Kazera Global Share Discussion Threads

[richie666] 06/9/2024 12:01

Penrith - thats your view. I differ. Align has been inactive from a public face for near 2 years now as u can see.

The inaccurate and frankly outright wrong posts here were brought to my attention and at the margin wrong info can impact/influence others.

Would u prefer I do not make u aware of the 100% realities?

Anyway, the records clear. It's down on the ground ops and mgmnt now to get the cash flows moving/HMS firing on all cylinders and the large debt collected. I've provided the platform to do this.

A101 - nothing to "work out" - I am here to make money but by virtue of being the largest shareholder, 'scuse the pun but we are "aligned" in this endeavour. ;-)

Anyway, last likely day of summer here in Gods Own Country so going to enjoy it!

[al101uk] 06/9/2024 11:45

I was agreeing with you and talking about your future discussions with Dennis, just in case that wasn't clear.Happy to offer feedback on your list, I think in court they would be considered accepted facts, but context is important.Your conclusion that KZG would be worse off without you is probably accurate.I don't hate you, I'm just curious and trying to work you out.

[penrith] 06/9/2024 11:35

Seriously I think you have made a mistake in becoming involved with private investors on this forum. You have Align to professionally communicate with us and in reality our opinions matter little in the bigger picture.

[richie666] 06/9/2024 11:23

Just to put on record the reality here ref my involvement over the last 4 1/2 yrs as its about time some of the misconceptions (aka hate) towards me/Align were cleared up:

1 - It was me that vended the diamond and HMS assets in in spring 2020 on exceptionally cheap terms (all stock). Given what has happened at TVM - where do u think we would be now without these assets? I can tell you - prob 6-7bn shares in existence and multitude ever lower placings behind us.
I also co-ordinated the premium raise at 0.5p then.

2 - I brought in Dennis and ensured LJ & Clarke were shown the door given their abject failure to move the Co on (in fact that's why Clarke acted the way he did with me re IRON - I could see him for what he was)

3 - I organised the placing at 1p in May 2022 - £1m

4 - I supported the Co with a number of loans to avoid equity dilution in 2021-2022

5 - I funded (with Tracarta) the buyout of 100% of WHM on frankly immensely valuable terms given the BEE loan rights too

6 - I (& Tracarta) have bridged us to cash flow positivity from HMS so as equity was not unnnecessarily raised at completely the wrong time.

7 - When I did exit (when bid out of the blue) it was done so as not to be an overhang on the stock. Sadly we all realised AMS was/is a straw man.

8 - My policy of where I have a sufficient sized shareholding to influence the outcome of a vote is to vote against the disapplication of pre-emption rights. This has further provided a safety net for our Co being placed beneath us which is what happens at 90%+ of AIM Co's

The above are 10000% FACTS. And now we sit with 2 major shldrs protecting everyones equity, pushing for a major debt collection that has an accelerated arbitration clause and where costs are de minimis for recovery.

Instead of attacking me for what has been a succession of moves to protect all OUR equity this last few years, certain posters should reflect hard on above and those in dialogue with Dennis just ask him what a boon I've been to the Co.

[gbcol] 06/9/2024 10:24

I’d like to know if there is still any ongoing dialogue with Hebei or is it just a case of them getting a legal communication from Kazera telling them to pay up in full by 23 Sept or face arbitration?

[al101uk] 06/9/2024 09:26

"Opinions opined WITHOUT the real facts."

I 100% agree with you on this and I'd urge you to take that in to your next discussion with Dennis. You shouldn't have to be on here clarifying things like the way the contract is structured, nobody asked Dennis "What happens in the absolute worst case scenario?". Equally Dennis did say in an interview two weeks ago that he was happy with the situation as it was. Those two statements were either wrong or at the very least misleading. It causes things like our exchange earlier and Penriths view above. It causes gaps that, given the history of this company, people will read negatively.

[cloud9surfer] 06/9/2024 07:27

Full ask being paid again.

[richie666] 06/9/2024 07:16

"Mr Premraj" lost a seven figure sum with his cheque writing he couldnt cash. So yes, you are "wrong" again and most certainly on your former point - if I had not coordinated the loan to stave off an equity raise where do u think we would be now? There are people here that know exactly where KZG would be if I was not on the register the last 4 years. Look at IRON for a clue where I was sidelined and impugned...

Pointless engaging with your kind. Seen it many, many, many times before. Opinions opined WITHOUT the real facts.

[penrith] 06/9/2024 07:12

Not sure you can claim credit for our recent improvement in share price I think that was probably due to the granting of the license but could be completely wrong again.The 4.5 prediction was years ago and was completely wrong.Why anyone would want to get rid of their holding at 1.5p when they thought it was worth 3 times that sounds slightly strange in fact Mr Premraj forced you back into KZG you did not willingly return.Enough I think. You know my opinion of Align let's give it a rest.

[richie666] 05/9/2024 22:18

100% wrong again.
The value of 4.5p is 100% attainable. Add tbe Hebei receipt to an undemanding X8 multiple on the HMS with profits of £4m p.a. & what do get? 4.5p. That EXCLUDES any value for the hoped for Perdevlei licence area. Thats 34 times larger...

We were bid for our stock at end 20222. £4.2m. Im sure you'll agree a decent lump of change to most people. So the reference to "dumping" is, yet again, wrong. We are free to do as we please with our position. As are u.

AMS told us & the Co clearly untruths as to their intents sadly & provided no support for KZG. My getting back involved post seizing their shares has coincided with a complete reversal of all shldrs fortunes.

If u cannot see that then u are beyond deluded.

Bon eve.

[penrith] 05/9/2024 21:44

Presumably as wrong as Align were when they predicted KZG would be worth 4.5 p back in the day. Presumably as wrong as Align were when they got cold feet and tried to dump their holding for 1.5p and were left hanging out to dry. I think those are facts but I may be completely wrong .....ATB

[richie666] 05/9/2024 20:51

Rest assured u are completely wrong.

[penrith] 05/9/2024 20:36

Richie666 you posted Penrith - completely wrong. Again.I suspect that I am not completely wrong anymore than you are completely right we just have different opinions.

[richie666] 05/9/2024 19:32

Penrith - completely wrong. Again.Why o why do people not read RNS's?Resolution will be through the Arbitration process. Ill spell it out - speedy & cost effective.And most importantly, the Co has Tracarta & I behind it now. Hebei didnt see that until last several wks with our loans and providing funding to take over de facf 100% Whale Head.

[richie666] 05/9/2024 16:22

A101 - Dennis has been simply making the point that our "worst" position if the contract was uneforceable or the arbitration was lost (an absolutely de minimis chance imv) is that we keep the mine and the $4m net cash paid ($1m was "services").

That is a pretty enviable position from a contract basis I am sure anyone sane will agree.

Hebeis "best" position is the reverse of above - $4m gone and the mine lost. There could however be repercussions for Hebei with the Namibian Ministry of Mines here - I would surmise that is the last thing Hebei want...;-)

My own view is if HMS delivers whats promised then the Hebei receipt be returned to shareholders in large part a there would be no need to retain.

[al101uk] 05/9/2024 16:06

Appreciate it Rich, good post (1987).

Plenty of follow up questions, but I don't know how much you can say. I never doubted Hebei have the assets, as a group at least, is the entire group liable or just the subsidiary? I understand even at the subsidiary level they certainly have assets to claim.

Why would Dennis go on about the idea of Hebei handing back the assets if they can't pay, if that's not a realistic outcome?

And if all options have been looked at, was that just a very busy two weeks or was Dennis mistaken (see my link to his youtube interview a few posts back)?

I'm here for a discussion and to be put right on anything I have wrong, to be honest that can't be much because all I have are questions for the most part.

[richie666] 05/9/2024 16:04

TbyT - I was referring to HMS which is literally days or hours into production, has multiple potential offtakers (which Dennis has mentioned numerous times now) and an NPV of over £200m. ;-)
Thats the £15-24m market cap valuation I'm referring to.

With regards to TVM - there's a concept in Southern Africa called "Voetstoots" (aka Caveat Emptor). I frankly dont care about the asset in Namibia. What I fall back to is a binding contract with an expedited resolution basis in the event of a dispute and where the buyer has quite simply defaulted and where he has (a) assets to attach in excess of the residual debt value and (b) very ironically, an interest in an adjacent mine where he has spent millions.

The light bulb will go on soon...

Bon eve.

[tigerbythetail] 05/9/2024 15:56

Ive always been somewhat sceptical of TVM as a source of lithium. Too many problems - largely the "wrong" type of lithium (more lepidolite than the easier to process spudomene), remote location with no easy port access, limited water for processing on site, etc.
In the current oversupplied market, (which is predicted now to last for several years), I'm doubtful that it has any value at all as a source of lithium.
How valuable it is as a tantalum only mine I don't know how to judge. Tantalum is such a "mystery" market.
I'm sure that KZG would prefer to get cash for TVM than to get it back, but I think they'll end up getting it back.

Richie - a p/e of 6 for an African mine which is not yet in full production and which doesn't yet have an off-taker (and which has no published feasibility study) is actually a challenging valuation! So, yes, I'd think half the value in the share price is the perceived value of TVM / the Hebei debt. (The diamond business being so small it doesn't really count for much).

[gbcol] 05/9/2024 15:52

A third option, and possibly a more likely one IMO, is that Hebei try to negotiate a reduced price.

The RNS refers to “various undertakings” from Hebei. So they haven’t just gone totally quiet, they have continued to engage at least to some extent, although this may just have been to string Kazera along.

Has there been any hint from them that they want to re-negotiate? If they want to settle then they have a couple of weeks to put something agreeable on the table to Kazera.

Difficult to see how enforcement would look but if we don’t hear anything positive from Hebei by 23 Sept we will find out (assuming that’s how the arbitration process played out).

[bigwavedave] 05/9/2024 14:56

Thank you, al101. I've never heard of that before.Been here a while, longer than I had expected anyway. Under water, needless to say :-/

[penrith] 05/9/2024 14:18

TBT A very good point if you don’t mind me saying.
However China is suspected of creating high levels of Lithium inventory forcing the prices to record levels before releasing them over the last two years to bring them to record lows. The intention is to discourage Western companies from investing in new Lithium greenfield sites. This then allows China to acquire these with little competition in places like Africa. Once achieved this allows China to restock and bring prices back to the more modest2021 levels. Remember the gigantic peak we have fallen 80 percent from lasted less than 2 years.
For research I show the following published by a highly regarded institute in the UK within the last couple of months.
The Li market does appear to be at an inflection point. With current spot prices well below
incentive prices to encourage new greenfield projects outside China, the risk of a bifurcated market
emerging cannot be discounted. It is not inconceivable that China continues its “price defence” strategy:
using its swing status in the market to keep spot prices below “western”; incentive prices; finding new
sources of supply to increase its length of integrated supply (particularly from new low-cost regions,
e.g. Africa and Brazil); and ensuring it does not lose pricing power in the market.
If the theory is correct then the mine has value and the Chinese want it.
ATB

[al101uk] 05/9/2024 13:45

Tiger,

I tend to agree, but I can't make this entire thing make sense for both parties. I guess if the contract didn't give Hebei an out, they couldn't just hand back the keys and had to stop paying to force the issue?

All speculation I guess.

The other speculative element is the law under which the contract was negotiated. Chinas International Commercial Courts handle arbitration matters like these between Chinese companies and international partners.

And if Kazera do get the mine back, is there any value in it?

[tigerbythetail] 05/9/2024 12:47

Hi al101uk!
Remember that Hebei "bought" TVM at a time when the lithium price was still very high, and that it's come down by 80%+ since then, and that most authorities seem to be pessimistic about a turnaround in the near / medium term.
Maybe it's as simple as Hebei got their original calculations all wrong, and that since buying the mine they've realised they can't make a go of it?
TBH, I don't expect Hebei to py up now (wonderful thought that would be). Rather, I think KZG will get the mine back.