Kazera Global Share Discussion Threads

[cloud9surfer] 22/8/2024 14:29

Wouldn't be surprised if there was a more significant rise tomorrow as anticipation kicks in!!

[cloud9surfer] 22/8/2024 14:27

Moving up nicely in anticipation of coming news. 1p will easily be broken with the expected positive news. Maybe closer to 1.5p in a few weeks A few chunky buys earlier not a bad sign.

[qs99] 21/8/2024 16:29

Some decent volume, let's hope all these buys are hoovering up any loose sellers, so decent RNS comes in and we are through 1p for good....DYOR

[gbcol] 20/8/2024 10:17

Yes, this week or latest next week, we should hear that NNR final inspection has taken place and that production is up and running. Even though the visit is a formality it should still give the share price a boost when confirmed.

I’m also hoping for an update on Hebei in the next few weeks. Any positive news on that will give further upward momentum.

Difficult to see how the share price won’t be >1p in very short term. Assessing where it goes from there is a bit more tricky.

[cloud9surfer] 20/8/2024 09:51

Maybe 1p this week with 1.5p in the following weeks. Just need that expected good news and we will be off!!

[cloud9surfer] 18/8/2024 21:23

1p easily achievable in the following weeks.

[cloud9surfer] 18/8/2024 21:23

Expecting a blue week this week. Especially after that big buy at 0.8 earlier as well as a good interview by management. GLA DYOR.

[gbcol] 18/8/2024 07:01

It’s a good theory on why Hebei haven’t paid up Penrith. We’ll see if they change tack now KZG have the licence.

I think Hebei know that they overpaid (or at least agreed too high a price). I suspect their non-payment is posturing in order that they can negotiate a better price, or at the very least negotiate away the accrued interest. Maybe also they wanted to use the funds to invest in the mine.

If there is an opportunity to do a reasonable deal for quick payment it’s worth getting it done. Having a watertight contract and being in the right (even if Kazera are) is one thing but they would still need to invest a good deal of time and money to get it enforced.

Production at WHM is now basically sorted. Massive tick. Next priority is to sort this outstanding debt. Then we should be flying.

[penrith] 17/8/2024 18:30

I have posted in the past that I believed the requirement for the permit and the money owed for the tantalum mine were linked.Hebei have known for many months now that if for whatever reason the permit wasn't granted then KZG would be in serious financial trouble. ZZG could not afford to take the mine back and therefore Hebei would take complete ownership of the mine for little or maybe no extra payment.Now the license has been granted KZG will certainly in the not too distant future be in a position to take the mine back and Hebei will lose the money so far paid.I was disappointed when he said the mine money was not his top priority in my view it should be.It appears that the HMS project is under control and progressing to plan . The diamond project I would put in minimum effort.My priority list would be 1) get the millions owed and resolve completely our financial issue. 2 Complete negotiation on selling the product at the mine gate and receiving immediate income.8 million dollars in the bank by October is far more important than starting to sell product to the market by October.

[gbcol] 17/8/2024 07:03

It was good to get confirmation in the interview that the final inspection visit from the NNR will be in the next week or so and it is just to check that they have put up the required signs etc. So we can take be fairly confident that it really is a box ticking visit and full production will finally be underway.

Furthermore, one gets the impression (and it’s only that because Dennis didn’t want to go into it) that the Hebei situation may be moving forward. Resolution of that would be significant. A small reduction in the sum agreed would be irritating but if it gets the cash in then would be positive overall IMO. I suspect Kazera would be happy to drop the accrued interest as a minimum and that could be a good negotiation point to coax the dosh out of Hebei.

[outspan] 16/8/2024 22:58

What they did do is mention, by RNS and interview, their continued site and production preparation activities right from the off and throughout the NNR process timescale at each appropriate point, along with pictures on their website and social media.

What they didn't do is flap around spending valuable cash before they knew the Regulator's specific pre-permit recommendations following a site visit. As they explained in their article of early July:

"....As can be seen, the Regulatory framework broadly covers operational and environmental safety rather than the radioactivity naturally present in the product. In practice, this requires the permit applicant to satisfy the NNR regarding matters such as staff health checks; staff training; staff workwear; plant radiation level checks; safe handling procedures; and safe transportation of the product.

Over the past period since permit application, the Kazera team engaged the services of a leading consultant on nuclear issues in South Africa who previously occupied a senior position in the NNR organisation.

Acting on the consultant’s advice, the team at WHM has worked hard to build its operational plant with the need to satisfy NNR requirements highly to the fore, making adequate provision for staff and environmental safety and striving to satisfy all other NNR safety requirements.

Kazera and its eminent adviser believe WHM has taken the right steps to reach compliance with all relevant NNR requirements for its HMS operation and looks forward to the granting of the NNR Permit in the near future.

Operationally, WHM is ready to move quickly into production following this event."

[al101uk] 16/8/2024 15:23

He had to work a bit when asked if production could start immediately, but I think he gave a reasonable answer in the end.

NNR approval
Stockpile
Arrange offtake agreements

Job done.

Interesting to hear that they have been spending to get facilities in place for the radioactivity, wish they'd mentioned that while going through the NNR process.

"Yeah, so we built a hospital and kitted it out with all the monitoring and treatment facilities needed for any radioactivity related issues. Sorry we didn't mention that before, we thought "trust me guv" would be enough for shareholders to form an opinion."

Definitely the best I've seen from Kazera.

[richie666] 15/8/2024 21:27

And 1861 Red Army

[penrith] 15/8/2024 20:03

Maybe they want you to do a little research.

[drradcliffe] 15/8/2024 19:23

Red Army see #1857

[red army] 15/8/2024 18:32

I'm surprised no one knows the worth ie likely income and profit from these mines. Surely a report must have been produced for each one??

[qs99] 15/8/2024 14:22

thanks interesting none the less!

As you say, at this small level, there is a danger that management and those close to company keep taking more out than any value it generates either in cash or shares. let's hope there is sufficient upside here for shareholders to materially benefit, the rise in share price today (and let's hope onwards) will show direction of travel!

DYOR

[al101uk] 15/8/2024 13:29

Had to log in here specifically to say, I was wrong. They got the license.

In my opinion the license was such a big deal that it wasn't even worth contemplating anything beyond it. That leaves me in the awkward position of not really having a proper view on the company any more.

I still don't like the corporate governance, I still don't like the major shareholder, I'm not that keen on the loan deal that was agreed only a week ago and secured two big players a lot of options at what looks like zero cost.

BUT this is massive news and if you don't accept greedy insiders taking more than their fair share you probably shouldn't be invested in AIM.

Genuinely have no fixed view on if there is value here right now, on the face of it there certainly looks to be a case for being bullish, but history gets in the way and I need to process a little and remind myself what the rest of the company looks like.

[richie666] 15/8/2024 12:18

Heavy Mineral Sands
Walviskop - A further financial model has been developed to value the new HMS project. Once
granted, the HMS licence is expected to produce 6,000tpm rapidly as the HMS has been put on one
side from the mining of the marine gravels. A pre-production capital expenditure of US$150,000 is
used for the gravity spiral separator which is assumed to be funded by early cash flows from
diamond production. The grade employed has been a conservative 40% HMS, although there have
been reports of recent assaying at around the 80% level. We assumed that there are minimal
operating costs as the sands are largely already processed to remove the diamond gravel and only
need only go through the spiral plant.
We have used a flat HMS price of US$130/t (delivered to Port Nolloth) and in the early days it is
assumed that all HMS is sold unseparated at that price. Initially, run of mine production is expected
to rapidly build up to 10,000t per month. Assuming an HMS grade of 50%, this would be run of mine
production is to be fed into a spiral separator resulting in 6,000t per month of HMS. At US$130/t,
WHM is expected to make a profit of US$74/t when production gets up to 6,000t of HMS per
month and to generate a profit of US$444,000 per month.

The move to separating the HMS production into the various mineral products is obviously a top
priority. In this regard, there does seem to be a number of options becoming available to the
company. We have chosen to model a 20,000tpa pilot processing plant which is planned to be
established at Port Nolloth, we have been advised that such a plant will take 18 months to build. So,
we have assumed that this plant comes on stream in early 2024 and that WHM will have use of the
full capacity. Processed HMS is expected to sell for around US$1,500/t and WHM and its associates
would receive 40% of this price (the owner of the plant retaining a 60% share). This suggests
US$600/t, but taking into account costs of transport, plant costs and wishing to remain conservative
we have used a figure of US$350/t. Further, we have assumed that the strategy might be to reduce
production at that time to 20,000tpa (1,666t/month) with the remaining material being stockpiled
for the larger capacity plant of 12,000t per month.
Cash flows determined from our analysis were once again discounted at 12% to determine the NPV,
and that which is attributable to Kazera which has a 60% stake in WHM. The project NPV was
determined to be US$20.78 million where US$12.46 million was attributable to Kazera.
We believe that our treatment is extremely conservative. The Feasibility Study by CREO Design was
able to determine an NPV(20) of US$223.75 million for Walviskop alone. Furthermore, there is a
direct comparable with Mineral Commodities which has an Enterprise Value of around £31 million
for their HMS side in SA.
Perdevlei - WHM is also in the process of applying for a Prospecting Right over an adjacent beach at
Perdevlei. This has an intrinsic value as putting in such an application excludes others from applying.
Perdevlei apparently bears all the hallmarks of having similar characteristics to Walviskop - but is
reckoned to be 34 times larger.
To place a sensible valuation on this interest, we have made some bold assumptions here and
multiplied the NPV attributable to Kazera for Walviskop (US$12.46 million) by 34 which gives
US$423.87 million. With so many unknowns at this stage concerning grade, geology, permitting and
timing of production we have chosen to heavily risk this figure by an arbitrary 97.5% which gives a
figure of US$10.60 million. Our stance on the HMS means that we will have plenty of opportunities
to review and potentially re-rate this exciting opportunity. Added together, the valuation for
Walviskop and Perdevlei came out at US$23.06 million to be used in our SOTP table

[qs99] 15/8/2024 10:18

So any views on what this "could be worth" now they can engage with off-take partners?

DYOR

[penrith] 15/8/2024 09:34

Relieved with the news but I don't think we will have a clear picture as to the direction of the company until October.I had 90 percent written the company off and was looking at a significant financial hit. However we live to fight another day so very pleased with today's RNS.

[tigerbythetail] 15/8/2024 08:26

Got it wrong again - thought they wouldn't get the permit.
I'm running almost 100% on getting this company wrong!
Still, glad for all shareholders. It's significant good news, though there are still more steps to achieve to get to production and revenue.