George Frangeskides, Exec-Chair at Alba Mineral Resources, discusses grades at the Clogau Gold Mine. Watch the full video here.
It was most likely his accumulation of shares back in 2017/18 that drove the price up to 20p. To get there again we probably need another big buyer, private or institutional, to start building a large holding.
Whatever the news, its only demand for a share that triggers a rise after all. Plus Zioc will be issuing new shares as I understand it to "finance" the Glencore "purchase". So I assume that will be the same as a dilution.
However any announcement related to a finance partner for developing the mine should create the share buying interest that we need for the share price to rise.
20p will definitely test my resolution. Eventually it will be a lot higher than that, but at my age I'm not sure I can afford to wait!
I also would never invest based solely on an Align report.
While the reports do contain some excellent factual information, I just cannot ignore that Align are paid for publishing a research document by the company the report is about - either through an allocation of shares or in cash.
That to me means you can use their basic factual information, but you must do your own extensive research before deciding to invest. Just as 99 and ATG have said.
...I know it was just idle dreams about a teakeover offer of that level, but who is going to make any sort of takeover offer now that Glencore have the rights to distribute the ore?
The only practicak way forward it seems is to bring in a partner with the financial resources to develope the mine. But even then the ongoing profit for that partner (and for ZIOC) is only now going to be whatever mark up they can achieve by selling the ore to Glencore. Which will of course be far less than selling it on the open market.
Having said that, ZIOC would not have done this deal without having confidence that they can find a development partner, so something must be afoot.
"Personally, I think it’s the sale of Glencores holding - but I hope I’m wrong ?? "
I think jv123 has got it right. Glencore's new shares in Zioc possibly being sold to some outside party coming in to partner Zioc in development of the entire project.
If it was a sale of the whole project, I just can't see any reason why Glencore would first "sell" their share to Zioc. I am happy to stand corrected, but I just don't see any logic in that.
Alternately it could just be really poor and lazy use of words by Glencore in describing the "sale" of their shareholding to Zioc as an impending sale. It would not be the first time an RNS has been vague, lacking in clarity, and therefore open to interpretation.
Align Research reports are all paid for by the company the research is done on, albeit in shares of that company.
So, although factual, their reports can hardly be considered totally independent
Having said that, the potential for KP2 IS a fact. Yes, there are risks. And yes., patience is required. But they will not lose their mining licence, despite what Albi may claim.
Some big late sales on Thursday, only reported late this afternoon. Over 2.2 million. Someone doesn't seem to share the same optimism as most of us.
24-Nov-22 16:38:44 4.90 500,000 Unknown*
24-Nov-22 13:07:50 5.275 1,200,000 Unknown*
24-Nov-22 16:27:40 5.051 507,379 Unknown*
Something Zioc and AT have been working on for the past two years I think - moving Glencore out of the equation as much as possible.
I think we can now rule out a sale of Zioc - none of the big mining companies (Australia or China) will want to develope without access to the ore. Similarly financing of the mine by another mining company is probably out too.
I guess that leave private investment to finance the mine? I am sure Zioc must be well advanced with investment options and this is another step along the way.
It wouldn't surpise me to see AT now take a back seat and Johnny Velloza come to the fore, as he is a mining development expert - and it is clear now that Zioc's aim is to develope the mine.
The concern to me is "There are a number of proposed contractual terms that the Company believes now require further discussion before acceptance." and "It may transpire that SEPCO will require further SEPCO and Power China Board approvals prior to the finalisation of the contractual terms."
Clearly there are terms in the proposed final agreement that KP2 didn't expect and were not covered in the Heads Of Agreement. Hopefully this can be resolved, but if either side plays hardball, we could still have a long wait before anything is finalised. Especially if board approval from two Chinese companies (SEPCO and Power China) is required.
I can't see anything being finalised until 2023 now, but at least KP2 have updated us on the reasons for the delay!
Patience is still the name of the game with KP2.
Johnny - that depends on when you came across KP2 and what price you got in at.
For anyone who has invested in the past twelve month, there will be short term gains to be had.
For anyone, like me, who invested 5 years ago and is a long tern holder, the payoff will be further away.
Rock, please. MMs do not influence this share at all. KP2 just doesn't do enough turnover to warrant any interest from the MMs.
What is more like if today's dealings are all buys is that KP2 leaks. Always has. The best sign of upcoming good news will be an increase in significant buys, so you might be correct about a big impending announcement.
But forget MMs. They have zero influence on the current price of KP2. Hopefully one day the share price and transaction level will be high enough for them to take an interest, but at current levels it just doesn't happen.
Its a difficult climate to raise finance for anything at present, but the Kanga RNS hopefully will push KP2 and their partners into an early conclusion!
As regards Albi, his negative comments are well over the top. But newbies to KP2 need to remember that the share price is where its at for a reason. Its only when we have finance agreed that the share price will swing.
Thanks for all the comments. I totally agree, although Kanga is a competitor in a sense, development can only be good for KP2, especially in relation to infrastructure in the area.
I also like the offtake letters of intent Kanga already have, even though their development I assume is behind KP2 in testing etc.
No reason why we shouldn't be seeing a similar RNS on financing and offtake from KP2 in a few months.
Another potash mine located, I think, close to KP2.
Does anyone know anything about it? Its the first time I have come across it.
https://www.investegate.co.uk/kanga-potash/rns/kanga-potash-granted-mop-production-licence/202207200700090413T/
Thank you Veteran for that excellent write-up.
I assume AT will be receiving shares instead of salary. Its never been mentioned how many he has accumulated, but my impression is that a successful outcome for Zioc would be life-changing for AT, as well as for Clifford - and possibly many of us too.
On the points others have raised about KP2. I also do not think their infrastructure will be of any great use to Zioc. However the key for me with KP2 will be a major mining project in the ROC getting major finance for (as far as I know) the first time.
In my view KP2 getting off the ground would increase the confidence of third parties investing in Zioc. At present nobody seems to want to take that risk at all, despite the huge potential of the asset.