Kazera Global Share Discussion Threads

[chrysalis99] 05/5/2022 14:17

Yes a glimmer of hope perhaps. Not pleased to see the 1 for 1 warrants at the same price without further conditionality though.

[al101uk] 05/5/2022 11:33

I'm impressed!

They got a placing away at a premium and for a decent amount of money. They got Align on board with even more equity which shows Align really do still have some confidence in the company. The CEO agreed to take a chunk of shares in exchange for his salary and most importantly the warrants sound quite reasonable.

I wasn't sure anyone would even give them more money, but all of this appears to be on reasonable terms all considered. There is life in the old dog yet :-)

The question now is, can they use that cash to generate some free cashflow from their Tantalum mine and show that Kazera really do have a bright future.

Guess I have to climb back on the fence, still have one leg hanging off the negative side, there's still one heck of a mess to sort out. but I guess we'll see.

[red army] 05/5/2022 08:45

At last raised some money.

[al101uk] 22/4/2022 00:04

Hi outspan,

Thanks, appointments being BEEE related makes sense and they are probably overdue.

As regards Alexkor running the Muisvlak plant, yep, but as an outsider who nips in occasionally to catch up I always need to re-check the things that I already know ;-)

I think any legal case would have two sides (don't they all). Kazera will claim that MV5 are holding monies owed. MV5 will claim that Kazera are reneging on their Joint Venture and MV 5 are suffering losses as a result. Bear in mind that the joint venture signed a 5 year contract with Alexkor as well.

I think Kazera signed a bad deal as evidenced by contrasting two RNS's:

September 2021 - Kazera expects the change in plant ownership to significantly increase the profitability of its Diamond mining operations.

19th April 2022 - various political factors together with the fact that MV5 received 30% of diamond sales made the project unsustainable.

But at the end of the day Kazera negotiated this deal, they can't turn around and claim it's MV5's fault that the deal isn't favourable to Kazera.

According to Align HMS was to some extent also reliant on the joint venture for capacity, not having that capacity does not seem like good news to me and souring the relationship with Alexkor by backing out of a 5 year contract mere months afer the ink dried seems like just creating more bad blood.

I don't buy that Kazera keep on having issues that cause them to fail in to a more favourable situation.

I think it's pretty obvious that diamond production hasn't gone to plan and as a result the 40% of revenue Kazera recieve isn't enough to make the venture profitable. They've thrown their toys out of the pram and MV5 have responded by withholding money. Now Kazera are taking legal action to claim that money. MV 5 will counter by claiming the contract was already breached by Kazera. Meanwhile Alexkor will be after both of them because it signed away it's plant for five years on the basis that the plant was going to be refurbed and run by the joint venture where it would also be receiving 30% of the proceeds.

To suggest a narative where MV5 just hang on to the money for no reason, breach what is a favourable contract at the first opportunity and leave themselves open to legal action. Then to suggest that Kazera can legally just walk away from the whole thing as a result and that an even better solution just happened to fall in to their laps at the same time seems fanciful.

Especially when this is a similar story to the one told about the funding falling through. It wasn't a problem anymore because they didn't really need the funding anyway and this new deal will fund businesses development with no more need to ask shareholders for more money. The funding falling through was a good thing!

And that story was preceded by the story that the company didn't need additional funds because getting the Tantalum mine in to production was cheap and would lead to fast cashflow. Until they decided that upgrading the Tantalum operation was a better route to even greater profitability. Not that the Tantalum mine wasn't actually proftable without the upgrade... of course not!

[outspan] 21/4/2022 18:22

Would only say quickly if you haven't already listened to the VSA Brett Boynton (Tectonic CEO) interview on 23.3.22, I would highly recommend it. It gives a much greater insight into the politics of it all plus much more than ever has come out of Kazera (sadly!). Access can be asked for by mailing [e-mail] (I think).

Also explains that the two new WHM Directors are highly credentialed and part of the requisite Black Empowerment appointments/stake. In the same vein, would also recommend a read of Tectonic (TTAU) statement (yesterday I think).

In short re above, it was always very clear that Alexkor built and owned the Muisvlak plant, just as they own/run the whole Alexander Bay licence area. Their inadequacies over many years are central to most of the problems there, for all, not jut KZG. I think it is MV5 that has breached contract, hence the legal action, hence the need for a new direction. I do not believe profits from diamonds are on hold at all, never mind potentially forever. Rather they have been brought under more independent control and, for me, that is also a positive for HMS going forward. I don't think they need to attract additional major funding and think they will only do so if it's desirable for faster growth/expansion and if it's seen to be on beneficial terms.

Problem with me writing anything is it'll just be a red rag to Penrith so that's my brief take and that's all I'll be contributing. Transitional times, initial operational hiccups for sure which are often the case for small companies in these stages but, personally, I'd rather this enlarged, forward-looking version of KZG than a one trick tantalum pony with mining operations mothballed. Still see substantial progress being achieved this year despite ongoing disappointments and missteps. HMS licence being the big key and, for me, Brett Boynton seems to be brimming with confidence over his recent moves on sorting out the black empowerment positions in tandem with there being a new board/CEO at Alexkor.

DYOR

[penrith] 21/4/2022 17:21

Al101uk it's amazing how the resident rampers have gone quiet. Raise or bankruptcy only realistic options. Every RNS contradicts the last. Dishonest cowboys come to mind.

[al101uk] 21/4/2022 16:54

Trying to think through the MV5 situation and looking back at one of the Align notes:

"In the past, Kazera’s diamond production has been limited by the low throughput of this plant. All that is about to be resolved by the investment in a number of plant upgrades. Kazera has established a joint venture with MV FIVE (Pty) Ltd (MV5), a company representing the local community. This deal will see the JV taking over control of the Muisvlak Diamond Processing Plant as part of a 5-year contract.
It has got to be realised that this processing plant will also provide an established base for the mining of Heavy Mineral Sands (HMS)."

A few things occur to me based on this:

1) MV5 is a local community venture, hardly good for local relations.
2) There is a 5 year contract with the plant owners in place which will need to be unwound.
3) Capital has been spent refurbing the plant which MV5 probably aren't happy shouldering the burden of.
4) There are knock on effects for HMS.
5) They have a fixed price contract with DJ Drilling which means they HAVE to hit reasonable capacity to cover costs and make any money.

Oh and guess who owns/owned the plant... Alexkor (lol, you couldn't make it up). I guess any hopes for an improved relationship with the new CEO may have to go on hold.

Can Kazera survive a legal case, while potentially defending several counter cases (MV5 for the refurb costs and Alexkor for breach of contract). All while running a potentially non-commercial diamond mine with far higher fixed costs per carat than expected. I assume the new facility is not going to be capable of the reported throughput from the refurbed Alexkor plant so carats processed are likely to take a nose dive while costs remain fixed.

Or will they renege on their contract with DJ Drilling as well and pile on the legal cases?

With the profits from Kazeras diamond assets on hold potentially forever, what happens at the Tantalum project and how do they attract additional funding with the sh't show they have now created.

Interested to see how they turn this around as from here, it looks terminal.

[al101uk] 19/4/2022 16:32

No commentary on todays RNS?

Wasn't MV5 suppoosed to be one of the saviours of this company?

MV5 are entitled to 30% of revenue. Despite record numbers of carats being produced, the project was unsustainable mainly due to MV5. The Company has instituted legal action against MV5 for payment of monies due.

I make that $95K of revenue for the two months which does not cover the overheads of the diamond mining operation that KZG are responsible for (I thought they were in for a free ride?).

Also the Tantalum plant needs yet more refurbing!!

Alexkor who KZG are paying 30% of diamond mining revenues to are objecting to the Heavy Mineral Sands development... hardly great for relations.

Meanwhile they have invited a Liver Transplant Surgeon to the board, probably due to his work with African Financial Group. I would assume he's mainly concerned with the healthcare work at that company, but he may know someone who knows someone I guess.

On a positive note, Dr Naidoo seems like a good addition.

Just looks like a complete mess to me and after their prospective funding falling in to ablack hole it's hardly confidence inspiring that they have allowed their new partner to rip them off as well.

[jackruss2] 31/3/2022 09:32

RNS interimsAll looking good, just need that signature.

[harvey haddock] 31/3/2022 07:08

An excerpt from today's RNS over at Tectonic Gold.

MANAGING DIRECTOR’S STATEMENT

Dear Shareholder,

During the half year to December 2021, the Company ran a significant field campaign on the lead gold exploration project at Specimen Hill. Our partnership with London listed Kazera Global Investments Plc (“Kazera”;) (LSE:KZG) also delivered the further production of diamonds from the Alexkor site in South Africa.

With further support from shareholders who converted their warrants and profit from the divestment of a part of our holding in Kazera, we funded follow up drilling at Specimen Hill, testing copper and gold follow on targets from the 2020 campaign. During this time, we hosted a number of potential farm-in investors on site and identified additional extensions to mineralised zones for exploration.

Drilling along strike from Main Lodes again returned positive intersections, however, the unexpected onset of early monsoonal rains and accompanying electrical storms forced us to suspend drilling before we could complete the campaign. Australia’s east coast has had an unusually wet summer with localised flooding in the region, so we have not been able to access site again at the time of this report, but we are planning to remobilise as soon as possible and complete the campaign. This will involve diamond core drilling below the historic high-grade Goldsmith’s Reef mine. This is fully funded with current cash reserves. This sheeted vein system at Goldsmisth’s Reef was mined until World War One to a depth of some thirty meters. Our geophysics reconnaissance shows the system steeply plunging to well over one hundred meters and the drilling will target the same high grade surface veins down to that depth and beyond.

Our joint venture with Kazera in Heavy Mineral Sands in South Africa is waiting on the award of a mining license which was significantly delayed by COVID. We are hopeful this will be in hand in the next quarter, and we will be able to announce the development plans for the project.

Despite weather and COVID related delays, we are well funded, with a number of opportunities to drive shareholder value in the pipeline and look forward to the run to year end.

[harvey haddock] 30/3/2022 20:42

Post 994 Chrysalis.

[harvey haddock] 30/3/2022 15:45

If you listen to the podcast, you will have a better idea of what is happening now and the timelines involved.

[mdchand] 30/3/2022 10:58

Last year was a write off and those numbers are purely historical.

Key issues moving forwards as follows:

It is now awaiting the grant of the Mining Permit, which it believes to be imminent and which will bring near term cash flow to the Company from the production of Heavy Mineral Sands.

The diamond mines have produced a relatively small number of carats, up to the December/January cycle when just over 1,000 carats were produced. We expect diamond mining to now provide consistent revenue.

We are now producing small quantities of Tantalum and have made substantial changes to the plant and anticipate commercial scale production during April 2022.

Zero hype in this share so happy for the RNS's to land and see where it goes.

[penrith] 30/3/2022 07:36

Two teachers who live next door brought in more revenue and actually did something useful ....

[jonesy100] 30/3/2022 07:12

55k revenue. Says it all about commercial progress unfortunately. Too much hype over last 12months

[penrith] 28/3/2022 18:58

Thanks for the lesson mdchand but Im actually assuming that a falling share price is due to no news.If they have not reached a cash break even point NOW then the next news is goodbye or a desperate raise.....

[mdchand] 28/3/2022 18:06

Penrith - your assuming a falling share price is an indication of bad news. Sometimes on Aim, it is, and sometimes is simply momentum traders moving in and out of a share. If something material had happened, KZG have an obligation to tell the market in a timely manner. I know, its Aim, anything is possible.

BUT, I do know that Tantalum has been rising as has diamond prices





if they can reach a cash b/e point this year I'm happy to wait and see if they get mining permits for the heavy mineral sand locations.

[penrith] 28/3/2022 07:47

Outspan how do you know "Nothing has changed". You haven't a clue that nothing has changed because they haven't given any information or update. What we all now has changed is the share price is down a further 60 percent. They are obliged to provide an RNS by Wednesday . What does surprise me is that if it was really bad news they would have taken the opportunity to release it late Friday.I am however applying a degree of logic and as we know KZG don't do logic.

[harvey haddock] 27/3/2022 09:10

Listen to this episode of VSA's morning miner from a few days ago, a great taster as to what's happening at Tectonic Gold and in particular their partnership with Kazera and the developments in SA.
To listen to the full podcast, you have to request it directly from VSA.
It's a fantastic listen.

hxxps://soundcloud.com/user-596578261/vsa-capital-morning-miner-230322?utm_source=clipboard&utm_medium=text&utm_campaign=social_sharing

[outspan] 26/3/2022 11:50

I also said:

"Naturally, at the time, I was talking about the Company and its future, not the Ukranian War factor and the share price which I will judge over years and not weeks. I stand by my bullish position on 2022 and beyond and so am a buyer and will continue to be so during such opportunity in share price terms. Thanks for your concern."

Nothing has changed. Unlike yourself, I don't find the need to keep repeating myself.

[penrith] 24/3/2022 14:19

Outspan you said :Penrith, glad your money is safe. Did you ever wonder why it was so easy for you to offload? Once again, many thanks for your assistance in making it much easier for my large top up orders to be filled the other day.Well Outspan you could have listened and got your large top up 60 percent cheaper. Hopefully no newbies followed your lead. Strange how quiet you and your cohorts have become.

[penrith] 17/3/2022 16:17

On the 14th Feb I posted "Delaying a substantial raise is wrecking the sp" A day later they released an RNS stating Continued progress and Momentum into 2022......
Sadly the share price has dropped 50 PERCENT since then despite the posts of BRILLIANT RNS.....DONT need the loan....
Sadly I think a raise is now looking less likely as it would have to be around point 65p to gain any interest.
Hope newbies were not sucked in by the hype.

[penrith] 16/3/2022 18:11

7 million share sale sneaked through at point 97 of a pence early afternoon. Price still closes at 1.1p .....Lol.