Member Info for oilmagnet477

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

I've got everything crossed for you lot - this really could be the culmination of a very very long wait!

With all things being equal, this really looks like it might finally get across the line.

My initial feeling this morning on seeing the news was one of 'bugger, wish I wasn't out' but then AIM seems to be delivering the goods as usual with a diddly squat rise. Seriously wish I had some spare funds as I'd be taking a fresh punt. Whilst there is still risk attached, the Calidus share deal and the prospect of Togo finally producing revenue must, must be the best reason ever to invest here.

With regards to production, there are still a number of unanswered questions but I guess there won't be answers until the permit lands.

GLA

"Would be better if they got someone from weshop, give us some insight"

Like Andrew Lawley, MD of Weshop?

"Managing Director of WeShop, Andrew Lawley commented: "The WeShop Board is delighted to welcome TSI as an investor. We are confident that WeShop can truly transform the way that people shop online. We believe that WeShop can create a vibrant and engaging social experience in which friends and followers can share and discover great products, and importantly can share in an innovative reward structure. We have exciting growth plans for the business and look forward to working with TSI to deliver significant value growth."

between 0.10 and 0.1175 is not 0.10!!

Give us our day in the sun LSE!

Sorry - thanks I5gotnocash as well

Shaun - thanks for the link - a good listen overall. Patience (yet more!) required but AL sounds like he has a plan at least!

Here's hoping......

GLA

PC - in true Panto style "Oh no you don't"

Back in 2016 when all was rosy around the tribute mining adventure, there were multiple venture opportunities tied up with Norton (and by the same link, the Chinese).

Unfortunately, all the tribute mining activity was channelled through Norton's mining plant. A 22% royalty was due to them BEFORE costs and they also turned out to be a little vague on actual gold %, which resulted in payments for less than originally assayed values. As a result all activity within the tribute mining area was abandoned (after a significant placing to advance PoW). All of this led to a significant drop in SP and general dissatisfaction amongst shareholders - hence current SP.

However good the CAI deal looks as the PFS and in-specie transfer approaches, for many it was a rescue deal too far as all the promise that went before turned to nought.

Hopefully shareholders can now benefit from a change in fortunes but there is still a significant question mark over delivering on promises before crusading off to the next big thing.

Cheers - all good thanks - hope you are too?

I feel the frustration (even as an ex-holder) regarding Togo. When you consider the amount of $$$$ spent (=dilution) to progress this project since 2011, selling off the project to someone else might seem like a good idea now but it would need to be at a significant value to deliver a real return, especially for LTHs.

I guess it is all supposition and actually DR's track record of success was always around proving up assets and selling them off for megabucks - one of the reasons I originally got involved here. Sadly for me, the wait was just too long and I had no choice but to move on.

I can't remember how many F**kwit trolls I battled with on here (thankfully they all seem to have disappeared) over the years. Sadly, however much I detested their attitude or methods, thus far it is them that have been right and I was wrong. Timing is all though and that could change at any time.

Time will tell and hopefully sooner now rather than later.

Just a thought re: Togo.

I would consider the run rate of 6000t/month as a temporary situation based on the scrubbed ore - not sure how many tonnes of dirt needed to be scrubbed to arrive at the 10,000t bulk sample?

The figures for 250,000t/pa would, I assume, relate to dirt and not scrubbed ore but I may be wrong on that one as I'm somewhat out of the loop now and the memory isn't what it was :)

Back in the day (2012ish) DR alluded to $15m PA revenues but not sure how the economics stack up based on today's costs and values.

GLA

Jim - anyone looking back to better times pre-FRX will see that DR's MO was build up the asset value and sell on (projects in excess of $1bn total).

I have no doubt that nothing has changed - either in Togo or Aus. Looking at the saga that has borne out in Togo, you'd imagine that anything representing a profit for shareholders, including DR as the largest individual holder, will be jumped upon. One thing LTH's need to remember is what profit and value mean. Over time, however much the BoD have tried to avoid dilution, there has been significant $$ raised along the way that has so far resulted in zero return. A 'profit' from current levels looks almost certain but what do individuals need if they take account of the 'cost' of holding since 2011-12?

I took a massive hit getting out of this stock (over 18 months ago) and seriously hope that all genuine holders here have their patience rewarded handsomely. Sadly for me, I have had to move on (for personal reasons) and have little appetite for further dalliances in this market.

Good luck all and I wish you all a very Happy 2019.

OM

As one of the 'elders' from days gone by, I'd like to wish one and all here a very happy Christmas. I still keep a watchful eye on proceedings and hope that Scrooge delivers the prize in 2019 but that it isn't just a Turkey.....

Still hopeful for the GOLDEN EGG laying Goose.

Best wishes everyone.

Cheer

OM

This article may help provide a basis for comment on today's results:-

https://investingnews.com/daily/resource-investing/energy-investing/lithium-investing/good-lithium-assay-dajin-resources/

It indicates that sediment samples of anything over 400ppm are good, therefore 597 would be quite significant but I have to admit to not being overly experienced in understanding this.

To take ontaget's assessment at face value (ie 0.0597%) would be depressing so I assume there must be significantly more to it than first appears. I guess we will know by end of November..

Greetings All.
Still watching from the side-lines but this latest twist is interesting to say the least.

When DR was at the helm of FRX/KRS he was occasionally (if not often!) criticised for not staying focussed and getting one thing done before moving to the next - at the time I was always pretty determinedly supportive. I still admire the guy's drive but he really does need to deliver something SIGNIFICANT IMHO from this latest halt to avoid the same criticism.

As ever, retail investors are always the last to know. CAI investors may be moaning but at least the CAI SP remains above where it listed, even after the original dilution and KRS share option delivery.

IF KRS are to realise value (in 2019) fully from whatever transpires, the CAI SP really needs to motor for the in specie transfer to work. I have no idea how many KRS holders will liquidate their shares once the PFS is completed and the full tranche of shares are delivered and they come out of Escrow but the impact of 30-40% of CAI shares being sold could be significant me thinks.

One thing that occurs is that IF the latest CAI halt were to result in some kind of > $50m AUD sale then presumably full cash value would be forthcoming to KRS which would not have to await Escrow and real cash would hit the KRS coffers - KRS SP would then be totally independent of CAI - if this coincided with lift off in Togo then who knows what could happen??

As I say, interesting times - I hope I haven't missed the boat here as I have no alternative but to watch what happens. I can't remember how many times I thought I was already on the boat (which then failed to set sail!).

Good luck all

OM

There are 2 separate questions in this and it is easy to confuse them.

What is the value of the assets (being Nayega MN, Calidus % holding and Cobalt and Nickel in Togo) vs the value attributed via the SP.

The Nayega DFS, which will presumably come post bulk sampling and issue of the long awaited mining licence, will help to significantly put a figure on the operations production level, profitability and therefore overall value. Historically DR was careful to avoid overstating the case to avoid overcooking any deal with the Togolese gvt but IIRC, revenues of $15m annually was certainly mentioned. Not sure how revised plans will match this but there certainly seems like there's plenty of scope. As it stands though IMO, the AIM Market (and therefore the SP) attributes NO VALUE - this does not mean that the asset is worthless at the moment - it won't be if the licence is finally granted but until that happens, it is essentially worth nothing to the SP. If the licence fails to materialise, what have we got? Lots of dirt.

There has been some discussion about why DR has sold off the conglomerate rights but remember, $3.5m actually attributes an additional value against CAI shares (and therefore, technically KRS). No one seems to have noticed that. So far the market seems to think that he has sold the family silver too cheaply but then again he could have got $3.5m for a load of worthless dirt. He has not spent a dime to get $3.5m - how much profit from how much gold does that equate to? Anyone remember the Tributes - loads of work for diddly squat - great! He's now got a load of cash for diddly squat work and no one seems to like it - go figure!

GLA

Hi Andee,
All good thanks - hope you too?

Otherwise engaged at present but keeping a watching brief on my old favourite :)

"Should have kept me gob shut!"

About as likely as England winning a penalty shoot out...........

...oh, hang on.....

From Today's RNS: "The Company's current portfolio comprises interests in 108 wells and further details of the interests in wells and their economics were included in the Company's operations update on 16 April 2018 and in the circular of 7 June 2018." Extract from 16 April RNS: Q1 Highlights to 31 March 2018 - 119 producing wells in the Company's portfolio as at end of Q1 2018 - 11 new wells proposed, 8 wells currently at various stages of development including in the prolific SCOOP and STACK plays in Oklahoma. So 31st March there were 119 producing wells and now, when as many as possible are needed to recoup debt, there are 11 less....... Does this mean that 11 have stopped producing in the intervening period or another case of BS maths by the BoD?

Just wanted to pass on my heart felt sympathy to all the long term faithful who have been here since the 'good old days'. This outcome demonstrates complete contempt of PIs and what they allowed the BoD to do in the misguided belief that they would do as stated, how many times was it?, and return significant value to shareholders. I truly hope that Rita hangs her head in shame. For the paltry value left in the current SP, I actually hope this goes t*ts up! That isn't going to help any of you lot (and I really appreciate that) BUT anything less will leave the BoD in a position to salvage something from the wreckage for themselves and they absolutely DO NOT deserve that. By going bust, it might make Rita less likely to walk into another job. This (IMO) was never about the slump in oil prices. Look at the accounts - they weren't able to make money when oil was over $100/barrel. This is ALL down to mismanagement. If only Snead had had the balls to be honest with shareholders last year and actually tell the truth rather than making things look like Rita was being hard done by - I wonder then how many of you would have stood by her? No amount of analysis will bring any of this back so I'll say no more. Sure, there are lessons that can be learned but for some, this must be a really bitter pill. I truly wish you all well and hope that your families and friends etc help put some sort of perspective on this shambles. Best - OM