Member Info for Poppyseed

...on which subject, ceo interview not tomorrow but today...

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

I think you're right Metalhead. Hard for anyone not to be pi55ed at the mo but Align Twitter posts certainly sounding supportfully feisty:

"Quite why Kazera Global #KZG is trading below £1m placing level is beyond us..."

"See todays TR1. If u could read one u will see we have gone UP over 20m!"

Latest RNS this morning

....seem to have taken out a 20m share/2%+ spreadbet. What are they expecting?

https://666e6ee8-31af-4e4f-9a0d-6a192f414444.usrfiles.com/ugd/666e6e_21f8ebf556b84e4cad1acd304aca8808.pdf
....
Diamond and Mineral Sands Joint Ventures

Tectonic’s 10% non-diluting interest in Deep Blue Minerals is showing progress, with Kazera reporting proceeds of over US$236,000 in sales from the last auction, a record for the venture.

Tectonic has a similar non-diluting 10% interest in Whale Head Minerals which is the Heavy Mineral Sands venture on the same site. In addition, Tectonic has sold a 30% interest to a Black Economic Empowerment (BEE) consortium, taking the total economic interest to 40%.

We are pleased to advise that Kazera has appointed Tectonic’s two leading empowerment partners, Dr Gil Mahlati and Dr Dempsey Naidoo as Chairman and Non-executive Director respectively of Whale Head Minerals. These two highly credentialed South African business leaders have a strong desire to see economic upliftment in the extremely disadvantaged region around the projects. We are fortunate to have them lend their expertise and network to driving the success of our venture and welcome their appointments.

Mr. Brett Boynton, Managing Director – Tectonic Gold Plc
“ ...
We are also encouraged by the progress being made in South Africa on diamonds and mineral sands. This has great potential and with the support from very high profile mining, engineering and private equity personalities in Gil and Dempsey we are confident Deep Blue and Whale Head will bring some great news flow for shareholders.”

I'd definitely recommend listening to that Brett Boynton interview again in the light of today's RNS. Middle section especially. So much makes more sense now, the 2 new WHM Directors and their credentials are even mentioned and are part of the black empowerment requirement but are specially selected for the influence they may bring to proceedings. The Alexkor new management/CEO situation is also covered in detail.

So it's recommended even for those who have listened previously but especially recommended for those who have not heard it yet at all.

Not sure if It's now been made freely available but, if not, access is via a password that VSA are happy to provide on application. Write to ipo@vsacapital.com and ask for access to their webinar on 23.03.22 with Brett Boynton CEO of Tectonic Gold.

Don't see that myself bumping. In the active sense, Pathfinder is run by CEO Peter Taylor and in any case there seems very little to be active about given that appearances would suggest the whole thing boils down to the eventual outcome of legal process currently in the hands of major legal players.

I think the Kazera Trading entity was all about Larry and some notion he would use his skills and experience to good effect during his mothball strategy on Tantalum and before diamonds and HMS. In a few words, LJ is no longer and the operational strategy has now changed significantly for the better and so income streams 'R Us! One we know about already, another should be commercially-good from this month and a major one still (yawn) awaiting approval but what sticks in my mind on that subject is how brimming Brett Boynton was in his VSA interview having just returned from SA.

wakey...quite simply because that's what AIM Rules require -within 3 months of the end of the reporting period for Interims and within 6 months of the end of the reporting period Full Year.

The latter is what we got today but had been delayed by 3 further months under the terms of an extra period of grace AIM granted due to covid difficulties, particularly in respect of the need for auditing during a period of travel restrictions which prevented auditors visiting the operations.

The main difference here is that Full Year results are fully audited whereas Interims are not so there will be no reason not to meet the 31 Mar deadline for Interims to 31 Dec 21.

Yes, let's wait for the interims, maybe later today but must be by tomorrow. It's confusing but this set of results to Jun 21 sort of has to be written in the past tense and relate to a period when nothing was happening. So the figures are miserable but were already released in outline form in Dec when it was necessary to delay release for covid reasons:

https://www.lse.co.uk/rns/KZG/postponement-of-results-and-trading-update-k8am4yjk43hyhil.html

The Interims will take us to Dec 21 by which time new decisions had been made over many things - RNS updates of Sep 21 in particular refer but also the "record breaking year" update in Dec, towards the end of the Interim period.

This is a transitional period so even the Interims will have a chunky element of rear view mirror attached to them but I would expect them to show the first green shoots of change. I would also expect the associated words/outlook to be a tidy bit more up to date and bullish, presumably pointing to Jan period's 1000ct diamond production and next month's anticipated move into commercial scale production of Tantalum (all obviously still outside of the Interim reporting period but such is a period of transition).

Thanks fiat, that's a very informative interview and well worth a listen for KZG shareholders - surprisingly, it's more about SA than their core gold op in Oz I think!

All sorts of new info given that poor old us have not been treated to. That really does have to change! Best snippets for me is expectation of $1m pa within a couple of years from their 10%. KZG has 60%. Also good info on the quality, influential partners they've brought in on the Black Empowerment holding, the final bit they're waiting for re HMS.

He let go that he'd just got back from SA ad he seemed absolutely brimming! Sees latest 90 days or so to get going and sand, already screened for diamonds, is stockpiled, ready to go. Seemingly an experienced Indian partner is pretty much in the frame for the screening plant venture but others are there in the background stalking it too.

What stands out is how rich these sands are for HMS compared to the average around the globe. Company maker? Well, circa $6m pa will do for starters when added to tantalum, lithium and diamonds. Current £8m market cap looks a proper steal!

... quoted on Company website, don't recall it in any RNS so far. Also says lithium is being stockpiled:

"... Whilst negotiations continue for a water pipeline from the Orange River, the Company has refocused its efforts on increasing production from water boreholes and ensuring that a minimum of 65% of the water is recaptured and reused.

This process has been so successful that the mine has now produced its first 4,000kg of concentrate for its off take partner and is anticipating a steady increase in monthly production throughout 2022.

Having brought the mine back into production by focusing on using existing water supplies, the Company intends to use a portion of the profits generated to improve production capacity (including the production of Lithium, which is currently being stockpiled) and to prove up further resources."

As per last year, looking now like they'll be announcing both Finals and Interims on the same day which has to be sometime this month.

username - they have actually increased their holding by 3.5m since 31/12/20 (as last published Kazera website, presumably from the last Annual Report).

Don't be misled, today's notification does not imply any selling, in fact they claim never have sold a share and the evidence bears this out. The RNS simply regularises their % holding following the recent increases to the Company share capital i.e with more shares now in issue, their % has reduced.

Thanks Basher, well called but, for long-term trend, technicals need fundamental support to provide substance so here's a reminder of what's on for 2022:

1000 carat diamond production expected in current cycle. Should set the new norm.

First shipment of tantalum to Chinese off-taker, production expected to ramp up throughout 2022. "In Namibia, the expectation is to export the first commercial delivery of Tantalum before the end of the year [Dec 2021]. Volumes will then steadily increase with the aim of exceeding 10,000 tons per month by the end of 2022."

Heavy Mineral Sands - standard appeal period following the granting of Environmental Authorisation ended on 25th Jan. "we expect that within 6 months the Company will begin generating additional profits of up to $300,000 per month". "It is our expectation that these numbers will be improved even further by introducing a third party to build and operate a separation plant for which discussions are already underway with a number of interested entities. Simultaneously, the Company is pursuing an application for a Prospecting Right over an area which is approximately 34 times larger than the current site." Mining Licence full approval expected any day:

https://phsconsulting.co.za/wp-content/uploads/2021/12/WHM-EA-Notice-of-Appeal-10864-MP.pdf

HMS production will lead to a significant enhancement of the quality and quantity of diamonds produced leading to earnings upgrade from this operation "Beach diamonds tend to be larger and higher quality than those found inland and so it is expected that these diamonds will attract a premium at auction. Inland diamonds typically attract prices of circa $250 per carat, whereas the Company confidently expects these diamonds to exceed a price of $750 per carat."

Future lithium potential in commercial quantities. "Simultaneously, the focus will be on establishing further mineral reserves as well as on developing the Company's Lithium opportunities."

Recent majority stake in a JV that took over the previously state-run diamond production plant. Production log jam cleared, extra source of income from diamond processing outwith of own production. "Profits from the joint venture, which will come from other operators utilizing the Plant, will be split on a 30/70 basis in favour of Kazera"

ATB for next week (at last, we hope!)

Align is Tweeting Bloomberg Pieces on Diamonds and Lithium this morning and adding its own take re the relevance KZG. Obviously, lithium is a bit further out for KZG but the diamonds piece looks particularly timely for the expected imminent 1000 carat sale of current cycle production and also going forward from here.

https://twitter.com/AlignResearch/status/1485149142330626051?t=xUQmI5XdisVVbar08KS_Bg&s=19

https://twitter.com/AlignResearch/status/1485150950268485632?t=ii6iMSv2VwyGGhXz0MFHoQ&s=19

Align's indication of KZG getting the scale of its lithium resource out by the year end would be very welcome indeed when you look around at prices and shortages of supply. The Bloomberg Tesla article is kind of a testament to this and I see also that Rio Tinto has suffered major disappointment by refusal to a major development in Serbia.

Once seen as a pretty worthless bi-product of KZG's tantalum production, what a prize this could become, especially in view of it being produced with the limited extra costs of adding an extension to their tantalum screening process.

tucson...no, of course I'm not, how would I know? jasehem had asked "Anyone remember when the objections need to be lodged by for the sands license - sure it was some time towards the end of Jan." My reply was in answer to that. I've previously posted up links showing the HMS Mining Licence is approved but subject to a standard procedure expiring on 25th Jan. I think it's reasonable to expect an announcement shortly after that, given that the routine appeals procedure has been part of every earlier stage of the licence process.

Yes, I've noted that we're on different pages re the need for current funding and I do think you are/will be shown to be completely wrong. One of us will be, for sure. For me, the matter of adequate funding through to cashflow positive has been dealt with in recent RNSs. Basically, a mixture of drawdown loans and conversion commitments from warrant holders (a whole lot more outstanding warrants funding available if needed) plus the first flow of record diamond production in the current cycle and first tantalum shipment, all as we move through Q1.

There may also be first flow from the new diamond processing JV, notably processing the diamonds of all the miners in the area, not just KZG's and of which there was a substantial stockpile because of the inadequacies and blockages of the previous operator, Alexkor. The positive effects of this JV in processing the area's diamonds should not be underestimated. It brought forth real change and is mainly behind why the diamond processing in the current cycle is so vastly different from anything that went before.

So, referring to the low level processing of earlier in the year is no way to judge what is happening now - for that, refer to the 1000 carat aspirations for the current cycle. This, in my opinion, will be more like the new norm - so, I'd say it's a time to take a forward view through the front windscreen rather than the rearview mirror where nothing much was happening. I don’t expect you’ll agree until you see the colour of it. Understandable.

As for HMS, yes, we are led to expect substantial production and income together with enhanced diamond production AND a significant increase in quality within 6 months of licence approval.

Overall – and obviously only my personal view – you will not see the placing you see as being needed. I'm relaxed that they have taken adequate steps to secure sufficient funding from shareholders, other lenders and warrant holders to see them through to the imminent cashflow expected from diamonds, tantalum, perhaps the JV and thereafter HMS in near-term bucketloads.

I’d say give the new dynamic broom CEO a chance and prepare to be surprised, not least by statements you will be able to hang your hat on! ATB

Next week, Jan 25th, for HMS jasehem...licence approved as we know, sensible belt and braces wait until formal announcement I would say. Major announcement on this whenever it comes and formal completion of approval should also see further progress, if not finalisation, with the people wanting to build the HMS processing plant at their own cost.

I think it was said that the record current diamonds cycle also ends Jan rather than Dec, first sales of tant to the new Chinese off-taker expected to be shipped around end of Dec. I think they also anticipated Feb for the full results statement rather than March which should give good insight on current trading. Quite a near-term newsflow can be anticipated.

I also see interims to 31 Dec coming in Mar and, along with the statement of current trading at that time, should also begin to show the increasing earnings trend of the the final quarter of 2021.

ATB

Well, we know the news brewing in the Kazera teapot is that the HMS licence has been approved because it's already out there. As I posted earlier:

https://sahris.sahra.org.za/cases/proposed-mining-application-whale-head-minerals-portion-remainder-farm-1-port-nolloth

https://phsconsulting.co.za/wp-content/uploads/2021/12/MP10864.pdf

Guess it's just been a matter of belt and braces before they can formally announce. Is it now time or is someone just accumulating on the early knowledge? Is it even long-heralded would-be investors who were once anticipating getting a slice by other means but are now feeling driven to buy what they can get in the market? Is it record diamonds production? Is it first tantalum production shipment to China? Is it all of these things? So much going on here...

bumpingalong, your extract re the offtake agreement is from the early stages annunced on 13 May. KZG has moved on considerably from there, as announced on 7 Sep.

Exclusive Tantalum Off-Take Agreement

"...(the company) is pleased to report that, following the conclusion of its plan to commence Tantalum production at its mine in Tantalite Valley, as announced on 1 September 2021, it has now entered into an Off-Take Agreement for the sale of all Tantalum produced by it.

· 3-year contract, through to 31 December 2024, entered with Jiujiang Jinxin Nonferrous Metals Co Ltd at Tantalite Valley

· A test sample assay has already been approved by the customer and airfreighted to China for factory testing

· Interest expressed in developing the Company's Lithium deposit"

https://www.lse.co.uk/rns/KZG/exclusive-tantalum-off-take-agreement-rk67bcpvd6gacms.html

Could be crawshaw, it's the flurry of small trades and SP uplift around the same time, then moving to a ridic spread that makes you wonder. It was a question, not a statement by the way.