Keras Resources Share Discussion Threads

[jimbl] 29/9/2023 11:49

Hey, cheers Mark!

No joy in being proved right(ish), but building a market share from scratch by people with no connection to the industry was always going to be tough.

I had thought the carbon capture route may prove beneficial (like Fertoz) but so far that's amounted to nothing either. All in all I keep Fertoz in mind when considering our best case scenarios with DC and overall, it does not fill me with much enthusiasm.
Fertoz, multi mine, multi country, organic phosphate and carbon sequestration, yet share price is now only Aus$0.09.

[markyess] 29/9/2023 11:41

Gladly the '3 year' financial commitment doesn't start until mining begin at Togo, but agreed, it seems we'll still be waiting a while until they actually mobilise, even though it's now entirely on their terms for their benefit.

You called the challenges in the timeline to build Phosphate market share bang on the money, Jim. If at any point I cast doubt on your assumptions, I apologise! It's growing harder to leave the blame for slow growth solely at Helda's door!

Hopefully the liquid blenders demand does prove game changing, but I'm not going to get any hopes up until I see meaningful substance reported in the public domain.

[markyess] 29/9/2023 11:33

Agreed R_S we either need to see revenue from Togo or the take off from 'blenders' to be a game changer driving some significant sales growth above current levels, otherwise I fear we'll see a cash call around May-June next year. I just hope if it does come to that, the directors dig deep rather than us facing further dilution.

I'm still sitting tight, but I'm growing rather bored of the journey.

[jimbl] 29/9/2023 11:33

Considering it took 10 years to be relieved of Nayega by Togo, without licensing, then I continue to have ZERO faith in Togo commencing mining and paying us revenues within 3 years.
I'm beginning to have as little faith in the BOD updating us at all, on anything.

[rec0very stock] 29/9/2023 11:06

Indeed. Still suffering significant growing pains in Utah (significantly underestimated how long and how much effort would need to go into generating market share) and still waiting for Togo Govt to get its act together and start mining - they can wait a while as the 3 year clock does not start ticking, but they will need the revenue from Togo to pay off Shawn in Jun next year.

"the Company and State have had positive discussions regarding the development of Nayéga. This process continues and the Company believes that the continued constructive dialogue between the Company and the State will stand the project in good stead, and we look forward to updating shareholders on the way forward." Not particularly inspiring!

Only real highlight would be "updating our shareholders in the near future about potential long-term offtakes or joint ventures." If they happen as hopefully they would provide a steady sales volume.

[markyess] 01/8/2023 10:04

Thanks RS, that's covered one of the biggest queries/concerns I had.

I'm very relieved to hear that the timer doesn't start until a shovel hits the ground.

That should help allay a major fear for a number of people.

[rec0very stock] 01/8/2023 09:57

Just to echo and add to that. Whilst KRS have done some preparatory work so mining can start again in Togo, the hold up is with the government properly establishing SGM. Among other things they need to appoint a Director General. The 3/3.5 years of payments does not start until SGM starts, so the clock is not ticking down.

Mining should start in Utah fairly soon.

[pinecone] 01/8/2023 05:19

Whilst we await the official announcement, here are a few notes from the meeting!

Well……managed to express our frustration at the lack of comms, I actually “read out” from the LSE boards comments (silence) from Propinquity, Amadan and Diggit1gold’s ( right ).

They did admit they needed to do a lot more!
But they will not put out just for the sake of putting something out!

However, did get some answers on Togo.

We have not as yet started the project!

It’s in the hands,once again with the government, they need to agree some details; but Russell and the board agree they have a very good relationship with them!

This would sound out as true, as the fact the money due “was” paid and before the required date.

Everything is ready and just awaiting the confirmation!

And our once member of staff, Blaze is now within the government framework and assisting with our requirements!

One detail confirmed was, should there be any disruption to the project, there were structures in place to protect our interests.

The original off take buyer, is still in the conversation amongst other interested parties!

On Diamond Creek one thing confirmed is that Christopher Grosso is still a keen advocate of our company and is still buying!

I also mentioned the issue of our profit showing as an AISC, now they accept it was an error,it should just read profit!

We had an open discussion after the official meeting, but no other meaningful specifics came out of these!

PC

[beenhereb4] 07/7/2023 20:53

Thanks, Pinecone. It will be interesting to hear what they have to say.

[apotheki] 07/7/2023 10:30

Keras Resources* (KRS LN) – 4.10, Mkt cap £3.27m – Shares trading after suspension lifted

(Keras holds 100% of the Diamond Creek phosphate mine in Utah, UASA. Keras also holds an 85% interest in Societé General des Mines for the Nayéga manganese project in Togo)

Keras shares are now trading again following their suspension.

The company received its £1.7m of funds from the Republic of Togo.

The 2022 accounts were finalised and issued

The acquisition of the Diamond Creek organic phosphate mine in Utah was paid for

We believe the government of the Republic of Togo had send the money on time but it had been held up in the banking system for a few days.

The deal with Togo is for Keras to assist the Togolese government to hand over and operate the Nayéga manganese project to a state company.

Nayéga is considered to be a Togolese strategic asset.

Keras will hand over all intellectual knowledge on Nayéga to the Société Togolaise de Manganèse

Keras will be paid an advisory fee of 1.5% of gross revenue from the mine for the provision of advisory services for three years plus 6% of gross revenue for the provision of brokerage services for the lesser of 3.5 years or 900,000t of beneficiated manganese.

*SP Angel acts as nomad and broker to Keras

[peter437] 06/7/2023 11:39

There is a lot going on commities in Utah these days. It is a good place for permitting and close to Southern California where I am guess Keras is planning to sell its product

[apotheki] 06/7/2023 11:30

Keras Resources* (KRS LN) – suspended pending results – Results highlight increased sales out of Diamond Creek organic rock phosphate mine in Utah

(Keras holds 100% of the Diamond Creek phosphate mine in Utah, UASA. Keras also holds an 85% interest in Societé General des Mines for the Nayéga manganese project in Togo)

Keras report the production of 4,750 short tons of phosphate rock from the Diamond Creek organic rock phosphate mine in Utah, USA.

Total sales rose to 4,276t.

Liquid organic phosphate fertilizer: management are working on the production of liquid organic phosphate fertilizer to enable better phosphate availability for crops.

Granular plant: the team are also producing blended organic granulates for the 2023 summer season.

The local subsidiary, Falcon Isle Resources, which runs the mine and plant is profitable and has started to replay loans advanced to it by Keras Resources.

New investor: Kershner Grosso & Co acquired a block of 10.03% shares from First Uranium Corp. last year and have since raised their stake to 13.16%.

Keras recently announced its receipt of £1.7m of funds from the government of the Republic of Togo which it has used to complete the purchase of the Diamond Creek mine and settle the severance of the former ceo.

Prices: Rock Phosphate Monthly Prices continue to rise in the US to $345/t from $300/t seen in March. The World Bank also estimates an international price of $345/t for May.

We expect Organic rock phosphate prices to hold steady in the US as the economy continues to maintain a level of slow growth despite ongoing interest rate rises.

Conclusion: Keras management are now focused on developing and expanding the Diamond Creek phosphate mine. The development of the granular plant should expand sales capacity while the ongoing work on liquid organic phosphate products should give further room for future growth.

*SP Angel acts as nomad and broker to Keras

[pinecone] 06/7/2023 10:57

#beenhereb4#

I did make a note of your earlier post in May, regarding the Togo situation and intend asking those and a few more probing questions at the AGM!

PC

[markyess] 06/7/2023 09:40

I intend to be there R_S - although have a project go live on August 1st. Be good to finally put a face to the text/voice!

[rec0very stock] 06/7/2023 08:56

And CAI seems to be back on track after a frustrating year too.

Hope to catch up with some of you at the AGM on 31st Jul.

[markyess] 06/7/2023 07:53

An annual report representing a period of consolidation, and jam tomorrow.

It at least feels like there is a solid foundation for that jam, though - and so - in spite of the frustration of being invested since 2011, I have patience to keep holding.

A great opportunity for new Investors, IMO

[apotheki] 06/7/2023 07:44

Graham Stacey, Keras Resources Chief Executive Officer, commented, "Having acquired 100% of Falcon Isle in April, 2022 has been a year of consolidation taking full management control of the business and repositioning ourselves as a mining business in the North American organic agricultural sector. The organic rock phosphate segment space remains a niche component of the vast USA agricultural and produce industry, but research broadly forecasts the segment to grow at a consolidated annual rate in excess of 8% in volume terms and 14% in USD terms which is the underlying reason for our decision to acquire the outstanding 49% shareholding in Falcon Isle.

Reporting a maiden profit for Falcon Isle in our first year of ownership has been an incredibly rewarding result from a small but very focussed team in Utah. We've demonstrated the fundamentals of the business in its current form - producing sized dry products only, but from industry engagements at trade shows and from continuing communication with industry players we've learned that there's a need for us to broaden our product range to include liquid and blended granulated products - liquids to serve the fertigation and hydroponic sectors, and granulates to align with traditional fertilizer value chain in terms of distribution and application. Testwork to produce a high available phosphate organic liquid product is ongoing and we look forward to reporting on developments in that segment. Having taken delivery of our granulator plant at the end of 2021 we took the decision to pause construction at our Spanish Fork site pending negotiations with potential partners to construct the plant to produce specific blended granulates rather than simply phosphate products which again talks to the need for a more diverse product range as we continue to gain traction in the organic market. I look forward to reporting on our granulate strategy in the near future.

From a Group perspective, we believe that putting a line under the uncertainty related to our investment in Togo was a positive move and the cash received from our divestment underpins the strategy of focussing the Group's activities in North America. Our ongoing role in developing the Nayéga Mine with the Togolese State will remain an important source of cash flow for the Group as we continue to optimise and grow Falcon Isle in Utah.

Since the end of the year Kershner Grosso & Co ("Kershner Grosso"), an asset management firm headquartered in Saratoga Springs, NY, acquired a block of 10.03% of the shares in the Company previously owned by First Uranium Corporation, and have since acquired additional shares on the market bringing their shareholding to 13.16%. It has been very pleasing to receive this support from Kershner Grosso as long-term investors recognising the future growth profile in the organic sector and we look forward to building on the strong relationship we have with Chris Grosso and his team going forward and delivering on our shared vision for the sector.

[pinecone] 05/7/2023 11:18

These brokers don’t deserve their pay, if they can’t even get their numbers correct!( unless this has been incorrectly copied!!!)🥴🤣

PC

[apotheki] 05/7/2023 11:03

Keras Resources* (KRS LN) - Suspended - Receipt of Funds from Republic of Togo

(Keras holds 100% of the Diamond Creek phosphate mine in Utah, UASA. Keras also holds an 85% interest in Societé General des Mines for the Nayéga manganese project in Togo)

Keras has followed up from its annoncement on Monday with confirmation that cash payments of $80,000 for the acquisition of falcon Isle Resources have been paid.

Keras has also paid a $240,000 in severance to the former CEO of Falcon Isle.

As a result, the Company is no longer in default of its agreement signed on 30th March 2022 for the purchase of the remaining stake in Falcon Isle Resources.

The company will look to release its final audited Annual Reports and Accounts imminently.

Keras’ primary focus is to develop the Diamond Creek organic phosphate mine in Utah.

*SP Angel acts as nomad and broker to Keras

[rec0very stock] 05/7/2023 10:52

Agree they are a long way behind. Some of this is due to the time it took to get rid of Helda ($240k payment does stick in the craw) and part of it is down to the cash it took to get rid of Helda - a lot ended up being spent on lawyers fees. Without the Togo deal the company would have been in a lot of trouble.

The company does need the ongoing cash flow from the Togo deal to enable it to achieve the potential growth in Utah. We should take the fact that Togo did bring forward the payment, albeit not by enough to avoid the default, as a good sign. The overall Togo deal at the bottom end of the estimate of what it could be worth is worth more than current market cap. If Togo goes down the expansion route then it is worth a lot more than current MCap, albeit still a lot less than we were hoping to get by developing it ourselves, which, with the current security situation would not have been possible even if we had the permit.

Hopefully we will get some more details on progress in the results which can now be released and at the AGM later this month. Good comms does rely on having something good to say, hopefully there will be more good things to be saying this coming year.

[markyess] 05/7/2023 08:15

100% Jim. Newsflow has been 2 or 3 steps below abysmal. In spite of promises at the investment presentation/webinar last year that they'd do better - there's no evidence of any effort in the comms space.

[jimbl] 05/7/2023 07:16

$3.44 mil, thanks to a severance payment to Helda despite failing in the job he had (marketing).

The anticipated sales for this year were previously informed to us, being a hoped for 7.5-8k ton with what we all take to be an AISC profit margin of $80 - $100 per ton. So, potential profit from that is a not very exciting $600 - $800k. Without selling Togo it was unlikely we would have met this years payment to Helda, so no, not in the territory of self-sustaining.

The original plan was to ramp up over 5 years to 25k ton per year and AISC reducing to $90. We are yet to see anything which indicates that is on track.

[gb904150] 04/7/2023 21:34

Correct.

KRS bought the additional 49% of FI for $3.2m.

To be paid as 4 x $800k - 1st July 2022/23/24/25.

We will now have paid 2 out of 4 of those $800k payments.

Still....it does suggest that once upon a time we thought 100% of FI was worth $6.4m compared to the current Mcap of around £3.3m.

That said...not so keen on the talk of cashflow from Togo agreement underpinning development at FI. Shouldn't it be standing on its own two feet by now, generating stacks of cash?