Katoro Gold Share Discussion Threads

[kaisharp] 25/2/2020 15:02

gasman, I posted the following on LSE yesterday prior to the RNS this morning.

First year:
8750 oz to KAT
AISC = $800/oz
Profit margin with Au at $1600 = $800/oz
Profit = 8750*800 = $7,000,000
USD/GBP @1.3 = £5,384,615
£5,384,615 / 184,355,462
SP = 29.2p

--------------------

bcl, yes, dilution is a risk; been stung by that one multiple times over in TOM.
So let's take an extremely dilutive assumption: 150%
Current shares in issue: 184,355,462
After 150% dilution: 460,888,655
Pre dilution: £5,384,615 / 184,355,462 = 29.2p
Post dilution: £5,384,615 / 460,888,655 = 11.6p

Heck, you could go to 300% dilution and still get a bag and change from today's price
5,384,615 / 737,421,848 = 7.3p

[kaisharp] 25/2/2020 14:59

Cash, agreed, if it was GB at the helm of KAT, confidence would be even higher. But as it stands, the only way we get exposure to the JV is through KAT (or go back in time and become a client of SI or Sanderson).

LC might opt for dilution, yes. But at this point, I doubt it will be necessary - at least for the initial funding requirement of $11m

[costax1654x] 25/2/2020 14:58

So 35k oz of #Gold per year @ current gold price ($1,652 per oz) = revenue of $57.82m p.a. (for 35 years). At estimated $664/oz cost that is a profit of $34.6m p.a. #KAT has a 50% stake in the JV so its share of the profits is $17.3m p.a. KAT's market cap is currently just £5.6m.

[smackeraim] 25/2/2020 14:52

We get it cash lol

[cashandcard] 25/2/2020 14:51

I think it will be worth a lot if they can get the project financed. My only worry is the boss, he may opt for dilution again. Until its a done deal, one just cannot be sure.

If they can get it financed than their interest will be worth a small fortune.


Cash

[smackeraim] 25/2/2020 14:47

Well all depends on the finance really. Which so far is stated to be project level and debt - let us see.

[gasman10] 25/2/2020 14:46

What price do you think it will be in 12 months time with production, with dilution etc . Rough figure.... i know its one of those how long is a piece of string questions.

[smackeraim] 25/2/2020 14:40

Let us see if Briggs put his name to it in haste .. if the JV produces the numbers it is stated to do, we ain't got no worries lol

[smackeraim] 25/2/2020 14:39

Or Harry at KEFI when it was 0.6p? That's on the cusp of something great also

[cashandcard] 25/2/2020 14:15

KaiSharp,


I take your point. However, as a shareholder, you are invested in KAT not the JV. So LC could still do damage at the plc level even if he does not manage the day to day ops of the JV. Its the PLC and its fortunes your equity will reflect.

If LC was not here, I would be into this in a jiffy, who would not with GB managing the project/company?


Cash

[smackeraim] 25/2/2020 13:29

https://www.blyvoorgold.com/about/Blyvooruitzicht Gold Mine, in its heyday during a seven decade period in the middle of the 20th Century (1937 - 2013), was the richest of the South African gold mines with recovered grades averaging over 14 g/t. In 1996 Blyvooruitzicht merged with its neighbouring mine, Doornfontein Mine. From inception, these two underground operations have produced a combined 1,767t of gold, with an incredible 825t of gold (26.5m ounces) SAMREC/JORC compliant resources remaining underground whilst the surface tailings dams contain further 1.3m ounces of SAMREC/JORC compliant resources.

[smackeraim] 25/2/2020 12:56

https://miningmaven.com/blog/1022-soaring-gold-price-sees-katoro-gold-push-forward-transformational-plans-in-south-africa-kat

[costax1654x] 25/2/2020 12:50

And I kind of hunting him on every board!

[costax1654x] 25/2/2020 12:25

Thanks mate!I don't really understand why he filtered me??

[smackeraim] 25/2/2020 12:20

Costax is positive, iam is a loony. All good

[kaisharp] 25/2/2020 12:08

I have iag and costax filtered and I can't be bothered to unfilter/logout to see what they've written, but whatever it is, thanks for waking the kat up.

[bag158s] 25/2/2020 12:00

It has now broken the resistance at 2.65 and is going to shoot up.

[smackeraim] 25/2/2020 11:57

I knew jammy was a good omen .. always is!

[smackeraim] 25/2/2020 11:57

https://www.blyvoorgold.com/gallery/

[costax1654x] 25/2/2020 11:54

Finance news will do a ten baggers here!Keep in mind that in the second yr debts are paid!

[kaisharp] 25/2/2020 11:52

Cash, I agree - GB is a much better choice for running this project than LC is.
Which is why I'm so very glad that LC has recognised that and brought GB in to run it.

Sure, LC is still running KAT, but GB is running the JV. As long as the JV is healthy, then KAT should stay in good shape too. Fingers crossed.

[smackeraim] 25/2/2020 11:52

People are loving Gold stocks, especially ones with a route to near term revenue like Kat

[costax1654x] 25/2/2020 11:51

Things are going fast here!Are the others like TYM ,Kefi,cobra etc are years away!We are below a yr until production!