Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
KDR paid just €50k for the mining site with a further €100k if they EVER mine. Twice previously found uneconomic on bulk sampling and with KDR doing zero new drilling the market seems very unimpressed with the recent mining licence. Huge dilution at just 2p for £250k fundraise to keep lights on for a few months. Where will KDR get the millions needed for equipment and a drilling campaign to bulk sample for a 3rd time after 2 previous failures to prove worthwhile. Surely when KDR paid just €50k for the site previously owned and relinquished by majors no major would be interested in a JV when they could have brought the site for peanuts themselves without the hassle of the minnow that KDR is. With less than circa 10% off past fundraisings used for exploration and 90% on wages with a debt of circa €2mill owed to board members and a history of spending next to nothing on exploration I see no value forthcoming for shareholders and no way of raising funds needed to progress mine
Company now need to bulk sample to see if mine can be economically viable, twice bulk samples have proved otherwise from past encumbents Mantle and European. So lake will need to be drained in the spring and finances raised to cover this drilling and bulk sampling equipment. I’m guessing around €3 mill cost.
Dozens of fund raising stating working capitol for exploration circa less than 10% is ever used for exploration rest feeds the board just check all the finals. Prob average £10-£20k on exploration £400k on wages 2p fund raise for £250k and millions of debt. Huge dilution for long term holders at a massive reduction from last 4.5p raise feel sorry for Hoops and Co
Previous mini bulk sampling of the Lahtojoki kimberlite (approximately 1000 tonnes) in
the 1990's returned non-economic grades
Mini-bulk sampling of the pipe by Malmikaivos Oy/Ashton Mining Ltd, totalling at 23.3 t, sug- gests an average grade of 26 carats/100 t for diamonds > 0.8 mm in diameter (Tyni 1997). However, the 1000 t bulk sample collected by the company returned only 5.7 c/100 t.
Results from European Diamonds in 2004 gave a barely economic grade of just under 15 cpht
The Lahtojoki kimberlite is 2 hectares very small would be off no interest to a major
Problem with building a stake is who’s going to buy when you want to sell without collapsing the price yourself. There’s no buyers and no interest in a company that needs funds to keep lights, a company millions in debt, has circa $500k directors wages on an annual exploration spend of circa €20k what they all getting paid for? Haven’t drilled a licence in years just send odd surface rocks off for analysis, just keep applying for licences to look busy. Lahtojoki is a twice failed project with millions spent by past companies. KDR had licence years and have done no exploration of their own just repeat past works as if their own. It’s wrong in my book as lures investors in that think KDR have done actual work. Look at the annual exploration spend!! Most families spend more on their holiday
Just read on Advfn
iamthebest: After yesterdays news this is the most under valued stock on the entire London Market in my book. Will rerate for sure. Other than sellers there is next to no stock with MM so this will fly soon.
Historically 99% loss from inception some would say a lifestyle company. No diamonds No plant to bulk sample €500k circa wages for umpteen directors with annual exploration spend less than circa €20k debt circa €2mill
The permit has been in existence and held in the past by 2 companies of which one had a JV both proved the mine non economical. KDR are millions in debt in wages owed to the board. The board roll over remuneration to keep the company solvent. Research Lahtojoki with European Diamonds and Mantle Diamonds.
Would cost millions for plant alone and probably a year to build and deliver. Also Finland is restricted weather wise as when bulk sampling can be undertaken. The pond is still full of water that’s another expense to drain and time. The company has spent years trying to get a mining permit costing millions in wages for paper exercises yet real exploration seems non existent. While waiting for permit why have KDR not drilled once to see if there is a chance that Lahtojoki is economic even though 2 companies have failed who both spent millions drilling.
As KDR announce further delays Arctic star announce a new kimberlite discovery. I reckon Arctic star have drilled more in a few years than KDR have in 20. An exploration company that drill not look for rocks on the grass when the snow melts and pass of old exploration from companies that have ceased trading going bump at Lahtojoki as their own work. I’m sure the LTH will top up now to help Prof obliterate there holdings with millions of new shares.
Get ready for a fundraiser at below 2p to keep the lights on. Circa £2million in debt no funds and no income. Cash burn circa £500k per year for board remuneration. Zero new exploration on existing Lahtojoki pit that two past incumbents spent millions and failed to prove it economically viable to attract further funding from JV. It’s been done and failed twice with companies that did actual drilling. Why would anyone partner with KDR who paid just an initial £50k for the licence and gace done no new drilling and are millions in debt with huge board wages to cover from zero income. Keep the faith :-(
I think there’s huge revelance. €3.1mil owed to directors CGNR slice just 45% after JV investment plus still need to raise funds for plant!! With all this money still owing in fees and more dilution to come this is not all roses as some suggest