focusIR May 2024 Investor Webinar: Blue Whale, Kavango, Taseko Mines & CQS Natural Resources. Catch up with the webinar here.
Pure speculation here... But maybe a D-N RNS announcement is coming and expected bump in SP. Post that new financing arrangements on better terms... They did something similar last year with the placement post D-N announcement.
Not the RNS I was expecting this morning and will await how the market reacts to this announcement, not going to try and predict it.
Not a good start for our new Chairman, he organised funding and received the cash. The market had already baked the financing into the SP and now BJay pull out. This adds to uncertainty and again a credibility point of the BoD comes back.
They are contractually bound to do work as part of their earn in agreement plus they have conducted more geotechnical work than most companies do before there first drill hole. If they don't or have no intention of meeting their commitments this may actually work out better for us as shareholders re: D-N ownership over the medium/longer term so I am not worried. So, long and short Kobold need to poop or get off the pot...
@KeithOz, agree with your comments below and also agree with some of lambos sentiment as well.
The problem being that management have not got the best track record of delivery - the Dundas debacle is a prime example and therefore faith in managements ability to deliver is far far away from the best.
After BJay raising the cash, I would expect KLS RNS but as I have stated D-N is the one I am here for. KLS, Zinc isn't exactly a hot commodity and isn't going to move the dial for us shareholders, just look at what's happened to Ironbark Zinc and there lack of ability to fund the project.
A D-N RNS would move the dial for shareholders but it's complete radio silence on that and Rob Edwards didn't exactly inspire confidence re: D-N in his strategy reset video. Plus Kobold seem to be going big in Zambia and potentially have gotten distracted - I hope for D-N that isn't the case.
Next 2-3 weeks will be interesting.
Agree.
These are the terms Kobold signed up to, Phase 1 is done. Phase 2 TBD.
Kobold in a first phase of the venture to identify locations of test drilling. Funding for this is stated at $3.4 million until 31 December 2022, to be borne by Kobold. For the second phase, set to run until the end of 2024, Kobold is expected to drill the equivalent of $11.6 million or 15 pre-agreed wells within the Disko licence area.
Bluejay will retain a 49 per cent interest. The company will manage the field operations until 2024 and is expected to fund its pro-rata obligation after the second phase. If Kobold completes the work in the first phase but fails to meet the drilling commitment in the second phase as planned, two per cent JV company interest will revert to Bluejay and with it control, it added.
I guess we will see what comes out of the MRE by mid 2023 (assume June) and 2022 drilling program assays -> This will give the best indication.
Dundas: "Revised Mineral Resource Estimate ("MRE") expected to be produced in mid 2023.
All mining projects are heavily influenced primarily by key parameters, being product pricing, capital cost and operating cost per tonne of product. The latter of these is heavily influenced by orebody grade. Dundas is particularly sensitive to grade. It should be pointed out that one of the recommendations in the 2019 PFS was that further drilling was required to enhance confidence in orebody grade distribution, generate more accurate tonnage estimates, as well as further define mineralogy. Bluejay raised £5.3 million of fresh equity capital in March 2022 to finalise the Dundas optimisation and the necessary feasibility study work as well as for general corporate purposes and working capital. Of the funds raised, £2.2 million was spent on the 2022 summer drill programme and subsequent shipment and analysis of drill cores to Australia after preparation in Denmark under carefully controlled conditions."
There is no doubt that the cap raise was an absolute joke re: constitution, construction and terms. However, despite my own feelings in relation to it, objectively speaking there may be some method to the madness.
1.) Last year they did a Cap raise.off the back of Kobolds drilling announcement only for it to backfire when Kobold wanted more exploration.
2.) Timing wise, Dundas mining method change and subsequent delay of BFS, there is now way they could have kept that under wraps.
3.) Kangerlausk drilling campaign needed funding as it's a very short drilling season there and to leave it until late March / April would mean a potential miss on securing the teams and drill rigs etc.
I really hope they have cleared house on the bad news front for the time being and atleast, we now have a clearer trajectory on timings and developments (albeit really annoying).
Kurt House, CEO of KoBold Metals, commented:
"Our joint exploration campaign on Disko Island this summer was a significant step forward. We've identified many novel targets and significantly updated our exploration hypotheses. We are looking for what we think could be the most significant nickel and cobalt discoveries in 100 years."
Either the eggheads at Kobold don't know what they are doing or saying or something isn't right...
Eitherway, even if it is deep they will still need to drill the dam thing to see what's there.
FYI, US EXIM hasn't dropped off for Citroenen (Ironbark Zinc) Exim Completed their DD and want further information - i.e. infill drilling on an under explored part of the deposit plus a few other points. Once Ironbark complete those additional aspects then US EXIM funding is in the bag. Add to that but Ironbark will still need additional private equity or a strategic partnership.
Am going to gamble and say that news is imminent... (next week). The gamble is based on the fact the our daily volume as of now is already over 1 million shares roughly 2 times our average. People are loading up -> nearly always the tell tail sign.
Odd, was expecting news on the Dundas BFS and we get an update on Enonkoski... To be fair, I thought the JV was dead given the last set of drilling conducted didn't appear to turn up anything - let's see what the detailed results say. Given the level of surveys and potential 2023 campaign - it doesn't look like Rio are giving up on this...
Can't really argue with that point however the difference this time is that Kobold are pretty much running the show on this and bluejay are contractually bound to.... wait for it... wait for it... Actually Deliver :-)