Keras Resources Share Discussion Threads

[zhockey] 31/8/2018 09:26

Why didn't DR just buy the shortfall of 1M?

[chirpy cheep] 31/8/2018 07:40

Recovery,thanks for this. Isn't it was Russell has said in the last RNS.

[rec0very stock] 30/8/2018 22:23

Just got round to reading the CAI ASX announcement for the Pacton deal, which shows the tenements on a map.



I think I have understood it correctly.

The areas covered are well away from current drilling and where mining will one day start (hopefully in the not too distant future). Pacton could effectively remove some of the overburden on areas that CAI might want to drill then mine in the future. Pacton is responsible for all costs incurred. CAI are not interested in the conglomerate, which is highly unpredictable and very hard and expensive to prove up as a resource. Pacton could do well if it finds lots or could just waste a lot of money. Either way it could reduce CAI's future costs. Pacton doing well is no bad thing for CAI as it just raises the profile of the whole region, Pacton doing badly won't really affect CAI.

In the meantime CAI has Pacton shares which are in escrow for 4 months. CAI has plenty of cash to finish the drilling programme and produce the resource upgrade, but I have always felt that it would need a top up to get the PFS finished. However now it can sell Pacton shares slowly and not need to raise money until after the PFS is out to fund the DFS. That should mean, if all goes as we expect, the CAI shares we get on distribution should be at a higher price, because there will have been less dilution at a potentially inconvenient point - it is always better to raise money once a clear value enhancing milestone has been reached rather than need to raise to reach it (with ASX quarterly reporting, which gives a forecast of the next quarter's expenditure, it is very hard to hide when you are close to running out of cash - something a lot of AIM companies are very adept at). The fund raise for the DFS should therefore also be at a higher price, meaning less dilution for those who decide to keep their CAI shares - I certainly intend to keep a good wedge, but do need to reduce my overall exposure and diversify my portfolio, which is currently too heavily KRS weighted.

Overall I think this was a really smart move by DR - he just needs to be a bit more careful when counting all his KRS shares. I lost a few on mine today doing a bed and ISA, but it is well worth cramming as many as possible into ISAs / SIPPs before the distribution. In many ways I am hoping the market continues to ignore KRS until after the new tax year, but I suspect with the resource up grad before Christmas and the bulk sampling completing in Jan that may be wishful thinking.

[zhockey] 30/8/2018 05:02

Maybe the tax and forex make it not as worthwhile.

[rec0very stock] 29/8/2018 20:53

Have to feel a little sorry for DR. I am sure he would rather be getting his CAI shares for half price with Togo potential thrown in for free by buying KRS. But he has to be seen to be supporting the company he is MD of.

[rec0very stock] 28/8/2018 18:39

Edge,

If the Neyaga licence is granted, then I would expect there would be an offtake deal done to fund the small amount of CAPEX needed. Basically the first step would be to extend and scale up the bulk sampling, thus it would be good news if the licence were granted whilst the bulk sampling is still going on, otherwise there would be costs involved in remobilising. I am sure Russell is making that point and others to Togo Govt. Whether it makes any difference or not remains to be seen.

I was expecting CAI to need to raise funds to get from resource upgrade to PFS, however if they trickle out the Pacton shares over the next few months then that could be avoided. I think CAI will still need to raise money to get from PFS to DFS, but with a good PFS behind it that should not be too hard or too painful.

[edgein] 28/8/2018 13:01

Zhockey,

Yes shares it is, I cannot see CAI holding onto those as they'll need cash to complete that 50,000m and get that DFS out.

Regards,
Ed.

[zhockey] 28/8/2018 12:58

Shares I believe, not cash?

[edgein] 28/8/2018 12:34

hmm that's quite good. A bit of extra cash for what are non-core assets. That'll help CAI drill a few more holes for sure.

Regards,
Ed.

[zhockey] 28/8/2018 12:10

Why do they bother? They just state the obvious

[cpap man] 28/8/2018 10:57

Keras Resources* (KRS LN) 0.385p, Mkt Cap £8.8m – Start of bulk-sampling at Nayega

Keras Resources reports that its 10,000 tonnes bulk-sampling programme at the Nayega manganese project in Togo is now underway.

Mining is currently taking place and the mobile screening unit required for the sample preparation has “at Port Lomé and will be at Nayega by the first week in September to commence Phase 2 of the Bulk Sample”

“The final phase, comprising the washing and scrubbing of the Detrital and Lateritic units of the Nayega orebody is planned to commence in mid-November. Appropriate Process Technologies Pty Ltd will commence commissioning of the 20 tonne per hour scrubber plant at the beginning of November.“

As previously reported, the work is being funded by “a major producer of manganese-based alloys … to assess the suitability of the ore in their Mn smelting facilities”.
Commenting on progress, Chief Executive, Russell Lamming described the start of the bulk-sampling programme as “another milestone in the Nayega Manganese Project's progression towards regulatory approval for commercial production.”

Conclusion: The start of the bulk-sampling at Nayega should help establish the suitability of the material for a major potential customer.

*SP Angel acts as nomad and broker to Keras Resources

[zhockey] 28/8/2018 09:52

RS why do you think they did such a large soil sampling and are talking in interviews about camp size deposits?

[edgein] 28/8/2018 09:36

RS,

Indeed, lots of diamond cores and infill needed to get to measured and indicated, its not all about extension drilling and finding new discoveries that do not add much to the proven and probable. They need firm measured and indicated for the PFS/DFS.

Good to see the bulks sample started and funded by the partner, too much progress on that front could lead to dilution of the CAI distribution though. Nayega previously needs something like $9m for fully funded phase I concentrate production. Makes me a little nervous that this could come before the CAI distribution. Or CAI shares may be held back to fund this.

Regards,
Ed.

[rec0very stock] 25/8/2018 13:18

zh,

I think you underestimate how much drilling is needed to prove up 1MOz at and average of 2g / tonne. They need to be indicated, not inferred Oz to have credibility. At some point they will need to do a load more drilling to move some of it up to measured.

[zhockey] 24/8/2018 17:40

RS

I think you may be be missing the CAI story. I think they have massive potential that is about to be unleashed. Three active drill rigs is not for 1M oz and a PFS. Something much larger is brewing.

[rec0very stock] 24/8/2018 09:49

Personally I think the swings are too small and the spread too wide to make it worth trading this, however each to their own - money is money and it does not matter how you make it.

CAI is continuing to rebound on the news. I would expect it to be around 5c on resource upgrade announcement and then around 6c on positive PFS (when our 2nd tranche of performance shares convert to ordinaries).

Good to see everything is in place in Togo to start on time. All ticking along nicely below the radar of the market.

[stockriser] 24/8/2018 09:19

Zhockey - "I decided that with 3 rigs operational the positive momentum is just about to get going."

Totally agree m8, although I did sell a very small amount to top up elsewhere.

[zhockey] 24/8/2018 09:01

Could be a shrewd move and I considered that also, however I decided that with 3 rigs operational the positive momentum is just about to get going.

There is no point valuing the KRS stake at current CAI price. CAI is all about multi million oz potential.

[bozzy_s] 23/8/2018 13:43

I calculate the value of KRS's shares in Calidus ASX:CAI (458m + 265m, assuming conditions for the final tranche are achieved) as follows:

723 million @ AU$ 0.034 = AU$ 24,582,000

1 AU$ = 0.57 GBP

So at today's exchange rate, at today's CAI share price, 13,910,462 GBP

Divided by 2,289,133,439 shares in issue

0.61p per KRS share


Edit for my own records 6/2/19

723m x 0.03 = au $21.69m

/1.81 = £11.98m

/2289133439 = 0.52p per KRS share


So the recent good news, and potential upcoming great news on Nayega, are valued at less than zero.

I sold my KRS shares first thing, expecting any rally to be sold into. Very much on my watch list if they drop any further, in anticipation of a Nayega deal. An offtake agreement, a JV, anything to get the product to their keen customer.

[greatfull dead] 23/8/2018 08:16

Ed,


Very true on your take for the longer term future of CAI.
hxxps://www.calidus.com.au/project/warrawoona-gold-project/

Another day another $

ATB,
GD

[edgein] 23/8/2018 07:49

Very interesting for the longer-term future of CAI.

Regards,
Ed.

[andylee3] 17/8/2018 23:19

No error Zhockey, over 3 million in buys today.

Doesn't take much volume to get this to move up....or down.

[zhockey] 17/8/2018 17:22

Must be an error?