Think the next we'll hear on the matter will be the court date(s) for the 'reduction of capital'. Don't think we'll get the 'Record Date' until after the court (which may take two visits) but the actual Record Date could be announced provisionally before the court takes place. (Just using the timetable SOU used for reducing capital to give away CORO shares)
Keras Resources* (KRS LN) 0.49p, Mkt Cap £11.2m – Calidus raises A$9m from investors in Australia to fund drilling and DFS (Keras holds 723m shares representing 33.8% of Calidus (CAI AU) t at a value of A$25m (£14m).
BUY, Valuation rises to 1.08p from (1.04p last published on 30.07.19)
Click for our last full note on Keras
• Calidus has placed A$9m worth of stock with institutional investors in Australia to support work on its flagship Warrawoona gold project.
• Keras which held 39.1% of Calidus prior to the placement did not participate due to the scale of its holding.
• Keras’ holding falls to 33.8% as a result of the additional dilution.
• The placement means that Calidus are now fully funded to continue drilling and complete a Definitive Feasibility Study.
• Calidus have done well with the Warrowoona gold project with particularly good grades reported from the Klondyke section of the deposit in recent weeks
• Grades include:
o 13m grading 11.1g/t gold form from 30m, including:
? 1m @ 107.16g/t Au from 36m
o 13m @ 5.58g/t Au from 46m
o 10m @ 6.81g/t Au from 47m, including:
? 1m @ 50.77g/t Au from 49m
o 22m @ 2.13g/t Au from 19m
o 5m @ 3.16g/t Au from 126m
• The recently published PFS at Warrawoona shows:
o IRR - 47% post-tax
o NPV - US$118m at an 8% discount rate assuming a US$1,400/oz gold price
o CAPEX - US$66.5m
o AISC costs - US$811/oz LOM
o JORC Probable Ore Reserve - 8.9Mt grading 1.5g/t for 418koz gold at Klondyke.
o Gold production estimated at 97,000ozpa
o Throughput 2mtpa mining rate and conventional CIL processing.
o LOM – 6 years
• Valuation: our valuation rises to 1.08p from 1.04p based on the rise in value of Calidus Resources shares to A$0.035c/s. Calidus represents some 58% of the value of Keras Resources at present. The remaining value in Keras is calculated on the value of the cash flows expected from the Nageya manganese mine in Togo.
• Keras recently completed a bulk shipment to an unnamed manganese alloy producer which showed the Nageya ore was best suited for silico manganese alloy production.
• The company is now waiting on the Togo government for issue of a full-scale mining license before ramping up production to a rate of around 6,000t a month in accordance with the existing mine plan and machinery. (Current plant capacity is for 75,000t per month).
Conclusion: A$9m is a decent amount of funding for drilling and completion of a DFS on a relatively well defined orebody. The level of funding and support indicates new investor appetite for gold stocks and sets up Calidus well for its future gold mine development.
*SP Angel act as Nomad and broker to Keras Resources
I’m assigning our Togo operations zero value, not a value of £5000 for £5000 paid. (There must be a certain amount of CAI value locked into our KRS sp, I’m saying 100% I suppose, all our value is CAI).
Anyway, no quibble, surprised to see the £ has improved against the AUD, must be one of the few currencies it has lately.
Russell’s comments do seem to pave the way for a court date for the necessary ‘capital reduction’ fairly soon. However, I’d say the ‘record date’ for qualifying for CAI distribution is perhaps a couple of months off still, who knows.
Well absolutely necessary I suppose (reluctantly).
Our ownership percentage has been considerably diluted AND the sp goes down 10% with perhaps lower to follow short term towards the placing price.
Russell states we now know what we're dealing with with regards our distribution, brilliant less value to KRS holders. If someone would care to check my workings on what 1m KRS shares get you in CAI shares in £ value, I'd be interested to know. I
OLD calcs (confirmed in JANUARY by Dave R) :
723,750,000 CAI shares coming our way on positive PFS
2289m KRS shares exist
So dividing up, one needs 3.1627 KRS shares to merit 1 CAI share
So 1m KRS shares gets one 316,186 CAI shares
Current costs and values : 1m KRS costs about £3,800
316,186 CAI are worth about AUD7905 = £4,300
Obviously buying 1m KRS now costs more but the exchange rate has actually moved in Sterling's favour since January (unbelievably)
NEW Calcs :
1m KRS now costs £5000
316,186 CAI are worth about AUD11,066 = £6,197
THINGS have improved !!!! A 24% bonus(£1,197 on £5000) from a 13% bonus (£500 on £3,800)
Looks to me that ECO does indeed have a lot going for it in the coming months. Hopefully mgmt will hold most of our shares for a while longer, and,yes, widows, probably very wise of them to de-risk taking some good profits.
Holding, to see if we can benefit further from ECO's story and perhaps other muted stories from our mgmt elsewhere, though those have been going on for years.
Little disappointing we’ve only got 847,250 shares left out of 3.125m bought on ECO’s initial listing on Aim in Feb ‘17 (@ 16p), but what the heck, that was a fantastic investment.
Wonder if ECO has still got considerable legs from £1.14 in the near future?
An oil discovery is one thing but having the ability to turn that into a Sale or profitable production is another. Anyone up on ECO?
Returns an 'address not found' - so not working.
Gary N. on Twitter suggests looking at 'sometimes the notes in the accounts go into more detail on the positions these investment cos hold (when they make adjustments for changes in the asset value, via a note)' - but busy today
At last, something to shout about for PIRI. Well done chaps.
Hobione, not sure of the answer but on 24th Jan we stated :
"This increase is principally as a result of the performance of its investment in Eco (Atlantic) Oil & Gas Limited ("Eco") whose share price has increased by around 22% since 31 October 2018. The Company's shareholding in Eco now represents approximately 87% of the Company's investment portfolio."
Just read your message from about 2 weeks ago. Thanks for well-wishes.
I lost everything with Beaufort but ....got it all back. The whole thing was crazy and worrying but eventually the FSCS compensation scheme has returned everything to clients.
What are you pursuing with Hoodless Brennan? Are you hoping to claim duff advice given to you? Good luck.
Still waiting for a good bit of news here at the moment : Q2 Kapan production and possible Life of Mine news; Tulkubash more drilling results; '1 or 2 acquisitions this year' was muted about 8 months ago. A decent spike and I'd like to take about 10k shares off the table for personal reasons (skint)
There certainly was a lot of 'Sell the News' traders on Wednesday.
Hopefully, the Record Date will be set suddenly by RNS with not a moment for traders to re-group. I would love that. Unfortunately, again going by Sound and their capital reduction approved through the courts, it may well not be that way.
Here's how it transpired then, announced on Mar 14th 2018 :
"(the "Disposal") released on 22 January 2018 (the "Reduction of Capital") has been approved on 13 March 2018 by the High Court of Justice of England and Wales (the "Court").
The Court Order approving the Reduction of Capital has been registered with the Registrar of Companies on 13 March 2018 and accordingly the Reduction of Capital has now become effective. The Reduction of Capital has created distributable reserves of approximately £277.7 million for Sound Energy and will enable the Sound Energy shareholders on the register at 6:00pm on the repayment record date of 3 April 2018 (the "Repayment Record Date") to receive an aggregate of 185,907,500 (subject to rounding of fractional entitlements) new ordinary shares in the share capital of Saffron Energy plc (to be renamed Coro Energy plc) (the "Coro Consideration Shares") in connection with the Disposal, with the Coro Consideration Shares to be issued directly to such Sound Energy shareholders on completion of the Disposal. The issuance of the Coro Consideration Shares to the Sound Energy shareholders will constitute an indirect repayment of capital by Sound Energy to Sound Energy shareholders."
So, initially muted on Jan 22nd (we've done that bit); court on Mar 13th (still to do); announcement on Mar 14th of Record Date of April 3rd (still to do). If we use the same formula, the traders may well get 2 weeks or so to get as many KRS shares as their sweaty little palms can hold. We will, during that time, see a big rise in the sp which may well then crash the day after Record Date (similar to ex-dividend shares always do) by the value per share of the CAI allocation. The mm's will orchestra this drop, I don't doubt.
Still no cut-off 'Record' date for qualification for CAI shares.
I've been looking back at a similar distribution by SOU of shares in CORO when, after a court capital reduction and shareholder approval, it distributed these shares to holders on a Record Date. There, the initial idea was floated in Jan '18 with a provisional Record Date set for March. This was subsequently amended early March to April 3rd with shares actually distributed on April 9th.
So, we probably will get a future Record Date announced soonish but our distribution is not forecast until Xmas I think.
Anyway, just comparing for reference.
Great news today, it's happening for Calidus and the shares are ours.