Member Info for Markyess

'which would represent a substantial profit for Keras'

*smokes cigar quietly*

I'd be inclined to be very relaxed about it.

Given the details in the PFS and the favourable economic trends since (Mn was generally pitched at a lower price point in 2015) AND the grade details highlighted in the bulk sample indicating that our product is suitable for silico-manganese processing - this is not even remotely pitching to be another tribute situation. Although I understand and appreciate the sentiment.

I would expect to see definitive costs for the respective phases included in the permit sign off confirmation RNS

The Nayega PFS

Phase 1 Opex is cited at US$1.93 per unit FOB

Where on earth did you get that Opex figure from for Nayega?

Sounds like a guess/fabrication, rather than a direct lift from the published feasibility study....

Copy and get ready to paste, I can see that message needing to be deployed many, many times as the herd start to trickle in with precisely the same question / viewpoint as mogwhy presented...

On the off chance, I’ve managed to secure the funding if I need it.... ;-)

Okay, I haven’t, but given the fundamentals, any single one of us could walk into any bank and fund such a project. Which is why there is categorically no chance of Keras stepping back too far from current levels, regardless of the Calidus demerger.

Annual profit at those levels would see annual dividends at almost 100% of share price. That’d be an insane eps ratio.

A rational market would value the company anywhere between 6-20 times cash in hand/net profit dependent on sentiment, projected mine life and other factors

Mogwhy - a drop to 20% of current value would leave an authorised, imminent cash generating Manganese producer with a market cap of just £2.2m

Keras won't step back anywhere near that much. If at all from its current £11m MCap.

I'd do a hostile take over myself at those levels.

Haha, permit means permit!

Indeed, Prop.

Probably a certain degree of desensitising too given we've been waiting this 'imminent' event since, what? 2015?

I don't know if it's just my natural born cynicism, but I'd already planned on not seeing the confirmatory RNS until early next week, despite the wording of Monday's news.

I hear your point, Pablo, but a sharepool running into the billions complicates valuation and creates overly sensitive price movement vs valuation. A smaller capital pool should make price adjustments and accurate valuation far more manageable and attractive to institutional investors - which, given where we are in our stage of development, is the market we need to be appealing to.

I think the Keras share capital reflects a more immediate need for consolidation than Calidus. Bumbling around in the fractions of a penny does not reflect a particularly attractive or established investment opportunity. Maybe after the permit is signed and delivered, and we're in production, we might see some consolidation forthcoming here too.

It’d probably be sensible to see something similar on Keras in due course.

Hi Sean - with the fullest respect, this share has never reacted in a manner that suggests an informed/advised market.

I would not anticipate Keras to trace back by the full value of the Calidus shareholding value. Not least because it doesn't reflect that value currently.

Further to some of our chatter yesterday around whether we still have active ownership or intent on the Cobalt and Nickel licenses, I spotted in the 'Notes' section of the latest RNS, 'Keras Resources plc is focused on building a strategic portfolio of resource assets, providing investors with exposure to a portfolio of development assets including manganese, cobalt and nickel in Togo, West Africa.'

That clears that one up! :-)

Hi Sean01, I think it's perfectly fair to have reservations, it's a complicated scenario. First off, the Calidus shares to be issued to Keras shareholders are not new shares. They are issued shares and voting rights currently held by Keras Resources, under instruction of the board of directors. The share allocation will just be an allocation of voting rights to Keras shareholders. No new share capital, no dilution.

There is *some* risk that individual Keras shareholders could cash in - however, Keras is a tightly held company, a sizable proportion of the Keras shareholding community have been here for a long time and have no intention of moving on from our prized asset before production or takeover. There is a joint forum on November 6th where I believe Keras shareholders will have an opportunity to talk about the issue of cost effective selling (and other matters).

I'm not too concerned about valuations at this point. Neither Calidus or Keras represent true values IMO - Keras currently has an MCap of ~£11m and is going to be giving around that much back to shareholders - that values an approved mining operation in Nayega at nothing. I think Calidus is undervalued too, with the interest of two big boys in Novo and Alkane, and the relative proximity to quick start production on high grade, easy access mineralisation.

Time will tell. I hope to see you in London on the 6th November!

SBK - I think it's closer to 770m shares to be issued?

Keras already hold all their shares in Calidus, so the demerger has no impact on them whatsoever.

If the total value of the demerger is in excess of £15m, Keras will either need to revise their court order (and Circular, as the share issue rate has been set) to allocate a higher value, or retain the excess. Again, this has no bearing on Calidus or PI's of Calidus, so they're whittling on about nothing.