Member Info for SEA7

could also be a leaky ship...news monday maybe?

no resistance, moving on smaller sizes now.

high volume and an upwards price shows strength to the upside. Katoro is breaking out

they wont get any issues with locals either, as they are supportive of the mine restarting, have formed a new union and are clammering for the work - the whole area was once one of the wealthiest areas in south africa until that mine shut down and it descended into poverty and despair.

This project to get that mine up and running again, which has millions of ounces underground still has been underway for a a few years now - this tailings project is supported as well and will find plenty of workers queuing up to get on the job.

with 14 bidders - one will definitely be accepted - those involved in the blyvoor mine itself are focused on getting that mine working and this is part of their strategy - they want this to succeed as well - kat is not doing this by themselves and as such is not solely dependent on LC

dated march this year...

https://www.panafricanresources.com/2020/03/18/elikhulu-the-value-of-tailings/

Fed by the Kinross, Leslie/Bracken and Winkelhaak tailings storage facilities, this modern retreatment plant can produce up to 65 000 oz of gold per year. It has mineral reserves of 1.5 million ounces of gold, at a head grade of 0.27 g/t, and produces gold at a total All-in sustaining cost of sub USD 700/oz. It has mineral resources of 1.9 Moz. at 0.29 g/t (203.6 Mt), with an expected life-of-mine of 13 years.

Kat is the 10th Highest riser on the market this morning.

Katoro will be using the very same techniques that DRD use. They are the main player in gold recovery from tailings and it is low risk, high return industry.

especially as the market commentators are talking of gold continuing its rally throughout the year, due to unprecedented liquidity provision by governments, which makes this project far more attractive to all, especially those looking to put cash to work in a tailings project with 1.3m oz in it.

rerate upwards to a more realistic level does appear to be underway.

some larger purchases moving it up - value being noticed

yes - project level .

with gold likely to remain high for some time, they should be able to cherry pick a good offer and soon.

If we look at the blyvoor tailings only and ignore all else.

Lets assume a 50% recovery - that is 650k oz - as it is a jv lets say 325k oz to KAT.

Revenue over the life of the project is $650,000,000 at $2k an oz gold for kats share.
say AISC are $1000 an oz (higher than kat quote) - that is $325,000,000

meaning $325,000,000 net to kat over the life of the project. Say it runs for 25 years - that is $13m per year after costs to KAT.

In sterling, that is £9.8m per year of cash after costs, at the current gold price and assuming a higher running cost and lower end recovery rate.

the first four or so years, would be payback for the upfront costs - then it is only variable costs for consumables and parts to consider.

Assuming a minimum return of c. £10m pa net to KAT, this should be trading nearer the 9p to 10p range, either now, or when that financing deal arrives. That in my view would reflect the current value of the project, as it stands today (Assuming no dilution to the shares - which there probably will be some as the project rolls on)

moving up

someone tweeted a project overview..

https://twitter.com/KatoroGoldplc/status/1291318111216574469

it does surprise me that people are focused on the one individual - there are many players in this and those in the JV are very experienced at what they do.

There are tailings dumps all over south africa and these are low risk, above ground opportunities

I reckon the financing deal will come sooner now, as this POG is going to be elevated with $2000 as support.

ergo is part of DRD gold -- which solely deals in tailings dump processing.

and Kats jv partner blyvoor gold has alan smith, the ex ceo of anglogold south africa on board.

Peter Skeat and Richard Floyd funded the Blyvoor - peter keat used to have voting control over ERGO.

The rest of the team at Blyvoor are all experienced in the industry - they would not be partnering with LC if they didn't think he was upfront about things.

Good interview