Keras Resources Share Discussion Threads

[chirpy cheep] 10/8/2018 09:38

ZH-don't agree at at all.I think he was crystal clear about Kamina, it's on hold. Sorry but what don't you understand about that ? I think you were expecting too much from the podcast. Never seen one have much impact yet, either way, so can't see why this one should be any different.

[yasx] 10/8/2018 09:29

I am with ZH on this one - there is nil purpose in holding such a session if one intends merely to regurgitate in a banal tone excerpts from every RNS. It is about clarifying issues already conveyed, as well as providing some colour on outlook going forward without disclosing price sensitive news.

Other outfits manage it, this was simply a waste of time.

[zhockey] 10/8/2018 08:59

Andy, give me one example where more clarity was given on any topic?

The reason we needed a Q&A was because there are lots of clarifications due to the opaqueness of the news releases, just narrating the RNS is no help at all.

Kamina is a great example, the question was asking what the deal is with this asset and the answer was that it's on hold. OK but what is the future potential, is there anything to be excited about, what's the plan when the Mn licence is granted? All these interesting points for investors were not considered.

It's not like he was on the spot, had two days to prepare.

[andylee3] 09/8/2018 23:54

There were 'A's Zhockey, just not the ones you personally wanted to hear.

[zhockey] 09/8/2018 20:14

Well it was an investor Q&A, problem is there were lots of Q's and no A's.

[rec0very stock] 09/8/2018 19:47

The podcast did not tell us anything we did not already know, but that was to be expected. Russell did confirm what I thought regarding management fees from bulk sampling providing a bit of cash for Keras. I had hoped he would have spelled out a bit more clearly what the economics of Nayega looked like, once the licence was granted (nothing that is not in past RNSs or on the website) and submitted a question to give him the opportunity to do that, as I think some have forgotten that once the licence is granted Nayega will outshine CAI as the main reason to invest.


Overall I felt Russell differentiated himself quite well from a lot of other CEO's at the bottom end of AIM who use these things as part of ramping the share price to get the next keep the lights on placing away.


As far as the capital requirements at time of CAI emergence from Escrow and distribution go, unless KRS has a new project to fund, I can't see there being any. As Russell said the disconnect will close naturally as the distribution nears. There are no plans to do anything more than he has been doing to close it earlier and provided there is no need for a keep the lights on placing that is fine as it gives plenty of opportunity of us to continue to build stakes at roughly half the CAI stake. There are about 200M warrants exercisable at 0.5p. They will all be exercised ahead of the CAI distribution (a warrant holder would be mad not to exercise shortly before the record date for the distribution) so KRS will have £1M coming straight into the bank. Hence why I say unless there is a new project the board believes would be in shareholders best interests (the board hold 23% of the shares) there should be no need to sell any CAI between release from escrow and the distribution.

As I said before, the issue with these podcasts is only people who are already shareholders listen.

[andylee3] 09/8/2018 16:35

I'm afraid there are too many AIM listed companies out there that do exactly what you're suggesting Zhockey, making claims beyond actual reality, GGP are a prime example.
I personally prefer directors who don't make ridiculous claims to try and attract new investors.
If you do your research, trust the directors historical achievements and their personal investments in the company, Keras still remains one of the best opportunities out there IMO.
I bought another 428K yesterday for sub 0.35p and will continue to invest at every opportunity.

[zhockey] 09/8/2018 16:15

It was a complete waste of time, obviously they cannot reveal sensitive information, however these events should be used to emphasise the potential to get investors excited. He was just narrating what has already been said in announcements.

[andylee3] 09/8/2018 16:06

Wow Zhockey, think you're being a little harsh there.

There are questions that sometimes cannot be answered directly due to price sensitive information being disclosed.

Clearly he was reading from a prepared list of answers as they will of course have had the questions to analyse since close of play Wednesday, the deadline for submitting questions.

The current value of a Keras share from our Calidus stake alone works out at 0.65p per share (almost double the current SP) and this doesn't account for Togo, only Calidus.

I think this would be the wrong time to sell IMHO, but of course, that's your prerogative.

GLA

[zhockey] 09/8/2018 15:13

What an awful interview and waste of everyone's time.

He did not answer any of the questions in a way that would inspire investor confidence or excitement. One great question about the type of opportunity they are looking for, he simply said they are not focused on a particular commodity or jurisdiction, that's a nothing answer.

Also what proportion of shares will be distributed? He said it depends on the capital requirements of the company.
Duh we know that!! That's why we asked the question to get an idea of what that requirement will most likely be!

Opportunity missed and terrible PR. If anything I am now considering selling my substantial stake.

[rec0very stock] 07/8/2018 14:43

I have put my questions in to Charlotte for the Q&A. Deadline is 4pm today.

[zhockey] 06/8/2018 11:29

Well the Australian market is disappointed with CAI drilling. It does seem to be missing the high impact that was suggested early this year.

[rec0very stock] 03/8/2018 15:16

zh

I think $500 is about as likely as the $5000 predictions some were making a few months ago.

Mn Ore price still buoyant though:



Generally having regional and commodity diversity pays off.

[zhockey] 03/8/2018 09:17

RS,

I think the risk is a paradigm shift. If gold is in a 20 year dontrend back to sub $500?

[rec0very stock] 03/8/2018 07:09

zhockey,

Whilst the current retrace in POG will be playing on sentiment for all gold related shares, in reality it is irrelevant to CAI who won't be producing for at least 3 if not 5 years and nobody knows what POG will be then.

[zhockey] 02/8/2018 22:02

Looks like the gold price could the biggest risk in seeing value from CAI. Talk of $1000 and lower banded arround.

[rec0very stock] 02/8/2018 18:28

I can't think what he expected Russell to do for CAI. Dave has an experienced team out there, who seem to be delivering what was expected on time and on budget. I think they have enough money to get the updated resource out, but I think they will need some more to complete the BFS. Maybe he expected Russell to fly out and drive a truck to save on the wage bill or something.


What Russell does need to do is get the dual message about CAI and Togo out to people who are not already shareholders. Russell is not well known in AIM circles. He ran Chromex from 2008 until he flogged it for a profit in 2010 and ran Goldplat for a year in 2012 and that is about it - he is no Dave Lenigas, which I actually see as a good thing.

The Q&A is a good idea, but it will largely only be shareholders that ask questions / listen. I will put some questions in to Charlotte before the 4PM deadline on Tues.

[andylee3] 02/8/2018 10:10

RS, recommended post, excellent summary and 100% agree with your comments.

I've been here since Ferrex days (2011) and have been very VERY frustrated with progress on the Togo license front.

However, I feel Russell has pulled out all the stops in getting the recent deal and have every confidence in him actively pursuing this to a successful conclusion.

Something of this magnitude should certainly NOT be left to a 'lower grade employee' even if there was one.

Whilst Calidus is also an exciting prospect, I also feel that Togo is now another excellent string in the Keras bow.

Onwards and upwards and good luck to all investors.

Exciting times ahead IMHO!

[zhockey] 01/8/2018 22:35

Wow Brian certainly isn't taking it easy, although I wonder what he does beyond charing the odd meeting and writing the annual report statement?

[rec0very stock] 01/8/2018 20:32

"Let Mr Lamming get on with promoting the Calidus resources and let Mr Reeves do the same in Australia."

"I want to see my interests, i.e. Calidus, promoted."

"I want to see him spend his time and our money on promoting Calidus, assisting DR."


Implication pretty clear. Don't use words if you do not mean them.


Russell has no active role to play in Calidus. As CEO of a major shareholder he needs to keep his own shareholders informed of progress. He revamped the KRS website to include the live value disconnect graph. What more do you expect him to do?

"let it be a sideline by a lower grade employee perhaps"


And you call me patronising! You clearly did not do your research very well. KRS only has 3 people Russell, Dave and Brian (82 with 10 active directorships).

"Calidus 100% chance of success (IMO)". You clearly know nothing about the risks in mining. CAI is still an early stage explorer. Things are plodding along nicely, but they can come to a screaming halt very quickly. What do you think could happen if they were to dig up some aborigine bones and artefacts? And there are a whole host of other unforeseeable events that could cripple them. One trick ponies are always a high risk.

I had a long discussion with Russell about why the market does not recognise KRS. The fact of the matter is KRS is not and never has been a ramp stock and I prefer it that way. I invest in shares where the management have real skin in the game and are focused on delivering real shareholder value. The morons who invest in ramp stocks may think they are Warren Buffett but they all lie about the massive losses they suffer.


As you have time on your hands, what are you doing to raise awareness of how undervalued KRS is just on CAI stake? I have not seen you at any of the GMs talking to the directors about how to improve things. I thought the annual report reporting a significant profit and massive discount to NAV would wake things up, but the reality is KRS, even though it is minimising spend to conserve cash, needs money from somewhere to survive to Jun 19. There is no realisable value in the CAI stake until the shares come out of escrow. Why tie up money for 12 months when the chances are you can get in shortly before and potentially in or after another placing. Would you still be saying Togo should be left to the office cleaner if in 6 months the bulk sampling is a success, the DFS is released with an NPV of £125M and it is all systems go with CAPEX, OPEX and a management fee all provided by the end customer in return for a long term favourable offtake deal? Do you not think that making the market aware of that possibility might go some way to getting the true value of KRS recognised?


I am afraid your opinion that even after the bulk sampling deal "Togo say 5% chance of success" is well wide of the mark. How many other companies do you know that have managed to pull a deal like the bulk sampling off? - end customer takes all the risks and pays all the costs including a management fee. I do not underestimate the problems that still lie ahead with Togo; I have worked in Africa. However the value that could be delivered would turn KRS into a company that the market would have to take notice of. Why don't you discuss all this with Russell?

[dunkelmann] 01/8/2018 19:14

RS I am quite aware of Keras and the history with respect to Calidus. As part of my valuation simulation I went back through every news release and communicated with DR. Yes I may only be a shareholder since November last but I don't need to have been here since day dot to analyse the company. I am up to date too and need no reminders. Keras may a small portion of my shareholding but being retired I have the time to look in depth. Frankly it is my sideline but I still expect it to perform.

With respect to the duties of directors, neither do I need a lesson. I was a director and owner of two companies, one of which operated out of the Cambridge Science Park in the technology arena. I have worked with millionaires, government ministers and directors of plcs. I imply nothing; you infer in error. So please don't patronise.

[rec0very stock] 01/8/2018 18:48

dunklemann,

We all buy and sell shares for our own reasons. As you are relatively recent, naturally it is CAI that attracted you. CAI is the main story at the moment. It is plodding away nicely and whilst nothing is guaranteed in this game, there is every reason to believe that there will be a resource in excess of 1MOz announced around Christmas with further exploration upside and that around the time KRS's shares come out of Escrow in Jun 19 a viable PFS will be on the streets. KRS will have the remaining performance shares converted to ordinaries and we will get them distributed to us in just under 12 months time. At that point I would expect the CAI shares to be trading between 5 and 6c.

Togo is a bonus on top of CAI. My view is that if nothing has happened by the time the CAI shares are distributed, KRS should be shut down, as there would seem little point continuing to pay PLC costs. However I think you underestimate just what a bonus Togo would be. The overall value of it could far exceed anything we would get from CAI. More importantly it could deliver significant near term cash flow - no more placings to keep the lights on, money to pursue other projects and in a few years a dividend! I would not put figures on it like zhockey, but he is absolutely right that the recent news moves it from being a possibility to being a probability.

You seem to imply that the main job of directors is to promote the share price. I see the main job of directors as being to run the company so it delivers real value for shareholders. Dave is doing that at CAI and Russell is doing that at KRS. What he has managed to negotiate on Togo is pretty miraculous in the current climate. The only real fly in the ointment remains the useless Togo government. If Russell does pull this off, then I am going to have to apologise to him next time I see him for the hard time I gave him at the AGM.

[zhockey] 01/8/2018 16:40

Well anyone shelling out $1.5M must be serious and confident that there is a path to production.

For me Togo Mn has gone from 25% to 75% CoS based on this news.

[dunkelmann] 01/8/2018 14:49

I never bought into Keras for Togo, ever. Therefore I want to see my interests, i.e. Calidus, promoted. This company is from my perspective a dichotomy.

If Togo were spun off into a separate company, would you invest in it to the tune of well over 80 grand? For that investment I want to see a proportional effort by RL based on the chance of success: Togo say 5% chance of success (I don't know), Calidus 100% chance of success (IMO). So were I on the board, I would be expecting to see high level employees spending most of their time furthering projects with a high degree of success.

Togo may come off, and may even come off spectacularly. But without demeaning RL's skill, I want to see him spend his time and our money on promoting Calidus, assisting DR.

If Keras is to pursue Togo, then let it be a sideline by a lower grade employee perhaps. Keras may not be taken seriously if it is regarded as a penny ante effort in an obscure African country, with a weird share redemption mechanism in an Australian gold explorer.

Let's us first at least sort out the obscurity of Calidus shares. As a damning conclusion, even GGP shareholders won't buy us and look at the comparison twixt Greatland and Calidus!

That's why so negative ZH, not about the tactical achievement, but the strategy.

[zhockey] 01/8/2018 14:05

Why so negative on Togo when Russell is making such good progress?

Raising $1.5M to fund the PoC without debt or dilution was a fantastic achievement.