Kemin Resources Share Discussion Threads

[29howard] 01/6/2013 20:40

Fair value is 27p facts sorry the truth hurts

[bobs good eye] 01/6/2013 20:36

Don't actually recall saying I was going to 'dump' on Monday. In fact I don't recall ever pumping and dumping anything (cue 29howard trawling my past posts - well knock yourself out). What I said was that I felt fair value was alot higher than the current share price 80-110p

[29howard] 01/6/2013 20:13

So bob and topinfo admit it's a pump and dump !

At least they are being honest that they will both dump on Monday like everybody
using this site already knows.

Any buyer on Monday at open will get burnt here

[ryan83] 01/6/2013 12:39

ok - be interesting to find out!

[shareho1der] 01/6/2013 12:32

I really don't have exact figure but will contact the company .

[ryan83] 01/6/2013 12:24

So how much have they paid for the licence?

[shareho1der] 01/6/2013 12:10

Ryan . I will explain to you in simple term.
The ££40m consideration will be in KEM account because we are the operator .(90%).
krmc will be paid a nominal fee and they will contribute nothing to production costs.
We got both mining assets next to nothing really and the Market agrees with me hence the share price spikes.
Why else do you think the bondholders were so keen to become shareholders and people put in £40m.

[shareho1der] 01/6/2013 11:36

The big boys such as kaz and enrc will be keeping eyes on us now we have the license . dyor .

[topinfo] 01/6/2013 11:24

Bobs Good Eye. Too true mate. I will be honest too and say I wont be here that long term either but the fact of that matter is that they had no stock late Friday after this Rns, you just couldnt buy hardly any shares and when they switched it on momentarily immediately buys came in. We have seen how volatile this stock is before when it raced away upto 1p old money (new money 500p) from 0.08p (40p new money, around this level now).

The fact of the matter is now they have the licence and when you have a stock with hardly any shares in public hands and a load of willing buyers the stock will always head significantly higher.

Who knows where this will end up on Monday but looks like its back in play and Im looking forward to Monday, those that arent are the ones who sold Friday IMO. If buying had been allowed online at will Friday I think you would have seen this stock up over 50p+ easily.

100p is only 0.2p old money and not out of the questions by any means next week IMO.

[ryan83] 01/6/2013 11:07

So the £40mn - where does this go?

[bobs good eye] 01/6/2013 10:23

29h - I've no intention of being here longterm. I couldn't care less about longterm prospects. My view is that it is well under 'fair' value right now. Don't get too hung about by Topinfo et al. Yes, it means there will be volatility as they play with their holdings (especially as the B shares are not converted yet) but could be some excellent buying opps along the way.

[shareho1der] 01/6/2013 09:21

Ryan .
The development costs are included in the £40m consideration. The assets cannot be worth all that money when they are purchased at such a low and depressed price .
Otherwise mint would not have issue the license without that assurance of development costs ..

[ryan83] 01/6/2013 08:43

I still hold avia. Waiting for some developments there that's all.

[29howard] 01/6/2013 08:27

I laugh at all this long term ramping from posters who cannot hold a few hours, ryan blessed the Avia thread with rubbish for a day or two but quickly dumped.
Anybody that buys this Monday will get hammered when topinfo and his fellow pump
and dumpers sell in the first 15 minutes like they always do, go back in the thread and look and see topinfo doing exactly the same in March and look what happened, he dumped and vanished and the price collapsed.

[ryan83] 01/6/2013 04:19

Yep cheers share i am aware of the situation.

so the £40mn is a consideration settled by the issue of shares ie paid to the vendors? Therefore the £40mn is not raised for the project ie in KEM's bank account but is in the vendors bank account?

[shareho1der] 01/6/2013 02:09

Ryan .
This is the story.
krmc was the owner of two large deposits in Kazakhstan . The company was down on its luck, had no money for developments and had its license suspended.
The company decided to farm out 90% of its assets to gma, an aim listed shell for a consideration of £40m.
gma did the fund raising issuing shares to institutions and change its name to kemin.
Krmc now has the funds for the project and its licence was reinstated but KEM will be the operator because of its 90% stakes.
gma completed its acquisition and krmc gets free carry to production.

I think the Market believes gma got the assets at a depressed price .

[aimho] 01/6/2013 00:24

Good post ryan .
the £40m is for the development of the deposits and not for the purchase of license .
Countries don't sell their resources .
You applied for a license for a certain no of yrs and pay tax or royalty on profits .
The resources belong to the people of the country and can never be for sale.

[ryan83] 01/6/2013 00:00

I have run a few calcs and at 40p (£60mn) KEM are valued at 1% of the 2007 estimated resources at the Drozhilovskoye and Smirnovskoe deposits at todays spot value of molybdenum - assuming KEM own the licence 100% and with 152mn shares in issue. Is that fair for now?

For example (note these are potash/phosphate stocks) SKR are capped at £29mn and per the recent update have potential revenue of $22bn but them there is SXX which is capped almost 10x higher with a smaller resource. Just shows with these resource stocks, could be anything!

As already stated, the licence has been bought for £40mn (approx 30p) settled in shares. That could mean one of two things:-
1) Paid over the odds for the licence and the vendors can sell down and
or
2) The vendors have received £40mn upfront and get to keep the vast majority of the upside (if any) by virtue of keeping the shares

"As part of the Contract Reinstatement, the 148,320,720 B Shares issued to Bergfolk (133,117,846), Strathland (10,642,012) and Hanson (4,560,862) have now converted into New Ordinary Shares on a one-for-one basis. In addition, a further 2,472,011 New Ordinary Shares will be issued by the Company following the conversion of the Loan Stock. Application for admission to trading on AIM for both sets of shares will be made as soon as practicable."

ie

Holders______________Shares
Bergfolk________148,320,720
Loan Stock________2,472,011
Float Stock_______1,236,006
Total___________152,028,737

[topinfo] 31/5/2013 23:57

27h getting carried away with the conversion price versus the current share price and what the mkt will now value KEM at with the licence in place.

The figure quoted for conversion isnt the figure the companies share price is worth FFS, get in the real world eh.

SOLG had a placing a few weeks back at 1.5p. Doesnt mean thats all the stock is worth. It hit 5p today 300% gain. This stock and any other stock is worth what buyers are willing to pay. And as we know this absolutely flew when it came back from suspension (see chart) and that was without this licence and news today. No reason it wont hit 0.2p old money which is 100p+ share price now. Lets wait and see Monday where traders and Investors take this on its next meteoric rise north again.

[topinfo] 31/5/2013 23:51

Yes it will be volatile next week and yes it will spike up and will be heavily traded again but if you arent in it then you wont benefit from the price rise on Monday so hard luck 27h, lol

[topinfo] 31/5/2013 23:49

Good post LSE, so if KEM trade at 8 times conversion like TRIC, well work it out.

shareho1der
Posts: 217
Answer
Opinion: No Opinion
Price: 35.00
james
Today 23:01
Read TRIC rns . They diluted us shareholders 99%. their conversion price is 0.5p but now trading at 4p. Here the conversion is at 27p....lets see the trading price after dilution

[genises] 31/5/2013 23:43

shareholder
The current value before todays announcement was not that to do with having 2.5million in the bank???
Now the orginal holding is been diluted by over 100x

ie 150 million shares.
The day traders will no doubt be buying and then selling when the price rises and then drops.
Problem will be when you come to sell.Will shareholders be stuck watching the share price decline because the mm don't want to take the stock.
Nice to see a rise on a dull day.

[daytraders] 31/5/2013 23:26

yes, no doubt will rise whatever monday, but please be careful of some people on here, you should know who they are, look what happend last time, then a 95% drop after all the ramping etc.

[shareho1der] 31/5/2013 23:15

Daytrader .At 20p the company was priced to be suspended and possibly delisted.The market is irrational and I will personally not take any share price at a face value .without license , its worth 0p not 20p.With license , its worth ?___? not 30p.Fill in the space .Know what I mean?