The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
Monty, my wife and I own over 1% of the company. The CGT will be significant if the Calidus shares have to be sold outside our SIPPs and ISAs. If it wasn't for the massive potential profit, such a lack of clarity would have kept me from investing in Keras. Still, it is better to give the government its share, curse the arrangement and pocket the remaining profit.
I am disappointed to here they plan to "introduce" shareholders to a broker thst deals in ASX shares when we get the Calidus shares. Sounds like those of us with tax free accounts will get the Calidus shares outside them and have to pay CGT.
https://audioboom.com/posts/6964343-emmerson-eml-motif-bio-mtfb-keras-resources-krs-bigdish-dish
14:25 in
https://stockcharts.com/h-sc/ui?s=KL.TO&p=W&yr=2&mn=8&dy=0&id=p54762727546&listNum=2&a=582054645
I am surprised it doesn't mention Kirkland Lake Gold which has had great success in Australia. KL owns a chunk of Novo, which owns a chunk of Calidus.
Have a look at the share price of KL. I bought it last year and made rather a lot out of it. I mentioned it here before. It can be bought through brokers that allow Canadian or US or ASX shares. It is one of the best and has more to go price wise.
An interesting background article where Calidus gets a small mention:
http://cdn.ceo.ca.s3-us-west-2.amazonaws.com/1dlh4bh-Red%20Cloud%202018-08-25%20Pilbara.pdf
Got myself all excited so just bought another million at 0.32p.
The Special Resolution at the AGM allows for issue of shares with a maximum nominal value of �600,000.� Here is a "what if" scenario if they were all to be issued now. Assumptions 1. Keras' share price 0.3p 2. New issue price 0.3p 3. New shares issued 6,000,000,000 4. Keras' debt �347,000 5. Togo Value �0 6. Calidus' share price AUD 0.41 7. Next (last) tranche of Calidus bonus shares are excluded 8. Exchange Rates AUD To GBP 0.564 USD To AUD 1.326 USD To GBP 0.784 Nominal Value Market Cap. �6,785,400 Capital Raised �1,800,000 Market Cap. plus Capital Raised less Debt �8,238,400 Actual Value Value of Keras' current Calidus shares �10,599,464 Capital Raised plus Togo value plus Calidus value less debt �12,052,464 Value per share post issue 0.42p. So an issue at 0.3p would be a bargain.� Also they are allowing for a rights issue, albeit that might only be a small part of the total issue. (Cross posted to ADVFN)
0.33 actually. I am tempted but would like to see what is happening to cause the price drop.
So I picked up another million at 0.32. It was a stink bid. I've no idea why it dropped though.
Conglomerate gold still needs to live up to the erstwhile hype surrounding Pilbara explorers like Novo. If one wants conglomerate gold then buy Novo through Kirkland Lake Gold, a great miner in Oz and Canada that owns a large chunk of Novo. I am really glad Calidus is playing down conglomerate gold to the point of rarely referring to it. Let the hype be focussed on Novo, so if it does disappoint, Calidus does not take a hit. If the converse then Calidus has a bonus to exploit, as and when they see fit. But I hope they will be busy conventionally mining.
Thanks gmcc. The current price is creeping up, 4.6c. I hope Calidus update their web site at some point. This sort of new information really needs to be highlighted on the main page. IMO, the web site is pretty poor, but the money is better spent on drilling :-)
Thanks CC. Perhaps the gentleman would like to put his source in his posts so we can see if they are articles already read or whose links have been previously posted. I have to say I am not a great fan of blanket cut and paste. Selective quotes with reference link and commentary are brilliant and much appreciated.
What is your source oilmagnet477. Is this something new? Cheers.
J, it is not well known, it is not pumped on the boards, it has some iffy (Togo) assets, it has a complex valuation structure, it has a complex value-releasing structure, it has had negligible promotion by the company itself, it is in essence a fund not a miner/explorer and hence not exciting. But I am sure you know all that and your question is rhetorical :-)
" the Keras team will be working to address the disconnect between the Keras price and the see-through value of its investment in Calidus, together with building the value of its wider portfolio of assets organically and potentially through acquisitions." This is what I want to hear - get us out of the Doldrums. Let's see what he says about this, if anything in the AGM.
CC, I am working on extending the model a little by adding in the liabilities from the Annual Report (347,000 UKP). The intangibles in that are what they value the other assets at (licences, exploration results), so this is their guess, last year, at a valuation for Togo of 1,164,000 UKP. I had discounted them entirely, but, in great anticipation of impending news, I will add them in. I intend to build in the D-word* for Keras' 600,000,000 possible new shares. I am having a think about Calidus fund raising possibly. I also plan to do a what-if version for if Calidus gets increased indicated resources of 1M ozs, which I think entirely feasible. So I may post an update by the end of the week, but I am in the throes of redecoration at the moment. *D-word = dilution.
T_s, I know very little about tax, so anything I say is not to be trusted on that matter :-)
That link material reflects the complexity of the situation. That complexity is probably a factor in a reluctance to buy Keras shares, despite the discounted value in Calidus shares. I wrote to DR on this subject. He said Keras would consider an alternative cash distribution, but obviously there could be no commitment now. There was some discussion here at the end of last year regarding an in specie distribution with respect to brokerage accounts that could not deal in ASX shares. Some were happy to create accounts to be credited, that could deal in the Calidus shares. My own broker, HL, told me there would could sell them for me. With respect to taxation, it looks like they may be treated as a cash dividend of their value and tax would have to be paid, if held in an account, outside an ISA or SIPP, subject to tax laws (e.g. allowances) at the time. I have stopped caring until nearer the time. I hold my Keras shares in SIPPs and ISAs. I would like to keep the Calidus shares but see no way unless HL lets me deal them.
From Ubid "Some important questions one might ask themselves when buying a stock with market cap under $100m 1. Has management got a History of providing Shareholder Wealth?�� With the recent appointment on Mark Connelly I would say a big Yes ... with over 27 years experience in the mining industry, was instrumental as the MD of Papillon Resources when they merged with B2Gold Corp in a US $570 Million Deal and he was MD and CEO at Adamus Resources when they merged with Endeavour Mining Corp where he landed Chief operating Officer. Mark has also very extensive experience in the financing, commissioning and operation of gold mines. David Reeves has also been involved in the development and start up of 3 or 4 mines which is invaluable. The test of the Board all have exceptional mining experience.� 2. Are the board substantial shareholders and do they buy on market?� The board currently have just under 10% of total shares, insto�s 25% and Keras 31% ( CAI board and management own 18% of Keras) MD David Reeves has bought on Market twice in 7 months since listing both on market 23rd and 25th June 2017 and $100k + on market purchase over 4c on 15 February 2018.��Very good to see! 3. Do I understand future News flow and��business plan ?� With all the drilling planned 50,000 Metres, I expect their to be news galore especially with what was released on just 15,000 m before Christmas.. deep drilling planned for April > Which will be interesting! Business plan is to prove up a multi million ounce deposit (currently 700k + ) and produce 100,000 + ounces per annum for a minimum of 6 years. Metallurgical Testwork, Environmental and Tailings Studies and Heritage Clearance work has all commenced to shorten feasibility study time ( Calidus have hit the ground running) 4. Does the company have sufficient funds on hand and do I expect their to be a cap raising soon which could hold back Share Price?� Current funds sit at just under $10 Million which hold Calius in extremely good stead for an aggressive drilling program (50,000m) planned for 2018. So I don�t think there will be any cap raisings anytime soon. 5. Is there many shares on issue?� Current shares on issue - 1,282 Million - came with the reverse takeover... I�m sure the board have something up their sleeve to reduce this in the future and I think it would be great question to ask them.� CAI is still very much under the radar but with the upcoming drilling campaign it could be a different story late 2018. Good Luck!"