Member Info for Markyess

Hi Fira - all things considered equal, logic would/should determine that there would be a step back in Keras SP after the Calidus demerger. However, given the company has a MCap of around £11m, and the value of the Keras holding in Calidus is around that self same value, there appears to be something missing in how the market is valuing KRS.

Given today's news ref: Manganese production starting imminently, it's fair to say that current market price does not reflect both ventures today.

All that told, I would suggest it'd be unlikely to see too much of a run to the bottom on Keras after the Calidus demerger, as it would mean attributing limited value to an approved, quick start, profitable mining initiative.

More news inbound!

I think you're probably over thinking it.

I reckon it's simply a forum to allow Keras shareholders to ask Calidus officials questions about the business to help them make up their minds whether they'll hold long term, or cut and run.

Possibly an opportunity to discuss grouped share sales etc. too

Bassguy - read 'Dave Reeves' ;-)

Oh, that's a shame, PC.

With it a 6PM event in Central London, I'm almost certainly going to get a round trip from Birmingham sorted for this.

Hope it's an opportunity to see some of you folks.

Nothing more than a hunch. Honestly.

The accuracy of my intuition is quite scary at times.

Costs were scaled back heavily in Keras pending Nayega approval, to prevent need for further dilution. Nothing was available for Nickel or Cobalt exploration, but I don't believe that means the projects were disposed?

Funding other near term exploitation projects from net profits makes for an interesting proposition.

I don't believe we disposed of the exploration permits, they were just put in cold storage to focus on CAI and pending Nayega approval?

I'm with you Prop.

I would have thought £40m MCap on a producer pushing ~£10m net profit p.a. is reasonably conservative?

I need to find the projected profit numbers to back that up, otherwise its all a bit moot.

Good point.

It'd be a bit of a steal for a producer to be valued at around the same as its annual profit projections.

It's not based on current value. Based on recent RNS where it was cited as over 3c per share

The Calidus demerger does return a higher value to KRS shareholders than current Keras MCap however.

Seem to suggest that our current market cap and share price would be a fair assessment for a Manganese producing Keras after the Calidus demerger has completed.

I feel an £11m MCap would devalue us somewhat, but there we go.

The company is currently only valued at £11m as an explorer that is due to return over £13m to shareholders in gold shares.

As a producer, it should be worth multiples of projected net profit. I'm sure I read that projected annual net profit on Nayega is anticipated to be around £10m p.a? (I can't find my source I'm afraid) - so a target of £44m (2p a share) is probably realistic to conservative?

I can't say I'm surprised, Prop. Sadly.

I think it'll help reinforce the market capitalisation after the Calidus share issue and so we won't witness a run to the bottom. At some point, the share will literally *have* to respond. This may not be until we start to see actual pound notes generated and real talk of dividends, or potential takeover.

Once production starts (which I believe could be weeks, not months) then the shares in the company will be worth pence in the pound to its true value and I would be amazed if that doesn't lead to takeover interest - whether that interest is courted and supported is a different matter, but it will certainly drive the price up.

Exactly - and I'm pretty sure I saw some robust Net Profit calculations on the Manganese project that suggested annual net profits of around our current Market Cap. If the share price refuses to budge, I'll have no issue in taking out my full share value in annual dividends for at least 11 years.

Lucky beggar. I topped up my SIPP this morning and wasn't quite so lucky on the price.

Maybe I pulled the trigger too soon.

Still, with the Calidus 'dividend' and the inevitable movement and rerate that a producing Keras simply has to have, I'm sure even at the premium I paid, I'll be laughing in a few weeks....

Today is definitely a day people can bury bad news with me, Chirpy.

I've not had a smile so broad in a long time.

I'd be concerned if it hadn't been published in Togo by the primary government backed news house.

They've put their own feet to the fire with the general public who will want jobs :-)

On a 1m share purchase

To an absent friend. I'm sure Mr CyprusSteve will be smiling down on us. I hope his family kept his holding.