RE: Poppyseed……………………9 Mar 2024 21:05
In short, Fortitude, I think what’s going on has already been stated, some of it in finer terms than others but it’s out there nevertheless. Finer terms includes the prospect of imminent diamond production from their new plant. Of course, production is one thing, the sorting and sales process through Alexkor is another. Some sales should be close all the same.
Finer terms is also HMS production but a permit is awaited from NNR and, in SA, how long is a piece of string? However, expectation of a permit is chalked in for fairly soon now.
In the broader details box is the 4 options for Namibia – receive all outstanding payments; take it back; find an alternative buyer; or sell the debt to a third party.
Again broader is the likely AMS effect in due course. I paraphrase but in DE’s words, they did not invest £4.2m @ 1.5p except to make money and their prospective introductions have the potential to transform Kazera into a much larger entity if a deal can be put together. Clearly this sort of stuff takes time for due diligence and AMS only just took its full stake in Dec so, if indeed anything is already happening, a wait to hear of any action is hardly surprising.
As for the SP, as horrible as it is, the bottom line is that it’s a measure of supply and demand. Noticeable large selling was a factor at the time of the fall from around .6p. Couple that with consequent market fear and no news in a fairly illiquid stock, what’s going to happen?
Am I just waiting and seeing? In a sense, yes, but that makes it sound like pathetic hopelessness and that’s not how I feel so I would say, no. I’ve met DE at promotional events, I like him and see him as a man of integrity, but he was dealt a poor hand in a raw state, in the midst of covid, with a poor, now ousted, BoD and with little available funding to advance the projects.
Nevertheless, I have confidence that he has been and is doing his very best to make a good fist of this, even if tightening the nuts and bolts take time. Some of his actions have already had good effect on the Co, definitely not the SP, but I think building firm foundations is just as important a first step.
He has raised cash without recourse to discounted placings and giveaway warrants. There are now no warrants left to be exercised. AMS’s replacement of Align has promise. He has not resorted to panic announcements despite the flagging SP. Some might call that fiddling while Rome burns but, for me, it’s a man sticking to things he can control. More hype is certainly not the way forward here.
However, 2024 is undoubtedly the year in which he has to deliver and on more than one front. A toast awaits him if he comes through, toast awaits him if not! I don’t think there are alternatives. What will come first? Does it matter? Declining belief is undoubtedly a factor on the buy-side here so delivery on anything at all would be a good way to start.
What's my present take you ask? I've been posi
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