Member Info for Poppyseed

The view from Tectonic's Interims today:

"...The half year saw the team supporting our partnership with London listed Kazera Global Plc (“Kazera”) (LSE:KZG) on the Heavy Mineral Sands (HMS) and Diamond project site in South Africa. Our joint venture with Kazera in HMS in was awarded a mining license. This is the first and so far, only mining license inside Alexkor, the South African Government controlled and operated diamond fields at Alexander Bay. Previous testing has returned exceptional grades of HMS and independent studies conducted for Kazera valued this project at £150 million.

Tectonic holds a 40% economic interest in this project via a non-diluting 10% equity holding in Whale Head Minerals Pty Ltd (Whale Head) and a further 30% economic interest via a sale and loan agreement with a Black Economic Empowerment (BEE) consortium. In order to ensure compliance with South Africa’s BEE regulations requiring mining projects to have a 30% holding by qualifying local investors, when Tectonic sold 60% of Whale Head to Kazera, the Company sold a further 30% to a syndicate of local investors. Pricing for this 30% was based on the £150 million independent valuation conducted on behalf of Kazera. The BEE investor syndicate includes a South African private equity group headed by a highly respected business leader, two experienced South African entrepreneurs, a local community group and an employee group. Tectonic has financed this 30% syndicate with a share loan program under which 80% of the returns to the syndicate are paid to Tectonic until the £45 million in agreed loan value has been repaid.

Tectonic holds a 10% non-diluting interest in Deep Blue Minerals Pty Ltd, Whale Head’s sister company that operates an alluvial diamond concession in the Alexkor mine site. Diamond extraction is a regulated pre-requisite before the tailings containing heavy minerals can be processed by Whale Head. Kazera has announced that both Deep Blue and Whale Head are now funded to bring into production. This could be a significant source of cash flows for Tectonic to fund Mt Cassidy and new projects for the portfolio..."

Sincere apologies, wrong thread!

The view from Tectonic's Interims today:

"...The half year saw the team supporting our partnership with London listed Kazera Global Plc (“Kazera”) (LSE:KZG) on the Heavy Mineral Sands (HMS) and Diamond project site in South Africa. Our joint venture with Kazera in HMS in was awarded a mining license. This is the first and so far, only mining license inside Alexkor, the South African Government controlled and operated diamond fields at Alexander Bay. Previous testing has returned exceptional grades of HMS and independent studies conducted for Kazera valued this project at £150 million.

Tectonic holds a 40% economic interest in this project via a non-diluting 10% equity holding in Whale Head Minerals Pty Ltd (Whale Head) and a further 30% economic interest via a sale and loan agreement with a Black Economic Empowerment (BEE) consortium. In order to ensure compliance with South Africa’s BEE regulations requiring mining projects to have a 30% holding by qualifying local investors, when Tectonic sold 60% of Whale Head to Kazera, the Company sold a further 30% to a syndicate of local investors. Pricing for this 30% was based on the £150 million independent valuation conducted on behalf of Kazera. The BEE investor syndicate includes a South African private equity group headed by a highly respected business leader, two experienced South African entrepreneurs, a local community group and an employee group. Tectonic has financed this 30% syndicate with a share loan program under which 80% of the returns to the syndicate are paid to Tectonic until the £45 million in agreed loan value has been repaid.

Tectonic holds a 10% non-diluting interest in Deep Blue Minerals Pty Ltd, Whale Head’s sister company that operates an alluvial diamond concession in the Alexkor mine site. Diamond extraction is a regulated pre-requisite before the tailings containing heavy minerals can be processed by Whale Head. Kazera has announced that both Deep Blue and Whale Head are now funded to bring into production. This could be a significant source of cash flows for Tectonic to fund Mt Cassidy and new projects for the portfolio..."

They will be ere long...

"Transfer of 30m shares to African Mineral Sands Pte at 1.5 pence per share from Catalyse Capital Ltd (formerly Align Research Investments Ltd) "

So (in theory only) RJ could now go into the market with his first £450k, buy his 30m shares back for £300k and keep the change!

Mad, mad, mad!

In the context of what DE sees ahead for the cash, this audio interview is worth another listen, particularly between 2:55 and 4:25 in this regard. Really? "The majority of the money...shareholders...", the man says. OMG!

http://www.alignresearch.co.uk/kazera-global/dr-michael-green-interview-with-dennis-edmonds-ceo-of-kazera-global/

Spec dividend or share buyback offer I would expect. I like the "substantial" word in the context of, say, a $10m cashpile after reinvesting some into HMS ops.

By my calculations they could distribute just a quarter of that to shareholders in due course (doesn't sound too substantial, does it?), giving a Spec Divi of around .25p per share. Do the maths, it would be a tasty treat to look forward to!

Alternatively, for the same sort of cost, I could see them offering to buy back up to, say, 166m shares from shareholders at, say, 1.5p, the same as the strategic investor is paying Align/Jennings. Not an expert but this sounds a more tax efficient way of doing things given the level of taxation likely to be applied to a Spec Divi.

https://www.youtube.com/watch?v=ddgIf2MsT18

I take the latest Proof of Payment for $687,500 to mean that the sum has been deposited and that it's between banks and, of course, is just the latest of many previous payments now totalling $3m (once the latest is included) which they are clearly free to spend based on the recent new plant purchases.

So , on the face of it, yes, far from catastrophic in the unlikely event of a total default, given that KZG retain 100% of the TVI asset until the whole amount is paid and 8% is due on outstanding amounts through the year.

Really looking forward to hearing more on the intention to return a substantial amount of surplus cash to shareholders, let alone the build up of HMS operations through the year. I now see a period of regular positive progress on HMS and who knows what else, starting with the imminent StockBox DE interview and a further update with interims in the next couple of weeks. Then it's April and, all things being equal, there will be regular monthly receipts from the Chinese in the order of $1m if the contractual target is to be hit/completed by Dec 23.

Now saying new website launch from 5pm today...

https://twitter.com/StockBoxMedia/status/1636328964099588097?s=20

I see the Twitter feed has woken up just now. Working up to something at last?

https://www.lse.co.uk/rns/KZG/delay-of-results-trading-update-xyzmpnq74u0ttkr.html

Nice one Agricore! Also a LTH, going nowhere!

Indeed!

Think you're right not to expect tomorrow gmed. My enquiries are suggesting auditors' still reviewing/finalising, company's hands tied. So my money would be on not to expect till late week or even next.

Obviously not pleased at things now being at the very limit of stated company "expectations" (rather than "promise") but have just had a more pleasant thought that at least we are now also on the doorstep of Interims to Dec 22 (due by end Mar) which will reflect the more active H2 and even the early effects of the TVI sale agreement.

Pathfinder is a natural resources company not an investment company so the last post does not apply.

Cash shell could possibly apply following divestment of IMM but the Battery Commodities subsidiary would appear to have been set up to provide PFP with alternative operations to quickly cover for that scenario i.e. I'm thinking there'll be a plan in place to put early cash proceeds straight to work along the lines they've announced previously, thus avoiding any potential cash shell status:

"...In the meantime, the £2 million proceeds from the disposal of IMM, if completed, would enable Pathfinder to pursue from a robust financial position other opportunities for value creation within the minerals sector. In this regard, Pathfinder is investigating a range of battery metals opportunities. As previously announced, the Company has registered another wholly owned subsidiary alongside IMM, Pathfinder Battery Commodities Ltd ("Pathfinder Battery Commodities"). Pathfinder Battery Commodities seeks to complement Pathfinder's original heavy mineral sands focus (through IMM) by developing projects which will supply battery metals to the rapidly growing renewable energy, electric vehicle, and other green-technology sectors. Metals and transactions (subject to regulatory and shareholder approval, as appropriate) under consideration include graphite, lithium, nickel, chromium, and cobalt in countries including Madagascar, Zimbabwe, and Malawi. The Company's portfolio may be further developed to other metals and jurisdictions covered by the directors' technical, financial, and legal skillsets. To this end, Pathfinder has conducted technical due diligence on the Ambatomitamba graphite mine owned by Societe Malgache du Graphite (SOMAGRA) in Madagascar. The mine, having at one time been the largest producer of graphite in the country, is a brownfield prospect for which SOMAGRA is developing a mineral resource estimate."

Got another to add at

No 8 - Rebuilt website. Easy to understand that with the divestment of its once core operations, it needs more than just a tickle but I'm wondering if the new one has being so long in the making for a greater reason.

Dennis Edmonds is also Chairman over at PFP, seeking high-level compensation for years under various BoDs, following their massive HMS licence being illegally misappropriated in Mozambique way back when. Goliath probably hoping David could be seen off but under the latest team, Peter Taylor as CEO, it's looking very much like a great solution has been found and a multi-bagger is in prospect.

Sounds like a deal is pretty much over the line with yesterday's RNS but probably need till 21st Feb to be absolutely sure. It's certainly been getting good interest this week!

Badsterman, I agree with your 5 but also say:

Re 3 - recent company tweet indicates now several applications submitted for surrounding areas.

I'd also add 6 - update on plans to return cash to shareholders whether by Special Dividend or a programme of share buybacks.

And 7 - potential for new acquisitions with growing substantial cash assets from ops and China as year progresses.