Kazera Global Share Discussion Threads

[penrith] 24/9/2024 07:41

RNS 20th December 2022 nearly two years ago.Highlights · The agreement comprises the sale of all the shares and associated loans in Aftan for cash consideration of USD13,000,000. Kazera will retain the right to receive a debenture payment equivalent to 2.5% of gross sales of produced Lithium & Tantalum for the life of the mine.· Full operational control will pass to Xinjian on the effective transaction date, with 100% ownership of the shares only passing once Kazera has been paid in full for both the loan and the share sale expected by [DATE].· This transaction represents the first successful realization of returns on a strategic investment made by Kazera. The strategic exit will allow Kazera to invest in its other projects, principally the exciting Heavy Mineral Sands opportunity in South Africa, without the need for additional capital raising.· Management attention will now be freed up to focus on further strategic investment opportunities.· Heavy Mineral Sands operation now in production with 2022 targets already comfortably met.

[al101uk] 24/9/2024 06:55

As far as I understood the debenture payment was a term of the the sale, it's not a method of repaying the debt.

A very weirdly placed piece of text though, it's got me questioning myself.

[drradcliffe] 23/9/2024 15:24

al101uk... answer to your question about the debenture payment is that I got the information from the website. Though, having reread the RNSs where it's also mentioned and the website text itself, I'm not sure the debenture is in lieu of the remaining payment. There is of course 8% interest on outstanding amount due. It's probably worth clarifying, I'm not sure now.

Website text:

In view of Xinjian’s non-compliance, Kazera is actively exploring alternative options for the future of Aftan which include:

Terminating the contract and resuming full control of Aftan;
Finding an alternative buyer for the project; or
Selling Xinjian’s debt to a third party.

Importantly, Kazera still owns the underlying asset and will retain all payments received from Xinjian to date. Kazera also retains the right to receive a debenture payment equivalent to 2.5% of gross sales of produced Lithium & Tantalum for the life of the mine.

[cloud9surfer] 23/9/2024 14:15

https://x.com/KazeraGlobalInv/status/1838179001338142968

[cloud9surfer] 23/9/2024 14:01

Directors have put their own money in this time don't forget. Hopefully a different outcome to previous promises made!

[al101uk] 23/9/2024 13:19

Penrith,

It's a rabbit hole.

Hope it's different this time.

[al101uk] 23/9/2024 11:43

DrRadcliffe,

"There is the option in the contract to pay an increased royalty to Kazera in the case of default."

Where did this information come from?

[jackruss2] 23/9/2024 11:28

Well something has changed for sure. Just 550,000 shares bought and we have gone up 2%.Mind you, a long way to go yet for us LTH's.

[penrith] 22/9/2024 18:10

As TigerBTT pointed out a few weeks ago Lithium has dropped in value by 80 percent over the last couple of years. Al101uk thanks for your interesting posts. Post 2047 however depressed me somewhat and reminded of blatantly dishonest and misleading the management have been.Fingers crossed that we are not being spun another story of false promises. Once again the next 3 months are critical.ATB

[drradcliffe] 22/9/2024 17:25

Don't forget to include the recent news - that AFTAN received permission two weeks ago to mine Lithium as well as Tantalum. So as Dennis states the value of the business has increased to Hebie Xinjian. Of course Hebei might not have the $9.5m they owe Kazera. There is the option in the contract to pay an increased royalty to Kazera in the case of default.

We'll know one way or the other within the next 60 days.

Dennis also stated $40 to $100 per tonne profit, which will be after logistics costs are taken into consideration.

[al101uk] 22/9/2024 14:08

Just as an exercise, I went back and took notes from the April 2023 presentation:



8:00 - "We got our HMS permit towards the end of last year", status: producing.

10:10 - "We are already mining a lot of Heavy Mineral Sands"

Installing equipment for processing. Screening out Silica is mentioned.

Can't be moved in bulk due to radioactive element.

Production by the end of May 2023. Selling 1-2K tonnes, generating positive cashflow.

In discussion with lots of offtake partners

Machinery in place by end of September 2023 to process 6K tonnes.

Talks about the uncertainty of HMS, which I linked to an example of in a previous post.

Diamonds generate 60k to 100k per month.

African Mineral Sands offers an enormous new string to the bow.

22:45 - A question around being imminently cashflow positive from diamonds since 2021. The answer was that he process of diamond mining in this area is a complicated one, removing overburden sometimes 6 meters high and then lots of detail around the complexities of the separation process.

28:20 - When do you expect first revenues, are you comfortable with 300K per month gross profit? Answer Revenue May, exceed 300K per month by the end of September 2023.

Offtake agreement will be signed when we know exactly what we have, by the end of May 2023.

32:34 - "Completely independent. We will be mining it, we will be processing it, we will be bagging it and putting it on the trucks for our purchasers.

Hebei not paying up "incredibly unlikely", they are very committed to making this happen.

[al101uk] 22/9/2024 12:22

Finally got around to watching the presentation, it's available on youtube without the hassle of registering etc:



Here's what I picked up on:

1. I can't help but like Dennis, he comes across as a decent guy and I have no real issues with his presentation. Surely anyone who was around for the Larry years won't be complaining.

2. A very strong and repeated "Positive cashflow on Diamonds and HMS by EOY".

3. "Very isolated part of South Africa"...."means logistics."

4. As suspected HMS is the primary operation, diamonds are almost a side effect of HMS mining, but will pay for the mining costs.

5. Starting at 3K tonnes and increasing to 6k.

6. On the arbitration "we wouldn't be wasting money trying to recover it"... there are costs associated with arbitration, I'd like to have heard more about that.

7. Share Price? Any investors guess is better than mine. Then went on to speculate a valuation on 20x to 30x. I liked his initial answer.

8. "When Hebei had money they were always honest and straight forward."... so the issue could be a financial one for Hebei.

35:48 - Loved this answer, around taking on lots of assets and not getting to production on any of them and how he does not want to do that.

37:15 - Another Really good answer around transport costs being significant, clarifying that logistic costs are probably the biggest issue going forward.

When asked about predicted cash flows he started talking about the potential for 6K tonnes rather than the 3K tonnes they are likely to start out with.

[drradcliffe] 21/9/2024 16:55

This trade then went through Friday morning:

Buy

20-Sep-24 08:26:00 1.20 1,500,000 Unknown* 1.05 1.20 18.00k O

The 7,338,095 total (sell) soaked up by the market. Could easily have been an pre-negotiated transfer of stock.

[drradcliffe] 21/9/2024 16:51

There were a bunch of large trades from 14:55 to 15:55 on Thursday afternoon. Prices ranging from 1.10 to 1.18. My guess based on the actual spread.

Sells:

19-Sep-24 15:52:07 1.1078 1,000,000 Unknown* 1.05 1.20 11.08k O
19-Sep-24 15:57:56 1.10 6,338,095 Unknown* 1.05 1.20 69.72k O

Buys:

19-Sep-24 15:55:30 1.18 1,750,000 Unknown* 1.05 1.20 20.65k O
19-Sep-24 15:57:31 1.18 995,173 Unknown* 1.05 1.20 11.74k O
19-Sep-24 14:55:52 1.15 1,500,000 Unknown* 1.05 1.20 17.25k O
19-Sep-24 14:55:38 1.14 1,500,000 Unknown* 1.05 1.20 17.10k O

[penrith] 21/9/2024 15:36

1.10 6,338,095 Unknown* 69.72k

[penrith] 21/9/2024 15:35

19-Sep-24 15:57:56 1.10 6,338,095 Unknown* 69.72k Any views??

[cloud9surfer] 19/9/2024 21:28

I agree it was a bit lacklustre. You wouldn't rush to the auditorium if he was the keynote speaker. I did get the impression he had a lot more to say but was unable to. Q4 will be the telling time. We've been promised production so many times but hopefully this is the final push. Quite a few, big late trades today after the presentation so the general feeling is positive. Fully expecting blue again tomorrow when news spreads a bit further.

[penrith] 19/9/2024 17:58

Well done your already in profit!I thought the presentation itself was very lacklustre but in reality it's the words that matter. I am not sure what sort of negotiator he is but he should have avoided giving the impression that he would be happier not taking the mine back. The $40 -$100 per ton are very interesting numbers and that was good to hear. Still very vague on when cash will actually hit the bank and real production physically commence. It always seems imminent or next week. On what has been said today I would expect a VERY positive RNS by the end of October.

[cloud9surfer] 19/9/2024 15:21

Very happy with my buy after that presentation.

[gbcol] 19/9/2024 15:01

Yes, not the slickest but a very positive presentation- and that’s the most important thing to me. He answered all the questions as well as he was able to.

May be a few weeks but he didn’t leave much doubt that Q4 is going to see KZG cash-flow positive. You could be looking at profit on HMS of $40-100 per tonne, with production going from initial 3000t/month to 6000t/month by year end.

Licence on adjacent (30x larger) land progressing well, and he commented that the department dealing with the licences is working much more efficiently now so expects licence “before too long”.

[cloud9surfer] 19/9/2024 14:46

Positive cashflow commencing with start of HMS and diamond production Q4 2024. Diamond mining to be signed off next week. A continued application of land adjacent HMS, 30x current size owned with expected better quality. Mine value has increased with extension to Lithium mining licence. Denis would be 'amazed if Hebei didn't honour their agreement' and feels that current share price is short of where it should be for a company going into production. He chose his words carefully as I'm sure he can't give too much away but is definitely moving in the right direction. Money received from sale of mine could be distributed to shareholders. He summed up stating that the share price is 'where it was before we started production and I wouldn't put my money where my mouth is' referring to his director buys. Generally very positive! DYOR.

[harvd] 19/9/2024 13:02

I agree, was hoping for an enlightening RNS with some confirmation on many fronts.Now I'm just expecting comments about being unable to disclose information as in ongoing discussions etc,etc.Might be surprised though.

[cloud9surfer] 19/9/2024 12:33

Don't think we will hear any price busting news at the presentation. They can't release unless already known via an RNS. Monday is the big deadline for the mine conundrum. Hopefully get some sort of RNS early next week, maybe Monday am. I'm sure there has been dialogue between all parties.

[penrith] 18/9/2024 20:57

When those in the know pay 1.20 then 1.11 seems pretty good.