Keras Resources Share Discussion Threads

[tomboyb] 01/8/2024 08:12

good rns --

[hazl] 01/8/2024 08:09

Skipper I see you are here.
Had these on my watchlist for ages!

Took a few today.

[stockriser] 01/8/2024 07:09

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

Commencement of commercial production at the Integrated Delta Processing Plant.

[the skipper] 31/7/2024 22:52

Seems that Togo are getting their act together with a new website for STM:

Some of the links will appear in English, other parts of the site will require translation, but worth keeping an eye on the news tab imo.

[tcrober1] 29/7/2024 16:58

Thanks for that recoverystock. Hopefully a bit of a re-rate is due. Interesting to see what a broker’s note currently says

[the skipper] 29/7/2024 14:36

Yes that is much appreciated RS. Hopefully a RNS will follow, but it was enough for me to add another tranche.

[tim000] 29/7/2024 14:24

Many thanks, very informative.

[jimbl] 29/7/2024 13:37

"The tender for Togo should be awarded soon, but we should not bank on getting much money or when, so what we do get comes as a bonus."

Why can't we bank or getting much, or when it will come? And why should we treat it as a bonus? They took it off us for peanuts after all and we have ben told what a great deal it's meant to be.

So apart from the JV, what about our standalone sales?

[alan@bj] 29/7/2024 13:33

Thanks Recovery, much appreciated.

[rec0very stock] 29/7/2024 13:00

Hot commissioning complete in Utah, now ramping up commercial production for the JV. I confirmed my understanding of RNSs - we get paid in full for the raw material we put into the JV at a slight discount to what we would sell it for elsewhere. We have a decent stock pile to get going, but they are looking at an 8-10KT mining campaign starting soon. As things stand the JV can sell everything that we produce and we get 50% of the net profit from those sales on top of the profit from selling the raw material into the JV. Effectively cash flow concerns are a thing of the past and they are confident of meeting final payment for FI and debt repayments when due entirely from Utah. The focus going forward is expansion in Utah - there is room for it at the new site.

The tender for Togo should be awarded soon, but we should not bank on getting much money or when, so what we do get comes as a bonus.

They are working with Shard to get some financial forecasts done and will do a roadshow in Sept so the market can finally see the value of the company.

[tim000] 27/7/2024 18:12

I had intended to go, but a delayed flight home prevented it. Annoying.

[tcrober1] 27/7/2024 17:57

Did anyone get to the AGM, any feedback?

[rec0very stock] 01/7/2024 12:27

The decision to ramp up and the responsibility for funding the ramp up now sits with Togo Govt. I think we have all learned not to count our chickens when it comes to Togo Govt.

A properly worked out note which gives low, best and high estimates of net cashflow to KRS for both revenue streams is desperately needed if KRS share price is to have any chance of reflecting true value.

After what has happened at CAI, I for one really need KRS to deliver.

[pinecone] 28/6/2024 18:47

Brokers……;…they haven’t had to produce too much in the way of news here; you’d have thought they would at least get the figures correct!
For “7480 tonnes per annum”…………should read 7480 tpm!

Plus to add some context to the figures, phase 1 ( after 12 months) was to ramp up monthly to 25000 tonnes!

That would give us a yearly $3 million payday, now that sounds much more exciting!

PC

[apotheki] 28/6/2024 11:30

SP Angel . Morning View .

Keras Resources* (KRS LN) – 3.45p, Mkt cap £2.7m – Keras starts to commission the integrated granulator plant at its Delta processing facility in Utah

(Keras holds 100% of the Diamond Creek phosphate mine in Utah, USA)

Keras Resources reports the hot commissioning of its integrated granulator plant at its Delta processing facility in Utah, USA.

The ‘hot commissioning’ process involves the testing of each plant component under progressively increasing load conditions until the design capacity is reached.

High-pressure grinding rolls are milling the rock phosphate material to initially blend and then reduce feed ingredients to ~90mesh (160 micron) for optimal granulation.

The material then goes for granulation where an organic liquid binder is applied before drying in cooler rotary kilns.

Connection to 3-phase power will replace 600kW of diesel generation as soon as is practicably possible reducing power costs and CO2 emissions.

Granules have now been produced proving the operation of the plant marking a significant milestone for PhoSul Utah LLC joint venture

The operation of the jv marks a new era for Falcon Isle Resources which holds the Diamond Creek Phosphate mine for Keras.

“PhoSul®'s formulation allows for improved Phosphorous availability in the soil, results from field tests have demonstrated significant yield and quality improvements over competitor rock phosphate sources. “

“PhoSul® further helps to solve Phosphorous run-off, a key component of the Company's organic identity.”

“Graham Stacey, CEO of Keras, commented, "Constant progress towards full load commissioning and refinement of an integrated circuit is always a challenging phase of plant construction and build-up to steady-state production.

We're very pleased to have progressed to hot commissioning and production of first organic granules without any material flaws to-date which speaks to the commitment of the construction and commissioning team given the intricacies of the move from Spanish Fork and the integration of the HPGR and granulator circuits in an entirely different configuration. “

See photos of hot commissioned product on:

Phosul® consists of 80% of 50 mesh ore from Keras’ Falcon Isle Diamond Creek mine.

Plant capacity: 5tph with a 520t/month running a single shift operation.

Double shift capacity ~ 920tpm of saleable bulk Phosul® granules expected in Q4.

Stockpile: ~4,250tons of 50 mesh product which will cover the operation through 2024 with all mining and crushing costs already expensed.

The Phosul jv should consume ~10,500tpa of 50 mesh phosphate when running at steady state.
Keras’ Diamond Creek can produce ~25,000tpa of rock phosphate.

Keras recently restructured short-term debt of US$900,000 incurred through the acquisition of the remaining 49% of Falcon Isle Resource Corp into a US$1,525,000 four-year loan and convertible loan, with US$1,325,000 of new cash funds and US$200,000 in capitalised Directors outstanding fees. (see RNS on 28/05/24)

Phosul® granules are currently quoted at $40 for a 25lb bag or $75 / 50lb bag on Amazon in the US.

Manganese: The Government of Togo are working towards the restart of mining at the Nayega manganese mine in Togo.

Keras’ agreement with the government of Togo should give it a“1.5% royalty advisory fee plus 6.0% of gross revenue generated from the Nayéga mine for the lesser of 3.5 years or 900,000t of beneficiated manganese ore produced and sold from Nayéga”.

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 are steady at 3.47-3.62/dmtu.

Manganese and cobalt ores and concentrates are subject to a 25% import tariff into China from this year resulting in higher local manganese prices.

The 25% tariff will also be applied to permanent magnets and natural graphite from 2026.

*SP Angel acts as nomad and broker to Keras

[tim000] 28/6/2024 11:09

I’ll try to attend as well, haven’t been before and would like to meet the Directors.

[pinecone] 28/6/2024 10:57

Exactly, one of many I’ll be putting again, at the AGM!

[stockriser] 28/6/2024 10:56

RS - Well said!

GL SR

[rec0very stock] 28/6/2024 10:25

Although there is nothing really new and exciting in this RNS, they need to continue to put out regular updates when there is something to say on both US and Togo, rather than slip back into their bad old ways of saying nothing for months on end.

I should be able to make the AGM on 26th where I will push them on that point but also encourage them to get a revised broker note out which tells us what the 2 revenue streams really look like in terms of free cashflow generation at PLC level. Yes they won't be enormous but when compared to current market cap or even fully diluted MCap (we must assume the recent loan will be converted) they should show how badly undervalued the company is because there are only us die hards who have been here waiting for years that understand how transformational recent events really are. I could try to work out some figures from the information they have given but it would have a significant margin of error and it it the company / broker's job to do it based on much more accurate and realistic information.

[apotheki] 28/6/2024 08:51

Graham Stacey, CEO of Keras, commented, "Constant progress towards full load commissioning and refinement of an integrated circuit is always a challenging phase of plant construction and build-up to steady-state production. We're very pleased to have progressed to hot commissioning and production of first organic granules without any material flaws to-date which speaks to the commitment of the construction and commissioning team given the intricacies of the move from Spanish Fork and the integration of the HPGR and granulator circuits in an entirely different configuration. I look forward to updating shareholders as we progress towards steady-state production and sale of organic Phosul® granules, as well as ongoing sales of our internal dry products as we move towards the commencement of year's summer mining season."

[apotheki] 28/6/2024 08:50

Keras Resources (AIM: KRS) wholly owns the Diamond Creek organic phosphate mine in Utah, US. Diamond Creek is one of the highest-grade organic phosphate deposits in the US and is a fully integrated mine to market operation with in-house mining and processing facilities. The operation produces a variety of organic phosphate products that can be tailored to customer organic fertiliser requirements.

The Company is focused on continuing to build market share in the fast-growing US organic fertiliser market and build Diamond Creek into the premier organic phosphate producer in the USI am pleased to provide an update on our progress since the last report and to set out our outlook for the business going forward.

[tim000] 28/6/2024 07:22

Steady progress on commissioning the new processing plant.

[andrewhbruce] 27/6/2024 11:19

Sales year to date would have been useful.

[stockriser] 27/6/2024 11:12

Jimbl - I agree the $800k still outstanding will be holding the share price back a bit, but the loss for 2023 was reduced by over 50% compared to 2022.

Lots to look forward to here in the near term, and believe 2024 will be the year for KRS to shine.

"The Consolidated Statement of Comprehensive Income for the year shows a loss of £446,000 (2022 - loss £997,000)."

GL SR

[jimbl] 27/6/2024 10:45

Perhaps due to the £462,000 loss and a still outstanding $800,000 owed to the former CEO?