Katoro Gold Share Discussion Threads

[dros1] 11/5/2020 15:09

stay alert!

[onedayrodders] 11/5/2020 15:05

left a few questions IMHO

Previous RNS said ..

"the JV Partners have agreed to an extension of this deadline to 29 May 2020."

In this interview he seems to waffle on about more studies, DFS and funding all being wrapped up together ??? and then says we hope to have further news for a webcast on 5th June providing no COVID curve balls.??

Good to hear a "Positive Reaction" from lenders and others but we have to take that with a pinch of salt in terms of what that means as no details provided.

Holding but staying vigilant

[ladders1] 10/5/2020 23:08

Sounds very promising re:funding

[uknighted] 10/5/2020 22:06

hxxps://www.share-talk.com/louis-coetzee-executive-chairman-of-katoro-gold-plc-kat-l-update/#gs.5ptpx3

[uknighted] 10/5/2020 21:59

hxxps://www.share-talk.com/louis-coetzee-executive-chairman-of-katoro-gold-plc-kat-l-update/#gs.5ptpx3

[bunz3] 09/5/2020 15:33

philjeans
great post on ncyt share board
had to come over
after reading your post
May and June also at ncyt
much news expected if you read rns
thinking good rerate of share price
for the covid 19 testing kit+ manufacturer ncyt

[dozyduck] 09/5/2020 07:39

Too high a price being fantasised here. The latest scoping study looks more realistic thsn LC's first (as usual) exaggerated account, and is far less attractive looking
1) The irr is now 25% at a$1,500 gold price against 31% at $1,300.
2) The NPV looks higher, but only because now calculated at 5% discount against 10% - which on paper more than doubles it.
3) In any case NPV's are useless for predicting a share price. It has to be at above 12% (1/3rd that at 5%) to be anywhere reflected in market cap.
4) In this case a NPV over 25 years is even more misleading. Investors will never give credit for more than 10 years ahead, if that.
5) In this case a NPV doesn't recognise that what counts for investors' valuations is cash flow, and that the same NPV doesn't discriminate between early cash flow or late cash flow. In this case cash flow doesn't build up until at least 5 years in
6) NPVs calculated on the 'project' don't allow for what it will be for investors after the large chunk of NPV that repays any project loan. In this case likely to be very large.
7) The ROI is a meaningless number unless told what the 'investment' is. Is it on initial equity before a net (or gross before nterest) profit (geared up by loans) ? Is it on the first chunk of capital investment, before any subsequent investment ? etc etc
8) The ONLY measure a bank of long term investor will look at is the IRR, which is independent of financing and of the NPV discount rate.
9) The total capex now is 3 times what we were told before, but we have no idea when required.
10) Far from LC's initial boast of 35,000 oz/year, the average over 25 yrs is now only 26,400oz/yr
Answers to all above are essential before shareholders can know the value to them. That means seeing the full scoping study. On past form LC won't disclose it, but will announce cherry picked figures - out of context and with none of the necessary detail but 'looking impressive' like the "260% ROI"
10) An equity raise is certain at some point, which will make anyone's 'back of envelope' estimates of per share value 'valueless'.
One might be necessary to fund Haneti in any case.
Sorry Folks !
Only if the eventual detailed feasibility study (which will cost money now) for the tailings (a scoping study isn't claimed to be better than 30% accurate), and funding plan for it and Haneti, is announced should investors venture in (If it happens at all)

[piter345] 09/5/2020 00:24

You right but cash flow can to change a lot. They have professional adviser and a chart looking good (Wyckoff). 10p is a minimum price for start here in my opinion but market has always right :) I feel money here. Have a good weekend.

[texaschaser] 08/5/2020 15:27

Mr market saw hole in RNS. Huge capital and dilution required to develop. Pipe dreams.

[piter345] 08/5/2020 15:04

Fine news and with operating cash flow karoro should to grown fast. Blyvoor plus drilling on Haneti in future to give huge opportunity and profits in my opinion. Market cap only 6 mln.... market still don't believe in company. This is similar situation like with greatland gold a few months ago.

In my my opinion graet assset like investment.

[otago1] 07/5/2020 20:41

And the gold price used is $1500 when price is already higher and climbing. The figures exceed the board's expectations. Discussions with funders already ongoing. If they were confident of funding before having their expectations exceeded then I infer that funding is nailed on. Buy if you believe, sell if you don't. Simple. News on funding this month.

[dozyduck] 07/5/2020 12:26

This now looks COMPLETELY different to what LC was touting before. He was seeking debt for only a $11m initial capex. Now the peak is three times that and recoveries much less. We have no idea of the timescale for when that capex is required. And if all debt, will take a big chunk out of NPV. Its dilution by another name. 5% discount rate is totally unrealistic. 12% is the rate at which share value is matched with NPV. until TIMESCALE AND FUNDING IS clarified this looks much less compelling (even with Graham Hicks) and in addition is the risk it won't happen. In which case its 'as before' but even less trust.ie share price zilch

[philjeans] 07/5/2020 10:28

Should break 3p next week and on to 4p thereafter.

Massive resource; massive profit potential.

BUY

[easwarareddy] 07/5/2020 10:13

Cobr cobra resources get in quick... should see past 4p today. Gold stock with news predicted to see us past 20p. The numbers are massive. Tiny mcap. Might be hard buying in. Hardly any free float. Buy before news imo. News should launch it.

[the_debt_collector] 07/5/2020 09:34

Coetzee has never raised a single bean in debt finance since he appeared onto the AIM market with Kibo Mining back in 2011, his preferred option were the likes of brokers Hume Capital (bust) XCap (bust) Beaufort (bust) Sanderson Capital and Novum.

Most projects eventually get ditched.

[otago1] 07/5/2020 09:00

Graham hicks is the JV manager and he was previously ceo at harmony gold, 3rd biggest gold mine in SA. Project level funding is nailed on and he clearly knows what he's doing.

[iamgreat1] 07/5/2020 08:57

They were quickly ready to dump No one trusts lc anymore Dozyduck knows all about kibo

[onedayrodders] 07/5/2020 08:56

Great news .. shame I've just been kicked in the balls by PTAL

[craffert] 07/5/2020 08:54

the capex funding will be at created project level, so no dilution, and the economics look robust enough to support that. In addition, their inital guess at capex was $30mn so a peak of $36mn doesn't seem that far off....total capex of $110mn over the lifetime of the project is fine - as tonnage increases anyone would expect additional shovels to move it. Overall it's promising and most importantly, the economics make it look fundable compared to a lot of business ventures looking capital at the moment

[dozyduck] 07/5/2020 08:48

QS99 Its at 5% discount - too low, and half what LC first said. More than doubles the 'apparent' value. Shares never reflect an NPV - unless a discount rate above 12% is used. - means about 1/3rd that at 5%- and still has to be diluted by whatever capital Kat has to raise. Total is 10 times the initial capital LC first implied, and 3 times the total given in his first small print. Its a stupendous amount for a small company to find. Best wait until the deal is signed and LC tells us how its going to be financed. Even repaying a bank loan takes away a big chunk of the apparent NPV.

[thelung] 07/5/2020 08:06

I've taken a bag and ran

[qs99] 07/5/2020 08:02

well not sure where "fair value" is, but an NPV at over 20 times the current market cap, does seem to show some form of upside! not all now, but why not bag or two? DYOR

[thelung] 07/5/2020 07:55

I remember the 5 bagger....

[philjeans] 07/5/2020 07:54

Excellent report and prospects here.

BUY for me.