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Beg to differ mac, they have indeed signed the Heads of Terms but due diligence has not been announced as completed and nor has the deal completed because the first part of the payment is in shares @ 1.5p on completion which has not yet happened.
In his Investor Meet presentation at the end of July he refers to not having been to Kenya yet and it being part of his DD and in the questions at the end, he answers specifically that it closes when they complete DD and gives further info about what they still have to progress.
The interview is probably worth a re-watch in any case in the light of today's news:
https://www.youtube.com/watch?v=kD5rcQead7w - Investor Meet
Likewise this Dig Deep one which is very relaxed and has lots of info, not least his view of the next 6 months:
https://www.youtube.com/watch?v=bqU2Rhx8Ic0 - Dig Deep
Due diligence is done, they've signed the heads of terms as per the released RNS. JORC by year end, DFS 24-30 months from the June RNS.
If played right, Kazera could transform into quite a large company tbh, these next 6 month are crucial to the entire thing. The more that positive news arrives the more they're on their way tbh.
I picked up on the Nickel in that shareholder presentation he put on after the Lithium deal announcement, he certainly appears to know exactly what he's doing as things are currently progressing very well.
A production update on the diamond operation with pan plant in place would still be very welcome, it's now been running a good amount of time, so, they'll know exactly what the output is by now!
GLA
mac, I think what must come first is confirmation of completion of due diligence and the deal having been finalised but, thereafter, they expected they could get a JORC out by late year/early next, around the same time that lithium and tantalum should have worked up to production/full speed respectively.
Now we also have a similar timeline to HMS production, perhaps including striking the Build Own Operate deal to enhance production x 6 and also to an exploration permit being granted for the huge adjacent beach with similar HMS characteristics, now that the principle of concurrent diamond/HMS production has been established. This principle being established is, in itself, a massive, unappreciated step forward for future opportunity for the ONLY company licensed to do this across the whole Richtersveld area.
Talk of a possible nickel deal being discussed too which, like the lithium deal, could come out of the blue. Not forgetting the MoU on other licence areas in Namibia and what progress that might see once other things begin to take up less management time.
All-in-all a lot of solid stuff likely to emerge over the next 6 months, all likely to help set a strong future course. DYOR
I've found it, by year end for the REE aspect as was in June RNS -
"· JORC Compliant Resource and Scoping Study expected within 6 months"
There's a hell of a lot going on at Kazera right now if i'm honest.
The MCAP seems laughable when you look at what is happening across the wider company assets portfolio.
GLA
Getting the news out and about is always the hardest part when a company like Kazera is proceeding through a pivotal moment in its growth.
The more it does the rounds the more eyes will run the figures and see the bargain to be had here.
Isn't the JORC for the REE asset also due in the short term as well?
GLA
Agree with this. This tends to be a rather iliquid share so traders (who we dont normally like) tend to avoid !
Yep. It needs volume as very low comparatively speaking. Looking back at trades, 1139 two fair sized buys pushed the bid - one minute later two sells and back it went.
Low vol and a few will trade for 3%. Nothing wrong with it apart from being a bit boring- but investing is boring most of the time ! Esp in this climate.
In AIM the most fantastic of news doesnt always produce an explosion, especially as this is such a backwater share and also the market in in a slump too. In KDNC we waited over 2 years for news of a deal which theoretically made the share worth many multiples of its current price and all we got was a wimper and now a further slide. This should be twice what it is now but it will take a major investment by an II or a very well structured marketing campaign to get the rusty wheels moving I think..
Sadly, displaying some of the lack of understanding of TTAU/KZG that they accuse the market of in their morning mining chat but possibly worth the listen all the same. Main thing right now is getting it out there. It's right at the start, first topic beyond the idle chit chat:
https://soundcloud.com/user-596578261/microsoftteams-video?
Just to add 2 things:
1. This is the reference to MineralCommodities:
"There may also be the potential of natural replenishment of beach sands. Mining south of Kazera’s licence application area is Mineral Commodities which has one of the highestgrade HMS operations in the world. Interestingly enough, it has a unique deposit due to the process and speed of which mineral sands are replenished by the sea. Since production started in 2014, Mineral Commodities has apparently mined over 9.7Mt so far which is vastly more than its original resource (2.7Mt) due to significant natural replenishment."
2. To add also that when comparing their actual profit levels (on much higher production) to KZG that they (and this is a crucial point) DO NOT MINE MARINE DIAMONDS. As KZG plan to.
GLA
...last few bob in here because it now seems anything but a binary bet. Hope the good news is only just beginning but there are so many opportunities now for one or other of their schemes to start making profits that it would be imprudent not to. But please DYOR!
with this excellent news, I’m rather surprised we’re still sub 1p... it’s quite mad really
@mcqueen... I didn’t take your frustrations as negative at all. It IS frustrating to see us still below 1p. I do think however, in time you be selling yourself short at 1.5p though although I do get why and I do note you weren’t implying all of it.
@steven.... I agree with dvh, this shouldn’t be a spike.... it’s a deservedly so rise...I just hope it remains northbound with so much to offer.
As with numerous mining shares, we are currently so so cheap on the sp....and perhaps some is quite simply market sentiment.
What I don’t get though, is that we are one of merely a very small handful that currently have so much in place and so much to offer.
The positives I take from this:
> Immediately earnings accretive (we know this from Align's analysis where a facility would be built which increases profits by 6x*
> Dr Naidoo successful career at Anglo American leading its Mineral Sands
Profit Estimates:
> £1.5m EBITDA to KZG based on 40% HMS ** (but could be £3m EBITDA based on 80%***) @ 0.072mtpa
> ~£13m EBITDA per annum, to KZG based on adding a BOO (build own operate) processing plant @ 0.24 mtpa
> By comparison MineralCommodities (down the coast from KZG and mining HMS) achieves US$16m EBITDA on a grade of 15% HMS and gets US$163/tonne revenue (vs $127/tonne AISC) albeit on a much higher production of 2.75mtpa
> Based on 80% and based on $163/tonne not $140/tonne then the ~£13m grows to over £30m EBITDA. Growing the operation to the same size as MineralCommodities.... well we do have a next door beach don't we?! £250m EBITDA is not impossible.
NOTES:
* an agreement in principle is in place with a third-party international group to build a processing plant on site under a potential Build Own Operate (BOO) structure which could greatly improve the profitability of this operation as WHM would be able to benefit from some of the processing upside. Land for the plant has already been identified at Port
Nolloth and the partner is intending to invest around US$20 million to build a 20,000tpa pilot plant at no cost to the WHM. It looks likely that the terms of the deal with the third party will allow WHM to benefit by receiving up to 6 times more per tonne for its HMS than the unseparated price (US$135-140/t) which ushers in the potential of WHM seeing annual revenues in excess of US$10 million.
** Based on a 6,000tpm operation selling production at US$60/t (assuming a HMS price of US$135-
140/t and a grade of 40% HMS) suggests achieving estimated gross revenues of US$360,000
per month and probably around US$180,000/month net to WHM. (Align Research)
***high-grade HMS sampling up to approximately 80% although in the company’s plans, a grade of 40-50% HMS has been used to be conservative. (Align Research)
Mr. Brett Boynton, Managing Director – Tectonic Gold Plc
“We are very pleased to have the Mining Permit finalised and are looking forward to seeing this project brought into production. We worked closely with Kazera and our local BEE partners to achieve this outcome and it is a great example of local and international partners creating opportunity in South Africa in the mining industry. This project complements our existing diamond mining joint venture on the South African Government diamond mining site and offers the opportunity to grow into a multi-generational strategic minerals project for the region.
Tectonic retains a 10% non-diluting equity interest from the previous sale of 60% of Whale Head to Kazera. In addition, Tectonic has sold 30% to a consortium of local BEE partners, with this sale to be funded over time from a share of the profits. The BEE syndicate includes entities controlled by Dr Gil Mahlati, a well-known South African business leader who has been appointed Chairman of Whale Head and Dr Dempsey Naidoo, also a high profile South African businessman. Dr Naidoo had a successful career with Anglo American, leading its Mineral Sands business before moving on to build one of the most successful engineering groups in Africa. He has also been appointed to the Board of Whale Head. These partners bring significant profile to what we expect to become a major project for the regional economy.
The initial £150 million valuation of the project does not include the neighbouring beach area which is under permit application. This much larger area provides upside to the project once the Whale Head beach zone is brought into production.
Mining of mineral sands in this area has historically been precluded by diamond mining activity and the necessity for strict security protocols around those operations. Despite the site being a well-established mining operation with almost 100 years of diamond mining history, the mineral sands have not been exploited. Whale Head will now mine high grade HMS zones with simultaneous diamond extraction in a first of its kind operation for the site.
The alluvial sands containing the diamonds and HMS are mined using dredging and digging equipment and processed using water and gravity separation. It is an environmentally friendly operation with no explosives or processing chemicals. The project will offer a range of job creation opportunities on site and in support.
It is anticipated that Whale Head will start operations and sell a concentrate until on site processing facilities have been built. This will likely be in partnership with a major international mineral sands production and sales group.
This is a great outcome for the Alexander Bay community as we will now see new economic development and it is a great outcome for our partners and shareholders.”
I feel this is a further step in making this company profitable. We need further news on the Lithium & Tantalum sales and further details on the diamond sales. I have shown my confidence with 2 top ups.
I agree jimzi, this is very much under the radar and the next 6-12 months could be potentially transformational for the company and its shareholders. Steven49, I don't think this is a 'spike' when the mcap is below £10M!
Indeed Jimzi, in before the picture changes and before the herd arrives.
The list of potential positive news flow from Kazera is endless, isn't there a similar operation 34 times larger that they're currently also looking at?
GLA
What we now have is a verified value of 7.5m external investment and now 3.2m pa contract .
Other EV currently zero.
This is how to invest, before the market catches up
Fantastic news. Kazera really is moving forward leaps and bounds this year!
GLA
Can dummy sell 1.5 million shares easily.
great RNS and I managed to top up at 0.95p
No large trades going through as yet but the will come
Buylongstayhappy
£3.2m pa.
This is a no nonsense cash generative company - unlike 90% of the dross on AIM
It will re-rate at some point - markets are often very inefficient at this level - peeps tend to fall in love with their pet miner and soley focus on that [tring to catch falling knives - GGP] and miss real bargains
Not to mention the recent news about the funded lithium asset that will contribute substantial cash to our growing kity.... :)