Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Thanks Max and JBTs, the more I research, the more "game changer" comes to mind. Very good to hear Dennis Edmonds, no humming and hahhing and very clear answers to the questions asked, insofar as he could answer them without saying too much.
I noted in particular the section between 1.35 and 2.15. Seems my feelings about the 12 months forecast being a highly cautious one are well founded if those in the Company are looking towards the end of the year but, quite sensibly, don't actually want to put that in writing. Very interesting also his expectation that the HMS would be a bigger provider of cashflow than the diamonds once up and running. Other research below points to that too!
Zak had also done his research and converted the piece in the KZG RNS about the HMS operation "utilising the same technology as the Tormin field which is 200km south of the Deep Blue area of operations". He had correctly converted this into the Mineral Commodities operation. Investigation recommended. They're so happy with their existing licence, they want a whole stack more immediately up the coast.
Poppyseed, I have read your post with great interest,thanks. time for me to do a wee bit research about this diamond company that we just took majority on board....the more I think about it the more I convince it could be a game changer for our badly need of cash investment in our main core asset,and even more importantly will put us in much stronger negotiation position with potential partner/s or JV.....the next 12 months or so could be very interesting indeed after long time in hibernation.....having said that,I am not moving my shares from the bottom drawer....YET....ATBA.
Strikes me the days of being able to get away with hiding behind the non disclosure curtain ended on Thursday. Same for tantalum but near(ish)-term diamonds and HMS give need for announcements of greater frequency and transparency.
Could be wrong but I think the 12 mth forecast for production and cashflow from diamonds may be deliberately cautious . Probably sensible in current conditions, however, I note the word "within" in several places. This is not really surprising to me given the progress already advanced and previously announced under Tectonic (RNS research recommended) and with KZG set to hit the ground running, "...with existing workforce already in place to oversee restarting of and continuation of production, having worked for the last 18 months testing the area extensively..."
Pretty clear that with Dennis Edmonds appointed to the Boards of both Tectonic on 28 Apr 20 and then KZG on 2 May 2020, though only announced as such on 4 Jun 20, as being in charge of the newly acquired project, there's an intention to keep mutual interests closely aligned. It pleases me to sense via their residual 10% stake, that Tectonic were a forced seller rather than an eager one!
As they say themselves "... Kazera will hold a 64% interest and has raised £750,000 to fund the diamond mining project into production. In addition, Tectonic has incorporated a 100% owned South African subsidiary, Whale Head Minerals Pty Ltd, and submitted an application for a Mining Permit to mine Heavy Mineral Sands (“HMS”) within the Alexkor/PSJV diamond mining area to mine ores with DBM for the dual commercialisation of diamonds and HMS from diamondiferous and mineralised alluvial beach sands. Kazera has committed to buying a majority interest in WHM also, with Tectonic retaining a non-diluting 10% interest, subject to the approval of the Mining Permit under application.....
.....The project will continue to be managed by the existing Board and Management of DBM, with on-going oversight from Tectonic director Dennis Edmonds, who has also been appointed to the Board of Kazera to lead the development of these projects.
Kazera operates a tantalite mining project at Tantalite Valley, approximately 250km east of Alexander Bay on the Namibian side of the Orange River. With an established regional base of operations and local management the two projects can be efficiently operated...We are very pleased to get this transaction closed, despite the delays due to COVID, and to see the South African projects funded for production. We remain a significant shareholder of Deep Blue and expect the remainder of the transaction with the sale of Whale Head to follow in due course. This will leave Tectonic with a sizeable economic interest in a funded diamond and heavy mineral sands project which will in turn be able to provide additional funding for our core gold exploration activities…."
Sort of augers well for KZG if they're talking like that about just 10%!
Fortitude, apologies, it may well have been 12p, quoted from memory!
As to your questions.
1) I believe LJ is a genuine Ta man with a wealth of experience and is the right man for the job (never said otherwise) .
As to his business model , I`d be a lot happier if he chose to share it a trifle more broadly. For example we`ve heard nothing regarding the water/pipeline scenario despite being told months ago that something was imminent.
As to selling out, with the greatest respect its my money and I`ll choose the time when I consider it right.
2) No problem with two JORCS , a necessity for attracting a big scale end user.
Lastly I would`nt label myself as a naysayer though you may feel free to do so it does`nt concern me in the slightest. Nor will I be vanishing without trace. I like to think I hold a balanced view and am happy to look at both positive and negative aspects of any investment I hold. Like many others here I get frustrated by the lack of news forthcoming from the BOD hiding behind the non disclosure curtain which does nothing to appease existing investors or attract new ones.
I also I`m afraid find your constant ramping of other GC companies rather tiresome as they have nothing whatsoever to do with KZG other than being under the GC umbrella . They are no more or less destined to succeed or fail than this is.
Happy to continue clashing swords. Have a good weekend.
TP
TP.....We have clashed swords here many times and to be fair your analysis figure wise is correct but thought 12p was its max......However, I am an investor not speculator and to me this is just a snapshot of the company at a given point......A loss is never a loss unless you have to sell....I have two questions for you ....1. Do you believe in the LJ business model or not......if you dont then you should sell out now and invest elsewhere.......2. Do you accept that the two JORCS shortly to be completed have been carried out at an unprecedented timescale?.......
I have deja vu on this board from Sovereign Mining days when for two years or so I had the same sceptic response as here.....Then a Mr Sarkozy and a myriad of other naysayers were putting forward exactly the same arguments, where are they now? Vanished without trace.......Indeed , at Ironveld had exactly the same there for years until just recently when a third party deal was struck.......Nothing changes! The Same is coming here.....