Member Info for IdleDaysYann

...on Arcadia's Annual Report (ASX:AM7) out today? Seems they are in a difficult position. I wonder if we can pick up some TVC assests from them to enhance our Ta/Li mine in Namibia.

Thank goodness Kazera has a seperate future in its HMS and diamonds.

Certainly the company is undervalued. The diamonds were always a minor souce of income, but now could be much more significant. The main commmodity, HMS, is yielding good concentrations of critical minerals, in particular ilmenite (titanium ore), as well as other valuable minerals. Oak Bloke shows how the annual profit could equal the present mcap, this sounds extraordinary for an AIM company. OB gives a balanced view, outlining the upside and downside, but the conclusion of KZG's potential not being noticed by the market is sound. The recent RNS's on Deep Blue and Whale Head show real progress by the company, with a focus on income generation. And this is without the enormous Perdevlei expansion in the future, as well as possible Hebei settlement.

Me too, oldbut.

It's been a frustrating wait for "...the long-awaited Mining Right over 2A, which has the initial potential to be 34 times bigger than the current project."

In the meantime let's see how far WHM can take us with income generation and a scalable operation to take advantage of 2A.

All it needs is news. In the meantime, here are some thoughts...

Lithium price may have bottomed. Aftan (Hebei,KZR) received approval to mine Li (RNS 24/09/24 ), and this could enhance the value of the Ta/Li mine. Roll on Hebei news.

On 'hotcopper', Jiff10000 today has some views on Arcadia's progress on Swanson. I womder who gave them a 5-month loan of 150k? Any connection to Kazera? While on the subject of Arcadia (ASX AM7), their recent company news included a map of Swanson which included Aftan's tenement showing enhanced mineral sediments.

Back to Kazera's main operation, its multi-mineral HMS project in SA, which is already in production with income-generating off-take agreement...

Ilmenite (Ti ore). What wonderful news in KZG's last RNS: TiO2 16.9% in the sands, increased by simple methods to over 30%. This is a game-changer, reducing transportation costs, and fully in line with government policy on local beneficiation, and upscalable. Then there is the possibility of garnet off-take. And we haven't yet exploited to monazite potential. for which we obtained NNR approval last August.

Diamonds. I note from https://www.dmre.gov.za/news-room/ (2 July) that Alexkor now reports to SA's DMPR. This may simplify things for Kazera, as it now only need deal with DMPR entities. On 2nd Aug, SA held a meeting of diamond stakeholders. Kazera from 14 April (RNS) must demonstrate it can supply diamond-bearing gravels to Alexkor, so that should be well underway by now (news?)

DMPR. The SA government are keen to make the mining licence regime more efficient, to stem the decline in SA's mining productivity. There is much concern in SA that permits are being delayed because of policy uncertainties. SA hosted a G20 conference on Critical Minerals recently, and seemed very positive about making progress. The public consultation on the 2025 DMPR Act finishes on Wednesday, so lets hope things get cracking after that on Perdevlei.

Could get news on any of the above, at any time. The only way is up, surely?

I think KZG has more to gain by concentrating on HMS in SA. I used to think we could link up with Arcadia in some way with the Namibian Ta/Li assets, but I don't know enough now about Arcadia's viability as a partner. They have taken out a loan to progress deals, which runs out end September. The only other company news from Arcadia was an analysis of mineral sediments in streams over the Tant Valley. I think they are setting themselves up for an outright sale.

The low share price. This is a company with huge resources of a critical mineral and has actually started sales. Sales from titanium-rich sands (ilmenite, together with other heavy minerals), and with a market cap of only £15m.

Compare this with the £200m+ MC's of potential TiO produces EEE and SVML, which have not even started. More relevant in the heavy mineral sands space is Kenmare (KMR), who are producing ilmenite from sands with a lower grade than KZG has. Astoundingly, KMR's last dividend exceeds the entire MC of KZG.

Ilmenite is a vital mineral, with a robust market for coatings and pigments worldwide, and with titanium being a vital metal for aerospace and military applications. KZG's recent RNS shows the enormous potential. Apart from its ilmenite, a new market has opened with garnet production. So far untapped are the heavy rare elements in KZG's monazite. And diamonds.

KZG is highly ethical miner: environmentally, as the excavated sands are replenished by sea action; and socially, as it presses on towards local beneficiation offering opportunities to the small local community. This is all exactly in line with the new SA government mining policy.

KZG is within a whisker of a 34 times expansion in its licence area, for which scaling-up plans are also described in the recent RNS.

Given the low MC, a buy-out seems ever more likely. Probably somewhere closer to the recent valuation of 9.4 than today's shareprice. Why is this likely?

Oryx recently made a takeover bid for KMR (subsequently withdrawn) equivalent to 30 times the MC of KZG. As they say, "Oryx invests in the minerals value chain, targeting critical and strategic minerals assets in favourable jurisdictions where they can create a positive impact".

In this context, where big money is looking for a productive home, the shareprice and nonchalance on AIM of KZG is irrelevant.

I think this may explain the delay on Perdevlei. Instead of the historic 'pit-to-port' approach to mining, SA is promoting local beneficiation. This is what Kazera is now doing: 'Feed bin and conveyor to spirals installation now complete'. Dennis has placed great stress on the opportunities for the small local community there. I think this is all going in the right direction for the extension approval.

"Why mining is critical to the future of Africa and Africa critical to the future of mining."

https://www.dmre.gov.za/news-room/post/2831/speaking-notes-by-the-honourable-deputy-minister-of-mineral-and-petroleum-resources-phumzile-mgcina-mp

...But crucially, the capital expenditure to scale up can be financed from profits. We have started selling our HMS, and have an offtake arrangement. Our heavy minerals contain more than 50% ilmenite. Titanium is a critical material, un-substitutional in vital aerospace and military applications, and with a thriving market in paint. With Perdevlei, we can aspire to Kenmare's success on the other side of the continent, particularly as our ilmenite component is so much higher.

A good interview, and he said as much as he could. Perdevlei decision is 'imminent'... hooray!

He couldn't say much about Aftan Ta/Li. This morning Arcadia (ASX:AM7) released info from recent stream sampling in the Tantalite Valley Complex. Their maps include our ML77 (which lies in the middle of TVC), and display elevated levels of Au, Li, Pt group, Co, Cu.

Yes, I see your point about price sensitve info. The Stockbox interview next Tuesday 7pm follows the last interview on 8th May, which was about Kazera's Aftan win. Since then the RNS's have been about director and others buying shares. Substantial though these have been, at a premium, something more on the operations is needed for an interview, I think. I'm still hopeful for an RNS later today or on Tuesday. Anyway, we'll see when the time comes.

Yes, good news about sister IRON. Parhaps some future link-up with KZG may happen given the personnel involved. Certainly IRON news swamped their chat board today!

As for Kazera, there has been large movements of shares, warrants exercised, and large scale buying by Tracarta at 2p. Interview is scheduled for Tuesday, so Dennis will need something to talk about. Perhaps news before then? News of further progress on selling HMS, on sorting out critical minerals (ilmenite), on diamonds, on Perdevei? Or even on Ta/Li? Or some corporate development?

Mali vs. EU? Sav may be higher, but look at EMH & ZNWD. Li is 16% down this year, there are other more investable critical minerals now.

Encouraging RNS this morning, shows confidence. Number of outstanding warrants down to 3%. News this week I think, before the upcoming interview.

Spreadex rollover?

Sounds like there could be an RNS befor the end of next week (27th May being the next trading day after next Friday).

I notice that yesterday Kenmare extended its deadline for the Oryx consortium bid. Kenmare of course is well advanced compared to us, but worth noting is that its sands are only 3-4% heavy menerals, whereas ours are over 50%, so they must be processing a lot more sand! I think with our upcoming Perdevei extension, our ilmenite resource could be as big as theirs. The Oryx Global website has an interesting article on 'London losing luster as minerals financing hub'. Private buy-outs may be the way forward. Maybe Kazera will follow Kenmare.

Our valuable resource is ilmenite, a critical source of titanium. An interesting recent article about ilmenite is on https://theoregongroup.com/commodities/titanium/turbulence-in-global-titanium-supply/ . Kazera does not feature yet in its list of titanium ore suppliers, presumably because we are producing heavy mineral sands (albeit with 50% ilmenite component). We need to move fast to seperate out the valuable minerals from our sand, something management are working on.

With all this going on, I'm surprised KZG has such a lowly shareprice, particularly with last week's removal of the arbitrationuncertainty which has dogged the company for some time. Following Oryx's arguments, maybe London (and AIM) does not have the expertise to assess the investment potantial of KZG!

Good news. Shows confidence. Brings the number of outstanding warrants down to about 4% of company total.

I think Kenmare's total heavy mineral is not much more than 3%, whereas ours is over 50%. Kenmare recently rejected an offer of 530/share. Kazera seems astonishingly cheap on this basis. Looking forward to the ride!

Major Sharerholder appears to have met Jiang (Hebei principal). The world has changed since our Namibian Ta/Li mine was first sold. It may be worth more than we think. China has limited tantalum mines, so has recently been stockpiling it. The international supply has concerns about DRC. Also Ukraine. By contrast, Namibia is a reliable country. The lithium content also was also of interest to Hebei. Our Namibian neighbours, Arcadia with their Swanson Ta/Li mine, have recently been lent A$150,000 (I wonder who by?) 'to continue on-going discussions with 3rd parties' . Dennis hinted at similar interest for Kazera's Ta/Li mine. What is for sure, is that recent news has now removed the uncertainty which has long been a drag on KZG's share price.

Kazera's main focus is of course South African HMS, already making money. The planned sort of valuable heavy minerals from silica sand would be straightforward, given the density differences. Our HMS is dominated by Ilmenite, a vital source of titanium (a critical element for military and civil use). Our HMS also has diamonds, zircon and monazite as valuable byproducts. We are on the brink of expansion, to be a major South African producer of Ti-rich HMS. This is being noticed.

Wow, that's excellent news. 34x expansion on the way! Many thanks cuddy for finding that.

There was a late-reported enormous buy this morning, and then all these small buys (a big order being split up because of shortage of shares?).