RE: Tantalum market. TBTT23 May 2018 18:21
You're right, Mr. Cautious, I don't KNOW that Tantalite Valley Mine is loss making. This share is so wrapped up in secrecy that no investor really knows anything. (BTW, no buyer would ever insist on such ridiculous levels of confidentiality; that's just more BS from LJ and GC. They really do believe that investors are like mushrooms - to be kept in the dark and fed copious quantities of ordure.)
However, I do BELIEVE that if Tantalite Valley Mine were profitable, or even if it were breaking even, KZG would be shouting this fact out to the market. I GUESS that the true picture is that mining operations are severely restricted due to lack of water (and maybe other factors), and that the shipments of tantalum that have been made are tiny (1 tonne each?). In short, I SUSPECT that the mine is losing money hand over first on opex, and that it requires major capex (water, new plant) to even have a chance of becoming profitable. If that is so, KZG aren't in a position to raise much new equity (tiny market cap, bad reputation after last rip-off raising), and they must be near to running out of cash by now. So, either the Tantalite Valley Mine must be sold asap, or it must be closed down.
Hence my conclusion that KZG will shortly become an empty shell AIM investment company ripe for use in a reverse takeover. This time next year KZG could well be a pharma company, or maybe even a blockchain company. But in the process current investors will have been diluted away to almost nothing.
This is only a theory. Time will tell if I'm right or wrong. But you should know I do have a great deal of experience in business.
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