Ryan Mee, CEO of Fulcrum Metals, reviews FY23 and progress on the Gold Tailings Hub in Canada. Watch the video here.
I think I need to go back into the Bunker and have more coffee!
1m CAI shares are worth 10 times that - bl00dy decimal points!
GLA (Red faced apology!)
I've done some calcs and I'm left wondering........
3,422,000 KRS shares (if you got them at 0.4p - unlikely now!) is going to cost you £13,688.
1m CAI shares are currently worth £1,600-£2200 - depending on CAI SP - currently 3c/s - my calcs determine 3-4c at 1.82 AUD/£
Net result if you sold you CAI shares immediately - you are left with KRS shares which have cost you 0.35p to 0.33p
If the Togo project goes ahead then let the good times roll. If not, what happens to the KRS share price if all the bandwagon merchants sell after disposing of their 'free' CAI shares.
I don't wish to be negative but there are still a lot of unknowns here. DR as already alluded to concerns about CAI SP if everyone in KRS sells after distribution.
If you choose to hold both shares after December and both projects come good then the Promised Land cometh.
If you are a trader looking for a quick profit from this then I'm not sure it adds up.
If your KRS average is over 0.75p then do you have any option but to hold and hope......
GLA
check out RNS 6199L dated 29/04/15
Transfer of PAN asset to Burj + purchase of additional shares for a 20% holding - total cost £1.1m
£1.1m converted to £1
Phenomenal ROI!!
One by one the pieces are starting to fit:
1. Disbursement of legacy assets - no further cash calls and locked away for any future gains
2. Weshop and Brandshield exclusive tie in
3. $300k increase in BS investment by TSI - probably recent warrant $ (no added dilution) - repayment or conversion to further shares in BS. More detail on this would be great.
4. Weshop working hard over Summer to finalise product before re-launch.
5. AL's true colours shining through - A&M background and not a shyster CEO just in it for the salary whilst doing nothing to justify it. A rarity on AIM I suggest.
GLA
https://audioboom.com/posts/7357213-bidstack-two-shields-investments-and-bahamas-petroleum
About 27 minutes in. If you think TSI relates historically to BNR and the days of CW and CE then you may regret it.
But you have to agree that, whilst you are correct in your analysis of BNR and early days TSI, Andrew Lawley has done little wrong since taking the helm earlier this year. Ells and Wood did untold damage to reputation and sentiment but our current prospects and potential with Weshop and Brandshield are lightyears ahead of the historic mining assets.
Yes, the RTO is 'rumour based' at the moment but can you offer an alternative reason behind why Weshop Directors (some big names) would swap their shares for TSI - it didn't raise them any money, their shares are locked in and were converted at a premium to the then TSI SP.
Interesting times and hopefully less need to be quite so pessimistic - and by the way, I have been here for nearly 3 years :-)
http://svscapitalmarkets.com/corporate-broking/
Keras Resources on their list. Russell maybe needs to find a new broker?
*Calidus shares (Not KRS Shares!) DOH
Whilst to many, I guess the PFS is potentially a little underwhelming, to me it speaks volumes about what has been learned from past mistakes. Although it isn't spelt out specifically, this has 'tribute burned fingers' written large all over it!
I am unsurprised by today's muted reaction on AIM - after all we already had a JORC of 1.25m oz and the PFS refers to 30% of that? There is also some way to go before mining is secured (12m expectation of licence - although to be fair this isn't in Togo thank God!)
The in sprecie transfer is still looking like year end so still time to get on board during any quiet times and I totally agree - why push up the value of KRS shares which then restricts how many shares KRS holders get. Personally (and totally without agenda as I do not hold) the transfer IMO should be 'ramped' to favour those who have held longest - tricky but fair as without your support KRS would have been a dead duck way before now.........
Overall a good piece of work but I would still stress that DR should now focus all efforts on getting to production asap and reserve further project expansion until this can be done with re-invested profits.
GLA and all the best
OM
The 1bn shares swapped into WS Directors hands are locked in for 6 months so pretty sure it isn't them? Ditto the 0.1p warrants (locked in for 12 months). I guess the warrant holders could be selling down their original shares and replacing them with warrant shares but in the current range, would there be enough (if any) profit to justify it?
Otherwise, I'm not overly fussed if TR1s don't materialize. If anticipated news flow feeds the momentum we are now benefiting from and we know 30% of shares (+) are in sticky hands then the only way is up IMO.
Assuming the good news continues!!! But to that end, I still figure that the Weshop Directors gave up their shares for TSI shares for a very good reason......
Remember, Weshop DO NOT hold 30% 0f TSI, individual people do - that makes the RTO issue less clear but I'm pretty sure we will learn more in the coming weeks and months - If WS Directors are locked in until December, my guess is that we will benefit from further good news flow over the next few months/weeks GLA
Worth remembering that these are locked in for 12 months.
"On the deal structure, I believe it is important to point out that based on an assumed share price of 0.65p, the gross cost of the 25% investment in CBH Blue is £3.575m. Assuming the exercise of all 550m Warrants, which will release the shares, Blenheim would receive a cash injection of £1.925m which is equivalent to the net investment of these licences, satisfied in stock (estimated value £1.65m). Additionally, we have renegotiated the terms, initially announced, to include the 12-month lock in period for the 300m 0.1p warrants. We believe that this underlines CBH's commitment to the future of Blenheim, its investment strategy and future development"
So the name has changed but so have our prospects AT LONG LAST!
GLA
YES!!
Been locked in here soo long I need a supplies air drop from the good old boys at the RAF!
New undies defo needed and some cold beer wouldn't go amiss.
Babbler - totally agree but like minded investors in this share have been through some tough times over the last 12-18m so just hoping for some 'ramp free' discussion.
Further 10m, 5m and 3.7m buys today tell their own story. IMHO, strategic investors loading up in advance of news. TSI original £150k investment in Weshop was 'pre-IPO'. Given the 33% investment from Weshop holders into TSI, it looks more and more likely that TSI will be used to give Weshop a platform on AIM. New TSI holders from Weshop are locked in for 6m but if they weren't confident of TSI delivering something of benefit to them then why not just keep their own shares in Weshop????
300% increase from lows of 0.07 and virtual silence on here? Does that say more about TSI history or no one using LSE any more? Seems other share pages are still generating comment. People may realise too late that TSI is now being run properly by a decent CEO. Weshop should really transform things here. Hoping news lands soon to underpin and propel this great turn around. Shame Charlie didn't have the gumption to do what Andrew Lawley has done/is doing. GLA LTHs
Apologies for being potentially indelicate but could you please give us some insight as to how many of 'your life years' you anticipate having going forward.
Thanks OM ;0)
However, I was referring to this (from the same RNS):
"Cash conservation remains a priority until commercial mining produces positive cash flow, and the non-executive directors are continuing to be remunerated at some 50% of their entitlements. Should future developments require new cash, Keras is in a position to obtain this by borrowing against the security of its holding of Calidus shares or disposing of a small proportion of such shares rather than seeking new equity."
Another cracking CAI RNS - PFS looks nailed on IMO...
however, even though the KRS owned shares in CAI may have already been taken account of in the MC, the fact that effectively 43% of CAI shares have been 'untradeable' since IPO has, imho, had a negative effect on the CAI SP to this point.
If KRS holders who receive CAI shares via the in specie transfer were to all try and sell their shares (to justifiably recoup some benefit from holding KRS shares for so long!) then the potential effect on the CAI SP could be significant - albeit for a short period. No one has also determined EXACTLY how many Calidus shares will be divided up between KRS holders. The number of CAI share is known, but how many of these will KRS withhold to raise cash for Togo?
I haven't worked out the notional value of CAI shares to KRS but if KRS wanted to inject $1-2m into Togo, what % of CAI shares would be 'sacrificed' to achieve this? On the upside, one assumes that this would only happen after the receipt of the Togo mining licence and that a cash injection without debt or dilution would have a significantly positive impact on the KRS SP.
On balance - loads of potential but still lots of imponderables.
GLA
Given my spectacularly cr@p track record at predicting future value, I will decline to take up your challenge!
I will however make the following assessment:
The future for KRS hangs on any or either of -
1. Profitable Mn production in Togo and profitable gold production by Calidus.
2. Sale of either entity (or both) resulting in a large cash receipt (and presumably a return to SH by special dividend).
If both elements deliver along these lines then KRS SP will reflect that. Obviously if one happens on its own, then there should be movement north, based on the details of any individual result.
DR needs to prove that Calidus can mine profitably or sell the whole lot to a.n.other interested party. If he were going for production then in my view he needs to stop drilling and generate some revenue - I appreciate that the PFS is underway but getting revenue from the project surely benefits both ways - ie we get immediate cash flow and we increase the attractiveness to potential buyers.
With regards to KRS specific activity, Russell just needs to get the permit over the line without someone moving the ******* goal posts again. Seems that the operation has been scaled back to need very little startup capital (which I think significantly reduces risk and likelihood of delays) but without the permit it is all hyperbole.
Good luck
As a former (significant) holder of this stock and someone who developed a good relationship with DR over the years, I think I may be able to answer this one, or at least give a view.
I have always admired the drive behind DR and have considered him to be very much personally invested in KRS and now Calidus.
His track record, prior to FRX/KRS/Calidus, was of big ($1bn) wins in the mineral resources arena. Sadly, since 2011, all we have seen is loads of different attempts to succeed, on behalf of shareholders, with very little to show for his (and other efforts). Significant cash has been raised along the way, In spite of a general policy of avoiding dilution - the tribute fiasco has left many feeling disillusioned IMO.
Much of what has happened has not been directly attributable to DR personally and I still hold him in high regard, irrespective of my personal losses here. There is still much potential here (and with Calidus) but DR's idea that the 0.2c opening price for Calidus would be much higher by the time the in-specie transfer came about looks a bit optimistic, thus limiting the value of the transfer. If all KRS holders 'cash in their Calidus value on receipt of shares, I'm not sure of the impact on the Calidus SP (and I continue to believe that this is unsettling the SP on ASX). The expected rise in the gold price has also failed to be realised (as yet).
Long term, if the Togo permit lands and Mn is produced and Calidus start to mine, or the operation is sold off for mega-bucks and DR returns to form then there should be serious cash to be made. I still think there is a strong chance that this will happen but I can very well understand those who are sceptical or await more transformational news.
They do this at the risk of missing out on buying in at these prices but I'm also not sure that AIM is what it once was. Way too many times we have seen AIM companies disappear without any comeback on Directors or any sort of recompense for Shareholders.
I'm also currently skint or I would most likely be piling in here again - but maybe this time with my eyes more widely open and less assured of success than I once may have been.
GLA and have a great BH weekend
OM
Hi Jim - I admit that I haven't been watching this as closely as I once did, so I might have missed something in the detail but following on from the 10,000t bulk sample, which was funded externally, where does that leave KRS in terms of:
1. Current cash position and cash burn.
2. Given the Capex that was spent to deliver the 10k tonne BS, what of this infrastructure remains and will it lead to immediate production (following the BS model)? Or are they looking to do something different?
3. More details will be needed on the margins given that it appears that the "agreements include a Social and Labour plan which will provide funding into the local communities surrounding the mining operation."
4. "The Government of Togo and Keras have finalised the drafting of the Nayega Mining Convention and all documentation related to the Nayega Exploitation Permit application" Does this mean that ALL the paperwork is now done - I thought KRS weren't going to do a DFS until the permit landed - but to be fair, I might have lost sight of this one?
As you say, there does seem to be a sense of Deja Vu about this but significantly the new COO role to ensure seamless transition into commercialisation seems very positive - lets hope KRS start producing soon to cover his salary!
GLA