Member Info for 99icecream

I own both as you may know from my posting history. All my holdings tick a number of boxes in terms of size/quality of resource, potential rewards etc. The reward is more KP2 is more short term, than ZIOC, but ZIOC could deliver a much higher return.

KP2 has again missed a target date, this time for its funding. No surprise or concerns here.

Kore has confirmed its Mineral Resource and updated the DFS (both consistent with a move to the Main market of the London Stock Exchange).

The key change in the DFS is to make the Total Potash production in the DFS (50.6Mt) consistent with the Reserves (49.5Mt) stated in the Mineral resource.

Hence the new DFS has only 23 years of production (23 x 2.2Mt = 50.6Mt) supporting the US$ 1.7 Billion valuation (30p a share).

Off-takes or royalties are not part of the DFS at all. They might be part of the funding package that comes after. Look at KP2 that issued a new DFS yesterday, prior to funding coming later in the month.

It is prudent to have off-takes at MOU before DFS to have confidence that the volumes in the DFS can be sold.

I understand that its not so simple Guitarsolo. The Natural Graphite is capable of storing a greater charge, whereas the the Synthetic is more durable, giving longer battery life. Hence, a balance of the two is used, not just for reasons of cost.

https://www.fastmarkets.com/insights/synthetic-versus-natural-graphite-debate/

There has been a bit of weakness in the BRES share price which might be due to Trump wanting access to Ukraine's minerals, including Graphite. If this does happen it would be many years and much investment before this might result in quality Graphite, so should have no impact on BRES.

https://www.reuters.com/markets/commodities/ukrainian-graphite-mine-hopes-trump-deal-say-returns-wont-be-instant-2025-02-12/

Correction

If Southern GT01a averaged 7.4% and Western Limb Northern Syncline 6%, this implies the Step-out drilling could yield 16.35 { (78/65)+[ (110/65)x(7.4/6.0) ] } = 53.7 Mt additional resource.

Sorry, that should read "....if Southern GT01a averaged 7.4% ..."

The RNS 9 Jan 2025 includes a digram of the drilling plans for the new target areas. There are 78 drills planned for the Western Limb of the Northern Syncline and approx 110 drills planned for the Southern GT01a. Here the total new drilling area is approx 3.5 times as large as that of the Eastern Limb of the Northern Syncline with about 2.9 times the number of drills (188/65). Taking the lower number of 2.9, this implies the Step-out drilling could yield 16.35 x 2.9 = Mt 47.4 additional resource.

Another possibility is the new Southern GT01a might prove to have a much higher grade than the Northern Syncline. Initial drilling at Northern Syncline averaged 6.0% (reported April 2021), whereas initial drilling at Camp Load averaged 7.4% (reported April 2022).

If Southern GT01a averaged 7.8% and Western Limb Northern Syncline 6%, this implies the Step-out drilling could yield 16.35 x 2.9 = 53.7 Mt additional resource.

Both numbers would be a substantial addition the the 24.5 Mt current resource.

I have spent some time looking at past drilling / drilling plans. My concern was the drilling plan / JORC update time-scale.

Going back to the first and second campaigns, in both cases drilling began in May and the JORC resource was announced in April the following year (almost a year later). 1st drill completed April 2021 - 65 holes, 2nd drill April 2022 - 74 holes)

My conclusion is we will get an initial JORC update mid year for the Northern Syncline Eastern Limb only (about 30 holes or 15% of total) to support the DFS.

Then the remainder, (190 holes +) would be an additional update, probably in 2026.

SloopyG - In this case the tangible benefits will be not having to buy Graphite from China.

Interesting. Clearly the SPG plant is the best thing for getting the quality product that the US would want, so I can see that the DFC would want the deal to go ahead. The US EV makers would be a key target for the SPG partner anyway. So all should be OK. It should be possible for DFC, BRES and the SPG partner to get what they all want from the situation ?

The two things (DFC funding and the SPG off-take) can only work together if any US firm who want the SPG product have priority (after all the SPG won't care who buys it).

I have seen the RNS 5 Sep 2024. However it leaves many questions.

1. Capital Investment: Triessence will fund 50% of capital costs for the SPG facility. Who funds the other 50% (i.e. BRES half) DFC ?

2. What does DFC get out of their deal wik BRES? After all its supposed to be supporting projects that supply stateging minerals to the US, its not a charity.

RNS 27 April 2023 states:

"The process now moves to a Grant Agreement ...... terms are considered advantageous to Blencoe as any repayment would only occur if and when the project goes into production...."

BTW this from Resolve Research:-

First right of refusal for full project funding

"The US$5 million TAG is specifically for hitting DFS milestones and to pay for DFS costs, with 20% paid upfront by DFC on signing. For the remaining 80% (US$4 million), the company will have to deliver pre-agreed milestones."

IMHO the obvious next milestone is when all drills are on site and drilling.

Further

"DFC will have the first right of refusal on commercial terms to manage and provide full project funding."

So does that include first refusal on a funding by a combination of a loan and streaming (i.e. off-take) deal ?

With US firms (e.g. Tesla) getting the option on the off-take. After all that is what DFC are doing this for isn't it ?

After all

Pic12 - The DFC Technical Assistance Grant is only repayable if and when the project goes into production. It only becomes free money if the project fails to get into production.

The 7:00 am Trade is @ ZAR 0.65 that is a South African trade.

MM your valuation implies the the Strategic Investor should be prepared to pay $13.84 for 145 million new shares in Zanaga (17.6% of the new total) giving Zanaga the $ 2 billion it needs for Stage 1.

40% of Rhodes Ridge is worth $5.3bn, implies 100% is worth 13.25 Bn. This is great news for Zanaga IMHO. A couple of things to think about.

Rhodes Ridge (Haematite) is 61.6% Fe. Pure Haematite [Fe2 O3] is 69.9% Fe (Fethe remainder is Oxygen). So Rhodes Ridide contains 8.3% Impurities.

Zanaga has Haematite at 66.0% Fe. Which implies 3.9% Impurities.

Zanaga has Magnetite at 68.5% Fe. Which also implies 3.9% Impurities (Pure Magnetite [FE3 O4] is 72.4% Fe)

So Rhodes Ridge has approx twice the impurities.

Rhodes Ridge is approx twice the size of Zanaga in terms of Iron Content (The Ore at Zanaga is about 34% Iron out of the ground before what is basically sand is separated [benefaction].

However, this does not mean that (other things equal) its worth twice as much. The value (i.e. NPV) is essentially determined by how much ore you can extract in 30 years, the fact that it can continue for much longer does not impact the NPV. For example if you receive $1 a year for 30 years NPV(10) is $9.43, if you receive the $1 for 60 years NPV(10) $9.97 ($0.54 more). (BTW $1 a year for ever = $10 exactly = $1/10%).

BTW - Its hard to know what's going on currently. Lots of delayed reporting. I have traded in this twice this morning, but still not reported.

Its a bank holiday in the US today - hence markets subdued.