Ryan Mee, CEO of Fulcrum Metals, reviews FY23 and progress on the Gold Tailings Hub in Canada. Watch the video here.
I see from Arcadia (ASX AM7) news 2 February 2024 that HeBei Xinjian Construction has expended Au$3,245,000 on Arcadia's Swanson Ta/Li mine, next door to Kazera's mine that HeBei is purchasing. So no shortage of money there !
So we have four actors: Kazera Global, Arcadia Minerals, Hebei Xinjian Construction, African Mineral Sands. “Build a better mousetrap and the world will beat a path to your door.” Consider KZG's Aftan and Arcadia's Swanson (Ta, Li), KZG's Alexcor diamonds, Whale Head heavy mineral sands, monazite (Ce, La, Nd, Th). This is quite something.
On the corporate front, KZG's new investor has just spent two-and-a-half times KZG's current share price to buy just 30% of KZG's shares. And yet we are distracted by the coincidental and enigmatic default of Hebei on its purchase of KZG's Aftan (while Hebei seems fully engaged with KZG's neigbour Arcadia).
There is something going on. Perhaps exploiting the better mousetrap in a market downturn requires some manoeuvring, to establish new leaders. The assets are ready go into production and cash flow. Is not this the bigger picture here?
Excellent news. High Li grades. Going well.
Interesting, I get a quote to buy at the bid price.
Great assets. Lithium etc.
Siennaj, see Aquis exchange https://www.aquis.eu/aquis-stock-exchange/member?securityidaqse=CRCL.GB
One of the buys was mine.
Here are some mc's (£) for some other AIM companies in the Li space...
ZNWD 23m
SAV 43m
KOD 43m
EMH 77m
CUSN 81m
PREM 127m
ALL 267m
Of course, this is not a like-for-like comparison. KZG and the others have different portfolios and are at different stages.
But I think it shows KZG's significant undervaluation, considering its revenues and assets.
Many thanks, Poppyseed, sounds like things are moving.
When I bought last November, I said on this board 'High grade lithium and tantalum in a stable and supportive country (Côte d'Ivoire). Vital resources. Well financed. Good to get in early.'
Later, I was dismayed at the share price halving, but after continuous research, I kept averaging down. So I have a large stake in FRG, fortunately now in substantial profit. FRG certainly has delivered, due to geology/geography/demand, but also due to an ambitious and energetic management. (My other major investment is in KZG, another company which is also astonishingly undervalued considering the resources, management and interest from other parties.)
FRG is now on a trajectory. The lithium mineralisation uncovered and the involvement of Ricca to advance Atex to DFS, and of course the increasing market demand for lithium, shows the huge potential here.
"Lithium and rare earths will soon be more important than oil and gas. Our demand for rare earths alone will increase fivefold by 2030.."(EC President von der Leyen, 14 Sep.2022). And other countries are making similar statements.
On lithium, Kazera has already struck a marketing agreement for its Li resource, with production scheduled for Q1 2023.
Kazera's future plans include Rare Earths 27Mt @1.89% grade for 510Kt Total Rare Earth elements, with known resources of Cerium, Lanthanum, Neodymium, via the Manshaft MoU on the Kalahari Copper Belt and Kaoko Copper Belt, with further Ta, Li, and potential for Au, Cu, Co, Sn, Nb. Then there is the Great Lakes Graphite with its non-JORC Inferred resource of
between 14 and 24Mt at 1.7-1.8% Ce+La+Nd.
These developments seem to be well supported by Kazera's current and increasing revenues from tantalum, diamonds and heavy sands, and by non-dilutive investments, marketing and MoU's from other companies.
The Final Results to June 2022 should be out by December, and this may give us some guidance on the increasing revenues from Ta, diamonds and heavy sands. I am, of course, very optimistic about my investment here. I reckon Align's valuation of 4.5 is a fair one for today, with upside to come. That's my opinion.
Yes, thanks for letting us know, Poppyseed.
I see some large buys going through the last couple of days. The 'red' trades have been a bit misleading, I am not the only one buying recently.
I am impressed by by the sheer scale of what the company offers: lithium, tantalum, diamonds, heavy minerals, and in the future, rare earths. Making money, and scaling up rapidly in a few months. We need a spark to set this going, and I think when we see the money coming in we will be okay. More than okay!
The recent Align Research report in their Forecasts section gives the total shares+options+warrants in each year, which they use to derive the current valuation of 4.55p/share.
http://www.alignresearch.co.uk/wp-content/uploads/2022/10/Kazera_Align_Update_October_2022.pdf
Oh Gawd, Keltickilla, not another 'Communism/Brexit hasn't worked because it hasn't been tried properly'.
We are all human beings. Warts and all.
To be British means having Welsh/Scottish/Irish ancestory as well as English. And half of us voted remain. Why? Because we are just stupid natives? Or did we feel that Brexit was taking something from us, from our British culture?
Britain is a grand place, a proud place: We do not bow to Brexiteers.
Lithium, tantalum, diamonds, heavy mineral sands, rare earths.
Revenues, profits. Tiny mcap. Big potential. Good management team now in place.
A substantial new report by Align.
I have not fully appreciated the rare earth potential here, and the high grades. Impressive. With the Lithium, Ta, mineral sands and diamonds coming on stream, and with a determined new management team, all looks good. An update on production and income would be great. Otherwise, I'm happy with my investment and to add more at these unusually low prices.
Okay, here's my theory.
There have been a lot of 1M share sells since the July, and this may well have been depressing the share price. It could be one or two long term investors, whose shares were bought at a much lower price and therefore in profit, have been liquidating. As long as they are not directors and below the 3% threshold, such trades would not be notifiable. I note that when two directors resigned in July they were each below the 3% threshold. Just a theory. If there is some truth in it, the sells may be coming to an end.
I am a great supporter of this company, I have a great deal invested in it myself. So of course I think is doing well and getting better all the time. Tantalum, Lithium, Diamonds, Mineral Sands, Rare Earths. "At least 5x and a cult following within 6 months"? Yes!
A good question: is Align's involvement 'putting people off'?
Possibly, but there are other factors.
The shares are rather illiquid because of the large shareholdings by long term investors like Align, and others with smaller stakes like myself. This is not an obvious a trader's share.
There have also been serious issues in the past about Kazera over-promising and under-delivering.
But perhaps more important, the sector and markets are plagued with uncertainty about the world in general.
As for Align, their 'about us' website page states their ethical approach. They have an experienced team, and of course promote their own interests like the rest of us. I think that Align's interests are presently aligned with mine, but that is my opinion.
The spat with IRON was in line with their ethical approach, but maybe perceived as 'not cricket' by others less in tune with historical trends.
As for Kazera, Align have been and still are hugely supportive of Kazera, and with good reason. It is my view that the company should be worth many times more than it is now, certainly more than Align's target of 5.3p.
The AIM market is being flooded with money into the most speculative ventures in the search for scarce minerals. Who would have thought that another AIM company, whose major claim to fame is a lithium discovery in Mali (Mali, for goodness sake) is worth 5X more than Kazara.
By contrast Kazera has built a superb portfolio of mining interests in solid jurisdictions. Not just lithium and tantalum, but diamonds, heavy sands and REE. It has off-take agreements and is already shipping product.
Kazera has a new and bold management team in place. It is productive and becoming a profitable company with great assets and sound expansion plans. A company like this is not going to stand still.
This of course is my own opinion, I am an investor in Kazera, so obviouly I am optimistic about its future. But don't take my word for it!
Well, it is early days. Geographically we are in a good position, with good transport infrastructure and mining traditions. In the south of the country there is Atlantic Lithium, and to the north of us, across the border in Mali, there is Kodal's Bougouni Lithium Project. FRG has the management and resources to move fast, as can be seen from the news so far.
swest42, there is a major international railway line running from the coast right through the north of the country. The road network is also good. Côte d'Ivoire has been, and is, investing heavily in its transport infrastructure. I don't think transport will be a problem here.
Tantalite - mining already and offtake agreement in place. Tantalite valley Namibia pegmaties. Water from boreholes, pipeline decision for production expansion.
Lithium & feldspar from the Ta mining. Already industry grade for glass & ceramics. Battery grade Li discussed in 'Lithium Potential in Namibia', compiled in 2020 when Li prices were depressed. Potential.
Diamonds - extracting already from beach sediments near Port Nolloth, South Africa. Area expansion licence imminent.
Heavy mineral sands - licence imminent as above. Cash flow within 6 months of licence. Ti-bearing minerals (ilmenite) and potential rare earths.
One thing I haven't seen any discussion about, is that the above licence application includes monazite, important mineral for rare earths such as Ce (cerium). https://sahris.sahra.org.za/cases/proposed-mining-application-whale-head-minerals-portion-remainder-farm-1-port-nolloth
RNS 30 Oct 2021: "Company anticipates that all its existing operations will be trading profitably prior to the end of 2021. It further anticipates being cash flow positive in early 2022."
Align in their 1 November blog links Kazera and Arcadia Minerals, significantly.
I agree with Fortitude and Funky about self-funding pipeline and expansion.
Kazera is growing fast.
£8M MCap? Amazing!
An interesting scenario. The way Alignresearch (the largest shareholder in KZG) wrote their report seemed to imply strong linkage between Kazera and Arcadia, at least on their resources. Perhaps this is speculation, but some sort of future merger could be very interesting. I think Alignresearch are working on a new report and valuation for KZG, perhaps to coincide with news from the company on the cash flow generation at the end of this calendar year.