RE: New to KZG27 Jul 2025 12:29
The low share price. This is a company with huge resources of a critical mineral and has actually started sales. Sales from titanium-rich sands (ilmenite, together with other heavy minerals), and with a market cap of only £15m.
Compare this with the £200m+ MC's of potential TiO produces EEE and SVML, which have not even started. More relevant in the heavy mineral sands space is Kenmare (KMR), who are producing ilmenite from sands with a lower grade than KZG has. Astoundingly, KMR's last dividend exceeds the entire MC of KZG.
Ilmenite is a vital mineral, with a robust market for coatings and pigments worldwide, and with titanium being a vital metal for aerospace and military applications. KZG's recent RNS shows the enormous potential. Apart from its ilmenite, a new market has opened with garnet production. So far untapped are the heavy rare elements in KZG's monazite. And diamonds.
KZG is highly ethical miner: environmentally, as the excavated sands are replenished by sea action; and socially, as it presses on towards local beneficiation offering opportunities to the small local community. This is all exactly in line with the new SA government mining policy.
KZG is within a whisker of a 34 times expansion in its licence area, for which scaling-up plans are also described in the recent RNS.
Given the low MC, a buy-out seems ever more likely. Probably somewhere closer to the recent valuation of 9.4 than today's shareprice. Why is this likely?
Oryx recently made a takeover bid for KMR (subsequently withdrawn) equivalent to 30 times the MC of KZG. As they say, "Oryx invests in the minerals value chain, targeting critical and strategic minerals assets in favourable jurisdictions where they can create a positive impact".
Posted 2 weeks ago,and decent summary 👌
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