CEO Graham Stacey “leaving the company for family reasons”, whatever that means. |
All you need to know about the Calidus situation!
Full disclosure with timelines of information,with links!
Make of it what you will, looks grim though!
hxxps://www.fticonsulting.com/creditors/calidus-resources-group
PC
With thanks to MTV over on HotCopper! |
An offer made under Rule 9 must, in respect of each class of share capital involved, be in cash or be accompanied by a cash alternative at not less than the highest price paid by the offeror or any person acting in concert with it for any interest in shares of that class during the 12 months prior to the announcement of that offer. |
Yes, that was another concern, the final $800k is due next summer, is the company able to make that payment from profits with 7000t sold, or will they have to raise more equity?Overall the company seems to be making good progress and seems to have honest management. The question is whether they will keep needing more money for the next couple of years, and also are the intentions of the concert party aligned with PIs? |
Well, the loans are also primarily through, and owed to, Grosso (via the Diane H Grosso investment trust). Last 'restructured' in May '24, followed by this latest 'subscription' of which we had little (zero) inkling.
For a company which stated in the last final results that FIR was 'operating profitably' (KRS has ZERO other operations now) it sure is questionable as to why we keep needing to raise money while still owing the final $850k purchase payment to the original owner. |
Presumably if those two wanted to go over 30% and make a takeover bid, they'd have to pay at least 2.5p now, in the next 12 months anyway?What is the actual forecast profitability now, on a micro market cap of £2.5m post dilution? They seem to have accumulated a lot of debt for such a small company. There are approx 30M shares to be issued for the convertible loans, fairly high interest standard loans, etcFrom the last interim results, their gross margin is modest, unless it's expected to increase with the new JV and higher-value Phosul? Plus they had a lot of deferred consideration still shown as 'payables', it seems to be more than is still owed for the Falcon Isle minority interest? |
As Grosso apparently introduced him, I'd presume so. That's 30% they hold between them, even though Grosso's is through the trust he administers. |
Do we assume Grosse and Carbone are acting in concert 29.98% |
Seems the BOD are overly reliant on Grosso for funding, IMHO.
That said, he sure does seem to have a strong interest in us. I hope it's for the best and doesn't turn into another car-crash like CAI has. |
Ah…just seen the previous RNS. Don’t know how I missed that but that explains where they got the stock. |
Just seen the two late RNS’s. Begs the question how did they manage to get that much stock without driving up the share price? Must have been off market transactions with a large holder imo. |
Somewhat optimistic, me thinks!
PC |
 SP Angel . Morning View . Metals extend gains on positive reaction to China fiscal stimulus
Keras Resources* (KRS LN) – 2.75p, Mkt cap £2.21 – Interims
(Keras holds 100% of the Diamond Creek phosphate mine in Utah, USA)
Keras Resources has published its interim report to end June 2024
The team concluded the jv with PhoSul Utah LLC and the acquisition of a new site 8 miles north of Delta in Utah for along with the transfer and construction of all processing infrastructure from Spanish Fork.
The new integrated processing facility cold commissioned in June with hot commissioning completed by end June.
The 2024 mining season started with ~7,500t due to be mined this year.
The new jv and facilities with PhoSul® should enable faster and greater growth in sales for the organic rock phosphate.
Revenue rise to £556k from £397k yoy from the sale of organic rock phosphate from the Diamond Creek mine in Utah, USA.
Revenue from the manganese operations came to £29,000 for advice to the Togo government which has taken over control of the Nayéga manganese mining project in Togo.
Production costs rose to £440k from £44k
Administrative expenses fell to £492k from £686k as management up moved to develop new facilities to feed the new jv with Phosul.
Finance costs of £80k fell from £106k.
There was a positive £82k gain foreign exchange translation vs £29k yoy.
The total comprehensive loss came to £354k vs £226k yoy.
The company has £1.5m of promissory and convertible notes repayable in 2028.
Conclusion: We expect Keras to report a substantial uplift in sales from here on through the direct sale of organic rock phosphate and via the new jv with PhoSul® in the US.
*SP Angel acts as nomad and broker to Keras |
Nothing surprising or spectacular in the Interims, but their publication should clear the way for the Broker note forecasts and the IR campaign we spoke about at the AGM to get going in the next few weeks. |
Interim Results
Keras Resources plc (AIM: KRS) announces its unaudited half year results for the six months ending 30 June 2024.
Overview
· Conclusion of PhoSul Utah LLC joint venture ("Phosul JV"), the acquisition of the property in Sutherland, 8 miles north of the town of Delta, Utah ("Delta Facility") on 22 January 2024 and the transfer and construction of all processing infrastructure from Spanish Fork to Delta;
· New integrated processing facility cold commissioned on 3 June 2024 and hot commissioning completed on 28 June 2024;
· Loss increased from £255,000 to £436,000 largely due to increased non-capital items related to the move to the Delta Facility and the exclusion of the extra-ordinary items in the comparable period in 2023;
· 28% increase in sales of 4,106 tons compared to period ended 30 June of 2023 of 3,190 tons;
· 2024 mining season has commenced with an estimated 7,500t to be mined for the season;
· Long term fundamentals of the organic fertiliser marker remain robust; and
· Move to produce PhoSul®, a direct application product in addition to the existing dry rock phosphate fertiliser blend products underpins the Company's trajectory to becoming North America's premier organic phosphate producer.
Graham Stacey, Keras Chief Executive Officer, commented, "2024 has been a transformative year for the Company with the move to the Delta Facility, the Phosul JV and the strategic diversification of our product range to ensure we are able to produce into the robust North American organic fertiliser market with a direct application granular product. For the rest of the year, operationally our focus will shift from infrastructure development to commercial production growth and from a product development perspective we will now focus on liquid organic product(s) with higher phosphate availability, building on our research carried out in 2023." |
Once again the brokers have not checked their numbers!
“The deal with the Togo government should give nearly $0.9m a year at a price of $3.5/dmt for manganese and production of 7,480tpa equating to some $2.6m over three years.”
7480 tonnes per “month” does equate to $2.6million in three years at this starting rate!
If we/ Togo can move the rate to 25,000 per month we get to $3 million per year!
They are just cutting and pasting!
PC |
SP Angel . Morning View .
Keras Resources* (KRS LN) – 3.20p, Mkt cap £2.58m – Diamond Creek Phosphate Project, USA - (Keras holds 100% of the Diamond Creek phosphate mine in Utah, USA)
Keras Resources reports the restart of mining at its Diamond Creek Phosphate Project, Utah, USA.
The mining campaign will run till end November, eg before the snow sets in.
The Delta Facility is currently operating at full capacity, on a single shift basis.
Mining starting later than usual due to management focus on the Delta Facility construction, commissioning and production ramp-up.
The mine has already produced 3,000t with plans to mine a further 3,000-5,000t of rock phosphate by the end of the mining campaign.
The plan is to truck this material to a laydown area at Diamond Creek with crushed run-of-mine ore progressively hauled to the Delta Facility before winter snowfall.
This material will be milled to 10 mesh and 50 mesh for direct sales and will also provide feed for the new granulator plant to produce 240SGN PhoSul®.
Phosul is currently selling for $40 per 25lb (11kg) bag on Amazon in the US or £31 in the UK through theseedsupply.com.
The mining campaign will ensure sufficient ore for in-house sales as well as feed to the joint venture with PhoSul which 3,500-4,000t of PhoSul® this year.
Power: Connection to 3-phase power will replace 600kW of diesel generation as soon as is practicably possible reducing power costs and CO2 emissions.
Manganese: we await news on the restart of the Nayéga manganese mine by the government of Togo where Keras holds a 1.5% royalty advisory fee plus 6.0% of gross revenue from the mine over the lesser of 3.5 years or 900,000t of beneficiated manganese ore sold..
The deal with the Togo government should give nearly $0.9m a year at a price of $3.5/dmt for manganese and production of 7,480tpa equating to some $2.6m over three years.
Manganese ore prices for 38%min FOB South Africa have slipped to $3.65-3.80/dmtu from in July to $4.07-4.22/dmtu from 3.47-3.62/dmtu at end June.
We note Manganese concentrates are subject to a 25% import tariff into China from this year.
The recent jump in manganese prices should be good for Keras assuming the government of Togo starts production from the Nayéga manganese mine.
*SP Angel acts as nomad and broker to Keras |
I guess they are waiting on the broker to get a note out. Hopefully later today. |
But we're still waiting for the more important financial projections as indicated at AGM and the prior RNS.
They're not really helping the market to help them/us |
Operations Update - Diamond Creek Phosphate Project, USA
Keras Resources plc (AIM: KRS) is pleased to provide an update on operations from its high-grade Diamond Creek organic rock phosphate mine ("Diamond Creek') and wholly owned Delta integrated processing facility ("Delta Facility") in Utah, USA.
· The 2024 mining campaign is now underway and will run through till end November 2024; and
· The Delta Facility is currently operating at full capacity, on a single shift basis.
The Diamond Creek mining campaign is now underway, starting later than usual due to focus on the Delta Facility construction, commissioning and production ramp-up. The 2024 campaign plans for production of between 6,000 and 8,000 tons of which 3,000 tons to date has already been mined and hauled down to the laydown area at Diamond Creek. Crushed run-of-mine ("ROM") ore will progressively be hauled to the Delta Facility prior to the onset of winter snowfall for milling to 10 mesh and 50 mesh for direct sales as well as feed for the recently commissioned granulator plant to produce 240SGN PhoSul® with the Company's Phosul Utah LLC joint venture ("JV") partners. This will be the first winter that all ROM is stored in a dry, under-roof environment which will significantly benefit the beneficiation process.
Since commissioning the Delta Facility, additional minor plant modifications have continued to improve both consistent overall production and product quality and is now running at full capacity allowing the JV to now market PhoSul® granulates into the autumn planting season.
Graham Stacey, CEO of Keras commented, "Ramping up of our Delta Facility to full capacity is the next milestone achieved by the team in Delta in what has been a transformative year to date. The new integrated circuit is far more efficient than the previous plant at Spanish fork and has allowed us to continue to produce and sell our dry 10 mesh and 50 mesh dry rock phosphate products as well as producing PhoSul® granulated fertilizer in collaboration with our JV partners PhoSul LLC. We believe the additional product diversification brought by marketing PhoSul®,a finished product for direct farm application rather than a blend constituent through third-party blending distributors will open new niche markets in the robust North American organic fertiliser sector.
"The continuation of mining at Diamond Creek during the 2024 summer season to generate ore for both in-house sales as well as feed to the PhoSul Utah JV has progressed well to date and will continue through to end-November which will set us up for beneficiation and sales in Delta during the winter season through to May 2025 when mining will recommence.
The Delta Facility has brought the business stability we've been looking for since acquiring 100% in Falcon Isle which we will continue to build on with both Falcon Isle products and PhoSul Utah JV granulate sales." |
PC - TOGO - It would be a welcome shock though ;-)
GL SR |
Added a few this afternoon, surely the update on our current and future prospects must be due in the coming weeks!
Hopefully, it will give us a clearer picture of where we are going, may even get a nod to other opportunities within the core of our business!
Would be shocked to finally hear a positive result on Togo!
PC |
I’ve been adding a few more shares, including today. Recovery’s feedback from the AGM was that cashflow should cover all known liabilities going forward. Nothing of course is certain, but if that’s the case then the company must be expecting to generate cash from operations of at least three-quarters of a £1 million next year to cover the final payment of $800k, plus any capex. At the current share price, that alone puts the company on a very low forward p/e. The promised broker’s note later this month (with profit forecasts guided by the company) could be a transformational event. |
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