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Production ramping up and,...

Waiting for big announcement on Hinda mine financing and go ahead.

This is way undervalued!!!

Waiting for next quarterly production update in July (should show cash positive self sustaining production for first time?) . Likely Hinda mine go ahead and funding to be announced soon ($600m plus in Republic of Congo).

This could could easily go 20p plus on good production results and 40-60p on mine go ahead? In my opinion! DYOR!

Https://www.france24.com/en/live-news/20230511-iraq-to-resume-kurdish-oil-exports-to-turkey-saturday-statement

"Baghdad (AFP) – Iraq's oil minister said Thursday that crude exports from the autonomous Kurdistan region to Turkey would resume on Saturday, hours after a deal was finalised following years of dispute."

"On Thursday the Kurdish authorities said in a statement that "the Kurdistan regional government and the federal authorities have reached a (final) deal on the resumption of oil exports".

Hours later, Iraqi Oil Minister Hayan Abdel Ghani said crude exports would resume from Saturday.

Baghdad's State Oil Marketing Organization (SOMO) "informed the Turkish company Botas of the resumption of export operations... as of Saturday May 13", Abdel Ghani said in a statement."

BOOM. Is everybody asleep here?

Lol, touchy crowd here. Just a simple observation, I stand by what I said. Otherwise don't give rat's arz about this.

Just happened to read this while browsing..

"Following discussions with buyers of Ironveld's high purity iron product, it has become clear that a granulated final product, rather than a cast product, will command materially higher selling prices. This led to an assessment of the existing Granulator plant at the smelter and a project to bring this back into production was initiated,"

Seriously? Bunch of amateurs, should do their research properly before spending any money on equipment. Shambolic.

So the suspect has the motive, has the means and was seen in the area at the time in question. Will the arrest happen soon?

Yes, you are correct, thanks. I have been looking at it more from the short term point of view, ie one year ahead. Tax will reduce FCF at some point going forward. Also remains to be seen if this gets to full 1mtpa capacity . Income could be very much higher at that level.Also, electricity load shedding is an issue they have not really mentioned.

Good point Starbright, potential accumulated tax losses coul be very handy! Don't see why not?

Debt? There is morass of borrowings and bridge loans in last year plus historical debt. Having had a quick tot up of recent debt announcements and the last 2021 results, I estimate total debt could be in order of £80-120m? I would not put much reliability on this figure. The upcoming 2022 results will make this a lot clearer. Anyhow, at very worst it would probably take 2 years max to clear the debt and could be as quick as one year?

Hi Extrader, with regard to your statement..

“KRPZ might be worth a flutter , on the 'rising tide' principle"

,>>No, it is worth a flutter as it may be starting to generate free cash flow cash at existing Elandsfontein mine, potential initial £100m per annum with an mcap of 32m. The current debt pile could be paid off very rapidly? The RoC Hinda- mine financing and go ahead would simply be icing on the cake!

Further info available at https://www.lse.co.uk/ShareChat.html?ShareTicker=KRPZ&share=Kropz-Plc

According to lse site current mcap around £32m.

Seriously?

From September 2021 presentation

Elandsfontein LOM cash costs (FOB) $86/t.

Let's use $110 pt to be conservative with all the recent issues.

From the recent RNS monthly production was around 43,000tpm. About half of planned full production. Let's day they can intially stabilise that at 60000t pm with good quality.

Current rock phosphate concentrate price around $345 per tonne. Let's use $300 to be conservative.

So revenue: 60000tpm x $300. = $18m pm

Less costs: 60000tpm x $119= $7.14m pm

Total "profit" / free cash flow= $10.86m pm ($130m per annum, circa £103m per year)

(any corrections of my calcs gladly welcome)

So a conservative £100m per year would certainly keep this boat afloat and pay off debt rapidly. Will have better idea of total debt in June when 2022 annual results are released.

So this is looking very good if production is stabilized with no quality issues. We will know end of this quarter at next production update. Throw in the carrot of HINDA go ahead and this starts to look seriously (!!) undervalued.

Note: Patrice Motsepe, CEO of ARC Fund owns 83.2% of KROPZ. Hence the obvious relationship between KROPZ - Hinda- Investment by ARC & others.

It was a rhetorical device, that is all bread and butter info,thanks :-)

Another link and write up for Patrice Motsepe's recent visit to meet the president of the RoC, Denis Sassou- N'guesso. The article says in August 2022 the investment project was set in motion " in the Hinda area". This is it, KROPZ is set on its new Mining project! $600 investment!

"Patrice Motsepe offers a sustainable revival of the phosphate sector in Congo

April 26, 2023

Pointe-Noire (© 2023 Afriquinfos) - His hat as President of the Confederation of African Football (CAF) aside, it is the CEO of African Rainbow Minerals (ARC) who was received in audience on Tuesday April 25 in Pointe-Noire by the Congolese Head of State, Denis Sassou-N'guesso. The development of the phosphate sector in Congo was at the heart of discussions between Patrice Motsepe and Congolese officials.

At the head of a delegation of several businessmen, Patrice Motsepe was received in audience by Denis Sassou-N'Guesso. Most of the discussions focused on the restructuring of the phosphate sector in the Republic of Congo. It was for the wealthy South African businessman to update the Congolese president on the progress of a project launched in the country several months ago.

In August 2022, the boss of the ARC had set in motion an investment project in phosphates and other fertilizers, in the Hinda area, in the Kouilou department. It is an area known for its high concentration of nitrogen and potassium, two elements that go into the composition of phosphate.

'' We came to give more information about the project we are implementing here in Congo. We have brought in other partners who will contribute to the development of the sector. We took the opportunity to reassure the President about the quality of the phosphate that we are going to produce in Congo,'' explained Patrice Motsepe when he left the audience. The businessman specifies that no less than 600 million dollars will be invested in the said project located about 40 km north of Pointe-Noire."

https://afriquinfos.com/economie/patrice-motsepe-offre-une-restructuration-du-secteur-phosphatier-au-congo/

Here's the link

https://www.africaintelligence.com/central-africa/2023/05/02/mbz-and-tshisekedi-finalise-arms-and-mines-deals,109950987-eve

..UAE is very active. Strategic locking in of resources by middle east countries awash in oil money.

"02/05/2023

MbZ and Tshisekedi finalise arms and mines deals

Kinshasa and Abu Dhabi are secretly finalising an unprecedented deal that would include major mining projects and may also have a military component."

What's in it for RoC? All these mining projects have the capacity to utterly transform the country's economic prospects. A mineral port announcement will unleash this potential and herald a development boom.

Just for the record regarding the mineral port, add to list previously discussed..

Kanga Potash (32km north of Pointe Noire)

"Strauss expects that initial production at Kanga will take place in late 2026, with a ramp-up to full production in 2027. There are options for production to be increased to above 2.4mt per year depending on demand."

(Product is muriate of Potash, MoP.)

Tuesday, 14 March 2023

https://www.theafricareport.com/292220/kanga-potash-plans-fertiliser-partnership-for-republic-of-congo-project-ceo-says/

////

Comment. The need for a mineral port is immense, all the fertilizer companies are gearing up for financing and go ahead right now (Kore, KROPZ, Kanga)(production potential 6mpta plus). Without export infrastructure these projects are dead in the water for any major volume production. Is a mineral port commercially viable, most definitely yes!! Especially if the monster phase 2 Zanaga goes ahead!

AT's bio on Vision Blue. Does anybody know if he has worked anywhere else, hmm....?

"Andrew Trahar
Andrew has significant experience in the mining, banking, and private equity sectors. Prior to co-founding Vision Blue Resources, he founded a natural resources advisory business which resulted in him negotiating and leading a number of mining private equity transactions. In addition, he has spent significant time in corporate development roles in the mining sector, as well as taking active roles in numerous mining technology businesses. Andrew began his career at JP Morgan in the UK Corporate Finance and Capital Markets division where he participated in more than US$30bn of transactions, principally focussed on the mining sector.

Andrew has extensive experience in transaction execution, IPO processes, stakeholder engagement through project development, project financing, government engagement, and project technical oversight."

https://www.vision-blue.com/#people