Member Info for Poppyseed

I agree Animal and that's why his decision to take a direct stake at this time is all the more symbolic. Was it that, despite his tendencies, he just couldn't resist?

Did you miss the RNS on 29th June? Hasn't taken a salary since May in favour of shares. Seems he just has better timing than the rest of us!

Nor me, well said gmed. Their business model is transparent and clear and have a whole load of skin in the game so their interests are very much aligned with shareholders which seems fair enough to me. Not aware of any other brokers who back up their words by putting big money where their mouths are. More likely, these other guys are commissioned to write their analysis - now that's what I would call more likely to be conflicted!

For me, Align produces a good summary of the story along with a helpful forecast. It needs to be considered objectively just as we should do with anything else out there - dare I say, even our OWN research! Rather than just scoff at their effort on the the basis of "they would say that wouldn't they?", a more meaningful input would be to hear what in particular was seen to be wrong or far-fetched with their analysis.

Would we rather they didn't bother sharing their views on why they've invested heavily and, at pertinent times, let us in on their updated views? I'm happy that they do and it's then up to us to set what they say against our own research and thoughts. Am I wrong to say publicly that my research and forward outlook aligns very closely with theirs? I thought that's what these boards were all about. But who am I but a masked bulletin board contributor? I'd say better from them than any one of us anonymous types!

So let's hear more of why Align analysis is seen to be skewed compared with other research and views but, please, let's try and raise the debate above "they would say that wouldn't they?" without offering any substantive evidence or reason for holding a counter-view.

We're now (finally) in the first phase of moving on from fine words. Not surprisingly, the market remains cautious. However, increasingly, the forward-view will be underpinned by the unquestionable reality of the present. Increasingly, it will no longer matter who is writing stuff and why, it will only matter how much real bacon is really being brought home!

Some question the Company strategy but I could not have written this just 6 months ago. Oh, what a prospect, what joy! Merry Christmas and a Very Happy New Year!

Surely that's actually new, updated information on current/future diamond processing, extraction carat rate and another sale in December in the opening para compared to the RNS!

http://www.alignresearch.co.uk/kazera-global/kazera-global-welcome-surprise-ref-namibian-tantalum-investors-in-the-wings-buy/

Rather an outdated extract from the 4 Jun if I may say so steven, the updates given on 30 Jul and 8 Oct have quite a bearing here in terms of advanced timing since Jun on first sales and cashflow.

DBM will pay way more than wages and WHM, when fully acquired after mining approval expected before the year-end, will exceed DBM in multiples. All either imminent or near-term, the speed and scale of company earnings will surprise many following WHM mining approval. Sadly, water pipeline and therefore tant production are back seat for a wee while but what a prospect to look forward to in due course, funded from earnings rather than dilution. The pipeline I'm keen to see in the near future is not the one for water!

Oh, give over tucson! Too many variables, especially when it comes to AIM to be attempting that sort of judgement. Forecasting SPs is for the birds! I much prefer simple logic coupled with patience, providing always that the foundation for the logic is evident.

Right now, what we are told is that one very new addition to the stable has just been independently valued at near KZG current market cap (RNS refers), the rest of the potential is currently in for free. DBM is also set to be producing steady, consistent, real money income of at least $80k gross per month. WHM, if and when the licence is secured (pre-Xmas?) and once production starts there too, is confidently expected to produce nearer 6 times that sort of income? The global Tantalum is resource taking a back seat near-term (sadly) but it cannot be ignored that only 4 months ago was enough, in itself, to justify KZG's listing and SP.

Still, talking and expectations are just fine words but, for me, the hard evidence of a real transformation here is beginning to emerge. Once it does, and that looks to be imminent and persistent thereafter, I'm sure sagging confidence will get a welcome boost. It always takes time but it would be incredible if the likely stir caused by regular news of an enduringly profitable company on AIM, with other substantial near-term and medium-term assets yet to be exploited did not bring in plenty of fresh interest, especially at this current low ebb of an SP, in my opinion, relating more to the history than the future.

Hate to be picky tucson but I think you mean Q4! As for the general point, surely we are indeed talking of that first sale being this month?

Haha I can easily take the humourous point but, no, because I've done a lot of my own research ahead of anything Align put out and posted some early loose forecasts here back in the Summer before I saw anything from Align.

It's also true that Align in this case is far from a typical "analyst recommends company, company pays analyst arrangement". Align and concert party have nearly 30% of the shares here. DBM was essentially their asset previously but clearly needed a facilitator to sweat out the potential. In KZG, they now have that but, and this is important, cannot possibly benefit from their holding unless the facts eventually speak for themselves, as I believe they will (for what that's worth).

With that holding, fine words will never allow them to trade out at a profit, only a trade sale will do and that will take a hard-edged successful venture to come first! They clearly are not a typical analyst/broker holding a few million shares or warrants previously acquired for services rendered who might typically seek to big up the prospects in order to slide their share or warrant based fee payment into the market. In fact, despite having a whole pile, Align have only ever added more!

Anyway, whatever - neither their words nor mine are any substitute for hard cash flowing to the bottom line and that looks imminent. Aren't we already "early in Q4"? Not long to wait then.

All Align can do is flag up the opportunity to folk. All I can do is say that I agree with them and I've come to that decision independently and ahead of anything they released. Like always, it's then up to individuals to do the research and weigh the hard evidence, not the fine words.

What would be quite wrong in my opinion and specifically in this case (because I know nothing about anything else Align invest in or recommend) is to lump the Align words on KZG in with, say, the typical AIM hack analysts that say what they say because they've been approached and paid to do so. Align's relationship with KZG is so very different!

In any case, the talking is pretty much over now, I feel the transformational turnaround here from death warmed up to fast-growing earnings is set to have been so rapidly achieved that the shock may be blinding many of us wounded soldiers of AIM to the new opportunity. Rose-tinted specs or for real? We will all know if the new game has kicked-off soon enough and it will then be evident, not hot wind.

mtp62, my own preference is for this key extract from the most recent research update:

"....A valuation of £6.6 million was placed on DBM and which we point out is in excess of the current market cap alone – this is a real world valuation with the loan bearing interest at 3.5% above the UK base rate and will be repayable from fees and dividends. In essence the Tantalum side and HMS operations are presently in for free at the current market cap.

This looks to be a very exciting time for Kazera which has very recently become a diversified resources company where its fortunes are no longer be dependent on a single asset in a single jurisdiction where a shortage of water has stymied production. Kazera’s tantalum asset seems to be highly undervalued by the market which is still saddled with a shell company style valuation. Now that diamond production has commenced, the company has moved decisively into the all-important revenue generation stage.

As we wait news on the award of the HMS licence which in itself we believe is a company maker......"

Might be a good time to also recall that the WHM mineral sands project is said to be worth 6-fold the diamonds opportunity. Dennis Edmonds was hopeful of licence approval for this by the end of the year and there is already some tangible evidence out there that the licence application and associated in-depth environmental studies are moving towards a favourable conclusion.

https://sahris.sahra.org.za/sites/default/files/casedecisions/Proposed%20Walviskop%20beach%20mining%2C%20Port%20Nolloth%2C%203rd%20interim%20comment%20June%202020.pdf

I would think the way the £1.7m works is that it's a notional loan, no money changed hands.

Then as and when the proceeds are divvied up, the 24% due to BEP is retained by DBM as repayment of the loan and interest repayment. If so, it basically means that DBM get a huge slice of this project until £1.7m plus interest due to BEP is deemed to have been repaid. By which time we would have to conclude that DBM's own share would have been 66% (76% less 10% Tektonic retained share) or £4.67m, plus of course the £1.7m loan repayment on top = £6.37m.

This is looking like quite an acquisition! Just 4-5 months from the ink on the contract to chunky earnings starting to flow into the bank. Just one part of what Kazera is about too! WHM to come too from the Summer acquisition and then there's still the significant original tantalum project which is starting to look like it'll be decently funded from DBM earnings which, of course, is the plan!

As proof of the pudding actually emerges, this is going to look well undervalued at current levels.

steven, I take it you're referring to the Loan Agreement announced in the Spring. You need to keep up. RNS 4 Jun refers, new cash injection and loan facilities agreement cancelled. So adequately funded for now and there is no 4th tranche of money coming this month. Neither was there a need to draw down the 1st, 2nd or 3rd:

"...Furthermore, the Company has elected to cancel the Loan Facilities Agreements ("the Loans") as announced on 23 March 2020, with the lenders of the Loans electing to replace their commitments to provide the Loans into subscriptions in the Placing. For clarity, no tranches of the loan were drawn upon by the Company..."

Not for these alluvial diamonds stokey. Not saying there couldn't be an exceptional diamond in the mix but, generally, they're marketed in bulk through the SA government's Alexkor or related agent as indeed they are from all the licences in this area.

Those anticipated figures I quote are in the KZG RNS and in the Align note but there's also an interview around between Zak Mir and Dennis Edmonds from shortly after the acquisitions which is definitely well worth a listen.

Not sure if the link will be allowed here. I'll try but if you don't see it below, try Googling the two names above plus "Kazera" and "Align" (the interview is carried on their website):

http://www.alignresearch.co.uk/kazera-global/zak-mir-interviews-dennis-edmonds-of-kazera-global/

With operations having commenced early August on the DBM project, the diamonds acquisition/operation has stolen the limelight from the anticipated heavy mineral sands prospect. Understandable but definitely only temporary. With initial net earnings to KZG set to significantly exceed the diamond operation, the WHM prospect should not be overlooked and, in due course, will be a real game-changer for earnings because the initial WHM income stands in itself to increase by about 6-fold once the processing plant is in operation.

"...Production is planned at a rate of 6,000 tonnes per month (tpm). A rapid scale up to this level of production is expected as the HMS will have been building up as a by-product of the marine diamond production...based on a 6,000tpm operation selling production at US$60/t (assuming a HMS price of US$135-140/t and a grade of 40% HMS) suggests achieving estimated gross revenues of US$360,000 per month and probably around US$180,000/month net to WHM...the plan is to look to increase production levels within 12 months of approval being granted...."

The application and environmental and heritage assessments were all completed several months ago with an anticipation of a licence being granted before the year end. Keep 'em peeled for this alongside diamonds and TVM mine updates.

Going a little further forward, however....“In addition, an agreement in principle is in place with a third-party international group to build a processing plant on site under a potential Build Own Operate (BOO) structure which could greatly improve the profitability of this operation as WHM would be able to benefit from some of the processing upside. Land for the plant has already been identified at Port Nolloth and the partner is intending to invest around US$20 million to build a 20,000tpa pilot plant at no cost to the WHM.

It looks likely that the terms of the deal with the third party will allow WHM to benefit by receiving up to 6 times more per tonne for its HMS than the unseparated price (US$135-140/t) which ushers in the potential of WHM seeing annual revenues in excess of US$10 million. It is thought that such a plant could be up and running within 18 months of WHM being granted its licence. The construction of the pilot plant would test the economics and processing circuit ahead of building a far larger plant, which would be able to process more of WHM’s production.”

Source for quotes: Align Research Note

stokey, I see there are now 5 late trades of 3m shares each reported from 28 Aug and we've seen a rising SP since then. Feels like something's in the air...

Generally I would agree stokey but it all depends on whether such acquisitions could be seriously value-enhancing despite any new raise to acquire them. Seems the diamond and WHM operations have a good chance of being in this bracket so why not others, especially if distressed sales in these dodgy times.

Funny you should mention more acquisitions Fortitude. My research at the time of the diamond/HMS acquisitions had strong suggestions that KZG had taken the opportunity away from Pathfinder Minerals (PFP) who appeared to have been offered it first. Certain statements made by PFP and a strong connection with their major shareholder Richard Jennings, the owner of the Diamond asset and Dennis Edmonds being a Director there led me towards this view.

Of course, both the latter parties have now formed strong connections with KZG since the acquisitions. RJ as KZG's very major shareholder and Dennis Edmonds appointed as the KZG Director with the responsibility for the Diamond and HMS acquisitions, while only a few days earlier having been elevated to CEO at PFP because the "Board change reflects the key role Dennis Edmonds is playing in relation to progressing both the recovery of an interest in the Licence and in assessing wider commercial opportunities for the Company"

For those who don't know, "The Licence" in this case is a long contested major WHM asset in Mozambique which promised remarkable returns for PFP until a certain General Veloso cried "foul" and contested the ownership of the licence which has been in legal contention at the highest level ever since and I'm talking around 7- 8 years .

Now, I note PFP is seeing the resolution of their licence problem most likely being through open dialogue with the Veloso family and DE has seemingly been appointed to lead this dialogue. Meanwhile I know enough of the history to think that after all this time and legal argument, to believe that General Veloso would let PFP have this asset only over his dead body!

Which got me thinking whether both parties could be pacified via a negotiated sale to a third party - and could that third party perhaps be KZG who not only share Directors and major shareholders but have now entered that sphere of operation?

Only just wondering! Food for thought all the same with PFP seeing some strong buying too over recent days.

Not getting the relevance of your extract from 23 March, Steven. Superseded by the raising on 4 Jun in conjunction with the acquisitions:

· The Company has also moved to strengthen its balance sheet and allow it to exploit the above opportunities by:

o Raising £750,000 through the issuance of 150,000,000 Ordinary Shares (the "Placing Shares") at the Issue Price (the "Placing")

Also Secretary to GC's Westleigh Investments of the same RO address. No mysteries on this one, all perfectly sensible and set fair. Strong newsflow looks likely in the run to 2021.

It's not like the Registered Office wasn't already in Wales. I think the clue is in the Company Secretary's name!