Kazera Global Share Discussion Threads

[harvd] 04/4/2024 09:23

Hi Penrith, there does seem to have been a consistent seller for weeks. I can only hope that it is the previous stewards of this company unwinding their position as their money is needed elsewhere. They certainly aren't losing as they did very well from loans to this company along with shed loads of warrants issued at .3p, (Benefits not available to the common shareholder) and not forgetting renumeration for all their hard work enhancing shareholder value.(Tongue firmly in cheek) Maybe a coincidence of why share price decline stopped at that price? Who knows? But at some point the sellers shares will run out and that combined with events turning from anticipated to actually having occurred, should see this share re-rate considerably in my opinion.

[penrith] 04/4/2024 08:58

4million shares sold at a value of 20K stirling in less than two hours. Why is this continuing to happen?
Its regular and apparently at a seemingly very low price. The share price however is holding up quite well.

[qs99] 04/4/2024 07:59

well rise is continuing....being well bought....fingers xd we can get it above 1p again! DYOR

[penrith] 02/4/2024 11:05

Some interest this morning which looks genuine. However not getting too excited as point 47 still leaves me 55 percent underwater....Need some good news to consolidate any rise.

[qs99] 29/3/2024 15:41

Haha indeed am underwater here so have to cling on to something. Next month or so key
Good weekend

[penrith] 29/3/2024 10:23

outspan and Tiger should be back soon now we have pushed through point4 ...

[harvd] 27/3/2024 15:34

QS99 I like your optimism,it would be great for the share price to move upwards but unfortunately there is a reason it is likely to do the opposite. Delivery expectations have so frequently been missed that "Mr Market" will justifiably only move the share price north when the word delivered can be used. Looks like more waiting is required and let's hope the end of April guidance isn't missed.

[jonesy100] 27/3/2024 14:37

Agree Penrith. DE has done a great job in avoiding endless dilution which would be the usual pattern in this sort of company. However, the cash position is fragile given the Aftan situation and we need mineral sands and diamond production FINALLY to start. How many years now.... Fingers crossed. GLA

[qs99] 27/3/2024 09:01

Looks like market like the update which is important!

[qs99] 27/3/2024 08:50

Agreed, decent update, need to deliver now, but no reason this should not, having drifted, return to the 0.8-1p range on the back of these delivery expectations IMO! DYOR...

[penrith] 27/3/2024 07:59

Well there is no two about it. The next two months are critical, its make or break time.
I think I am just ...but only just in the 'make' time.
Good luck all.

[bahiflyer] 27/3/2024 07:32

Interesting update concerning the cash position especially. Seems things aren't quite as dire as some would have us think.

[penrith] 26/3/2024 14:31

Interesting views on LSE today. As usual one very positive the other very negative but rarely on these board both have merit backed by facts.
Pays yer money and takes yer choice.
Very dead on this board at the moment.

[al101uk] 03/3/2024 22:40

I am drawing conclusions from:

1. Three companies assessing the site as being easy free cashflow and none actually making money from it.... in seven years.

2. Kazera effectively admiting that the mine is not commercial on the terms agreed with Alexkor initially.

3. The requirement, as all companies appear to have concluded, to mine HMS and diamonds to make the site work.

Obviously no one has said diamond mining in that area is non-comercial, but if I were a betting man, betting on the "20%" of remaining diamonds being profitably recoverable would not make my betting slip.

The fact that the deal was fascilitated by Richard Jennings who then quickly sold at just over half his target price also causes doubt. Especially when he still holds his Ironveld shares, where he failed to gain any leverage.

That said, I do think that diamond mining could be a nice sideshow to HMS IF they can get the licence and afford the mitigation requirements around radioactivity. On it's own, I'm not sure the juice is worth the squeeze.

Would I invest at this point... seems like a lot of risk to me.

[nicosevos] 27/2/2024 11:00

C&P KZG BB LSE

panda1


RE: AMS26 Feb 2024 14:26

A placing is very unlikely.

The AGM has only just been held and the standard dilution resolutions were not passed so there's no headroom to issue shares.

AMS will clearly not allow fresh equity to be issued at such a low share price after it recently bought a strategic stake at 1.5p

[tigerbythetail] 27/2/2024 09:52

Not really, I'm still holding here.
Essentially:
1. KZG are still owned $8m by the Chinese for Aftan - a lot more than KZG's current market cap. This situation will resolve somehow - either the Chinese will pay all or most of the money, or KZG will factor the debt, or sell the mine to a third party. IMO, the most likely outcome is that the Chinese go through with the deal; they are still spending money on the neighbouring Arcadia tenements. But this will be in their own sweet time, so patience is needed.
2. Sooner or later KZG will obtain the licence required for handling radioactive materials and I'd expect HMS production to begin more or less the next day. Again patience may be required in the interim - South African elections are nearing and this may paralyse the bureaucracy for a while.
3. I still don't expect an equity raise. I'm sure DE is under intense pressure from AMS to avoid one.
As for smaller, less important matters:
1. Al101uk is jumping to conclusions. Yes, the majority of the diamonds have been mined from Alexkor's area, but around 20% remain. That is not the same as the diamond mining is "becoming non-commercial". I'm expecting news that diamond mining has restarted in the next few weeks; though this "good news" should be tempered by the recognition that the diamond mining is inherently small-scale in nature.
2. Just to make clear (again), Vast Mineral Sands has no connection with the notorious Vast Resources, bar the coincidence of the name. If anybody has information otherwise, please publish here!
The share price here was roughly double what it was two months ago, and nothing has really changed since then. The share price has dropped on low volume - it's just AIM doing its thing.
Best of luck to all who are trying to pick the exact bottom here. I'm one of you!

[al101uk] 27/2/2024 00:01

I couldn't work out why VAST, who had a 5 year contract over the area and had applied for HMS rights, would give it up when they were so close to a deal with Tectonic, but thinking about it the value Tectonic offered was to fund the project to positive cashflow.

VAST had done some work around HMS and knew the diamond operation well. Could it be that when they discovered issues around HMS and knowing the diamond mining was quickly becoming non-comercial, instead of applying for further licenses, they just gave up the acerage. Tectonic effectively got it for free and the rest is history.

VAST have taken legal action against Alexkor over other acerage where there has been disagreement since, but there seems to be no such isue here. They just gave up the contract afaik.

[dead duck resources] 26/2/2024 23:00

The background raised red flags when I did some digging a while back. Could it be that
some Align shares were held by Jennings 'on trust' for the recent majority shareholder
at the time of the Tectonic deal, and last year's off-market transfer at a premium was
a transfer of the trust shares at a deemed price? Dennis Edmonds entered stage left at
the time of the deal, so also in the mix as a stooge rather than a genuine mining CEO.

[al101uk] 26/2/2024 22:34

July 2017

Vast Mineral Sands applies for a Heavy Mineral Sands Concession

"Only the western coastal portion of the area, where diamond mining and prospecting has taken place over the last ~80 years, is to be prospected. The inland portion of the area, which is relatively undisturbed, has been excluded from the target area due to environmental concerns"

Prospecting was to take place over the next 5 years.

hxxps://sahris.sahra.org.za/sites/default/files/heritagereports/Alexkor%20HM%20Sand%20Prospecting%20VAST.pdf

It appears that VAST became both the HMS mining rights holder and the concession holder for the diamond mining operation for Alexkor. It was agreed that Alexkor would process the diamonds for sale.

June 2018

Align are brought in to initiate coverage of Tectonic Gold. Share price is 2p, target is 7.6p.

Tectonic describe themselves as "a specialist gold exploration company"

Late 2018

Tectonic Gold begins due diligence on VAST Mineral Sands in order to generate quick cashflow to fund their gold exploration projects. Primarily they look at taking a share in the diamond mining operation. This turns out to somewhat eerily echo what happens later with Kazera.

February 2019

Tectocic Gold buys a 50% Economic Interest in the Diamond Mining Concession from Vast Mineral Sands for $650K. It's unclear, but this appears to include both the diamond mining concession and the HMS rights.

hxxps://a44887a5-5755-4d77-98af-6d88a80ffcad.usrfiles.com/ugd/a44887_e4845a98ccd64f3c85d7d4288c7e7205.pdf

March 2019

Diamond mining commenced at the concession with 900+ carats per month forecast after second stage development.

May 2019

Tectonic Gold plans to take 100% control of the Diamond Mining Concession

hxxps://a44887a5-5755-4d77-98af-6d88a80ffcad.usrfiles.com/ugd/a44887_69106eb9fe474a4781759828a0b178e4.pdf

Sept 2019

Tectonic Gold are offered the direct minining contract for the diamond mining project and so does not follow through on the long term contract with VAST.

hxxps://a44887a5-5755-4d77-98af-6d88a80ffcad.usrfiles.com/ugd/a44887_f1c324f63fb047a8aa618f9499a68218.pdf

As of June 2019 Tectonic had a market capitalisation of £4 million and net assets of £2.5 million.

Dec 2019

Tectonic SA secures an interim contract to be the prime diamond mining contractor with final contract expected in March 2020.

Tectonic Gold then announce the sale of the diamond Mining concession to a "private investor" retaining a 10% econopmic interest.

"Tectonic will retain a non-diluting 10% interest in Tectonic SA alongside the 26% holding of Black Economic Empowerment (“BEE”) partner. The new investor will hold a 64% interest and fully fund all future project development."

"The terms of the acquisition include a £100,000 payment in cash to Tectonic Gold on completion."

At this stage Tectonic is suspended from the AQSE Growth Market as it delays it's full year results until after the completion of the sale. Align would later report:

"With market sentiment turning against junior exploration companies creating a difficulty environment to raise further exploration funds, the company looked to secure a production ready project to generate cash flows and avoid further diluting shareholders."

hxxps://a44887a5-5755-4d77-98af-6d88a80ffcad.usrfiles.com/ugd/a44887_114a7215462343deb8ae65f585d61a5c.pdf

June 2020

Tectonic South Africa is rebranded to Deep Blue Minerals and the diamond mining operation is sold to Kazera under the same terms as above (as reported by Tectonic Gold). Tectonic Gold incorporate a new company, Whale Head Minerals, and apply for HMS mining rights which Kazera commit to buying at a future date with Tectonic retaining a 10% interest. Taking over Whale Head Minerals involves also taking on $500k of liabilities.

The funds for this purchase are raised via a placing of shares with Richard Jennings of Align, he also recieves 1 for 2 options exercisable at 1p. For some reason the KZG RNS reports that the assets are being bought "from" Richard Jennings.

The corporate advisor for Tectonic resigns.

Tectonic publishes their results a day after the resignation and presumably relists soon after having recapitalised through the sale of it's assets to Kazera.

August 2020 - Align publish their first note on Kazera Global singing the praises of the new acquisition and setting a target price of 2.5p with a current price of 0.7p.

"Near term production and revenue generation has begun at a secured untouched mining block of beach and marine gravels at the well-known diamond operation at Alexkor in South Africa. This state-controlled mining area has produced 10 million carats of gem quality diamonds since 1928."

The price rockets over the coming months to 2p+, more than enough for Align to vest their options.

May 2021

Wale Head Minerals submit their application for HMS mining.

The Walviskop target fell within Alexkor’s diamond Mining Rights, it was proposed that Diamond Mining and HMS mining should take place at the same time with shared processing resources. An interesting comment from the mining application:

"Whale Head Minerals requires economic growth and job creation as a means for improved social wellbeing. The project will provide long-term employment opportunities at the Mine and the project could therefore benefit the local and regional communities and economy. The diamond deposits at Alexkor are a depleting resource spelling a bleak prospect for the Richtersveld community and Northern Cape at large as was demonstrated in large job losses during the last two decades at Alexkor and neighbouring mines."

hxxps://sahris.sahra.org.za/cases/proposed-mining-application-whale-head-minerals-portion-remainder-farm-1-port-nolloth

Sept 2021

Kazera buy controlling stake (60%) of Whale Head Minerals from Tectonic Hold for $250K. Tectonic retain 10%, BBE take the rest. It's reported that the two HMS opportunitites are Port Nolloth and Alexander Bay. Presumably $500K of liabilities were also inherited as previously published.

Seems to me Align rescued their stake in Tectonic gold while profiting from the "new opportunity" offered to Kazera. Richard Jennings got to play benifactor to the company while shareholders were fleeced without full information on what had just actually happened.

Is the Diamond and HMS opportunity actually worth what was paid? Or has it been an all but dead asset since 2017? I'll repeat the Whale Head Minerals mining applicaiton to give a possible answer:

"The diamond deposits at Alexkor are a depleting resource spelling a bleak prospect for the Richtersveld community."

Meanwhile Larry was saying:

"Cash flows from diamond production are expected within 12 months of completion of the Acquisition. The process will be simple on beach multi mesh separation before diamond gravels are directed to the Alexkor recovery plant."

[al101uk] 26/2/2024 22:31

The subject of Align came up on the Ironveld forum recently which lead me to do some research here, where he eventually ousted management. I started this primarily as an exercise to see who came out best in the Richard Jennings vs Giles Clark battle.

Anyway, I ended up down a rabbit hole that I thought might be worth sharing here.

It's going to be a long one, so I'm posting this seperate little intro first. It provides a lot of the history of Kazeras HMS and Diamond assets and asks some awkward questions around who really benefited from the purchase.

I've provided links where I can, there were tons more that I haven't referenced, but mostly RNS's from Tectonic and Kazera.

[drradcliffe] 26/2/2024 17:47

I don't think there's a nasty smell anymore than there is for any other microcap AIM exploration company. There's a seller who's decided to drip feed their stock into the market and it doesn't take much to move the price down. There are also a decent quantity of bargain hunters willing to buy the stock too. Dennis is pretty open about how things are going, but clearly it is all very small scale at the moment. The prospect of significant share price growth from here is very real. Buy at the bottom when others are fearful applies now. I have a small position.

[yohoho] 26/2/2024 17:12

Nasty smell around this.

[sclper] 26/2/2024 15:47

I see the low share price as an opportunity provided by a weak market rather than something to be alarmed about.The company has guided that it expects to announce material news this quarter so there's still over a month left

[penrith] 26/2/2024 11:07

Current market cap 3.9 million.
Chinese would find it cheaper to buy the Company than the mine.....
I think the Chinese have the company by the tail....