Member Info for JP2000

What happens if B1 discovers 3-4% Ni, can the independent shareholders veto stage 2 as the company will be considerably more valuable?

What happens if B1 is a duster, can Purebond walk away?

I'm in.

I also wrote to the company secretary today to request a copy of the shareholder register. 75% will be nominee accounts but KAV won't like giving the information out.

Don't forget warrants.

For valuation purposes, back of an envelope valuation is 10% of the project NPV so assuming £130m for KAV is a mighty end valuation for the project.

Then you only get top dollar for JORC reserves and this is expensive anywhere $20-50m for a KAV project so you need another cash raise (hopefully at a premium) so your actual return might be 5p post dilution.

Bitcoin: this is grotesque abuse of existing shareholders. If you thought KAV might 10 bag its now 1 or 2 max. You can get better odds buying easyJet or Persimmon without the Turney BS factor.

Upside is now severely limited even if KAV made a discovery tomorrow because of the threat of massive dilution. I thought the strategy from 2-3 months ago was to drill three main licence areas and then agree JVs so this blows that strategy out of the window.

If its about KZC or KCB do a JV for those licences, you don't give away the whole show

Or £6m at 3p once KSZ drilled

Pretty much a wipe out for existing shareholders

They’ve taken a recent decision i.e KSZ first.
I don’t definitively know if a drill contractor has been appointed because this has not been announced but it must be close given the twitter posts with Brett looking at the site.
I based the estimate on the basis the drill site and accommodation camp could take several weeks to set up from scratch.
There was some reference on Twitter about data interpretation and drill plan, a bit odd given they’ve had 12 months to prepare.
2-4 weeks would seem a reasonable estimate based on the noises coming out of Kavango inc ‘summer of drilling’, it’s unlikely to be next week, you would hope it’s not the back end of June (but always possible).

If you’ve sold your KAV shares then politely jog on. The cynical campaign to trash the share price has been going on for the last 18 months.

If you hold KAV shares then you’re doing so for a reason;
In 2-4 weeks KAV commences KSZ drilling. DHEM has identified a 28,000 Siemens target likely to be pyrrhotite bearing massive sulphide. It’s a medium depth 400-550m drill in difficult ground conditions, but they will have learnt from last year. Success opens up further Area B targets, a stacked IOCG, additions northern KSZ targets, shallower exploration in south KSZ and of course a joint venture. KSZDD003 is a major value inflection point for Kavango, should have completed by the end of June with assays cSept.

Ditau has gone from REEs to lode gold, yes the initial assays were disappointing in absolute terms but they must have significant information to be getting this excited. This drills in about 3 months time.

KCB Karakubis is surrounded by Sandfire, Rio Tinto & ENERG. Kavango have engaged Dave Catterall the regional expert and interestingly he preferred Karakubis to PL036/2020 which was more advanced. In theory it should be drilled Oct/Nov.

There is imminent news on two early stage acquisitions, likely lithium or nickel in Zimbabwe or Namibia.

I’ve previously called for Turney to resign or be sacked. The share options, warrants, massive dilution, 2022 bonus and placing, the current cash position, the PL082 shambles, the failure to make a discovery in 2022, all this is true and deeply irritating to the point where a committee of shareholders could produce a more coherent strategy. But we are where we are, its priced in at 1p and there are half a dozen inflection points which could see a major re-rate.

Swako: you’ve admitted selling your KAV holding for a loss, begs the question why you continue posting this drivel and continuous negativity? Have you anything positive to add to this forum?

It turns out the reference to KSZ drilling in the annual report was true!

https://twitter.com/KavangoRes/status/1652260381732093958

Also employees has risen from 17 to 60 (wages are very low in BW)

legalwolf: I looked at the cash flow statement and they loaned $2.7m to Kanye. Not sure what the accounting treatment for Kanye is, I'd have thought it was a 100% owned subsidiary which is consolidated on the balance sheet inc cash. Is the group cash position $2.2m as stated in which case they burned though over $2m in Nov/Dec or is there additional cash held by Kanye not counted?

DHEM is downhole whereas TDEM is surface so should be significantly more accurate without the noise

Interesting to look at POW's next steps, wonder how similar AMT, Kav's most recent survey technique, is to MobileMT?

"o Complete a high-resolution mobile magnetotellurics ("MobileMT") airborne geophysical survey. MobileMT is on the cutting edge of geophysical survey methodology and compared to TDEM has multiple advantages including:

o Allows for good discrimination between resistive units (e.g. TDEM cannot effectively map resistive units or discriminate between 1000 ohm-m and 5000 ohm-m formations).

o Can detect superconductors directly.

o Provides superior depth penetration than even high powered TDEM systems (up to 2km in certain geological environments).

o System experiences no problems with induced polarisation ("IP") effects, zero coupling zones or super para-magnetic effects.

o Highest efficiently and quick surveying over flat areas like southern Botswana and can average production of 100km per day with a comparatively low production cost.

§ Across PL311/2016 prepare detailed geological/structural interpretation incorporating all historical drilling and geophysical data available. Trace feeder dyke as possible magma conduit."

The MFC priority target drills were the last two drills which didn’t complete until early Feb, then add on 3 months for assays. POW will have assays from the earlier drills and I don’t think they’d sit on good news.

I take exception that KAV is desperate or spinning fake news in fact quite the opposite.

Is a 28,000 conductance reading a needle in a hay stack? The other conductors are likely to be up graded 8-10,000 & 4-6,000 so a cracking set of targets.

I've no idea what's going on with timing. BW has a small population so there isn't an endless choice of drilling contractors and I get the feeling Mindea/KAV relations aren't the best so perhaps that's an issue.

The key at the moment seems to be the Ditau assays expected in the next week looking for pathfinders like iron pyrite and ****nic as well as anomalous gold and copper.

One of the pillars of KAV's strategy is project financing & BT said all three projects were ready. He said it was too early stage for major at the KSZ but there were other options. The Lassonde curve visualises the mining life cycle and KAV is in pre-discovery in KSZ and Ditau and still concept in the KCB. For many private investors the money is made in the next phase - discovery. So if KAV does a deal in pre-discovery it provides cash to fund discovery but the returns are significantly lower because the partner takes on risk. You might want or have to do that with the KSZ IOCG because 1000-2000m holes are $200-400k each and it will take spectacular grades to be commercial. The B conductors are shallower 400-600m and so it might be worth the risk of KAV going it alone. BT seemed reluctant to re-drill KSZ, my guess is he wants a JV deal pre drill so if B1 fails there's still cash for the other KSZ targets but the downside is PIs who already suffered 75% dilution in 2022, suffer further 50% dilution on KSZ. BT said the 2022 B1 drill missed "by meters" and its cost PIs millions. Is BT playing chicken with a JV partner by delaying the KSZ drill because the deal isn't attractive, probably. At this rate it won't be drilled until August.

My preference is to drill KSZ first pre JV as KAVs best chance of making a discovery.

BT can be infuriating and misleading at times not least those KSZ assays. Healthy skepticism is fine.

Re Ditau assays, these were addressed in the video from last week, the significance won’t be grades but the decisions which are then triggered.
https://www.youtube.com/watch?v=a4fdJySXV-s