Keras Resources Share Discussion Threads

[snotham] 17/10/2018 08:07

Keras Resources PLC - Calidus Resources Secures Strategic Placement https://www.voxmarkets.co.uk/rns/announcement/65b8eb45-76e4-44ec-b24b-5c6ba6f7bb46

[edgein] 17/10/2018 07:59

Interesting raise, not only does it fund for the rest of the pre-feas work but its an interesting investor to have. I wonder do they want a JV as well as becoming a significant shareholder? I guess we'll see over time.

Regards,
Ed.

[cpap man] 17/10/2018 07:20

Keras Resources plc / Index: AIM / Epic: KRS / Sector: Mining

17 October 2018

Keras Resources plc ('Keras' or the 'Company')

Calidus Resources Secures Strategic A$3.7 million Placement with Gold Producer Alkane Resources



Keras Resources plc, the AIM listed mineral resource company, is pleased to provide an update released by Calidus Resources Limited (ASX:CAI) ('Calidus') regarding the strategic placement of 125m Calidus shares at an issue price of A$0.0295 per share ( 'Placing Shares') to Alkane Resources Ltd ('Alkane') (ASX:ALK) to raise proceeds of approximately A$3.7m.



Calidus reports that the proceeds of this capital raising, together with Calidus' existing cash position, will provide sufficient funding for it to complete the upcoming resource update and pre-feasibility study ('PFS') at its Warrawoona Gold Project in the Pilbara of Western Australia.



Keras currently has 458m shares in Calidus, representing approximately 35% of the current issued share capital of Calidus. Following the admission of the Placing Shares to trading, Keras will have a shareholding of approximately 32.3% of the enlarged issued share capital of Calidus. On successful completion of the aforementioned PFS, an additional 265m performance shares of Calidus ('Performance Shares') owned by Keras will be converted into ordinary shares of Calidus.



HIGHLIGHTS



· Calidus to raise an initial A$3.7m via the placement of 125m shares to Alkane at A$0.0295 per share representing a premium of 13.5% over the last Calidus closing price and in line with the 5-day VWAP.

· Calidus to issue Alkane 70m free-attaching unquoted options, exercisable at A$0.035 each on or before 01 November 2019 - this has the potential to deliver another A$2.45m of funds to Calidus (if exercised)

· Strategic technical alliance as part of funding allows Calidus to leverage Alkane's operational experience and cost base to assist in its upcoming studies

· Alkane operates the Tomingley Gold Mine in New South Wales that last year produced 78,533oz Au

· Alkane has just approved the development of an underground mine at Tomingley and has embarked on an aggressive exploration programme to expand resources in the region



Russell Lamming, Chief Executive Officer of Keras, commented, "Calidus has successfully secured the requisite financing to progress Warrawoona up through the development curve to the completion of its pre-feasibility study. For Keras, this will not only provide a more tangible sense of the value and optimum path towards production, but it will also trigger the issue of our additional 265m performance shares.



"Alkane also brings to the table considerable expertise in the Australia gold development and production industry, and I am sure the Calidus board will find their support invaluable as the Calidus team look to issue the updated resource estimate, publish the PFS and advance Warrawoona towards first gold production."

[cpap man] 15/10/2018 17:30

At the close of play your KRS trade looks well timed!

[rougepierre] 15/10/2018 14:05

Bought another 1 million...a steal at 0.358...

GLA and AIMHO as usual....

[andylee3] 15/10/2018 08:27

Bulls N Bears article...

www.businessnews.com.au/article/Shallow-gold-hits-for-Calidus-in-Pilbara

[andylee3] 15/10/2018 08:06

Calidus trading halt due to proposed capital raise....

www.investi.com.au/api/announcements/cai/24e5eeba-db5.pdf

[rec0very stock] 14/10/2018 16:33

Zhockey,

The figures are based on the basic assumptions given. £2m could come from a more conservative price estimate over the period - I just used current. I took Opex from the share price Angel note which gives Opex for the bulk sample of $3.3 per DMTU. There may be more to come out when the small scale mining is considered eg there is nothing in the bulk sample OPEX for royalties and tax. Plus I suspect Russell wants to under promise and over deliver.

The point Russell makes is valid whether it is £2m or £5m - it opens up the potential to pursue other projects and grow the business. With positive cashflow equity can be raised at a decent price and debt can be taken out at sensible rates, provided the opportunities are there that need capital injection.

My feeling is the market will continue to ignore KRS despite all this until the cash really is flowing. This will enable steady stake building over the next few months for those who want to.

[cpap man] 13/10/2018 15:15

Keras Resources* (KRS LN) . Manganese production in Togo



Keras Resources* (KRS LN) 0.325p, mkt cap £7.6m - Manganese production in Togo

BUY, Target price 1.04p

CLICK FOR FULL NOTE PDF

Introduction

Keras is an exploration and development company with assets in Togo and W. Australia

In Togo; Keras plans to produce a particularly clean manganese ore with a fully funded, 10,000t bulk sample due to start soon. Much of the equipment is already in place ready for mining with trucks due to take material from Nayega to a deep-water port to the south. Keras is targeting manganese production of 250,000tpa of 38% lump and fines.

Keras also holds 100% of the Kamina Cobalt & Nickel project in Togo.

In Australia; Keras holds 35% of Calidus, a gold exploration company with a JORC resource at Warrawoona of 712,000oz JORC gold grading 2.11 g/t. Calidus’ market capitalisation is around A$38m valuing Keras’ stake at some A$13.3m (£9.4m) or substantially more in the case of a takeover or mine development event.

Keras are currently producing a 10,000t bulk sample of manganese ore starting with a small scale mining operation to de-risk before scaling up to a potential 250,000tpa.

Key points:

Keras has invested in plant and equipment that would enable them is to start mining 4mt of surface Detrital and Laterite Reserves on a small-scale basis separating manganese nodules and fragments to simply enable the processing of a cleaner Manganese oxide.

The acquired plant has the capacity to produce approximately 6,000tpm of 35% manganese ore to be fed by a small-scale contract mining operation. The $1.76m mining and instillation cost of plant and equipment is being paid for by a major producer of manganese-based alloys to assess the quality of ore for smelting.

Testwork indicates the ore is amenable to pre-concentration by simple screening and scrubbing. Mining and processing of the near surface ores should give sufficient material to de-risk the project and to enable the financing of a larger operation on receipt of full mining permits. DMS testwork indicates recoveries of >90% of the Mn from rejecting 50-60% of the mass feed. Appropriate Process Technologies (APT) based in Joburg will start commissioning of the 20t per hour scrubber plant at the beginning of November.

Togo-based, Carriere Mines Travaux Public (CMTP) are providing the mining & screening equipment for the bulk sampling operation and logistics between Nayega and Port Lomé.
Full scale mining should use the same infrastructure as the bulk sample process enabling a seamless transition into larger scale mining when permits are received.
New generation NMC batteries need sustained production of high-purity Mn sulphate sourced from high-grade Mn ore or Electrolytic Mn Metal. The push to secure battery material is impacting Mn chemical markets driving a rally in prices from the end of 2017.

The full-scale production target of 250,000tpa is based on metallurgical testwork and this will be tightened up during the bulk sample process and therefore is likely to change.

Valuation: we value the manganese business on its current small-scale mining plan at £11.7m or 0.52p/s. Keras’ stake in Calidus is worth A$16.5m or 0.52p/s. The two businesses together indicate a value of 1.04p/s not including any value for the Kamina cobalt and nickel in Togo.

*SP Angel act as Nomad and broker to Keras Resources

[zhockey] 13/10/2018 13:30

RS,

I had worked out similar figures a while back. However the chap that reported back from this week's presentation said that £2M profit was mentioned.

[rec0very stock] 13/10/2018 12:55

Small scale mining 6000TPM at 35% = 210,000 DMTU

Current price per DMTU FOB Port Elizabeth $6.22

OPEX per DMTU $3.3


= $630k net revenue. = $535500 to KRS = £410K per month = £5m per year less KRS PLC costs

[rec0very stock] 13/10/2018 11:48

There seemed to be a demand for a new thread. I don't believe in long headers that you need to scroll through or skip endlessly. I won't be offended if nobody decides to use it.

I think we are at a turning point for KRS. There is still a way to go with mining permits in Togo, but things look far more hopeful than at anytime in the past 5 years. If the follow on small scale mining happens then KRS becomes cash generative almost overnight.

My only hope is that the market does not cotton on to this until the new Tax Year so I can bed and ISA even more KRS shares.

Enjoy the discussions on whichever threads you use - it has always been well behaved so I see no need for any ground rules and hopefully we will all enjoy the rewards we have been patiently waiting for.

[rec0very stock] 13/10/2018 11:29

I have created a new thread.

[rec0very stock] 13/10/2018 11:27

A new thread for discussion of the dual value in KRS.

With Togo looking like it could finally move into some sort of production near term cash flow generation is a real possibility not a pipe dream anymore. And with that comes many new potential small scale projects which would make this part of KRS a worthwhile proposition on its own.

CAI has been demerged and those who were in at the time now have CAI shares worth on their own more than their whole KRS holding was at the time. There is another thread for CAI here:



Now we have a new in production asset in Utah USA producing high quality organic Phosphate.

Useful links:

[cpap man] 13/10/2018 09:37

Perhaps it is time for one of the PREMIUM posters to set up an new KRS thread as this one and others look extremely dated?

Can any PREMIUM poster assist with this task?

[cpap man] 12/10/2018 11:00

Keras Resources* (KRS LN) 0.4p, mkt cap £8.6m – New high-grade gold results from Calidus Resources add further value to Keras

Calidus Resources (CAI AU) A$0.03, mkt cap A$33.6m

(Keras currently hold 458m shares in Calidus Resources with an additional 265m new shares due to be granted by Calidus when the gold project PFS is published.

All Keras’ shares in Calidus are in escrow for two years with the lock up expiring on 23 June 2019.)

BUY, Target price 1.04p

CLICK FOR FULL NOTE PDF

Calidus Resources report further high-grade gold results from their Coronation Prospect, which forms part of its wider Warrawoona Gold Project, located in the Pilbara of Western Australia.

The drill results show multiple high-grade intercepts including 10m @ 4.69g/t Au from 57m and are part of a resource infill and extension program aimed at increasing the current JORC compliant to >1Moz Au from 712,000 oz currently.

Significant results include:

10m @ 4.69g/t Au from 57m in 18CRRC020
5m @ 4.48g/t Au from 35m in 18CRRC022
4m @ 5.30 g/t Au from 26m in 18CRRC014
2m @ 9.30g/t Au from 80m in 18CRRC013
3m @ 6.01g/t Au from 10m in 18CRRC018
7m @ 2.54g/t Au from 21m in 18CRRC012
3m @ 4.69g/t Au from 29m in 18CRRC022
2m @ 6.61g/t Au from 25m in 18CRRC016

*SP Angel act as Nomad and broker to Keras Resources

[cpap man] 12/10/2018 09:33

KRS are way way undervalued currently by the market....



Keras Resources* (KRS LN) 0.325p, mkt cap £7.6m - Manganese production in Togo

BUY, Target price 1.04p



Valuation: we value the manganese business on its current small-scale mining plan at £11.7m or 0.52p/s. Keras’ stake in Calidus is worth A$16.5m or 0.52p/s. The two businesses together indicate a value of 1.04p/s not including any value for the Kamina cobalt and nickel in Togo.

*SP Angel act as Nomad and broker to Keras Resources

[zhockey] 12/10/2018 09:08

These are great intercepts, looks like the parallel intercepts are offshoots of the main lode. The fact the ridge is present for 4.5km is a great target for expansion.

[4sta] 12/10/2018 08:49

More fantastic grades at shallow depths yet hardly any interest. Had this of been news from a certain other gold share whose name I shall not mention there would have been a frenzy by now. Just need to be patient I suppose, so much potential, surely this will come good in time.

[novicetrade68] 11/10/2018 23:47

Could trigger a bounce in Oz tonight and perhaps tomorrow here at KRS as well, all near surface again.

[andylee3] 11/10/2018 15:41

Broker note....

www.kerasplc.com/wp-content/uploads/KERAS_NOTE_10_October.pdf

[zhockey] 11/10/2018 15:08

Andy I have always been positive on Togo.