Kazera Global Share Discussion Threads

[gbcol] 12/7/2023 16:33

That’s how I see it TBTT (whether they have paid $4.2m or $5.2m at this point is largely irrelevant, they are unlikely to pull out and lose that sum). I continue to add here. Fortunately I haven’t been here that long so my average buy is well under 1p. So even at what I see the worse case of 1.5p I’m in for a healthy profit at some point.

[tigerbythetail] 12/7/2023 16:11

I'm fairly sure that this is new money that has arrived since the last RNS. It was $4.2m - that is 3.5m + 700K. IMO, this is the first tranche of the approx. $1m per month that Hebei should be paying from here on.
I remain fairly confident that Hebei will continue to pay - but I'm also confident also that they will constantly pay late in an attempt to protect their own working capital position. IMO, they're too far in to back out - not only have they paid (I think) $5.2m to KZG, but they've been running the mine and bringing in new kit for it, and they've bought up the neighbouring licences from 3rd parties as well.
IMO, the only way this deal goes sour is if production goes so badly at TVM that the Chinese effectively walk away from it. Let's hope that doesn't happen.
All told, I'm very happy that KZG managed to dispose of this troublesome asset for good money. The $5m or so already received is enough to start up the HMS business, so a critical milestone has been passed.
Current share price is ridiculous, all things considered. Will AMS make a bid to take the whole company private at 1.5p per share? It must look tempting!

[gbcol] 12/7/2023 15:34

So they are also talking to other parties that were interested in buying African Tantulum when deal was tied up with Hebei. Dennis says that Hebei are finding prices aren’t as high and production isn’t as high as they expected, which may be part of the reason for payment delays. So if they have to sell elsewhere, as outspan says, that $4-5million Hebei have paid will be handy to offset any lower offer they need to accept.

[gbcol] 12/7/2023 15:25

TBTT - yes he did say that they have paid another million but I’m not too sure if that was included in the previously quoted $4.2m or on top of it. He says they have paid another €1m “this month” so I think that is included in the $4.2m we have already been told about but not clear.

[outspan] 12/7/2023 14:36

Which sort of suggests that if KZG do end up taking it back, they would only need to resell to another party for around $8m in order to have raised the full $13m they had anticipated.

Meanwhile, interest is accruing @ 8%, 100% ownership is retained until fully-paid, there's no distraction for KZG operational management and Hebei is taking the hit for the full running costs. Top marks for negotiating such favourable terms!

Basically, everything points to strong reasons for Hebei to get a move on with a conclusion of some sort and it seems KZG and new major shareholder AMS are happy to provide assistance.

Aside from all that, I got the sense of a strong push towards ramping up the diamonds operation from background to foreground and getting some meaningful sales coming through while sales from the HMS operations await the paperwork to allow commercial production.

[tigerbythetail] 12/7/2023 12:44

The "new" news in that interview (c. 6 min in) is that the Chinese have paid another million dollars to KZG. So they are paying late but still paying.

[wrtmf] 09/7/2023 20:46

example of a trommel screen


in action


sand version


looks like they'll need a crusher too to minimise waste

[petomi] 05/7/2023 10:36

DE says "AMS now holds voting rights through shares it has acquired to date, and via agreements with Catalyse Capital Ltd and its related parties, of more than 29.9% of the shares in the Company." - but presumably less than 30%, otherwise a mandatory offer would be triggered under the Code. In the next year the offer would need to be at 1.5p (or any higher price paid by AMS: "An offer made under Rule 9 must....... be in cash or be accompanied by a cash alternative at not less than the highest price paid by the offeror or any person acting in concert with it for any interest in shares of that class during the 12 months prior to the announcement of that offer".

I agree with TBTT that there is still great potential but I would like to see the 'nuclear' issue clarified before adding. In particular am concerned about potential delay beyond the 3-9 months for a permit (if required)that DE speaks of, bearing in mind SA bureaucracy and/or shenanigans (putting it politely).

GLA

[tigerbythetail] 05/7/2023 09:02

Of such stuff are ten baggers made, of course.
It's easy to imagine KZG having a market cap of £70m+ in a couple of years time. All that needs to happen is to get the HMS operation into full production and to obtain a licence on new areas to mine (which, given the "moat" around their business of the diamond licence and their improving relationship with AlexKor) I think is likely.
But the road there is difficult and full of risks, of course.
I believe the Chinese will pay up eventually - they're too far in to back out (esp. remembering they've also bought up the neighbouring licence areas and they are covering the costs of TVM). But they'll think of their own working capital needs, and pay up as slowly as possible. It will be like getting blood from a stone.
Before the news about radioactivity and potential delays today, I (very roughly) calculated that KZG already had enough cash (just) to get to full HMS operation. I now think they'll need a million more. So either they get that from the Chinese, or from diamond sales(?), or from a much dreaded placing.
But remember an industry buyer is paying 1.5p per share for 29% of this company. That's a far better guide to KZG's real value than some thin and panicky PI trading.

[outspan] 04/7/2023 19:22

Hi TBTT, indeed he did and I knew that. I was being sarky on the basis that money talks louder than words. I too am bemused by the lack of an update but I'm a firm believer in following the money.

In other words, I'm heartened by AMS paying £4.5m for a 280m share/29.9% stake by the end of the year, a portion of it as recently as last week which also saw them strengthening their position/control by attaining voting rights over the full 280m shares.

At current SP/market valuation their full holding will be worth only a fraction of what they're paying if nothing changes and they agreed to do this well-knowing the lowly share price at the time.

Makes you think, doesn't it? ;-)

[tigerbythetail] 04/7/2023 11:46

Hi Outspan!
Actually, DE confirmed that they did in the last interview.
And who wouldn't? You'd be mad not to!
Still bemused by this share. If the TVM sale is proceeding more or less as planned and there is no fatal flaw with the HMS operation then the current share price is a giveaway. Awaiting next update from the company...

[outspan] 30/6/2023 11:16

Do you think AMS might have spoken to DE before committing to buy 280m shares @ 1.5p? :-)

[wrtmf] 30/6/2023 07:37

everyone should ask edmonds from next week about april may june $1m+ monthly payments from xinjian. if you don't, he will continue to stay silent.

we want the equipt from johannesburg to arrive very soon, days to a couple of weeks, or kiss goodbye sept hms production uplift

[outspan] 29/6/2023 16:42

Align's Put Option requires completion of the full transaction by 31 Dec 23! Could see the transfer of c. 30m per month from now on.

[gbcol] 29/6/2023 16:34

Yes it’s positive news but painfully slow. If they continue acquiring 3% every few months it’ll take years!

[tigerbythetail] 29/6/2023 15:23

I read it that way as well, FWIW.
Yes, this has to be taken as good news. Not expecting the market to react to this, though. IMO, the market will only react to direct news of progress in the HMS start-up and further payments to KZG from the Chinese buyers of TVM.

[steddieddie] 29/6/2023 15:03

Well, if I'm reading those RNSs correctly, that's another £900k parted with by AMS @ 1.5p while the market languishes @ 0.85p and, importantly, the voting rights on the whole 280m that AMS have agreed to buy from Align @ 1.5p are now stated to have passed to AMS. Almost exciting if only the market could see it!

[outspan] 22/6/2023 17:14

TBTT...I don't know either but Align assured on some of it in answer to a question just last weekend:



The header tweet from KZG showing the (apparently) successful commissioning of the interim screener adds some assurance too.

Overall though, an update is overdue on certain expectations given by the CEO in his Investor Meets Company interview back in Apr. I would expect one shortly but, equally, we are free to ask IMC to attempt to line up an update due to investor demand for one. See LSE for details.

[wrtmf] 22/6/2023 14:57

really want the hms [built to order] equipment from johannesburg by mid july at latest, imho

why? because you can trust kazera to take an age assembling it!

[tigerbythetail] 22/6/2023 13:46

Misinformation / disinformation being spread on the LSE board isn't helping, I'm sure.
But the truth is the company has been silent for a while now, and people will assume the worst.
IF the Chinese are still paying for TVM more or less on schedule, and IF the equipment to process the heavy mineral sands is still due to arrive more or less on schedule, and IF the AMS deal to buy 29% of the company from Align at 1.5p per share is still good, then KZG is an incredible bargain. But, to be honest, I don't know IF that is all true.