Member Info for Markyess

If it settles in and around these levels (0.4p) post Calidus demerger and before the market cottons on to the fact we are an authorised Manganese producer - well - I'll be bloody stoked with that.

I'll have to stand down my wealthy friends on my takeover committee!

Well, it f**ked up the ratios I carefully used to round up mine and my nephews shareholdings.

Oh well. Onwards and forwards.

If Keras had held on to Calidus, it would not have had anywhere near the levels of funding it did as an ASX listed prospect. We'd have had unholy levels of dilution on Keras - in fact, given the slow sentiment to explorers on AIM, I think we'd have probably found ourselves owning nothing of note today.

From speaking to Dave Reeves at the recent investors event, there were only really two practical options - the one that was taken, reversing CAI into a shell, and retaining the financial interest, as we did - or, establishing Calidus as a totally separate entity, separately funded by Dave, Russell etc. on a totally independent basis outside of the Keras wrapper.

By admission, Dave and Russell would have been far better off personally had they kicked Calidus off as a separate venture - the reason they opted to manage it through Keras was out of a sense of loyalty and obligation to many PI's, family and friends who had put their faith in them on the Ferrex/Keras journey.

0.12p a share would value the company at less than £3m.

At that sort of valuation, I would be speaking with a few friends and piecing together a takeover bid.

I can't see it dropping that low, given proximity to production. I'd be surprised if it drops materially below a £10m market cap for any great period of time.

Do the exact opposite of what I do. I guarantee, I'll pick the wrong option. I bought another 1m in KRS immediately after the Togolese permit news (the first announcement after the Togolese government press release) at 0.58p.

2 hours after I bought in, it was trading for 0.475p

I'll post my actions, I promise. :-D

'Ugh hopes' - hopefully we'll see an end to those with KRS and CAI

Just done a few small top ups to ensure my Calidus allocations will be round numbers pre consolidation!

Calidus shares *can* be held in an ISA.

It is up to the specific financial institution whether they choose to hold them, and whether they can (or choose to) trade them.

Economics for Nayega based on 8 year projected average of $4.50DTMU unit sales price. This was in the presentation last week, apologies not mentioned previously.

Present level day to day fluctuations at present are irrelevant to Nayega model. Nayega is in bottom quartile cost of production and leveraging tolling. not retained production model.

Best,

Anyone else seeing two new RNS flagged and nothing in the folder?

Wonder if we're getting news... Or just a price monitoring exercise? Or LSE glitch.

I'd be surprised to see new news given proximity to the investor event.

Hi Pablo, it was $3.10/DMTU - the reasoning behind the jump in OPEX from $1.93/DMTU is our use of a full service turnkey operator/logistics partner. If no shovel goes in the ground, we pay no cost. The company has no need to invest in any 'yellow' plant of its own.

The differential from current market price is not even a short term concern. The market was flooded with low cost low grade material from S. Africa this year and that will flow through during the winter and will correct in the new year, as it could lead to some higher cost operators closing down (demand won't however dry up...)

The Manganese process is managed by stockpiling which means there is protection from unit cost drops. There are funding mechanisms in place to allow companies to hedge, at low cost, until reasonable market price is established - Keras has facilities lined up if it needs them. On top of that there are guaranteed price deals with off take partners that mitigates the volatile 'market' price. In short, the current low unit market price is *categorically no threat* to the Keras business model, short, medium or long term.

Reflecting back on the night and I think the most valuable feedback came from a really laid back and lengthy chat with Russell that reaffirmed for me why many of us LTH are in the share.

It's not strictly about the money we'll make from Nayega, it's the entrepreneurship of the leadership team. Phase 1 of Nayega is going to generate only around £1m-1.5m in free cash flow, however, from Day One, Russell will be investing in production and revenue growth. The scoping study could lead to Nayega growing 20 fold.

Maybe more importantly, its the opportunities free cash could generate. These guys are *always* looking at opportunities. Russell cited one recent example of a quick start site that him and Dave narrowly missed out on that has multiagged already. He said he could evidence it if needs be.

Calidus itself is an example where they've generated us huge value from nothing. My favourite example being the $2m we generated in conglomerate rights on tenements we paid $20k for (and still own conventional rights on)

It might not mean retirement this year, or the holiday home next year, but I don't think we'll be waiting long.

Unlocking free cash in the short term is the game changer.

*the calendar year

I'm not drunk, I swear.

Approval and consent has been granted. There is a suite of paperwork that needs to be finalised (in our control) that should be complete before ethos cakndar year is out.

That needs a final government signature.

Production will not commence, regardless of final signatures until late Q1 2020 due to the wet season, so there is contingency.

Russell was incredibly relaxed. Commencement of production is beyond easy, he could not over state how simple Nayega production is.

Low level production is a gateway to significant upside.

Great to meet Chirpy, Pinecone and Pablo tonight.

Did I learn much new? Not really. I rescind my belief that we'll be taken over (by design) inside of 12 months, if it happens, it'll be against the will of Russell and Dave who want to make production on both CAI and KRS projects.

Short term Manganese prices are *not* a concern. At all. The business is in the bottom quartile for production costs.

Proliferation of detail on Nayega has been restricted due to Togolese government restrictions. Russell is looking to publish the revised BFS detail as soon as possible.

Despite previous delays, Russell has total confidence in the outstanding paper work being complete before 2020 Q1. Work wouldn't commence any earlier due to the wet season.

It was great to attend tonight, my first in 8 years as an investor. I hope to attend many more, and fully anticipate being heavily invested, perhaps above current levels, for another 10 years.

The directors could (and arguably should) have pulled the plug on Keras pre-Calidus float on the ASX. They'd be far better off as individuals of they'd launched CAI outside of Keras.

Why didn't they? Loyalty. They, their family, and friends have a huge amount of financial and emotional capital in este sin Keras and they feel fully obligated to deliver for those that put faith in them.

I'll sleep well tonight.

ATB GLAH
Mark

See you soon CC. Should be arriving into Euston soon, so should be there just before 6.

I'm easy to find, I'm the short fat spectacled bloke in the bad fitting suit.

I predict a diet.

Agreed Prop.

I would not be surprised if both Calidus and Keras are wholly owned by other entities before 2020 is through.

I almost didn't add 'is through' - but 8 weeks is probably pushing things.

I wouldn't lose much sleep over the Mn price, especially with the talk of an off take partner and a 15 year+ mine life. Per the Jupiter article there are some clear short term reasons behind the pricing.

We're head and shoulders above other African explorers. We've got permission and a timetable for production. Consider explorers out in places like Malawi for example that have to contend with the poor sentiment surrounding their current Human Rights scandals.

I know where I'd rather have my money.

Rightly or wrongly (wrongly in my opinion, but that's by the by) I agree with you, Andee and think that the news will be released on Wednesday to coincide with the Investor meeting. I wouldn't be surprised if it is more than just the permit sign off - which would be great on one hand, but given the wording of the last RNS strongly intimating the news would be released last week - it's disappointing messaging from a company that has not exactly enjoyed glowing market sentiment.

I got a confirmatory reply PC. I emailed Tuesday 7AM, and received a response before 11AM same day.

They don't require proof of holding, as the event is for prospective investors too.