Katoro Gold Share Discussion Threads

[grahamwales] 03/12/2020 15:03

Let’s hope we got something to be excited about :-)

Bring on the nickel

[uknighted] 03/12/2020 14:50

Don’t you just love the innocent enthusiasm of the newbie shareholders. Sit back and relax, que sera sera.

[tonytony4] 03/12/2020 14:37

Yes agree waiting patiently.

[grahamwales] 03/12/2020 14:34

Should get some drilling news from Tanzania by middle of month imo.

[grahamwales] 03/12/2020 08:15

Gold still rising, every little helps when negotiating finance to build a gold tailing plant :-)

[grahamwales] 02/12/2020 13:10

Whilst a mine is years away at Haneti proving up resources will attract attention especially with Nickel price increasing year on year and set to increase further as more countries look to increase the incentive to use electric vehicles.


The most traded November contract on the Shanghai Futures Exchange gained as much as 1.7% to 118,210 yuan ($17,102.14) a tonne before closing 1% up at 117,420 yuan.


Electricity usage will no doubt increase along with the price of electric. So if you know any company who produce electricity buy them lol

[grahamwales] 02/12/2020 12:42

DD

At the end of the day if they are paying tax on profits it’s a good indicator that the current m cap is way below where it will be in 2 years time.

Provided they can raise most of the initial funding without to much dilution or giving to much of the asset away we should be looking pretty good. There is always the opportunity to look at other tailings across the region and or the mine is supposed to be starting up at the end of this year which will produce more tailings which could be reclaimed direct through the JV plant.

Lots of potential here imo.

[dozyduck] 02/12/2020 12:31

GW. 28% (S African rate) will be the marginal rate on the extra revenue due to the $300/oz higher gold price than in the scoping study. That will all fall to the bottom line. Given the size of revenue and profit we're talking about (over the life) tax reliefs won't reach that marginal profit

[grahamwales] 02/12/2020 12:25

I’m hoping they do spend some of it on Haneti as that has the potential to grow into a massive long term business for a tier 1 miner.

[grahamwales] 02/12/2020 12:18

Talking of gold price seems to be making its way back to $1900.

[grahamwales] 02/12/2020 12:16

DD

“That saves the bother because at $1,800/oz the FCF after tax becomes $410.2m or an average of $16.4m pa.”

Why are you working out tax based on price of gold lol. Tax will be based on company profits at 28% not the price of gold.

[grahamwales] 02/12/2020 12:12

DD

With regard to scoping study as they knew cash would have to be raised via loan etc then they would have in my opinion built in interest payments.

Starting with 17,500 ounces per annum building up to 35,000 ounces. Peak of 35,000 ounces will I guess will be between year 3 to year 20.


I find it’s easier to work out this week than last week and will no doubt become a lot clearer once funding is agreed.

[dozyduck] 02/12/2020 09:54

GW Re projections. Yes I might have doubled counted into costs some of the items in an AISC or AIC. But I don't think what was used for the scoping study could have included financing costs, since these couldn't have been known.
And the point anyway is that, regardless whatever the 'average' 25 year figures are, the project cash earnings will be dented in the first ten years or so by the loan repayments (or capex, whichever way you look at it) So the average is of no use for what investors will want to know, which is cash flow in the foreseeable future which I would say is the first five years, with the next five not given much credit for.
I was about to rerun my figs assuming all possible costs were in the AISC when I saw the scoping study total free cash flow projection (which one can take to be accurately taking account of everything) of $267.4m over 25 years. That saves the bother because at $1,800/oz the FCF after tax becomes $410.2m or an average of $16.4m pa. But in practice will be substantially less in first ten years while capex and loan repayments are incurred.(not to mention that output won't reach max until year four) So we can take it that Kat's share in he first 5-10 years will be substantially less than $8m ! - most of which will probably beploughed back into the $110m ttal capex
(And by the way, the study total output states 661,000 oz over 25 years - ie 26,440 average pa, and not the 35,000 LC states.)
All in all, very little info so far for investors to work out the likely share price even when construction starts. If gold stays at current levels, yes at the end of 25 years shareholders will have earned a lot of cash. But will they be around to see it ? And will Kat have spent it meanwhile on Haneti ?

[grahamwales] 01/12/2020 16:34

LSE again

They don’t need the whole $110 funded. It’s the total capital costs during the mining life of 25 years. $36.4 million needs to be funded to get the plant up and running and working capital costs of $250k per month before they become cash positive and able to fund the rest from profits.

So that’s all they need to raise at the moment is enough to buy and build the plant and have sufficient working capital through to full production. They can then either go for a loan or raise the money via placing to cover the remaining amount $36.4 less whatever they agree to borrow now.

[grahamwales] 01/12/2020 15:07

the Company has received expressions of interest for funding of an amount significantly more than the peak funding requirement (US$36.4 million) announced on 7 May 2020. The expressions of interest for funding, amongst others, includes a formal non-binding term sheet for funding, which if agreed and accepted by the Blyvoor Joint Venture, will be sufficient to fund up to 40% of the peak funding requirement referred to above.

[grahamwales] 01/12/2020 15:05

Wow can’t understand why posters over on the LSE board can’t read the announcement correctly.

The term sheet covers 40% of the $36 million not the $110 million.

So roughly $15 million covered by the term sheet, however if other funders come up with a better offer then they may not use it.

[tonytony4] 01/12/2020 13:52

I'm sure he /she will turn up again that's what they get paid for!!

[grahamwales] 01/12/2020 13:48

I notice AndyH has disappeared from the LSE board. Disgraced no doubt

[tonytony4] 01/12/2020 13:28

Moving up very nicely penny has finally dropped. Gla

[tonytony4] 01/12/2020 13:14

When jv is announced this will be nearer double digits IMO..

I wonder if the derampers/ doubters have taken positions!

[grahamwales] 01/12/2020 13:08

All-in cost is a proprietary GFMS Mine Economics $/oz cost metric, designed to reflect the full marginal cost of gold mining. In addition to mine site cash expenses (mining, ore processing, on-site general and administrative costs), refining charges, royalties and production taxes, by-product credits, depreciation, amortisation and reclamation cost, it includes ongoing capital expenditure, indirect costs and overheads. The latter includes corporate administrative costs, interest charges, mine site exploration and any extraordinary charges, such as retrenchment costs, carrying value write-downs, etc. Ongoing (‘stay-in-business’) capital expenditure

[grahamwales] 01/12/2020 13:02

Dozy

Do some research on it think you will find it does :-)

[tonytony4] 01/12/2020 12:58

Are finally about to make the move north I hope so.. today’s interview was very reassuring that JV financing is imminent IMO..

[dozyduck] 01/12/2020 12:38

GW No It doesn't. Financing is always separate from the economics of a project. Because there are a variety of methods which can't be known beforehand.As for taxes, probably not also, but need detailed feasibility numbers to know. If only because tax rates and allowances change.
My figs are for revenue (at $1,800/oz) to ramp up to $56m by year five. And calcs are always for the whole 100% project. You never know what Kat's share will turn out to be - depending on funding. I'm assuming 50% for the moment.

[grahamwales] 01/12/2020 12:21

Dozy

Doesn’t all in costs include things like interest payments and taxes etc

$920/ounce