Keras Resources Share Discussion Threads

[rec0very stock] 13/10/2020 07:36

We went round this loop about 5 years ago when the delay was waiting for Togo to put in place a mining convention which, was supposed to have sorted those things. Indeed Dave and Russell did quite a bit of work in the background to help them with it.

The underlying problem is, like most African countries, there is plenty of bureaucracy but overall governance is weak (sometimes, but not always, due to endemic corruption). Togo does not have much of a mining tradition, unlike countries like South Africa, which also struggles to get its act together these days. This situation with mining governance in Togo has been described as them being afraid of their own shadows. The bottom line for Togo is until they give us the permit they will get no royalties or dividends from their free carried 10% or corporation tax or Togolese workers with employment paying income tax. It is also hardly conducive to encouraging investment in the country by other miners and indeed other industries.

My personal opinion, which would get me cancelled by the woke brigade, is the transition from being a colony (Togo was French) to independence happened too abruptly for the old system of governance to transform into an effective system that could be owned and run indigenously. Instead the hand back of power left a vacuum, which many African counties have struggled to fill. The classic example is Zimbabwe which went from being Rhodesia as the bread basked of Africa to being a basket case under effective dictatorship. Togo is not that bad, but has many of the same hallmarks.

Those screaming for RNSs hopefully now realise why it is better to say nothing at all rather than say something which hints at the above.

[the skipper] 12/10/2020 20:20

I think this article explains why we are still awaiting the exploitation license:


Translation:
“ Togo First) - While the country still draws little benefit from its mining assets , the Togolese Revenue Office (OTR) is setting the course for “maximizing tax revenues from mining activity in Togo” .

To achieve this, the Togolese tax authorities plan to upgrade their agents in terms of controlling mining production and assessing loss rates during mining. This is for the office to improve the capacity of its agents in terms of fiscal control of mining industries.

This OTR strategy appears to be consistent with the new mining policy , the main lines of which have been defined in the bill adopted by the Council of Ministers, which will have to modify the Mining Code in force. One of the major innovations contained in this document, which Parliament is expected to examine shortly, is that fixed rights and mining royalties have been revised in order to allow Togo to derive more income from its mining potential.

According to available data, in 2017, the overall revenues generated by the sector were around CFAF 15 billion (taxes and fees) for the benefit of the State and CFAF 932 million for social payments.

Until the end of April 2020, 73 mining titles had been awarded to 67 companies, according to data recently published by the Ministry of Energy and Mines.“


Now given that a Bill has already been approved an Act of Parliament should follow shortly. So no bungs here, just a Government ensuring that it will get its fair share of the revenues which will be generated.

[rec0very stock] 12/10/2020 00:29

zh,

we are all entitled to express our reasonable views. Time will tell which are correct. I think time is telling on this one:

flashheart28 Sep '20 - 07:56 - 1346 of 1429
0 5 0
I think it was realistically always going to be business as usual. Good of the company to RNS to clarify as you will always get a few taking the opportunity to scare monger if they can.

[zhockey] 10/10/2020 17:26

RS I disagree. They made a bed, they should lie in it.

If they are going to make a big deal of the trip to Togo, the ministers they met and then reiterate that significant progress and momentum was made and would not be disrupted. Then they have a responsibility to explain this progress and not simply state nothing.

I’ve been waiting for 4 years and have a percentage scale stake. I know the pattern. But if you are going to make a big fuss, then you have to follow through. Otherwise their credibility would be shot.

No worthy news now suggests the trip was a complete waste of time. Is that what you believe and think Russell wants us to think?

[rec0very stock] 10/10/2020 11:56

zh,

I am sure as soon as he is able to provide a meaningful update Russell will. Until then silence tells you what you need to know, even though it is not what you want to hear.

[zhockey] 10/10/2020 08:45

Not a rosy picture RS. But when they release an RNS like the last one, they owe us a follow-up on what the ‘clear roadmap to production’ they’ve worked on actually is.

I think the only news out of Utah that would move the dial is some kind of large scale commercial deal.

[rec0very stock] 09/10/2020 19:06

I think silence speaks louder than words when it comes to updates. The resignation of all the key people when it happen clearly came as a surprise to Russell and probably those people too. Yes it was expected sometime, but sometime in Africa can be years or minutes on the whim of the big boss.

I will be pleasantly surprised if we have a signed permit this side of Christmas. Hopefully there will also be newsflow from Utah before mining is stopped by the snow.

[zhockey] 09/10/2020 14:25

Ed, they would hardly say, oh bad luck chaps timing was a bit off and we need to go back and start afresh.

Lack of news leads to uncertainty and uncertainty leads to doubt.

[edgein] 09/10/2020 14:00

Zhockey,

The last RNS made it quite clear that the cabinet reshuffle in Togo made little difference:

"The change in government is a procedural process and the Directors do not expect it to impact or undermine the significant progress that has been made in both Lomé and at the Nayéga Manganese Project."

I'm looking forward to the next RNS from RL, hopefully it'll give a guide for the plan to production or some guidance towards the ML. This is a real sitter for the new PM and mining minister, hopefully they'll take advantage of that in due course. Lots of jobs and taxes for the Togolese and the potential for a large scale manganese sulphate plant (scoping study pending). Its not as if we're not used to waiting anyway. Short termers may or may not get bored but that's irrelevant, update pending is the way I see these currently.

Regards,
Ed.

[tradedesk1] 09/10/2020 12:47

Agree with your thoughts zhockey. The phosphate project whilst a very worthwhile addition and it does put a floor into the share price which is no bad thing, it isn't the company maker. Not for a few years.

I also agree with you that Russell needs to provide an update on exactly what he means by significant progress and momentum. Still very good risk v reward here but I plan to review my position depending on what has been achieved in progressing the Mining Licence, ultimately that is the catalyst to get things moving here. Need funds to be working, sitting idle whilst the Togolese take another year just won't do.

[zhockey] 09/10/2020 12:07

Ha I read that earlier, it’s garbage. Look beyond the headline and there’s 250 years supply. Terrible science journalism.

I have been to a phosphate outcrop in Morocco many years ago. We are not going to run out and I doubt prices are going to rise much beyond the rate of inflation.

The problem with Utah is that breaking into an established market, even with a superior product, is very difficult.

[markyess] 09/10/2020 11:58

zhockey



Interesting article that *might* help mitigate your fears on the Utah/Phosphate initiative. Looks like it could be a huge opportunity for us.

[zhockey] 09/10/2020 08:21

RS,

Also I don’t think Utah will become interesting for a few years. Even then, I am not sure they will be able to gain the market share they hope to. I just hope Utah doesn’t become a cash drain.

[zhockey] 09/10/2020 07:28

RS,

I do think Russell owes us an update on what the significant progress and momentum was?

At this stage it does seem as if the timing of the government change has disrupted that momentum. Maybe not, but we are due an update.

[markyess] 09/10/2020 07:13

Totally agree, RS, business in Africa is never fast. Togo is one of the poorest developing countries in the world, The key word is developing,

The biggest reason I have no concern is the involvement of World Bank. There's no hidden agenda, no foul play to steal us of our asset, juat a requirement for patience.

I believe this will also be the case when the permit is granted. We know what the value is here, but the folks expecting it to all price in on the day the permit is granted are likely to be disappointed.

[rec0very stock] 09/10/2020 00:28

So what is it you think Russell could have done that he has not done? He is back in UK and will update the market as soon as there is something worthwhile to update on. KRS has never been a company that just pushes out BS RNSs just to keep the BB subscribers happy. It also has to run any TNS about Togo past the Govt.

Have you ever worked in Africa? I have. I also go along to GMs - went to the last one.

We will get there in Togo and when we do it will be worth the wait, frustrating though it is. What is clear though is what a master stroke Utah was, as at least we have a solid prospect for cashflow in the near future while we continue to have to wait for the Togolese Govt to get its act together. Don't forget Russell and Dave both put their own money in to secure Utah and both have also been accruing rather than drawing their salaries.

[searcher0] 08/10/2020 23:42

Sure, just needs to get a result or be very close to one. I think thats fair as well.

[zhockey] 08/10/2020 23:09

Well considering the amount of time and cash Russell has put into this, surely it’s just a matter of time. We’re patient, I bought a load at near half this price.

[searcher0] 08/10/2020 22:09

Agree on Calidus but there is something unsettling about Togo if they can't wrap it up in the next few weeks. Its beyond ridiculous at 6yrs and I don't think the Utah acquisition can justify the current market cap on its own as the tonnage is far too small at the moment.

In my opinion the shares will trade between 12 and 16 only for so long, the permit will either come and it will make a larger move north or the hope of one will diminish and it will revisit sub 10. I'd like to know what Russell has been able to agree regards the permit, needs to provide a detailed update.

"Company looks forward to updating shareholders in the near term with developments"

[markyess] 08/10/2020 21:44

You can't ignore the value creation with the Calidus divestment.

Togo hasn't gone away, so value will correct. In due course.

[searcher0] 08/10/2020 20:13

The company has to take some responsibility for the value destruction. I'm well aware Government authorities deliver permits but the management has failed on some level to convince them. I get its Africa but 6yrs, something isn't right.

"Russell is home safe and sound and pointlessly self isolating" without a permit.

So tell me what exactly did Russell achieve during his trip, I don't see any definitive timescales or a roadmap to the permit having been agreed?!?

[rec0very stock] 08/10/2020 19:44

"Its about the length of time its taken the company to not deliver a key permit."

Companies don't deliver permits, Government authorities do.

Anyone who has any experience of trying to do business in Africa would not be making stupid statements either positive or negative about the company in this regard.

Russell is home safe and sound and pointlessly self isolating.