/northvolt-adds-low-cost-cobalt-free-cell-in-battery-race
Thanks for posting the link.
You would need to read a lot of the reports since that time. It is an entirely different company, in a much more stable market with customers actively seeking to partner with KMR, as their supplier of choice, given that their product is almost uniquely suitable for both chloride and sulphate paint production processes.
The board has delivered on major infrastructure promises, on time and on budget, to move KMR into the top quartile of global producers.
In addition, the contribution to local community is incredible, with the majority of staff, male and female, being local. Restoring last, training people and investing in the community with a serious focus on long term sustainability. In many ways KMR is a model company many larger firms could learn from.
There is plenty of detail on their website. It is one of the largest active resources on the planet, with over 100 years mine life. Supply is declining year on year as smaller old mines reach end of life and it is impossible to fund new mines at current prices. Over the next two years KMR will become a globally important asset as it moves to the richest source of product to mine for the next 20 years.
I’ll sell you my shares at £12….. hope you have a great event and you do your research properly and advise clients to buy this asset.
Dividends and capital growth makes investors happy.
The company as turned round completely from those days management admitted there faults of misjudging the market of there product at the time and nearly went bust
I personally brought more shares in the dilution and now yielding 18% dividend yield on my investment also selling 33% of my shares at plus 90% of the value I brought them for
Going forward the company is moving it's mine location in2025 after this it will be happy sailing
There is a shortage of titanium Inthe world so the future looks promising but don't get wrapped up in the hype but personally I think it's a prime takeover company well undervalued because people got burnt in the past
But is a value buy
Be interested what you think after the investment meeting
On December 5th, Kenmare to be discusses at the London Value Investing Club.
Personally, my question for the speaker would be around the historical management practices, particularly the significant dilution experienced in earlier times.
Even at a modest 0.10x price to book ratio, the outcome could leave you with a mere fraction (1/1000th) of your initial investment, if this business is a stock printing machine
However, if there has been a shift in management, I would be more inclined to consider purchasing at the current price.
I hope I will learn more from people that closely follow the company.
Https://www.marinetraffic.com/en/ais/home/centerx:39.691/centery:-16.571/zoom:12
Great see a bit of traffic at the Moma port, it is great to see large cargo ships filling up. Hopefully contribute to a record Q4.
Pricing seems to be stable with higher quality sands starting to rise. Hopefully KMR’s higher quality and reliability means customers have maintained solid pricing.
GLA
I just had a quick look on marine tracker.
I used to be able to see the size of the cargo ship but couldn’t last night.
I believe sometimes the large ships are only part loads but it’s always been a decent watch in Q4 to estimate volumes shipping out.
Have you any more info on this a link would be appreciated.
Thanks for info
Positive sign to see two large cargo ships off the coast at Moma. Both company tugs working away.
I’m hoping for a stellar Q4 of shipments. A record would be nice.
Just curious why wait for 5% rise to invest?
It’s hard to stomach the current trading but I guess it will take Q4 / H2 trading update announcement to see the share price head north.
It’s been a while but I might start watching ships off Moma again. That was Bucklerferns job for a few years but I may take up the mantle.
Hope your all buying more sub £4 I’m well and Turley max’d out until this is at £4.2 +
Yield is no good if your capital is being destroyed. Yield only matters against your average price. Anyone who has bought higher up does not get the existing yield.
Yield rising nicely now over 11% should draw some attention!
LSE says 13k sale at 292 at 4.35 typo error?
Greeno, I think taking the dividend and capital growth over next 6-12 months could turn out to be a good return versus wider market over same period.
It will be good to see better production and shipments over Q4 but also continuing into next year as enhancements start to deliver.
Good luck
They report for last quarter
Prices for ilmenite and rutile improved, while zircon prices softened on sluggish demand.
In for KMR March dividend so adding below £4
Any tips Greeno?
I’m holding firm, I believe this will be sold sooner rather than later but who knows.
Down 20% wont extend Kwale mine past Dec 24.
Less competition for KMR
Enjoyed the dividends but got out at the right time
On Friday Berenberg issued a target of 570p.
Rigged elections in Mozambique trigger violent protests.
.https://www.reuters.com/world/africa/violent-protests-break-out-mozambique-after-local-elections-2023-10-27/
Probably the safest place to be be at present is on the sidelines, which with good rates being offered from banks for no risk makes for a compelling safe haven, that goes across most markets currently.
Before it was countries running high debt economies pointing towards a slow down and possible recession.
Now imo we have far worse on the political front with increased tensions and the threat of war a major concern.
What happened to deplomacy I don't see it anywhere just a doubling down on confrontation more of the same.
If ever we needed a Western leader who could negotiate it's now rather than sleepy Joe who can't remember what he had for breakfast, after all whatever he decides we in West follow without a descenting voice to be heard, then we have freeze Mitch McConnell how do these people get to hold office of influence?
In time KMR should come good however political events are overtaking economic matters.
The share price seems to be falling a lot now. I must admit that I expected the sp to be below 350p by now, due to the market softening and decline in selling prices as well as the massive capex planned for 2024-2026. I would not be surprsied to see the sp fall closer to 300p before rebounding a bit for the year end results.