Kazera Global Share Discussion Threads

[andyview] 10/12/2020 12:24

A little tick up today, any sizeable increase in volume would move this along imho

Gla

[al101uk] 10/12/2020 10:33

Hedgehog100,

I know the history and I was frankly amazed when the company relisted on AIM, credit to the management.

But SMA listed in 2011 and went from 8.75p to 0.25p, delisted Jan 2018 and went to NEX, changed it's name to BARK in June 2018.

Shareholders suffered a 33:1 share consolidation and a large dilution when BARK came in to existence.

...and then were further consolidated 193:74, with more dilution when the new owners came in and GC left the company.

For every 1000 shares you bought in SMA at float, you would currently have 11.

The share price is now at 22p so for every £1000 you invested, you'd be left with £32 (rounding up).

That's without going through the history to see if any other consolidations have happened, nor calculating the dilution you suffered during those years.

If you want to say KZG will be just as successful as BARK, I'm not going to argue, but I think I was supposed to be the negative one.

Now I've actually gone and looked, the only meaningful share price rise I can see was when BARK first listed at 30p-ish and went to 43p, been pretty much downhill previous and since.

[qs99] 09/12/2020 19:13

Thanks all. look forward to 2p! And beyond

Cheers
QS99

[cloud9surfer] 09/12/2020 18:49

2p will give Kazera a Mcap of just short of 14m. Still very cheap given the new assets acquired and additional revenue streams promised. A perfect base for the New Year to push forward the Tantalum opportunity and other resources already being found. Should make 2021 very exciting for shareholders as Align have predicted and confirm their conviction buy stance!! Hopefully!! lol.

[cloud9surfer] 09/12/2020 18:48

A bit of retrace over last few days to consolidate hopefully for a further push up. MM's hopefully have gained the shares they needed. Little bit of resistance through 1.2 and 1.3 but with a nice flurry of continual buying I can see this testing 1.5 in the short term. Add a bit of much anticipated news and this be punching closer to 2p very soon!! DYOR.

[cloud9surfer] 09/12/2020 18:11

2p will give Kazera a Mcap of just short of 14m. Still very cheap given the new assets acquired and additional revenue streams promised. A perfect base for the New Year to push forward the Tantalum opportunity and other resources already being found. Should make 2021 very exciting for shareholders as Align have predicted and confirm their conviction buy stance!! Hopefully!! lol.

[cloud9surfer] 09/12/2020 18:04

A bit of retrace over last few days to consolidate hopefully for a further push up. MM's hopefully have gained the shares they needed. Little bit of resistance through 1.2 and 1.3 but with a nice flurry of continual buying I can see this testing 1.5 in the short term. Add a bit of much anticipated news and this be punching closer to 2p very soon!! DYOR.

[al101uk] 09/12/2020 14:57

Yeah, I mis-understood the Richard Jennings thing... you're right, I'm sure he's anything but p'ssed off.

I'm done anyway... I have a long set of notes, some of which should be useful to most as background, but you probably won't agree with the conclusion so I'm only going to post them if invited to do so. For now I'll move on and continue to watch from a distance.

[al101uk] 09/12/2020 11:15

Thanks for the info, more research to do I guess :-)

BARK delisted from AIM and then changed business entirely and having bought three pubs and a petrol station (or something like that). They then sold out to another management team if I remember correctly. Was GC even involved when they price started to move in a serious way? I lost interest when the buy out/merger happened). In any case the proposed mining operation was a disaster. Not a great shining light to point to as regards KZG.

Still need to understand the motivation for selling a $6 million asset for $600K of shares, wouldn't that value KZG at 10x it's current market cap?

I'd be mighty p'ssed off if I was Mr Jennings.

[outspan] 08/12/2020 16:23

Hmmm, that late Nov/early Dec rise and pullback looks very much like the current "realisation stage" KZG chart. I very much look forward to a similar post-realisation stage follow on!

[hedgehog 100] 08/12/2020 15:36

Rainbow Rare Earths (RBW) is another comparison that shows how undervalued KZG is at just 1.075p (market capitalisation £7.32 million).

At 9.7p, RBW has a market cap. of £45 million, and has multibagged from 1.5p in March.

Rainbow Rare Earths (RBW):

[hedgehog 100] 08/12/2020 15:17

Geoff80,

I sympathise with investors who have lost money here (at least on paper), but some have actually made money here.

In early 2014 the share price was barely a penny at one point, and Giles Clarke came on board with a placing at 1.25p:

25/03/2014 13:17 UK Regulatory (RNS & others) Kennedy Ventures PLC Board Appointments and Placing
" ... The Placing will be effected by the issue of 39,150,000 Placing Shares to new and existing investors at a price of 1.25 pence per Placing Share. ...
New Board appointments
The Company is also pleased to announce the appointment of Giles Clarke as Chairman and Nick Harrison as a Director of the Company with immediate effect. ... "


From there to the early 2017 high of over 15p was a gain of over 1,000%.
Whereas the decline since then has been under 100%.

Remember that the mining industry in general is very cyclical, so mining shares in general shouldn't be regarded as permanent holds.
Because when a down cycle hits, virtually all mining shares are hit hard, no matter how brilliant the people in charge.

However, over the last three years KZG has continued to build value in the business, paradoxically as it has become much cheaper.
And is also now making exciting new acquisitions at the bottom of the cycle, for a fraction of the price it could pay otherwise.
As well as acquiring the final 25% of its tantalum mine, again at a bargain price.

[outspan] 08/12/2020 15:15

al101...thank you Hedgehog, poppyseed in ADVFN guise here. As Hedgehog highlights, I think one thing I could point you towards being substantially different to the historic NAV in the accounts and the price KZG paid for the diamond venture would be the subsequent competent persons report relating to DBM (RNS 8/10/20 refers) ascribing a valuation in excess of £6.6m to this venture alone:

"...DBM has met its legal obligations by concluding negotiations with carefully chosen Black Economic Empowerment partners ("BEP"), bringing community, political and commercial contacts to the project and valuing the DBM operation in excess of GBP6.6million. The valuation is based upon the value ascribed to DBM in the Feasibility Study by Dr Johan Hattingh, who compiled the Competent Person's Report..."

Given that today's market cap for the whole company stands at £7.2m and add to this that the WHM venture is seen to be worth 6 times the revenues of DBM once acquired and operational and you have only the beginnings of what an investor might be seeing in real world valuation terms.

It now leaves the prospects of a world class tantalum prospect totally discounted despite a clear pathway to funding and water supply in these days of rising demand for rare earth metals.

Wait, there's even more! Most recently, KZG has announced a kind of no-cost MoU (save for KZG manpower) which could well lead to a number of new JV further opportunities of substance in Namibia in any or all of the areas of Tantalite, Lithium, Tin, Niobium, Gold, Copper, Cobalt and Iron.

The latter opportunities are, of course, easy to disregard at this stage but they were notably included when KZG said of the prospective Namibian investor "...This major investor has visited the Tantalum Valley Mine to understand the scale of the opportunity in the event that the Orange River Pipeline is commissioned. In addition, the potential investor believes that Kazera represents a strong candidate to consolidate further mineral licences across Namibia and across the border in South Africa as evidenced by the acquired diamond mine, the heavy mineral sands opportunity and the MoU referenced above."

One thing is for sure, this investor will have been given a privileged insight into both the books and the detailed prospects so if investment does indeed appear in the 1.5p to 2p zone as Align suggests, or even a lower price for that matter, it can be pretty much assumed that the investor's forward view is of a company easily capable of bagging many times from that price.

[hedgehog 100] 08/12/2020 14:43

I would add that KZG is way more advanced than IRON: it is already producing diamonds, and was producing tantalum relatively recently; whereas IRON has never produced and looks a long way from production. And IRON's focus on iron leaves it more exposed to a cyclical global economic downturn.

A better recovery comparison is Giles Clarkes's BARK (ex Sovereign Mines) about a year ago, which ten-bagged within the space of months.

KZG has multiple exciting opportunities, though the jewel in its crown is its 100%-owned potentially world-class tantalum mine, at a time of multi-trillion dollar stimulus that is supercharging demand for rare earths metals.

Look at the way that rare earths mining sector companies have been rocketing recently.

This is reflected in KZG's share price chart, which has recently broken out to a new one year high.
With plenty of near term positive newsflow expected.

Mining companies can and do trade at any multiples of NAV, as value is created which isn't yet reflected in the NAV, and that is what I expect to happen here.


"KAZERA GLOBAL – TAKES FULL CONTROL OF THE TANTALITE VALLEY MINE. BUY
June 26, 2020 | Posted by admin
... this tantalum mine could make several million dollars a year as it stands without upgrading the plant. ... "

[al101uk] 08/12/2020 12:53

Been an age since I've visited here and seems like everyone is very positive!

Looked at some of the news coming out recently and read that the proposed investment will be based on the net asset value of the company as opposed to share price (the NAV being higher than the current share price). That raised the question of what the NAV actually is. So I hit financials on advfn and got a figure of 0.5p-ish. Then I went to check the Report by Align Research who estimate a net asset value of 1.5-2p. Thinking maybe ADVFN have got it wrong I went to the Kazera website and checked the last results (2019) and they report 0.5p-ish.

So I assumed that something has happened in the meantime to increase the NAV. I've found that they bought a diamond mining company, but given 50 carrats of production from 2000 tonnes of gravel and given the financials at Kazera I assume not a lot was paid and it would not immediately add value. I can find no indication of the price they paid but I assume it wasn't equal to the companies current market cap.

Then there is the increase of ownership to 100% of African Tantalum (previously 75%)... that was done at a cost of £26K in June presumably valuing the entire asset at just over £100K. I understand that the price paid doesn't reflect the work that has been completed at the site... but following the money I can't get to a 1.5p NAV there either.

Can anyone clarify as obviously, if an investor is willing to pay 2p per share, while the share price is just over 1p and the NAV is to all appearances 0.5p, yet claimed to be closer to 2p, something is wrong somewhere?

You'll forgive me for a being a little sceptical, but Giles Clarke and Co have some previous with having funding imminently sorted and building pipelines :-)

Ironveld & Amerisur.

edit - Diamond Mine cost £600K.

[geoff80] 07/12/2020 20:10

Back in 2017 people paid 9p in a rights issue for KZG [then Kennedy Ventures].

[hedgehog 100] 07/12/2020 12:36

QS99,

There's multiple further positive share price drivers which could be due imminently:
• New Align Research KZG research note with a meaningful increase in their 2.5p share price target.
• Strategic equity investment in KZG reflective of KZG's NAV (1.5p - 2p per share).
• Completion of the Whale Head Minerals heavy minerals sands deposits acquisition.

The strategic equity investment should enable KZG to start construction of the Orange River Pipeline, which should be the key to unlocking the value of its potential world-class tantalum mine, towards a 'PRE-type' valuation.

Pensana Rare Earths (PRE) is developing a major rare-earth mine in Angola.
At 70.4p, PRE has a market cap. of £143 million, and has multibagged from 20p in July.

Pensana Rare Earths (PRE):

[qs99] 07/12/2020 11:15

small volumes today, but full offer being paid

[qs99] 07/12/2020 08:03

Will we see further rises this week as we move towards that inward investment and all systems go? I'm in for the ride! GLA

[johncasey] 05/12/2020 23:06

yeah but bought in at 0.1p

[bengrizz] 05/12/2020 22:37

But you sold ggp at about 5

[johncasey] 05/12/2020 20:16

yeah,yeah...QXL,GGP,GWP,EUA..the list goes one..VOG next