Kemin Resources Share Discussion Threads

[euclid5] 21/7/2017 20:50

in a few months it should increase in value, just wished they stated the resource figures for the Copper & Lithium....we shall see

[jimmyloser] 21/7/2017 06:48

Euclid
Thank you for your response. I understand and agree with your overview. I have however been around long enough to read this sentence as a pre-cursor.

"However dependent on future plans and in particular the setting up and operation of a test plant, further funds may be raised through equity/debt finance"

The last three words of that sentence are a licence for someone to make good money.

If there is any doubt it will be debt.
If it is a racing certainty it will be equity. impo

From every angle that I read the last RNS this is one to be holding, I really do have very high hopes here.

[euclid5] 20/7/2017 22:32

JimmyL

"The current cash balances and availability of further draw downs (£4.5million left to drawdown) on the Amrita loan facility if required, provides sufficient funds for the company to continue to meet its current obligations, and finance the exploration and evaluation programs"

"As in the past the Company will continue to benefit from the backing of its major shareholder, which has once again indicated its support for the current strategy and will provide finance as and when required. The Board are grateful for the understanding of its shareholders and anticipate that shareholder value will grow in the future as the projects continue to develop"

"The costs of the work programs for both sites total approximately £2.6m for the two year license period. As stated these are to be agreed with the relevant authorities. This principally represents costs for drilling and testing, particularly for the new minerals identified. Office and administration costs are budgeted to be in the region of £0.7m.

The Company has sufficient cash resources available under its current facility arrangements with Amrita (£4.5million of which is still available for drawdown) to perform the work programmes as currently specified. However dependent on future plans and in particular the setting up and operation of a test plant, further funds may be raised through equity/debt finance"

[euclid5] 20/7/2017 22:29

Keya, I did read that section, however their comment is very generic.

They haven't stated the actual resouce figures based on drilling results, that's all plus many Aim mining co's are spinning the " we are investing into a Lithium mine / asset"

Their other assets are valuable although depends on the price per tonne they have actually used as the CPR cash flows mentioned $40k & $50k per tonne

so their upgraded resource figures & the $1.5b is most probably calculated on these 2 $ figures per tonne. However that resource is currently selling for $15,500 per tonne

[jimmyloser] 16/7/2017 11:51

I am now a substantial PI holder of shares in Kemin and believe me patience has been needed. The latest news releases are in my personal opinion the pre-cursor to action and also sizeable fundraising.

I am prepared to hold tight and set a timeline of another two years before rewards. However rewards here could come any day now with the news of the licences being imminent.
I find it quite exciting.

all impo/dyor and keya5000....excellent stuff

[keya5000] 16/7/2017 09:43

Took a picture of the page.

"the deposit also contains substantial amounts of bismuth, beryl, lithium, rubidium, cesium,copper, gold and silver"

[keya5000] 16/7/2017 09:36

Euclid read the AD a few months back it does state significant amounts of copper and lithium.

Will find the page number

[jimmyloser] 16/7/2017 07:26

This is very interesting, no wonder they have upped the communication about Lithium..

[jimmyloser] 14/7/2017 21:48

I actually expected us to get confirmation on the new two year exploration licence with the AGM statement today

[euclid5] 14/7/2017 20:23

how much lithium & copper have they in resources - read the CPR - can't find anything on these 2 minerals

Page 41 to 99

hxxp://www.keminresources.com/docs/AdmissionCL04.02.13.pdf

Plus the NPV think they based that on molybdenum at $40k per tonne - when currently it's $15,500, based on their cash flow forecast estimates in the CPR - so at $15500 = 39% of the NPV = $589m / 1.30 = £453m NPV

hxxp://www.lme.com/metals/minor-metals/molybdenum/

The two projects have robust estimated economics with a combined NPV of US$1.55 billion, applying a 9% discount rate adjusted for inflation. Capital expenditure is estimated at $267.4 million for both projects

hxxp://www.keminresources.com/about-us/company.html

Have they done drilling to prove up the resource estimate for the Copper & Lithium, perhaps they have, perhaps not - but overall a goodish investment

[jimmyloser] 14/7/2017 07:06

AGM today.....the price of Lithium has risen over 20% so far this year!!

[jimmyloser] 06/7/2017 08:12

Volvo news....

It looks as if the world is going to need one 'hell of a lot' of LITHIUM.
Now, I wonder where that will come from?

[jimmyloser] 17/6/2017 06:49

Page 10 onwards........

[shareho1der] 16/6/2017 21:21

Thanks. Have a good weekend

[jimmyloser] 16/6/2017 19:12

Shareholder, it is only my hunch but I will not be in the least bit surprised if we have the announcement of the mine licence extension at the same time.
It fits with the timing in the RNS.

Another strong hunch/belief is that this is now being managed towards fund raising. Positive noises being made.

For me, this is sit tight and go with the flow.

Enjoy your weekend.

[shareho1der] 16/6/2017 15:01

But Jimmy, why are they postponing it ?

[jimmyloser] 16/6/2017 14:25

lovl....what a great RNS
DYOR

[jimmyloser] 15/6/2017 07:10

Mining in the Republic of Kazakhstan - Ten things to know

Introduction
1. State ownership of minerals/metals
2. Mining legislation
3. Mining licences
4. Rights of foreign investors
5. Protection of nationals
6. Government interest in the project
7. Fees, taxes, duties and royalties and tax incentives
8. Financial capacity of the investor
9. Protection of the environment
10. Enforcement regime



Introduction


Kazakhstan is fast emerging as a major global presence in the mining industry, and has resources of over seventy metals and minerals, twenty five of which are mined commercially. With the mining industry accounting for 27 per cent of its GDP, Kazakhstan has world leading reserves of chromite, zinc, copper, gold and manganese, and holds 28 per cent of the global supply of uranium.


1. State ownership of minerals/metals




All minerals existing on, in or below the surface in Kazakhstan are and remain the property of the state. Minerals brought to the surface belong to a subsurface user (i.e. a mining company) unless otherwise provided for by contract. The subsurface use rights for the exploration or production of minerals are granted by means of a contract entered into with the Ministry of Industry and New Technologies (MINT).


2. Mining legislation




The principal legislation governing subsurface exploration and mining activity in Kazakhstan is the Subsurface Use Law dated 24 June 2010, which took effect on 7 July 2010 (the Subsurface Law). The Subsurface Law replaced the Law on the Subsurface and Subsurface Use, dated 27 January 1996, as amended.


3. Mining licences




Major mining activities under the Subsurface Law include:
exploration
production and joint exploration
production

Contracts for these activities are typically granted following competitive tender.

The term of an exploration contract is six years with the right to extend its term in case of a commercial discovery for the period necessary to evaluate the extent of such discovery. A commercial discovery under an exploration contract gives the exclusive right to a subsurface user to enter into a production contract on terms and conditions agreed with MINT.

A production contract may be entered into for any period until depletion of the deposits but cannot be for more than for 25 years except for large and unique deposits where the contract term may be up to 45 years. A contract for joint exploration and production is granted by the state only for strategic fields or fields having complex geological structure.


4. Rights of foreign investors




There is no distinction between the mining rights that may be acquired by a domestic or a foreign investor. A foreign investor can either use a Kazakhstan incorporated company (typically in the form of a limited liability partnership or a joint stock company), or a company incorporated outside Kazakhstan to hold subsurface use rights. There are no requirements of minimum state or domestic ownership of mining companies.


5. Protection of nationals




All subsurface users must give preference to local personnel and finance the professional training and development of such local personnel. In addition all subsurface users must give preference to local producers, provided the goods and services comply with applicable standards. Generally a subsurface user will have its specific social obligations set out in its mining contract.


6. Government interest in the project




Subject to a few exemptions (e.g. for intra-group transfers) the state has a pre-emptive right where a subsurface user transfers its subsurface rights or direct or indirect ownership interest in a mining company to a third party. The state is entitled to acquire such rights/interests on terms no worse than those offered to other buyers. Transactions related to mining rights are subject to approval of MINT, which includes amongst others granting security over the subsurface rights, or over direct or indirect ownership interest in a subsurface user.

The state also has the right, in priority to third parties, to acquire minerals owned by a subsurface user at prices not exceeding the prices applied on the date of a transaction, in comparison with other similar transactions (however, at prices exclusive of transportation and sales costs).


7. Fees, taxes, duties and royalties and tax incentives




There are specific taxes and payments applicable to activities of a subsurface user, including:
a mineral extraction tax
an excess profits tax
historical costs
subscription and commercial discovery bonuses

The mineral extraction tax is payable on the value of the mineral resources produced and based on the average exchange price of the extracted minerals at the London Metal Exchange or at the London Precious Metal Exchange. Depending on the type of mineral, such tax ranges from 0.25 per cent to 18.5 per cent.


8. Financial capacity of the investor




An investor’s financial capacity (including ability to finance mining operations) is an important consideration taken into account by MINT in determining the grant of mining rights. The bidder’s/investor’s proposals and applications must contain proof of financial capacity and commercial activities for the previous three years and such proof must be in line with the extent of the financing required under relevant work programmes and project documentation for mining activities.

Further, the Subsurface Law provides that technical competence of the acquirer must be demonstrated as part of the application, but does not specify how. In practice, the acquirer provides data related to its financial, technical and administrative capabilities as part of the application.


9. Protection of the environment




Environmental regulation in Kazakhstan is contained in the Ecological Code, dated 9 January 2007. The Subsurface Law also contains environmental provisions governing the mining sector. As part of the application process there is an obligation on the investor to undertake an Environmental Impact Assessment as part of the pre-project environmental protection, and for the project documentation.

All subsurface users must perform mining operations in strict compliance with such provisions and plan to mitigate any negative impact of its operations, including amongst others, by forming a liquidation (rehabilitation) fund and relevant program for the rehabilitation of after-effects.


10. Enforcement regime




Kazakhstan is a signatory to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards. This establishes a framework for enforcement of foreign arbitral awards; though the enforcement process is a matter of local law. Kazakhstan has ratified the ICSID Washington Convention. Kazakhstan has bilateral investment treaties (BITs) in force with more than 44 countries, including the USA, the United Kingdom, Germany and France. Investors from countries with which Kazakhstan has concluded BITs are advised to check the relevant treaty to see whether it provides for ICSID arbitration.

[shareho1der] 14/6/2017 09:05

Impossible to buy at the moment

[jimmyloser] 13/6/2017 16:24

The global lithium market was valued at 198.05-kilo tons lithium carbonate equivalent (LCE) in 2016; this is projected to reach 309.37-kilo tons LCE by 2021, growing at a CAGR of 9.33% during the forecast period 2016-2021.

Lithium, a silver-white soft metal, is the lightest metal in the periodic table. It reacts immediately when it meets air and water. In addition, the metal exhibits properties, such as extremely high coefficient of thermal expansion, viscosity modifier in glass melts, highest electrochemical potential when compared to other metals and catalytic & fluxing characteristics. Hence, the metal has numerous applications in various end-user industries such as into industrial, consumer electronics, electric vehicles, energy storage, and medical.

Lithium is widely distributed on earth; however, it does not occur in the elemental form, owing to its high reactivity. Lithium is a rare metal and is found in continental brines, hard rock minerals and clay in various parts of the world in low concentrations. Currently, high-grade lithium ores and brines are the commercial sources of lithium production. Lithium, owing to its excellent electrochemical potential, catalytic characteristics and light weight, is becoming an integral part of the various commercial and industrial sectors.

The global lithium market has been segmented by type and application. By type, the global lithium market is segmented into metal, compounds (carbonate, chloride, hydroxide, and others) and alloys. By application, the market is segmented into batteries, lubricants, aluminum smelting and alloys, air treatment, glass and ceramics, metallurgy (iron & steel castings), polymers, and other applications.

This market is driven by many factors, such as the accelerating demand for electric vehicles, growing usage & demand from portable consumer electronics, rising demand from glass-making industry and many others. However, the growth of the market is hindered due to factors such as high investment costs, lack of experienced professionals for extraction activities and failure of new lithium start-ups. The following chart gives the global market spilt on the basis of end-user industry.

[shareho1der] 13/6/2017 11:07

We don't need parasites here

[keya5000] 13/6/2017 10:49

Just drop the bionic bit you moron....