Member Info for news

May I kindly add to comment:
The salaries of the CEO*s of listed co*s are usually comparable to its own class etc. It will not be compared to Blackrock which is a giant in its own right. The reference to Blackrock relates to their methodology of accounting. One in particular was not happy at the treatment of booking [the Annual Report of KDNC did not say so in 2016 or 2017 from recall] of profit which this holder said should be booked in as a loss. All I said is that co*s follow industry practice. As for salary, the CEO*s salary is openly seen in the Annual A/c of KDNC [I checked the 2016 a/c to check on comment] and I do not deem it sufficient to provide for private schooling. It is only possible if one lived on beans & toast and lived at an address ... other not possible for London? I note two partners of a top solicitors group in London unable to afford a good address, a result of which the husband suffered a ...and is now gone.

KDNC is still classed an investment co and therefore it has to look to the bell-weather Blackrock for accounting methodology for investment co*s.

WORKING OUT THE CALCULATIONS
I note that figures are scrutinized to a fine degree. For example, the treatment for Macarthur*s off-take was used to give an attributable figure to KDNC per their % [9.2%]. It was ? at. However, I note from recall that Motley Fool did mention this aspect in their article so something NOT unheard of. It is remotely possible that Motley Fool did read the ? as sometimes they do check the stock forums when there is a major RNS. I know for a fact that the Times of London read the potash stock stock forums as it was mentioned in their article. However, the Times did not mention which specific stock forum.

So, the tooth-pick approach to financials is one that is well poured over shall we say by forums. Suffice to say, PRIOR to WH Ireland*s forthcoming UPDATED note, this is the time for the LIMELIGHT although it may not procure a job at Goldman?

In the old days of REM plc, they used to run polls or competitions of potential share price. Of course, the famous Gilby note quoting £4.50 for REM plc [old name for KDNC]. I wonder if the FSA contacted him as they have done with 1 or two that I have personally heard of on Twitter?

On many forums, the only thing of interest is potential SHARE PRICE. So, anyone that can closely match the forthcoming WH Ireland note need not say AFTER the fact, I would have, I should have, I meant to have etc.

That is the background to the subject matter.

After all, this is the only MAIN interest in general. One also has to be careful in the sums if one is not licenced by the FSA and as such suitable qualified and no doubt with experience at a more senior level in the industry.

These fag pack figures eg Gilby Report on another forum must have calculated the lithium to the end of the Earth*s core? Otherwise how did it vary so much from WH Ireland*s old target of 0.9p and Hannan*s 2018 0.87p

contd

sat on the board of MMS to advise on strategy. MMS wanted to sell their iron ore business in Australia. However, in recent days, MMS announced that Glencore [mkt cap in billions {32 from recall]} had signed an off-take deal worth $4 billion over 10 years and later participated in their convertible notes to the tune of $2m out of the $6m raise.

Again, the introduction to Glencore came from the Founder. He tweeted this and this has been seen openly on Twitter by one or two shareholders of KDNC [ex-REM] who follow the story. Cam McColl, CEO of MMS [listed in Canada] tweeted that he was in London at a restaurant to meet Andrew Suckling [Chairman of KDNC] to talk "deal" and he also visited the KDNC London office. Mccoll himself has tweeted and said KDNC [or REM] David Lenigas introduced him to European contacts [Glencore is based in Switzerland].

I just realised that KDNC in holding some 9.2% in MacArthur Minerals of Canada with their project in Australian iron ore [high grade 65% Fe from recall] appears to mean that out of the $4 billion over 10 years off-take deal, it would bring in a
top line revenue before shipping of $400 million a year [$4bn divide by 10=$400m?].

So, it would appear that the REM II has 2 iron ore projects ie Amapa & MMS [27% but currently 20%? and 9.2% potentially from MMS as and when they obtain funding etc].

YANGIBANA
This is also a legacy JV from the Founder. Yangibana is a rare earth project in Australia and has joined the ASX limelight due to the rare earth hot news. Yangibana is owned by Hastings Metal Tech on the Australian ASX. However, the JV is for Stage 2 etc [check details].

Please check. DYOR
This is just a legacy short account of the history of REM plc which is fitting to write as an old-timer.

Sun, 1 Sep 2019
at 10.40am
Sorry, not editing as rushing.

Part 2:
Peter Seckers, CEO of Bacanora Minerals plc [now London-listed] said in his recent interview with Proactive Investors that Sonora is one of the largest lithium deposits in the world. I add that this is a clay lithium deposit. Yesterday, on the main Cadence Minerals forum [new name for REM plc], one poster posted a link that it has gone into the history books of lithium deposits in the world. Kindly check on their forum.

What happened to Bacanora after the REM plc take-over did not materialise at £1. The Bacanora shares drifted and fell to 20p in recent times due to the funding event. In recent days, Bacanora via Citi as bankers have managed to obtain a JV with Ganfeng of China. The share price is now around the 40p mark. VSA Capital has a recent target price of £1.14 from recall.

History records that it was REM plc money that paid for initial etc drilling at Sonor at a time when capital raisings at the then time was rather more challenging on the Canadian exchange where Bacanora was listed then.

WH IRELAND
talked of legacy investment. I used to use the word legacy and people could not understand why. This is because legacy investments are those brought in by the Founder David Lenigas [also Chairman] and that is his legacy.

In one of WH Ireland*s interview [audio] I recall that the senior analyst said that many did do well from the REM plc shares. They may know who as they are in the industry and may be cognisant who the big holders are.

GREENLAND
- REM plc licence that "abut" the world class largest rare earth deposits in the world at Kvanefjeld , Greenland. Again, a legacy from the Founder. In recent days, there has been wall-to-wall coverage on the US wanting to buy Greenland for its rare earths. USGS has visited Kvanefjeld and have conducted field studies and the Secretary of State has also visited. She also visited Tanbreez , the nearby rare earth deposit to Kvanejfeld. So, REM plc via Rare Earth Resuorces Ltd that has the "active" licence [need a new renewal official date] may be the next piece of news as Cadence Minerals said it is following developments at Kvanejfeld belonging to Greenland Minerals & Energy [GGG on the Australian ASX]. Perhaps a wild card?

Per Observer842 with thanks, WH Ireland attributed 20% of GGG*s mkt cap to REM plc*s Greenland. Its a pity that the note is no longer available on the Cadence Minerals site. I only recall the target price but not the WH Ireland attribution bit for Greenland [REM plc].

AMAPA
-Iron Ore, Brazil- this is the new project which has got Court clearance dated Fri, 30 Aug 2019.

Whilst Cadence Minerals plc [KDNC, new name for REM] has obtained a 27% stake in the project [20+7% in stages], the top line revenue as within this thread is
US $ 2 6 6 million [net revenue after shipping but note this is not the EBITDA figure. The EBITDA figure is also shown within this thread].

MACARTHUR MINERALS - 9.2% owned by KDNC
The Founder of REM plc sat on

On Fri, 30 Aug , Cadence Minerals plc [KDNC] issued an RNS relating to the Amapa iron ore project in Brazil [Court].

WH Ireland will be issuing a forthcoming Update Broker Note on KDNC [new name for REM plc] per degsie.

I have just seen a very detailed insight into Amapa dated 30 Aug 2019.

It includes:
AMAPA:
"It is estimated that at steady-state production of 5.3Mt of iron ore and utilising 62% Fe price of US$61/tonne [27/08/19 price Fe 62% - US$90/tonne] Amapa will have an average:

<> US$ 2 6 6 MILLION PER ANNUM IN NET REVENUE after shipping.
-US $ 90 million per annum in mine, processing and transport costs
-US $48 million per annum in environmental, sales & G & A expenses
<> EBITDA of US $ 136 MILLION PER ANNUM." - [This figure was in the published info.]
-This will be at the production stage. The stockpile will be initially sold. The details are in the KDNC RNS of 30 Aug 2019 relating to Amapa.

Comment:
Mr David Lenigas took over Zest plc, a shell with a mkt cap of £1m and entered the Sonora lithium project in Mexico with Bacanora via a Joint Venture. REM Plc paid for the initial drilling etc.

REM plc went from a £1m mkt cap at around 0.04p to 2.25p with a mkt cap of £95m.
According to some reports, they reckoned it was a 60 bagger but more if people entered at the lower share price. However, at the time, we checked the transactions at the highest price and there were few. So, not many were able to sell at the highest price per the records?

WH Ireland [check degsie post with a short outline of what WH Ireland said dated Sat 31 Aug 2019] appears to think that Amapa could be a "company maker" and will publish their note when they have looked into the figures etc.

Having failed to take-over Bacanora at £1, REM plc has been ....until the Amapa iron ore project came up. Cadence Minerals will take up 27% of the Amapa project [ 20 + 7%] and can go up 49% as on a first refusal basis but no details on how much it will cost.

So, this may be REM II as the co has now a new project with potential revenue and income?

------------------Top Line Revenue of US$ 266 million a year is considerable [100%]--------------------

Someone asked why this forum is still up. Due to the legacy as one of AIM*s stars due to the bagging, I am sure this forum will live on as a testimony of that rise.

So, I am posting what has happened but caveat it with the fact that it is always subject to change and one cannot guarantee anything. Amapa was formally owned by Anglo American. One can read further on the journey as news comes out.

Cadence Minerals [KDNC - new name for REM plc] closed on Fri, 30 Aug 2019 at around the 0.10-0.11p mark [HL] and was up at one stage to 23% on the Amapa RNS from KDNC.

The mkt cap is around £11m.

DYOR. Please check.

News,
1 Sep 2019

contd
"..have other things to do whilst at the main occupational area."

P.S.
As a courtesy reply to a question put to me on the main forum as to what is the response re: my tweet to KDNC, it is openly seen on Twitter. I see that two forum posters have seen it etc.

As to my tweets they are also openly seen on Twitter by KDNC poster/s.

I will be taking leave of this forum shortly. I have done all the reconciliation of the figures given by KDNC in their 30.8.19 RNS relating to Amapa and various articles by BrandUK etc + from Kiran Morzaria, CEO of KDNC in yesterday*s Vox Mkt interview [inc previous interview on Amapa].

I am sure that the INSTITUTIONS mentioned in KDNC*s RNS in the last placing will do co visits and see to their best interests which may include asking about the dividend policy, if any ,the co intends in the coming future [if]?

Why?

Once institutions enter, that means that "speculators" [not my term] will leave as per the famous chart: "Life cycle of a junior exploration co"?

The reason why "speculators" leave is rather obvious from the chart and from the empirical evidence of the industry.

There is not much further in-depth research to do, hence I need to sit back and follow the RNS*s or news on Twitter as it is being released.

With that, many thanks.

News
Sat 31 Aug 2019
5:19pm

I see NO ONE wants to do the cals prior to WH Ireland*s forthcoming note which will be issued probably after the KDNC AGM in the 3rd wk of Sep 2019. I was cognisant that the lateness in calling of the AGM was due to the Amapa news which was scheduled to come in during Aug 2019. The KDNC Amapa RNS came in on 30 Aug 2019. The reason is also obvious.

It is a fruitful discussion as then all the accounting policies can be discussed and then taken to the AGM for further enquiry. I personally have no questions on this as I know that the Annual Reports of KDNC are well explained in either notations in the actual accounts or treatment and seen by the auditors prior to publication. Apparently, the INLAND REVENUE is also satisfied over the years over taxation style terminology and treatment? Anyone not happy can ask at the AGM if they have other ideas of how to do investment co accountancy contrary to the industry?

As for the coming consolidation and proxy etc I have something further to add to Heid Honcho*s post - my shares are in a nominee a/c and therefore I do not have the proxy forms etc.

It would have helped if HH showed me a copy or a screen shot of the matter of the 50% issuance? I know that these days, things have moved on since my time and there are more and more accounting styles etc. In the USA, they use GAAP or non-GAAP etc. Also, ratio analysis has gone further than in my time.

So, always helpful to provide a link and provide some team-work and goodwill. After all, we are all fellow shareholders and in the past, everyone is generous with their sharing including sharing notes from the AGM.

I look forward to this forum*s discussion on this critical matter of the Amapa contribution [in pennies, £] to Cadence Minerals plc which has NOT been discussed at all in 106 posts yesterday [day of Amapa RNS from KDNC].
These figures ahead of WH Ireland*s note cannot be said to be of non-importance to shareholders.

Why? How far the share price and mkt cap could travel always depends on the underlying dynamics of the financials or listed investments or JV*s. Now, with Amapa, the story of Cadence Minerals will turn to one of r e v e n u e and income?
The WH Ireland preliminary comment as above tells us so.

It is possible that the KDNC AGM will take place first PRIOR to the WH Ireland note as they would need time to check further with market intel etc and more importantly market sensitivity analysis etc.

So, if one has the figures on hand at the coming AGM [3rd wk Sep 2019] , one can ask or talk about this important aspect of Cadence Minerals*s corporate history which is at the point of inflection. As norm for all income producing co*s, it will be of interest to see if Cadence Minerals intends to adopt a dividend policy even if it is a maiden one as and when or IF. I am cognisant that insitutionS [not institution?] will be interested in this since they wanted a consolidation of the Cadence Minerals shares as norm.

It will also be of interest to see if the blogger on KDNC will care to update on his last thesis? Contrary to the thesis, KDNC has managed to raise the funds from institutionS etc.

Since Sat has started, it will be Sun tomorrow when the mkts are closed. So no one can say that financial cals will be blocking up space on this forum.

In the days of REM plc, there were 400-1,000 posts running and one just couldnt keep up. The posts were unusually busy on the weekends ie Sat and Suns.

I look forward to our forum*s stalwarts as they are very interested in the financials and how the co reports financials per the discussion yesterday.

Sat, 31 Aug 2019
4.25pm
News

Per my 13:17 post, Sat 31.8.19

P.S. I will await to see if the Brazilian tax authorities will allow the US$60m net of cost for the sale of the Amapa stockpile to be NOT treated as revenue - income and therefore NOT declarable for taxation purposes as others may think? As I said, I am of the opinion that it will have to be declared as revenue - income.

Or is there a taxation clause in Brazilian tax law to say that the stockpile is treated as "development capital" & retained as such in the co*s books and therefore treated as NOT income-profit/rev? I notice that Cadence said US$60m is NET of costs so this style of accounting suggests that it is a more straight forward revenue minus cost basis?

Will see what the others have to say as it has been also voiced x and y on the subject of the Amapa stockpiles.

WH IRELAND Update Note
Per degsie*s post today, WH Ireland will produce an update.

This will be of interest as the forecast figures from Cadence relating to the Amapa figures will be further worked by WH Ireland. WH Ireland will no doubt use sensitivity analysis. on the iron ore price.

Sat, 31 Aug 2019 at 3pm

P.S. I do not spend my time on KDNC or KDNC.pl in a further clarification to Mr C.
I also post on a gold explorer from time to time if there is data out.

I review loads of companies especially in the mining area but I do NOT post on their forums. Why? After intensive research, I may not have further interest because I found something that I do not like about the project and will have a bearing of critical significance.

I cite an example. This particular copper-gold junior explorer share price was once 50p. Once the asset could NOT be sold in its entirety as the buyer pulled out, then it goes to follow that at such an inflection ,the price will start to fall as the asset is marooned shall we say? The share price is now 0.1p, mkt cap £1m with the same asset. Its NOT a major resource but quite sizeable but it is deep suitable for block cave. My, the ...from the shareholders BUT they are NOT aware that the govt is not extreme pro-mining in the sense that they are keen etc. So, that affects country jurisdiction and no major or mid-tier has turned up. Maybe, if all the copper-gold in the world has been mined and the govt opens up, then maybe. So, research is rather important.

I cite this example to show by way of evidence that my interest is NOT soley on KDNC so I cannot be...

I also track American co*s, currencies et I am on American sites & follow other names on the American scene.

Is there evidence? Yeah, my Twitter shows it and one cant just wipe out thousands of twitter posts.

So, one can see that on 1st looks, it can look as if but it is NOT the case.

Why do I not post on other forums? Why hop everywhere? If one is only processing thru mass data and it has not gone further to buying, why post?
So, when I post on KDNC.pl or the main forum, I am passing by as I have other things to d

WH Ireland: "Our assessment: The Amapa mine could be a c o m p a n y maker for Cadence in our opinion. We are firmly of the belief that the current mkt cap is more than covered by the legacy i n v e s t m e n t S ...and projectS and that the addition of the Amapa stake to the portfolio can only be value enhancing. We will update our fair value estimate after reviewing the development in more detail." Sat 31 Aug 2019 per courtesy of degsie with thanks & rec.

Comment:
The last WH Ireland note was on the Cadence Minerals website but has been replaced by a more recent note by Hannan & Co, London investment bankers.
I am aware of the last WH Ireland target price from recall.

As I said on KDNC [Nex] forum, the Amapa iron ore project [KDNC RNS 30.8.19] will now need working the calculations and sums but no one appears to have posted any in the 106 posts noted yesterday via the RNS of 30.8.19? This Amapa project will form the income or revenue part of Cadence Minerals to come and by extension, could affect the mkt cap as a consequence as norm?

Any calculations done PRIOR to WH Ireland*s figures for Amapa will be interesting and surely one of great interest to all shareholders of Cadence Minerals. I wonder if the market [MM*s] have worked it out yet as the market sets the tone for mkt cap value or perceived fair value or will they wait for WH Ireland? I think they will wait as that can be taken to the regs. I know of other shareholders in another co who have telephoned the regs and the first thing they ask is: What does the broker note say? After all, they are licensed and qualified and recognised by the regs.

I think that in the history of this co, Amapa is the 1st project that is of a revenue or income nature as opposed to investmentS or JV*s as said by the WH Ireland note as above. To see the fuller note, click on reply and one can see degsie*s post on the above title.

Sat, 31 Aug 2019 2.10pm

I am looking forward to seeing the figures as this is what is dear to everyone*s heart ie share price and that is influenced by the new biz ie Amapa with definitive income or revenue?

I know what will be said about the stockpile as I get the style of thinking.

Note: $61.-62 per ton is used for the production forecast per Kiran Morzaria*s interview with Vox Mkts, 30.8.19 [Amapa RNS]

TAXATION TREATMENT?
I looked through the Cadence Minerals Annual Report 2016 & 2017.
This is because on the main forum, this subject was discussed and I wanted to check it out for myself.

I note from the AR of 2016: "Financial Review-During the period, the group made an operating profit of £2.84m compared to £0.24m for the year ending 2015. This was primarily driven by a £3.21m increase in UNREALISED PROFITS on AVAILABLE FOR SALE ASSETS which included investments to BACANORA & EMH." Note available for sale as it did not say sale.

I also saw a table of "Mark to Market Equity Value" & "ABSOLUTE RETURN ON EQUITY."

Comment:
Therefore, treatment is as above and if a shareholder feels that it is NOT to be done in that way, thinking that it was realised when they wanted it to be reported as a loss, well, one would have to trawl through the AR*s to draw a balanced view.

Personally, Cadence Minerals is classified as an investment co and I would imagine that the style of accounting will be akin to Blackrock etc? I am sure people have read in the newpapers that the stockmarket goes up at the end of the year and as such ... So, I gather the treatment is rather more complex.

The accounts of Cadence have been audited at AR and therefore if the treatment account style is not suitable, the external auditors would have advised, I am sure. So, it would appear that the wording used is clear as to treatment accounting style.

If a shareholder is NOT happy at the industry style, then they have to ask at the AGM in London shortly.

As for payment, I see that Founder in 2016 received NO salary or remuneration. I also saw the salary scale for the CEO and let*s say that in my opinion, it would not stretch to private schools as said in general discussion elsewhere given London prices? Just basic simple maths would suffice to evidence this is so.

This is open to any Chartered Accountant of a major fund to comment further as this area is a specialist field or at the AGM.

This is just for discussion since it was brought up and open to correction if deemed fit by anyone who is a CA of a major fund like Blackrock or Finance Director of Blackrock.

"Cadence Minerals Approval of Judicial Restructuring Plan 30.8.19"

"AMAPA: 62.12% average grade based on US$80 per ton would n e t Amapa a f o r e c a s t of US$ 60 MILLION NET OF COSTS." - STOCKPILE

Comment:
Kiran Morzaria on VOX Markets yesterday, 30.8.19 quoted that 62% FE iron ore is selling at US$90 per ton and 65% FE is selling at US$110-119 a ton.

So, it would appear that the stockpile talked about as above appears to be 62% FE so the forecast at US$80 matches quite closely to the actual price on 30.8.19.

However, Kiran Morzaria also said that 65% FE is selling for US$110-119 per ton. From previous KDNC RNS*s it was said it was 65% FE so that may be the new resource to come? Or later, there will be a mix?
https://twitter.com/CadenceMinerals/status/1167426911888379904

<><><><>$60 MILLION PROFIT NET OF COSTS<<><><><>
We are told that the new resource PRODUCTION will start in 2022 and rehabilitation of the site will be completed END 2021. https://twitter.com/CadenceMinerals/status/116740880235831296

CADENCE MINERALS with 27% will in theory received US$16.2 million OR £13.5 MILLION [27% of US$60 million net of costs] .

New production at Amapa will start in 2022 and that appears to mean that in Qtr 4 they will start shipping some of the stockpile per K.Morzaria*s last interview with full shipping presumably in 2020 & 2021.

So, the forecast £13.5 million ATTRIBUTABLE to Cadence Minerals is spread over 2 financial years or 2 years = £6.75 MILLION PER 2020 & 2021 [ Total £13.5 million]

ACCOUNTING TREATMENT?
On the main discussion forum, some are convinced that £13.5 million [US$60m net of costs for the Amapa Joint Venuture of which KDNC has 27% share and Sino the rest] WILL NOT COME TO CADENCE MINERALS but will be used as "Development Capital" for the cost of rehabilitation costing US$168m in total.

Development Capital is equity funding for profitable co*s rather than for start-ups [check online for that definition].

YES, that may be correct per the KDNC RNS b u t will the INLAND REVENUE TAXATION people agree with the forum poster/s of KDNC?

Ah, I think No per my personal opinion only. Why? Taxation thinking is that anything that derives a profit from commercial activity for listed or unlisted co*s will be taxable. Note I did not use tax but taxable = declarable and notifiable.

However, this profit from the sale of stockpiles is spread over 2 years or 2 financial years if they overlap.

The profit will be in the Joint Venture co presumably in Brazil and they will have to declare that in Brazil.

As to how Cadence Minerals will treat the £6.75 million profit for 2020 & £6.75m for 2021 will depend on whether the profit from the Brazilian JV will be translated back to Cadence Minerals and later when rehabilitation starts it will then become development capital contribution.

I am sure Cadence Minerals will consult with taxation experts.

Note: US$61-62 is used f

Typo: Its and expression.

Political? As in?

The rare earth ore has a surface express. Like a gold explorer, all they have to do to create value is to drill the required 15-20 holes [up to 300m] to declare a discovery.

That way, it puts the licence into play. Could we see this aka Sonora style?

It wont cost a lot.

I have been trying to find Kiran Morzaria*s video of him and crew flying over their licence in Greenland. Do you have a link? Thanks.

I have already tweeted the video over Kvanejfeld. There is also one on the TANBREEZ website.

I mentioned that Cadence never likes tweets but liked the one on Greenland: "Acquaint yourself with Greenland Mineral*s Kvanejfeld project and the rare earths realm." -Kalkine Media, 29.8.19 ["Kvanejfeld well positioned to be of GLOBAL significance, could supply rare earths for decades."

Comment:
Open the tweet and one can see that Cadence liked the tweet - its on open file.
By this, I know that Cadence is following the Greenland story especially Kvanejfeld. Kindly check.

https://twitter.com/LONDONAIMCAP/status/1167556244615376897

Quote:
"At Kvanefjeld, Chinese co*s are planning to BEGIN MINING both Uranium & RARE EARTH elements, the production of which China is trying to monopolize."

"The Chinese are also investing in Zinc & IRON ORE mines on the island."

"Buying Greenland as a whole is off the table, but China is r a i ding ALL-YOU-CAN-EAT-BUFFETT-THERE."

Comment:
Very interesting that they plan to begin mining as above. Cadence Minerals on their website said they are watching progress at Kvanejfeld. By progress is taken to mean the turning point. So the rush has began.

Oh, guess what? Our Founder managed to get the licence that "abuts" [see www.cadenceminerals.com ] Kvanefjeld. Is it co-incidence? Ah, no cos we know from the tweets that Mr Stanley Ho, formerly CEO of Hastings on ASX [JV with REM-KDNC at Yangibana rare earths, Australia] is a NEIGHBOUR. Oh, guess what, Mr Ho is now Chairman of Greenland Minerals & Energy [ASX listed GGG] whose co KDNC is watching for progress at Kvanejfeld. Just type Greenland Minerals & Energy to check that Mr Stanley Ho is the top cheese. Small world - I did say its who you know, who you mix with, who your contacts are etc.

More juicy stuff I am about to type. Is there something wrong with the software? I type chart, it turns out chat?

Macarthur Minerals [KDNC owns 9.2%] not so long ago announced that they obtained a 10 yr $4bn off-take deal for their iron-ore with GLENCORE. 21.3.19

The share price of KDNC shot up to 0.42p straight from 0.11p mark. Check the share chat at the top of this page.

Later, Glencore was also involved in the Macarthur $6m secured convertible note at $2m. 16 May 2019

The events that led up to this:
1) Cam McCall, CEO of MMS listed in Canada tweeted that he & Andrew Suckling was "talking deals" in a London restaurant with a pic of them.

2)Mr McCall also tweeted his location map of going to KDNC offices in London next.

3)David Lenigas, Founder of REM plc [now renamed KDNC] tweeted he introduced MMS to Glencore.

4)Mr McCall tweeted that KDNC / DL introduced European contacts. Glencore is in Switzerland.

5) Today, Barksy1 on KDNC posted the MMS announcement that Andrew Sucking has joined the board of MMS.

6)MMS *s iron ore project is in Australia [high grade 65% FE].

7)Now we learn that Glencore was also one of the potential bidders for Amapa [65% FE high grade] in Brazil. Amapa shipped to Europe etc but from Kiran Morzaria*s interview with Vox today, Fri 30 Aug 2019 he said the iron ore is going to be shipped to China. I had posted that there is demand for high grade iron ore in China earlier.

8)Glencore*s share price today is £2.37 with a market cap of £32.15 billion. By contrast, Anglo American*s share price is £17.74 with a mkt cap of £24.69billion.
So Glencore is no small player.

9)David Lenigas joined the board of MMS and he was there for strategy. MMS had wanted to initially sell their project prior to Lenigas*s appointment to the board.

10) Interesting that KDNC is now in that type of league with the big majors ie Glencore?

The old-timers would have seen McColl tweets etc as a few follow the Founder of REM*s tweets.

https://www.reuters.com/article/angloamerican-amapa-idUSWLA568420121102
2.11.12

Quote:
"Glencore has AMBITIONS to GROW in iron ore, a key steelmaking ingredient which it is NOT currently a MAJOR PLAYER, but the commodities trader has also been selective on the assets its t a r g e t s."

Comment:
A back-up to what I said in the previous post below. Kiran Morzaria on Vox Mkts today said that the Amapa iron ore is destined for the China market.

Fri, 30 Aug 2019 at 10.35pm

https://www.miningmx.com/news/ferrous-metals/19316-glencore-in-running-for-anglo-s-amapa/ 5.11.12

Quote:
"Glencore is reportedly joined by Russian steel producer Severstal, a privately-owned mining group Zamin and Australia*s Centaurus in bidding for the mine that Anglo first bought in 2008 as part of its $5.5bn Minas Rio acquisition."

<><>"AN INTERNAL VALUATION PUT AMAPA*S VALUE AT $1.5 BILLION, REUTERS SAID."<><>

Comment:
Who*s to say that the KDNC & Sino Joint Venture would not want to sell if they was interest as everything is saleable as norm? It was in 2012 with 4 in the chasing pack. Who*s to say it will not be of interest in the mkt given the higher price for 65%FE which is high grade at $110-119 currently per K.Morzaria in today*s interview with VOX?

Alan Green quoted as below [tweet] that the value of Amapa was US$600m with EBITDA at US$136m. At P/E 10, it would equate to US$1.36bn so roughly what Anglo*s internal valuation comes to at US$1.5billion as a counter-check?

Cost price to the JV: To re-commission the mine it would cost US$168 million minus $60m that will come from tailings?

Kindly check.

Fri, 30 Aug 2019 10.20PM

I was rather surprised that with 106 share posts on the main discussion site, there is NOT even ONE post that fully worked out the figures that is attributable to KDNC so as to obtain the various P/E scenarios, debt repayment from EBITDA, value, pricing etc which will determine the potential mkt cap in the 3 scenarios of best case, mid-case and worst case [minimum]. This is not to re-work new figures but to use the apportionment that will be due to KDNC matched against what Kiran Morzaria said in his last interview also with VOX Mkts.

Without these figures, how can one determine the KDNC position?

Alan Green*s tweet: " This acquisition is utterly transformational for @CadenceMinerals shareholders. $6m investment buys former #AAL @AngloAmericanBR iron ore mine worth $600m & with $136m EBITDA per annum projected ." https://twitter.com/AlanGreen/status/1167322871732953090

I note Mr Green sent this tweet with the embedded KDNC tweet and link to the rns which is marked "branduk.net/cadence-minerals..." Mr Green is from Branduk although he is also tweeting from his personal a/c and another from Branduk.

Interesting that for transparency, Mr Green sent his tweet to Cadence to make sure if the figures quoted are in error, the co can correct it. Also interesting that Mr Green sent Anglo American BR [official Twitter] this tweet quoting "worth $600m and the EBITDA of $136m"

This is Anglo*s figure in their Annual Report in 2012 broken into US$462m for their 70% share [total 100% share = US$600m] and is quoted in the various RNS*s of KDNC. It was earlier in Anglo*s books at US$866m [100% US$1.2bn] before the impairment. It had an annual operating profit of up to US$171m but this figure quoted today of US$136m has been brought down perhaps due to the fact that although iron ore is selling at $110-119 for 65%FE and $90 for 62% FE, KDNC is using $61-62 p/t for their projection as illuminated by Kiran Mozaria, CEO in his interview today with Vox Mkts, Fri 30 Aug 2019.

The figures ORIGINATE from Anglo American*s official Annual Return of 2012.

It appears to be compelling figures as quoted above from the tweet.

Whatever of the past being discussed on the main discussion will NOT detract from today*s KDNC RNS which has been sent to Anglo American BR*s official Twitter a/c for transparency and if the figs quoted are in error they can check and correct.

I take the view that what is discussed of the past, if it has merit, it can be taken to the FSA etc and to stand up at the AGM to make whatever is to be said open and transparent. That is the way of the rule of evidence based law.

Fri 30 Aug 2019 at 7.40pm
DYOR. Please kindly check all the articles out today from BrandUK, Cadence, Vox Mkts for the KDNC CEO interview.