Member Info for Moneymaker2015

Never mind the main course, the starter hasn’t even arrived yet!

I understand people may not like the risk by awaiting for the drill results, but you have to think momentum will continue up to point at which drilling commences, and selling now is a tad premature. Considering the potential here, you also have to think there will be a number of people trying to get in before results are due too, as a last minute gamble.

On Thursday KAV released the phenomenal news that it is going to drill the KSZ later this month. Can they top it this week by releasing further TDEM results?

I would say that’s a no brainer, but we thought we going to be in production 18 months ago!

It will be nice just to have a conclusion the things and finally get some boots on the ground. 2 years ago we were waiting for the permits. They came in late, pushing production back. Then we had funding. This took a while but has come out favourably for shareholders. Then SAU putting its 50% up for sale. This has delayed things by BMV’s initial (presumably low ball) offer, selecting an independent expert, an extension to the decision, BMV’s inadequate offer in Jan and then the current negotiations. It seems never ending.

I originally bought-in here in 2019 thinking “BMV are due to commence mining this year and at sub 2p is a bargain!”. Yes, the share price has doubled so I can’t grumble too much, but things have been significantly slower than I’d anticipated. We want to see some gold!

It’s great for shareholders that the company has decided to do it this way as compared to many explorers KAV has very few shares in issue. Positive results by “Pulling the Trigger” now could mean substantially lower dilution in the future. This in turns leads to more value for shareholders.

I’ve been here a while, so have a target price of only a £200m mcap (based on sub 400m shares). I was anticipating it would be a few years off yet, but with KAV’s plans this year, that may be achievable much sooner with the right results.

The best thing about KAV is that it has a number of options that could be company makers.

Obviously the focus is currently on the KSZ and yes if the drill results were poor, in the short term the share price would take a hit. However, that wouldn’t rule out the KSZ still being a company maker later down the line.

KAV also has the KCB and Ditau to fall back on, both of which could be huge. LVR is the one I’m most intrigued by as BT confirmed that is the project most likely to succeed and KAV can continue to increase its stake in the project.

If things go in KAV’s favour, the mcap in 12 months time could be substantially higher than its current position.

It’s nice just to have an update admitedly. Things have been fairly quiet considering it wasn’t that long ago that the company acquired Diamond Creek.

Judging from the time and price they appear to be buys.

Brainspark, there’s nothing for them to declare at the moment. Until it’s announced otherwise, the only update the company can provide is “there has been no change from the last announcement”.

If you want to know anything (provided it isn’t price sensitive information), just email them, the BoD are actually quick to reply.

I can provide you pretty much everything they will be able to confirm:

1. The BoD are aware SAU’s CEO has mentioned the deal will be completed at the end of Q2, but BMV has never set a target date themselves, so can & will only be able to update the market once a deal is finalised.
2. The JV prevents any development starting until SAU’s 50% is sold.
3. The mines will require dewatering and condition surveys undertaken once any deal is confirmed.
4. Once the condition surveys are complete any any remedial works undertaken, the mining authorities will be undertake their inspections prior to issuing the mining licence.

It’s all in the public domain already and the BoD won’t be able to to provide any further information until a deal is confirmed.

There’s been dust collecting for months now! I’ll probably collapse with shock the day news gets released that a deal has been finalised.

I just keep thinking of my long-term target price here (assuming we do obtain SAU’s 50%). It would make the years of waiting worth it.

I grabbed another 250k whilst it was down there.

I do like Zak Mir’s 1.4p target. Although, it shouldn’t be too difficult either.

BritNRG are looking to slowly increase production up to potentially 500bopd over the next 12 months. There’s option for MNRG to increase its interest to 65% in BritNRG. Plus, operating costs are sub $20/bbl. That alone would likely give us an mcap of circa £15m. More positive news on Gold Ridge and MetalNRG ECO Ltd also, could see MNRG pushing upwards of 3p in the next 12-24 months, if not higher.

From its current position, MNRG is fairly low risk but high reward.

The current mcap doesn’t even reflect the value of CS alone, more so considering it’s on the brink of production. You have to think, once CS does become a commercialised asset there’s going to be a considerable shift in share price if news continues on SRES’s other assets also.

775,862 shares at a subscription price of 0.58 is so little it’s almost irrelevant. That’s only a bonus of just £4,500. As you say though, shares are better in the hands of Directors, so as to more align their incentives with that of shareholders.

If not today, it’s likely 5p will be hit fairly soon. KAV appear to be putting out positive news on every project. Originally I only bought-in for the KSZ, due to it’s potential. However, the KCB is turning out to be very interesting indeed, especially with Copper prices where they are.

I have to side with Jersey on this one. BMV put forward a proposal at the end of Jan (4 months ago). The next and last piece of news on the issue we’ve had on the issue at the end of Feb stated:

“Constructive discussions ongoing with Southern Gold seeking a "win-win" for both companies”

SAU have said on a number of occasions it hopes to conclude a deal by the end of Q2 and it will likely become a significant shareholder of BMV.

There’s no guarantees on the timescales but there’s absolutely nothing coming from either party to say that a deal won’t be concluded.

It’s good the share price is creeping up prior to any news dropping.

Hopefully news will drop before July. Getting these mines into production has been long overdue!

Once the permits arrived at the end of 2019, we were looking at commencing mining 6 months after I.e. 12 months ago. Yes, funding took longer than anticipated, but it’s worked out very well for shareholders to be fair. SAU putting the “For Sale” sign up on its 50% has caused a huge delay though. It will be nice to finally see something materialise.

Gold hovering around $1900 is very welcoming, more so because the higher it goes, the less we have to give away in repayment of the loan.

To be fair, cash is a risk to KAV, purely because of the potential size of the plays involved. However, they’re doing all the right things: partnering with Spectral; looking to partner with a drill contractor; open to the option of partnering with a major should positive drill results come in.

Ben Turney is aware that the potential size of the play is huge for a company of KAV’s size, but is keeping costs as low as physically possible, which is what’s needed for KAV to succeed. So far they’re doing a cracking job. Hopefully it will all be worth it if some good drill results come forth.

Brainspark, I wouldn’t worry about a deal being off just yet. Simon Mitchell from SAU even said in an interview last week that the assets are in the process of being sold to Bluebird and he’s hopeful of a resolution this quarter.

https://m.youtube.com/watch?v=CEjbEXWS0_M&feature=youtu.be

He definitely wouldn’t be making statements like that so late into the quarter if things weren’t close to being settled. Obviously there’s no guarantees until all paperwork is signed, but it clearly sounds like progress is being made.

The thing is, it wouldn’t take much at all for this to go above a £10m mcap. A couple of months ago MNRG went from about 0.7p to around 1.2p in a day or two. It was only the news of the placing the killed the momentum.

Yes there’s still elements of risk, but the current share price represents a bargain when compared to the upside potential.

It’s shocking how low the mcap remains considering the assets that ARK has, especially considering today’s initial results.

This comment in particular grabbed my attention:

“use of the CRMC's surplus facility will allow for a low capital cost, low risk start up to production”

Obviously very little detail is provided but the CS Project may get into production much quicker than most would anticipate if SRES can make use of facilities elsewhere, rather than having to build its own.