Kazera Global Share Discussion Threads

[steddieddie] 07/8/2024 22:05

Sounds logical to me outspan but probably way too positive for this place. Heavens, here's yet another positive take, what's going on?

[outspan] 07/8/2024 20:27

The news/reasoning according to Tectonic:



"Insiders" agreement apparently make the issue of the consideration shares a given. For me, this can only mean that the recently returning Catalyse, once also a shareholder in Tectonic (and maybe still), and the prospective new Chairman (on behalf of Tracarta), speaking for around 35% of KZG are fully behind this. Unsurprising from a KZG shareholder pov!

[outspan] 07/8/2024 20:02

Your take is understandable TBTT but I'm struggling to see why Tectonic, the seller, would have any interest in window dressing for the buyer, or indeed have any interest in settling for Kazera shares at all at this time, let alone agreeing to those shares forming the lion's share of the deal at their current level. I mean, how does this deal look to a Tectonic shareholder? Window dressing? I think not.

So call me optimistic but either Tectonic are truly desperate or they must see potential, maybe both. As you say, they must know better than us and I take this as a longer-term positive. In all their reports since they sold nearly all SA ops to KZG, they have never ceased to talk up the potential for the SA operations. Their determination to hang on to a non-diluting 10% at that time emboldens this. But times and markets change and I think they may be pretty cash-strapped themselves and I assume AQSE is even worse than AIM right now for raising capital. Assuming an NNR permit is granted, this looks a stonking deal for Kazera going forward.

Re the EGM, its purpose is stated as being to seek permission to issue the shares for the Tectonic deal. I get your drift but I find it rather illogical to assume Tectonic would agree to a share issue @ 1p as part of their deal if it was coupled at the same EGM to issuing stock at anything less than 1p. I do agree KZG must be tight now but there are other ways, e.g. Hebei, as you mention, and especially if that nuclear permit is issued soon. In which case, I think the subsequent certainty of a start to production could open doors to other finance options, even an upfront deal with an off-taker might not be out of the question. Dare I even mention near-term diamond sales potential.

Re Alexkor, they do not mine anything themselves, they issue licences to sub-contractors. So they cannot possibly profit from diamonds unless others do too. No doubting their past history, it's been awful, including corruption, but my own sense these last months since new leadership was installed there is a change for the better. Certainly, if what we've heard from KZG these last months is to be believed, they have been nothing but helpful and accommodating, building a secure compound and providing buildings within it for KZG ops.

I think KZG's forecast timings on NNR permit grant expectations have been woeful but most recently the imminent word has been used rather too much to believe something more solid isn't behind it.

So, I do see scope for a change of direction. For sure, it all hangs on this NNR permit being granted but the prospect of $300k earnings p/mth once operations commence (actually, considerably more since latest Tectonic deal) should surely be a catalyst for meaningful change.

[tigerbythetail] 07/8/2024 16:07

Thanks to all who've shared their interesting research above.

My take on today's RNS is rather cynical.

1) Tectonic are prepared to let their share of the South African operations (both their equity and the debt owed to them by the BEE partners) go for next to nothing - £150K + some value in shares to be issued (the valuation of 1p is just window-dressing). They obviously don't see much value in the S.A. operations, and they are in a position to know more about them than us.

2) There is a requirement for an EGM to get permission to issue new shares for Tectonic - any money this will be paired with a more general request for "headroom" to issue more equity. Unless KZG can extract more money from Hebei soon then they will simply have to raise on the market.

3) Between the lines, I sense there are still problems with Alexcor. It's a South African state-owned enterprise, and maybe they are just hostile to anybody profiting from the diamonds except them. Or maybe they are just riddled with corruption to the extent that nothing can get done.

4) I agree that the nuclear permit (which KZG have been less than honest about) may still be some way off. Frankly, I wouldn't issue it if I were the bureaucrat responsible - KZG are not financially stable enough to be a responsible partner.

So I don't see the current paralysis and drift ending soon.

[steddieddie] 07/8/2024 11:32

OMG! I've helpfully explained where to find it. Sorry, not to provide your secretarial services.

[al101uk] 07/8/2024 11:24

Thanks,

Maybe I should be equally helpful when referencing my sources.

In any case, rather than do research to work out what your argument is I will instead conclude that the information posted doesn't substantiate your view and so you don't want to reference it directly.

[steddieddie] 07/8/2024 11:11

101...Easy as pie to find all their posts there, the article is one of them. On their X feed too. Shouldn't need specific links to find.

[al101uk] 07/8/2024 10:58

steddieddie,

Can you provide links to those posts, as I said earlier, I can't find anything on linked in.

Or summarize how they have explained the issues?

[al101uk] 07/8/2024 10:55

African Rainbow Minerals paperwork is on the NNR site and you can see the process they went through. Following the information gathering and acceptance of the paperwork they had to spend additional capital to ensure proper disposal of nuclear waste and the health and safety of staff.

I remind everyone that the HMS Kazera are planning to mine breaches the safety regulations for radioactivity "while still in the ground" and as far as we know they have done no work to remediate the issues this could cause.

The last paragraph in the post above references "financial checks" because there was an RNS back then that claimed that the NNR had some new checks in place that Kazera had to run through (just red tape apparently). The NNR documents and versions all of their regulations, so it's simple to check the last edit date.

[steddieddie] 07/8/2024 10:53

Beyond my earlier post saying I thought their article on LinkedIn and X explains the nuclear situation very well, I agree with your take here of today's additional words, albeit with necessary caution until we know more. I think it may translate into kzg wanting to see the certainty of the permit award before being willing to outlay what further expenditure may be required pre-operations. If so, this would be a sensible stance.

[al101uk] 07/8/2024 10:34

A cut down version of the post I made a while back about the NNR process:

The full regulatory framework can be found here:



There are links at the bottom of the page, you can cross reference the RD-xxx mentioned in the African Rainbow Minerals approval to get a feel for what Kazera may need to comply with.

The RG-xxx documents are guidance for the regulations and are on a seperate tab on the same page.

Direct link to the application process:



Should be fairly easy to form an opinion on whether you think Kazera are being open and transparent about their progress on HMS or not.

NNR have been conducting financial checks since 2022 and form part of the information gathering. The company could be at step 1 of 5.1.2 in the document or step 5. it's unclear if the NNR would gather all information before making a decision. If Kazera are not getting an exemption certificate I don't see how they avoid a similar process to African Rainbow, in which case there must be additional up front costs.

[gbcol] 07/8/2024 10:12

It says “on implementation”;. So according to that wording (and you have to take it with a pinch of salt), if there were further requests then they could commence production once they have done whatever was asked for and not need to go back for further sign off. That admittedly seems a bit strange but that’s how I read the specific wording. It does also seem that they are almost anticipating further requests by the NNR, so they may have been given a heads up, in which case they should be already dealing with the matters ahead of time.

Anyway, looks like we are slowly edging forward, maybe.

[wrtmf] 07/8/2024 09:21

'The Company is awaiting the finalisation of a permit from the NNR. Upon implementation of any further requests by the NNR, HMS production will be able to commence'

-the permit could be granted
-or further work required, which once completed would need sign off

[cloud9surfer] 07/8/2024 06:43

Another positive RNS and again mentioning a 1p value. Still waiting for the permit but all looks to be falling into place.

[al101uk] 02/8/2024 09:46

Can only find a repeat of the RNS on Linked In?

[steddieddie] 02/8/2024 07:54

All such questions will be answered by the award of the NNR Permit, expected shortly.The company's article on LinkedIn and X explains the nuclear situation very well and, for me, is the best source for accurate information.

[wrtmf] 01/8/2024 07:32

'Dennis Edmonds, CEO of Kazera Global commented: "Having recently inspected a pulsating diamond jig in operation, we have placed an order for a unit which will be deployed at Deep Blue Minerals' diamond mining operation in Alexander Bay, South Africa.

"Historically, Deep Blue has worked with Alexkor to get its Muisvlak diamond gravel processing plant operating correctly so that it and other contractors in the area can process their diamond gravel. However, despite best efforts, it has become increasingly apparent that achieving this consistently is not achievable in the short term. Deep Blue has therefore received approval from Alexkor to utilise a pulsating jig to process its diamond gravel and then deliver very high concentrate gravels to Alexkor for final sorting and sale. This means that the volumes to be transported will be considerably reduced (so reducing costs) and also means that security of our product will be improved.'

28/11/2023

--
'Deep Blue Minerals (diamonds) - Mining of diamond sands is underway, with initial processing at Alexkor's Muisvlak plant. The resulting diamond sands concentrate will be stockpiled and then processed by the Company using a FlowSort, which employs X-Ray technology to identify diamonds. Following this, secure and supervised hand sorting and grading of the diamond output will be conducted before the diamonds are prepared for sale. Ahead of its commissioning, Alexkor required the manufacturer to make several minor adaptations to the FlowSort, which have now been completed. Accordingly, the FlowSort has been signed off by the manufacturer, with Alexkor's approval pending.'

30/7/2024

--
key question - has the situation at muisvlak improved that much?

[penrith] 31/7/2024 17:51

Over a year ago we were told it was box ticking exercise. Atthe time I believed him as he was the guy in charge and had all the relevant facts. I thought thats fine within a month or two we will be in business. Never ever did I imagine that 14 months later we would still be given vague promises. There must be something of real signicance going on. We need honesty.

[penrith] 31/7/2024 16:52

1st May 2023

[penrith] 31/7/2024 16:50

Whilst I hold the management in pretty low esteem I don't believe for one moment they would bribe for a licence involving radioactive material. We need to remember this application has been running for over a year that's a long time to discover this corrupt person Lol.However to highlight my concern about their honesty I quote directly from their RNS published 29th March 2023Highlights· Receipt of mining permit for Walviskop Heavy Mineral Sands (HMS) Project· Commenced initial production of HMS in December 2022.Out of the blue on the 1st of May the following RNS appeared.Dennis Edmonds, CEO of Kazera Global commented:"The recent changes to the National Nuclear Regulator Act are frustrating but, we believe, very much a box ticking exercise in Whale Head Mineral's case in light of our strong forecasted cash flows. With the requested additional information now lodged, our team is now focussed on completing the electrical work and on final commissioning. At that point, and assuming there are no further delays in the granting of the nuclear permits, we look forward to commencing production and sales."

[gbcol] 31/7/2024 12:43

I remember some months ago someone with inside knowledge of these things saying that they would only get the licence once they have found the right person to bribe. Once that has been ascertained and dealt with they will no doubt get the appropriate box ticked. I don’t believe it was deception or a lie, I think they were just naive on how these matters work. Hopefully they have sorted that now and the paperwork will follow in short order.

[penrith] 31/7/2024 10:23

Align are back in the game. The RNS could be genuine and things are on the move. It could be exaggerated to raise the share price and allow the major investors a way out or it could be an attempt to increase the share price for a raise. I'm hoping it's genuine but deep down I don't trust them. Many months ago they said the license was a box ticking exercise that clearly wasn't deception it was a lie.Good luck everyone

[wrtmf] 31/7/2024 08:28

ref diamond mining - they have been diamond mining the sands for years and stockpiling, the prob was, i think the final grading and sale by alexkor [no action!]. i thought then kazera got the 'next level' of equipment to take the sands a grade or 2 closer to sale product requiring less work from alexkor. now kazera are saying they're going back to using that troublesome processing plant.

it don't make sense to me.
read all the diamond rns from about early 2021.