Kazera Global Share Discussion Threads

[shearluc] 29/3/2023 10:36

Agree TbtT ... excellent opportunity to accumulate. If they are good to their word there could be a sizable distribution to shareholders later this year... in the mean time we can sit back and watch things unfold. (as opposed to unravel hopefully)

[tigerbythetail] 29/3/2023 10:00

Hi Farrugia!
Thanks for calling them up and getting the answer to that question.
KZG's share price is a complete mystery to me as well - should be way higher. Heck, African Mineral Sands are buying 29.9% of the company at 1.5p - presumably because they think that's a good price. What does that say?
My only explanation for the share price is that tired old cliche - share overhang. We have large sellers (Spreadex? Associates of Giles Clarke?) who have simply placed huge sell orders with the market-makers, and we need to chew through them before the share price can move up.
In answer to landersd, I'm assuming that the heavy mineral sands (aka "the company maker" here) is currently being stockpiled ready for the new plant to arrive and be commissioned (another 4-5 months for that). So no income from that for a while yet.
I'm also assuming from the company's silence that they are not receiving any income from the diamonds yet - diamonds are clearly being mined, but then they have to go through a slow sales process and KZG have to get the money. That could be quite a lag.
But if you combine the cash on hand, the cash due from the Chinese for Aftan, and the forward prospects of the HMS business (even without allowing for new licenses), then the "buy" case here looks very solid to me.
Things that could go wrong? 1. The Chinese decide that they can't make TVM / Aftan pay and walk away after blowing a few million dollars. Unlikely now, I think, but not impossible. 2. Usual Armageddon scenarios - world economic collapse, price collapse in basic commodities like ilmenite, South Africa meltdown etc.
FWIW, I'm putting my money where my mouth is at these levels.

[wrtmf] 29/3/2023 09:58

holding rns
ams now hold 30m shares, 3.2%
section 8b1 notes the other 26.68% targeted?

[landersd] 29/3/2023 09:46

Farrugia, can you ask them why they dont release figures ................are we producing selling HMS , are we producing selling Diamonds ??

[farrugia] 29/3/2023 09:23

just asked them - 'Yes, the US$687,500 has been received. It is part of the cash balance figure as of 27 March 2023.'

So the deal is on. Why is this valued so lowly?

[wrtmf] 29/3/2023 09:03

from 16 march - 'Under the terms of the agreement announced on 20 December 2022, Xinjian was due to have paid an aggregate of US $ 3,642,207 by the end of January with the balance of US $ 9,357,793 payable in equal monthly instalments commencing in April 2023 and completing in December 2023'

close to schedule at us$3,535,334
to come: 9 x us$1,051,629.56 from apr

[gbcol] 29/3/2023 08:06

Another US$500k on the way re Aftan sale. One can only assume the US$687,500 referred to in 16 March RNS has now been received. I can’t see it referred to in today’s RNS.

I believe those take total paid to circa US$3.5million

[tigerbythetail] 28/3/2023 16:51

I'm no expert on these things, but the Spreadex holding would seem to be linked to Align / Richard Jennings.
That is, I think they took the other side of a bet on the share price with Align, and bought the shares to hedge the risk.
If anybody knows more about how Spreadbetters work and can explain what's going on better, I'd be grateful!!!

[gbcol] 28/3/2023 15:55

So Spreadex have sold about 34million shares. Wonder if they will now stop, pause or continue selling down. Would take another 6million or so sold to drop them below the next notifiable level of 3%.

[wrtmf] 28/3/2023 15:25

holding rns

[wrtmf] 28/3/2023 14:53

its prob a bit soon for another payment from xinjian, but confirmation on thurs/fri of receiving US$687,500 would be satisfactory.

de can't keep saying diamond plant is in production - what about some sales or even to say we've handed over a batch of x to alexcor would be something.

70t/hour since july - that's what the rns say

[gbcol] 28/3/2023 14:49

I’m a bit torn really, obviously I want share price up but I’d rather it started in a couple of weeks once I have been able to top up my SIPP and ISA at start of new tax year.

I guess there are still sellers that were hampered by the suspension but it does seem strange that we haven’t moved up considerably already based on the confidence that AMS have shown that 1.5p is a very good entry price. I’m betting they have a lot better insight into things than us.

[wrtmf] 28/3/2023 14:48

...and the buys/sells today look about equal so no need for it to be -5%

[harvd] 28/3/2023 14:05

TBTT, I quite agree AMS could buy the entire company in the knowledge that not only are they getting a bargain at this price, it will after a little time, have cost them nothing as the Chinese will have payed them to do so when they stump up for the tantalum mine!! Bonkers share price.

[tigerbythetail] 28/3/2023 13:41

This is bonkers.
29.9% of the company is being sold for 1.5p per share to AMS, yet the shares are trading on the open market at 0.9p per share.
Also, KZG still have to receive more than the full market cap in cash from the sale of Aftan to the Chinese.
Surely, AMS must be thinking about launching a full takeover bid?
I reckon 1.5p per share for everybody should be enough!

[wrtmf] 27/3/2023 09:52

outspan, thanks for


1 day left for the current cycle before they go again 18apr

[wrtmf] 26/3/2023 19:20

hi outspan,
yesterday i went through the last year's rns and pulled out all the diamond bits...

--
19apr22 - Gross diamond sales from December 2021/January 2022 cycle equate to US$236,547.71. A further 160 carats remain to be sold. ….the Company has now agreed to work with a third party who will provide a Pan Plant, which will not only eliminate the need for the Company to use the Muisvlak plant at all, but will also reduce processing costs. Payment for the use of the Pan Plant will only be made as diamonds are sold

19jul22 - the Company has now installed and commissioned the pan plant in its Alexander Bay diamond mine in South Africa. The pan plant is capable of processing up of 70 tons of gravel per hour and has the capacity to quickly deal with the gravel stockpiles that the Company has built up but has not been able to process. The new facility gives the Company complete control over its diamond production, with Alexkor only being responsible for final sorting and sales. The cost of the pan plant will be paid from out of cashflows from the diamond mine. The Company also anticipates further improvement in cashflows from diamond operations via additional income from making the pan plant available to other contract miners when it is not being used by the Company.

28july22 - In addition, and, as a by-product of the HMS operation, Deep Blue Minerals now expects to generate around 300 ct per month of additional diamond production from the HMS operation - this being incremental production to complement our existing diamond operations. Beach diamonds tend to be larger and higher quality than those found inland and so it is expected that these diamonds will attract a premium at auction. Inland diamonds typically attract prices of circa US$ 250 per carat, whereas the Company confidently expects these diamonds to exceed a price of US$ 750 per carat.

28feb23 - Diamond operations now in production

16mar23 - The Company has completed development of the new plant at Deep Blue Minerals' diamond project in Alexander Bay and can independently process similar volumes of gravel as were previously being processed at the Muisvlak plant. The new plant is also capable of processing gravel containing high quantities of HMS, and stockpiles of mined gravel are now being processed. Furthermore, through its close association with the Richtersveld community, the Company has gained access to new mining blocks, tripling the area available for mining and giving it access to a further 28,000 carats of diamonds.

31mar23 - ?

--
2 things stand out!

[outspan] 26/3/2023 16:38

Well overdue indeed, wrtmf, but the designated pathway for sale through Alexkor, the state mining company (and all its historical issues, including at the Muisvlak plant) has probably been a root cause of delays.

I also reckon there's a clue in more than one of DE's interviews where he variously refers to the new diamond plant (I think not operational until Oct/Nov 22) allowing them to now deliver the finer-sorted diamonds to Alexkor "in buckets" rather than in unrefined bulk sacks and of them having accrued significant stockpiles of diamond sands for processing ahead of the plant becoming operational.

Kazera now refers to their new diamond plant being capable of "...handling the same volumes of raw material as the entire Muisvlak plant was capable of doing...". It's worth noting then that the Muisvlak plant was for processing all diamond miners in the Alexander Bay area!

Worth noting also the clear signs of "revival" at Alexander Bay Diamonds - - I know from keeping tabs for long enough that their once pretty much dormant website has now been relaunched with a new format, not least in the Auction section. Listed are two "closed" auctions for January and February, with further auctions in train for March, two in April, and then monthly from June, all for "alluvial original mine production". I'm hopeful that this is not just a coincidence.

Personally, I think a similar stockpiling philosophy will be adopted re the early HMS production where, "...in the interim [*period until the separation plant arrives and becomes operational], the Company is introducing a double-deck 500-micron screen with a view to accelerating production of the separated HMS product..."

The plan being to take HMS purity from 49.9% to 60% on the screener and then to 80% on the separation plant in due course, thereafter to use this then HMS-redundant screener to further enhance the diamond production quality

Again, I see the price differential in both HMS itself and enhanced diamond quality from within the HMS, as being a factor in not pushing ahead too strongly with HMS production for the sake of a few months but instead to stockpile much of it for enhanced separation and prices, previously said to be approx 6 times higher for the refined product.

The new Kazera website more or less says as much - "...order...equipment...separation...sale of concentrate...attract a much higher value than a bulk product...view to accelerating production of the separated HMS product...currently building up stockpiles of HMS, whilst identifying a site to dry material away from the moisture and dust of the coast.

The Company is currently actively pursuing mining rights over additional areas with known HMS deposits."

That last sentence might be much more interesting than at first glance. We have previously heard of an application for merely one prospecting licence over an adjacent area (approx 34 times larger). Now we hear it in plural and is apparently not prospecting but straight to mining licence. Seems the principle of a combined diamond/HMS miner in the area is now established (and unique to WHM) so why waste time prospecting? A certain sense of momentum and upscale here. GLA DYOR

[wrtmf] 26/3/2023 10:35

-rns in the coming week, report up to 31dec22
-hoping our hms separator is delivered ahead of schedule by way of others dropping off the order book [over the coming months]
-looking for some 'solid' diamond sales numbers in the next 4-8 weeks, well over due.

[wrtmf] 22/3/2023 12:54

'Kenmare continued to see robust demand and in Q4 2022 achieved a ninth consecutive quarterly price increase for ilmenite'

[shearluc] 22/3/2023 12:33

Thanks TBTT - good set of results and they seem very positive for future. Have signed up for the 28/03 webcast.
Bodes well for Kazera and their HMS project!

[tigerbythetail] 22/3/2023 09:26

For those interested in Heavy Mineral Sands (and remember the CEO has said that HMS is "the company maker" here), large scale HMS producer Kenmare Resources (KMR) has published its annual results today. Worth a read - particular the section on the outlook for prices (of ilmenite / titanium ore in particular).

[wanobi] 21/3/2023 16:27

added 300K :-) GLA Cheers Wan :-)

[wanobi] 20/3/2023 11:43

website looks great btw,,, nice one DE, Cheers Wan :-)