Katoro Gold Share Discussion Threads

[grahamwales] 22/11/2020 21:02

Pan African resources another Gold tailings company very successful.

[grahamwales] 22/11/2020 20:53

Nedbank could be another potential backer.


Barring again any dramatic change in the way we do things in our deep level mines, I think we are ultimately going to be priced out of the global gold market and we’re going to see a shift towards tailings retreatment. We’re already seeing it with the likes of Pan African Resources, DRDGold and Harmony Gold, all paying particular attention to tailings retreatment as part of their future.

[grahamwales] 22/11/2020 20:42

ABSA bank and Harmony gold have history :-)

[grahamwales] 22/11/2020 20:40

DRD gold original loan agreement, very complex and may be the reason why funding takes so long.

[grahamwales] 22/11/2020 20:01

I see AndyH getting a little desperate over on LSE and making things up lol

[tonytony4] 22/11/2020 19:16

Graham Briggs has past experiences in gold tailings which makes him vital for being project manager.

[grahamwales] 22/11/2020 18:44

Interesting that Harmony Gold had a mine called Target Mine. The JV for the gold tailings is with Katoro Gold and Target Mine Consulting. So did Graham Briggs come with Blyvoor I wonder.

[grahamwales] 22/11/2020 18:25

Unfortunately unable to post on LSE.

From poster over there and think they are on the right track regarding this statement.

From the financer perspective, they make money on interest of that loan so if it's an interest only kind of deal, the fundamentals at KAT are largely irrelevant. They'll want DD to ensure there's enough gold so they can be assured of their money back and some interest and it'll be deal done. But only if they can get a better interest rate by loaning to KAT than they can elsewhere unless.... the deal constitues some kind of equity agreement which is what I feel is most likely. This means the amount of gold at KAT will be directly relevant to the JV partners, a reason why so many samples were taken (1,500) ?

They are concentrating on the first 2 dams which were estimated to last 8 years. Therefore whoever finances this will look to get all their money back within the 8 years possible within 5 years.

That would all depend on how quick they can ramp up production, so first 12 months would be construction of the plant and commissioning. Year 2 they estimate 17,500 ounces although there are bound to be teething problems. Year 3 should give them the 17,500 ounces and looking to get additional plant to build up to the 35,000 ounces by year 4.

17,500 ounces @ $900 net profit $15,750 million x 4 years = $63 million.

35,000 ounces @ $900 net profit $31,500 million x 4 years = $126 million.

Total for 8 years = $189 million


So how they pay them back will all depend on how they structure the loan, but the cash should be there to repay the debt by year 8 with 10% interest even assuming the maximum capital costs of $110 million for the mine life.

Providing drill results have confirmed the quantity of gold in first 2 dams this really should be a no brainier for anyone funding the project.

[tonytony4] 22/11/2020 17:19

Interesting research let's hope it is world class find as has be touted by the company.

[grahamwales] 22/11/2020 16:49

Been doing a bit more research on Nickel Laterite which I believe they are currently targeting in Haneti.

I notice they changed the drill profile and now going for 50 holes at 40m rather than 10 at 100m deep. They obviously feel that by drilling more holes closer to the surface it will give them a better idea where to carry out the diamond drilling later on.

Nickel laterite is not as as concentrated as sulphide however easier to mine. Therefore I will be looking for minimum of 1% to 2% grade. If lower then may not get the attention from tier 1 companies if higher then looking really positive and may get a partner to carry out further drilling for a stake in the prospect.

[grahamwales] 21/11/2020 16:13

HZM have a grade of around 1% nickel. If KAT can get anything over 5% average then it’s game on.

[algernon2] 21/11/2020 15:22

Not very scientific but asking google what a good grade of Nickel is produced the following:

"What is a good nickel grade?
Grades of 0.3 per cent are currently considered very good with scale. In general though, less than 1 per cent is low grade and over 2 per cent is high grade"

So as Tony points out above 13.6% appears exemplary.

[grahamwales] 21/11/2020 10:51

Not sure drill is actually on site yet. May hear something middle of Dec but can’t see results until new year. Imo

[tonytony4] 21/11/2020 10:26

While blyvoor will be first up Haneti is being worked on the background.

I wonder how long it takes for RAB drilling to take and results returned. PJ seems very excited about Haneti in his recent podcast interview.

[grahamwales] 21/11/2020 08:48

Looks like construction of the mine is near completion, wonder if they have got prices for the tailings plant from the same contractors.

[grahamwales] 20/11/2020 21:20

What AndyH is saying is that if the Gold price was predicted to fall below the extraction cost it wouldn’t make any difference to potential backers pmsl. Likewise if the gold price was predicted to rise over $400 an ounce over and above current price they would ignore that look at the current price.

These are investors they are talking to so look for the best return for their money. So do they put it into a company that currently pays 6% divi or invest it in something that gives them their money back and a share of future profits.

[tonytony4] 20/11/2020 21:10

Derampers becoming more and more desperate as we approach end of November, I guess this what one can expect must try and ignore.

[grahamwales] 20/11/2020 20:26

I see analysts still forecasting gold to hit $2,300 next year which is what Graham Briggs will no doubt be focused on during his negotiations. If there are 14 interested parties then it should allow Graham to get the best deal.

Give them 25% of the profits for the life of the mine and payback the loan over next 10 years job done.

[grahamwales] 20/11/2020 20:15

I see our negative posters are back on the lse board still claiming to own shares yet tell us that they don’t believe in the company. Not sure if they think investors are so naive that they believe they are invested or trying to brainwash us.

Basically what they are saying is that the potential investors in the gold tailings have said we don’t believe there is the amount of gold in the tailings that your telling us therefore go and do some drilling but we’re still not going to give you the money even if you prove up the reserve.

[algernon2] 20/11/2020 14:47

I have to disagree: one of the pleasures of owning POW as well as KAT is the constant news flow from young Paul.

[grahamwales] 20/11/2020 14:09

Think announcements should be used for significant changes not every time they drill a hole otherwise they are meaningless

[tonytony4] 20/11/2020 13:19

Paul Johnson has always kept shareholders up to speed Where as LC is a bit slow should I say.

[grahamwales] 20/11/2020 13:17

Looks like information overload over at POW, are they going to announce every drill hole. Wonder what time they stop for lunch perhaps they can announce that as well pmsl.