Member Info for Markyess

Good spot, I read it but hadn't even considered the impacts on the other Togo licenses.

Still, there's been no movement on them, so a quick disposal would be no issue. It wasn't like the generated any real upside or buzz in our paltry Market Cap!

I believe so, SBK.

My (uninformed, but working on it!) understanding is that with circumstances as they are, using a Capital Reduction Scheme, Keras would be limited to a £15m allocation to shareholders as it stands.

Should the value of CAI sky rocket, that would mean Keras holding residual value that they would have to allocate back to shareholders through other means (or not) - maybe a second reduction in a different FY? Maybe using the proceeds to add to the value of Keras projects (fast tracking Ferro-manganese at Nayega, for example).

I have no idea whether the landscape might change if both Keras and Calidus values were to move (i.e. if Keras was worth £50m market cap, could they return a greater value to holders?). Lots of questions, but for sure, there's no downside I can foresee to being a holder.

It's literally a definition of insanity that we're in a situation where in under 5 months, shareholders in Keras will have up to £15m distributed back to them, whilst retaining a potential, highly profitable manganese operation, and yet the company is only worth <£9m today!

I would imagine they'd have to declare an interest if financial institutions were to take it on.

All published news to date still references share distribution, not cash.

Could be that, Chesh, could be the instrument that's being used. I guess it depends if its the most tax efficient.

A share of £15m by year end would be pretty great. Of course, if Calidus swells beyond that, we'll still have ownership of that residual value, just indirectly via the wrapper that is Keras until it chooses to move it on in some capacity.

Maybe at that point, Keras using the residual to invest/fast track in the ferromanganese 'Phase 2' at Nayega, or to fast track the proving up at the cobalt and nickel projects without dilution, would give us optimum shareholder value?

Reads to me that a value of £15m is the upper limit the company can issue share capital/dividends up to. So if Calidus grows further beyond that limit, Keras would either have to hold the residual, or cash them in for working capital.

Just my assumptions, I don't know for sure. Maybe tax implications? Implications based on the relative size of Keras and money laundering implications? Who knows?

The current Keras Market Capitalisation of around £9m (at current pricing) on Keras is ludicrous.

The Togolese operation alone *must* be worth multiples of that, let alone the CAI holding which we categorically know gives the organisation (after PFS) 40% of the current value in CAI. I wish I could strengthen my position further.

Whatever happens to the KRS share price after the In Specie distribution, the fact we'll be personally holding in CAI, and also a proven, very, very low cost start Manganese operation in Togo that is solely pending a government rubber stamp is very promising.

If KRS loses value after the In Specie distribution (which I kind of doubt as it'll help rebuild sentiment that the management team are competent and have further evidence of their ability to deliver) - I'll be looking to increase my position significantly.

I foresee any KRS sale of CAI shares to be at absolute minimum levels, purely to support cash flow and basic operating costs as the full operation gears up, and only if other short term cash flow options aren't available. The bulk sampling exercise has proven how quickly the operation can generate cash.

I too was initially concerned about the Capital Reduction Scheme, however, some kind soul on here shared a similar example, and it was as simple and benign as the holding company obtaining the share capital from the acquired company, and reducing its holding by passing on to shareholders.

No cashing in, just a pass through, with the net result being, the parent company held less capital at the end.

I breathed a huge sigh of relief.

It'll be even larger when I get assurances Halifax can handle ASX shares, otherwise I might need to orchestrate a swift ISA change

I'm not so sure. We already have a decent level of resource in the inferred category that should be ample to generate the initial DFS on - which would lead to growth in the market cap and ability to start mining operations. At which point, additional exploration and proving can be managed with revenue, or capital raisings against a far larger market capitalisation?

I don't foresee this costing megabucks to get to production. Quite the contrary, I believe the model at play is to take it to production as rapidly and cost effectively as possible.

I'm sure we sussed it on this board in the way back when, I can't remember how far back.

I'm sure that we found some descriptions of Escrow in theory and then a similar case, from the ASX that backed it up.

In essence, the shares are already classed as 'In Issue' so are currently counted towards the market capitalisation. It is simply that the voting rights are activated once they are out of Escrow.

There should be no dilution evident.

That's really useful, Pablo.

I'll take some time to read up more on that transaction later today.

Although there are some differences in circumstances, the mechanics should be almost the same.

I agree too, I want my Calidus shares too! It's for an early (and comfortable) retirement I am planning! :-)

That was what I first thought, but how would Keras fund a buyback/cash issue?

*blinks in total confusion*

Well, I haven't the first clue what that is going to look like. Some degree of issued shares consolidation in parallel?

Good point. To be fair, positive news flow tends to be met with the same reaction as poking a corpse with a stick.

Back to awaiting the big news!

I'm surprised Keras hasn't issued an RNS on both these pieces of news

The Escrow message surely has a degree of price sensitive importance, the second message suggests a potential, material increase to the mineral reserves in Warrawoona in the medium term.

Unless there is a bigger piece of news imminent this week that makes these two pieces of news only worthy of a footnote...

It's been a few too many decades since I did any learning in Quantitative Methods or Evaluations. Keras currently has a market cap of £7m, Calidus has a market cap of just shy of £24m. Based on what we know (target Manganese production and In specie issue of shares to individual share holders for KRS, likely production levels from CAI) what would be reasonable projected market capitalisation figures for the two companies in 2-3 years, assuming both companies are in production and all things remain equal?

I plan on keeping my Calidus shares too for a decent spell of time after in specie distribution.

Depending on what happens with the fabled Togo license, I might look to free up some capital and liquidate some of my Keras shareholding. It's abnormally large with a hope of getting a decent slice of Calidus this year.

It depends if you have confidence in the BoD.

Additional drilling should only be undertaken if it is expected to deliver material value to the company, if you don't have faith in the BoD to make that decision, then there's a problem.

Original funding is sufficient to cover the PFS, per original messaging, placement proceeds covers additional drilling, per a new business case.

The cynical answer is, 'the wet season of which year'.

The positive thinking answer is, 'so it really is due imminently, inside of the next 2 months, at the latest'

I've waited nearly 8 years now, a few more months is neither here nor there! :-)

GLAH