Kazera Global Share Discussion Threads

[penrith] 30/10/2021 22:03

Jonesy asks:
'Is there any intel on why Larry Johnson left and what happened to the two sources of funding? Cash flow news is welcome but seems odd that the latest announcement made no reference to this given it has apparently been imminent all year?'
Yes because they are both bad news and they dont want to talk about it.

[mdchand] 30/10/2021 20:59

From last RNS

'DJ Drilling, who have been operating at the Mine over the past six months, will take over day to day operations to progress the Mine through to cash flow. With DJ Drilling assuming operatorship, Larry, who originally instructed DJ Drilling to operate the Mine, has elected to retire from his role and return to the US, where he will focus on other ventures.'

Guess he wanted to spend time in the US and leave Namibia.

As for 2 (or 3rd strategic investor if you count the Chinese company) these things can take 6-12 months (see Ironveld by way of ex).

[jonesy100] 30/10/2021 11:32

Is there any intel on why Larry Johnson left and what happened to the two sources of funding? Cash flow news is welcome but seems odd that the latest announcement made no reference to this given it has apparently been imminent all year?

[dilip40] 30/10/2021 11:23

anyone suggest other lithium cos thanks

[hedgehog 100] 28/10/2021 13:05

TigerByTheTail,

Our analysis is based on the company's own figures, published in RNSes and in Align's research note.

02/12/2019 07:00 UK Regulatory (RNS & others) Kazera Global PLC Maiden Mineral Resource at White City Deposit LSE:KZG Kazera Global Plc
"... Table 1: Table 1: White City Pegmatite Tantalum Mineral Resource
as at 19 November 2019 at a cut-off grade of 80 ppm Ta2O5
Category Tonnes Ta2O5 Ta2O5 kg Li2O
------------------ --------- ----------------- -------
(Thousands) (ppm) (Thousands) (%)
------------------ --------- ----------------- -------
Inferred 297.6 105 31.2 -
------------------ --------- ----------------- ------- ..."


05/07/2019 07:00 UK Regulatory (RNS & others) Kazera Global PLC JORC (2012) compliant Mineral Resource LSE:KZG Kazera Global Plc


"All this exploration work has resulted in the all important JORC resources being determined for Homestead, Purple Haze and White City."

[hedgehog 100] 28/10/2021 12:35

Hedgehog 100 27 Oct '21 - 11:52 - 864 of 878 Edit 0 0 0
" ... So will KZG be producing 10 million kilos of tantalum per month by the end of 2022?
Which, applying a rough recent tantalum price of US$200/kilo., would have a value of US$2 billion per month?
When their three tantalum JORC resources contain 141.2 thousand kilos of tantalum total?
Of course not. They are talking about tantalum ore, not tantalum per se, but have misleadingly left out the word ore ... which I'm sure was an inadvertent mistake on their part, with no intention to deliberately mislead. ..."


Re. my post 864 above yesterday.

First of all, apologies for getting it wrong.
The RNS was badly wrong, as I flagged up, but not in the way I had said (or thought plausible).

"Volumes of Tantalum produced will increase with the aim of exceeding 10,000 kilograms per month by the end of 2022, rather than 10,000 tonnes."

But as others have noticed, KZG's three JORC resources put together add up to 'just' 141.2 thousand kilos. tantalum.

Which means that at the above rate of production, they would be exhausted of tantalum within about 14 months of production at the above rate.

[tigerbythetail] 28/10/2021 12:10

I think the numbers quoted here (14 months mine life for tantalum) are badly wrong. But I'll check them later.
For now, I'd just say that the news flow for the next couple of months should be excellent - tantalum production restart, diamond expansion, heavy mineral sands licence...
KZG should be on a firmly upwards trajectory.

[mdchand] 28/10/2021 10:32

Also, could someone reverse engineer the KG to get ore tonnage to determine what the Lithium cash flow might be based on 10k kg tantalum?

[mdchand] 28/10/2021 10:24

Unless they are deliberately asset stripping the mines to maximise cash flow to redirect the monies into the Heavy Sands project, or use the monies to expand existing mining operations. Would be nice to have a Q&A to understand the dynamics of those numbers and the intended cash flow use.

[chrysalis99] 28/10/2021 09:08

Sorry 14 month's supply

[chrysalis99] 28/10/2021 09:07

Post 870.So if they get to a rate of mining of 10k kg per month then they appear to have only 10 month's supply (total jorc resource calculated to be 140k kg tantalum)? Something doesn't add up.

[mdchand] 28/10/2021 08:01

So we have clarification on yesterday's RNS - not 10k tonnes of ore, but 10k kilos of Tantalus per month.

Based on a price of $200 per kg, that equates to $2m per month.

[mdchand] 28/10/2021 07:55

28/10/2021 7:00am
UK Regulatory (RNS & others)

Kazera Global (LSE:KZG)
Intraday Stock Chart

Thursday 28 October 2021

Click Here for more Kazera Global Charts.
TIDMKZG

RNS Number : 4943Q

Kazera Global PLC

28 October 2021

The following amendment has been made to the ' Loan Facility' announcement released on 27.10.2021 at 10:24 under RNS No 4333Q .

Volumes of Tantalum produced will increase with the aim of exceeding 10,000 kilograms per month by the end of 2022, rather than 10,000 tonnes.

All other details remain unchanged.

[outspan] 27/10/2021 21:01

Well done Hedgehog, thanks for that, very useful.

I think the KZG "slant towards tant" probably has a historical basis which is two-fold. Firstly, going back just 2-3 years, I recall many a post telling people to disregard any Lithium, such was the low demand/price for it at the time, especially if not a really major find.

How things have changed in such a short time. The advent of Electric Vehicles has made any reasonable Lithium asset a bit of a prize!

The other thing is at that time, when tant was everything to KZG, there wasn't yet a JORC in place. When it came along and included good Lithium reserves, and by then that the future value Lithium was beginning to be appreciated, and that it could be derived from the same production as tant merely by adding an extension to the plant, the picture changed considerably. Especially given that only about 30% of the property has been JORCed.

I think it didn't feature highly today because, for the above reasons, it's a late-comer to the party and still has to go through those stages of proving viable production quantities and quality via assays, then buyers approving samples, then offtake agreements. In which case, it's interesting that, beyond the tant offtake agreement, the Chinese are said to have expressed an interest in helping to develop the Lithium reserves - which funnily enough, kind of chimes with that statement today. Hidden message?

All in all, it leaves much more value to come here once the somewhat hidden Lithium play is appreciated.

[hedgehog 100] 27/10/2021 15:51

Outspan,

Align's research note didn't specifically give the lithium weight, but I have calculated its weight & in-situ value and added:

KZG's tantalum-lithium JORC resources:
Homestead: c. 47.3 thousand kilos. tantalum (237ppm Ta2O5) + 5,400ppm Li2O = 1078.7 thousand kilos lithium
Purple Haze: 62.7 thousand kilos. tantalum (572ppm Ta2O5) + 8,400ppm Li2O = 920.8 thousand kilos lithium
White City: 31.2 thousand kilos. tantalum (237ppm Ta2O5) + unstated ppm Li2O
= 141.2 thousand kilos. tantalum + 1,995.5 thousand kilos. of stated lithium

Applying a rough recent tantalum price of US$200/kilo.
= An in-situ value of c. US$28.24 million tantalum.

+ Applying the recent lithium price of US$26/kilo.
= An in-situ value of c. US$51.987 million lithium.

I.e. a rough in-situ value of the tantulum + stated lithium of about eighty million US dollars.

It's interesting that the in-situ value of the lithium is nearly double that of the tantulum.

Whereas KZG has tended to put more emphasis on the tantulum ... as indeed today's RNS does:

"In Namibia, the expectation is to export the first commercial delivery of Tantalum before the end of the year. Volumes will then steadily increase with the aim of exceeding 10,000 tons per month by the end of 2022.
Simultaneously, the focus will be on establishing further mineral reserves as well as on developing the Company's Lithium opportunities."

[outspan] 27/10/2021 15:23

In any case, steps have been taken over the last couple of years to improve things since production was temporarily ceased. This from 17 Jan 20, just before covid:

"Water Management

In efforts to reduce diesel usage, the Company has endeavoured to utilize solar panels to power all water bore holes across the property. Additionally, the Company has installed a bulk diesel system directly at the village generator which enables the Company to have access to 50 days of energy supply from the generator and become much more energy and time efficient.

For further efficiency gains, the Company has now electronically measured all bore hole depths ensuring all solar pumps are the same depth and have installed a low-cost submersible pump at the main pump station. Kazera has maintained the original lister diesel engine as a backup system while reducing the everyday diesel consumption to our main pumping station.

Additionally, Kazera has installed water meters at each bore hole and pumping station in order to monitor water feeds daily. This assisted the Company in successfully passing a recent site visit by the Namibian Government's Geological Department who monitors water throughout all mines in Namibia."

This from 3 Jun 21:

"Operationally DJ Drilling, the Mine's operator, has been focused on repairing the road systems around the Mine following a period of severe weather. These operations have now been completed. DJ Drilling will now begin moving earth for the government approved Tailings Dam, that will recover approximately 20% more water from the plant waste materials.

In addition, the Company has completed negotiations with a Namibian business to supply a 40,000 litre diesel tanker on site that will operate using a monthly consignment model, invoicing only what is used."

[mdchand] 27/10/2021 15:18

If the Heavy Sands ops generate sufficient cash flow, I suspect they will take out a commercial loan (courtesy of the Namibian Govt / bank) to fund the water supply issue. Its a heavily caveated issue so any visibility here would be appreciated. That said, perhaps the Chinese will finance it in exchange for future production. We have some visibility on revenue, but await cost of production analysis. Align have promised an updated note and will have a very clear idea what is happening here. Be interesting to see how much the unrisked share price is now worth.

[tigerbythetail] 27/10/2021 14:27

As regards the water, remember that part of Namibia recently had very heavy rains after a long drought.
The TVM has multiple boreholes, and if the water table has risen substantially after the recent rains, they should have enough water for limited mining operations. The mine used to operate in the past based on its own water supply.
In the long run, I still think they'll need the Orange River pipeline for full scale production, but they and the contractor seem happy enough to start operations without it.

[tigerbythetail] 27/10/2021 13:52

RNS out.
IMO, that's a big vote of confidence in the company, and a clear signal that the directors believe that the company's shares are worth (far) more than 2p.
If the market is awake, that should trigger a rerate to 2p minimum.

[ray164] 27/10/2021 13:31

How will they produce 10,000 tonnes a month without water?

[hedgehog 100] 27/10/2021 11:52

27/10/2021 10:24 UKREG Kazera Global PLC Loan Facility
" ... In Namibia, the expectation is to export the first commercial delivery of Tantalum before the end of the year. Volumes will then steadily increase with the aim of exceeding 10,000 tons per month by the end of 2022. ..."


1 tonne = 1,000 KG.

So will KZG be producing 10 million kilos of tantalum per month by the end of 2022?
Which, applying a rough recent tantalum price of US$200/kilo., would have a value of US$2 billion per month?

When their three tantalum JORC resources contain 141.2 thousand kilos of tantalum total?

Of course not. They are talking about tantalum ore, not tantalum per se, but have misleadingly left out the word ore ... which I'm sure was an inadvertent mistake on their part, with no intention to deliberately mislead.

Tantalum ore has a very low concentration of tantalum: KZG's Homestead resource has a concentration of 237 parts per million:

"In June 2019, mining industry consultants MSA Group determined a MRE of 199.1kt at 237ppm Ta2O5 and 5,400ppm Li2O."


I.e. divide the quantity of ore by 4219 to get the quantity of tantalum.

[mdchand] 27/10/2021 11:37

Riverfort are providing 150k, and with expected cash flow to be multiple times that figure in the near term, I'm comfortable with their participation. I suspect Align would have covered the whole lot if it hadn't taken them potentially over the 30% shareholder threshold. No doubt an updated Align note to follow shortly.

[jaforsadi] 27/10/2021 10:49

Riverfort involved run a mile

[mdchand] 27/10/2021 10:39

ST loan - non onerous rates from existing shareholders.
Restatement of trading positively prior to year end
Restatement of cash flow positive in 2022
Commercial deliveries on Tantalum starting prior to year end
Est mining of 10k tons Tantalum per month
Restatement of 300k pm cash flow from Heavy Sands.
New Carat sales of 225k pm cash flow.

Will let others figure out what 10k tons per month Tantalum might bring in cash flow..........